SEC v. Energy & Environmental Investments, LLC, et al.

Civil Action No. 23-cv-338 (C.D. Cal.)

On February 24, 2023, the Commission filed a Complaint against Energy & Environmental Investments, LLC (“EE LLC”); Energy & Environment, Inc. (“EE Inc.”); Amir A. Sardari (“Sardari”); and Narysa Sardari Luddy (“Luddy”) (collectively, the “Defendants”), alleging that, from March 2011 through April 2020, they perpetrated an offering fraud, raising $9.3 million from over 200 investors nationwide. The Commission alleged that EE LLC fraudulently offered and sold securities from a call center based in Orange County, California, claiming it would use the money to acquire and develop clean energy projects with an emphasis on the oil and gas sector. The Commission alleged that, in fact, the Defendants spent investor funds on the call center’s payroll, marketing, personal expenses, and to pay other investors in a Ponzi-like scheme. See the Commission’s Complaint.

On May 19, 2023, the Court entered Final Judgments, by consent, against all of the Defendants, in relevant part ordering them, collectively, to pay disgorgement, prejudgment interest, and civil penalties aggregating to approximately $6.9 million. See the Defendants’ Final Judgments.

The Commission currently holds $550,000.00 paid by the Defendants pursuant to the Final Judgments (the “Distribution Fund”). The Distribution Fund is held in a Commission-designated account with the United States Department of the Treasury. Additional collections; any funds directed to the Distribution Fund pursuant to Court or Commission order, or otherwise; and any interest accrued will be added to, and become a part of, the Distribution Fund.

On October 17, 2023, the Commission filed a Notice of Unopposed Motion and Motion for an Order Creating a Fair Fund, Appointing a Tax Administrator, and Authorizing Future Payment of Tax Obligations, and Fees and Expenses. See the Commission’s Motion.

On January 4, 2024, the Court issued an order creating a Fair Fund, appointing Heffler, Radetich & Saitta, LLP as Tax Administrator, and authorizing future payment of the tax obligations and related fees and expenses of the Tax Administrator. See the Court’s Order.

On March 1, 2024, the Commission filed a motion seeking from the Court the entry of an Order to Show Cause why the Court should not approve the Commission’s proposed plan to distribute the Fair Fund (the “Proposed Plan”). See the Motion and accompanying papers.

On March 22, 2024, the Commission filed a Status Report re: Notice of Motion and Motion for Order to Show Cause (Dkt. No. 30), and Confirmation of Hearing. See Status Report.

On April 23, 2024, the Court granted the Commission’s motion and entered the Order to Show Cause. Individuals and entities who purchased membership units in Energy & Environmental Investments, LLC from March 1, 2011, through April 1, 2020, inclusive, or other interested individuals or entities, have until June 3, 2024 to show cause, if there is any, why the Court should not enter an Order approving the Proposed Plan. The process for showing cause is set forth in the Order to Show Cause, Section II. See the Court’s Order to Show Cause and the Proposed Plan.

On June 7, 2024, the Commission informed the Court that it had received no objections to the Proposed Plan, and asked the Court to enter an Order approving the Distribution Plan. See the Commission’s Notice.

On July 8, 2024, the Court entered an order approving the Distribution Plan (the “Plan”). See the Court’s Order with attached Distribution Plan.

On March 3, 2025, the SEC filed a Motion for an Order to Disburse. See Motion.

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov