Mohit A. Khanna, MAK 1 Enterprises Group, LLC, et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21749 / November 18, 2010

Securities and Exchange Commission v. Mohit A. Khanna, MAK 1 Enterprises Group, LLC, et al., United States District Court for the Southern District of California, Case No. 09cv1784 BEN (POR) (filed Aug. 17, 2009).

PROMOTER OF PHONY INVESTMENT POOL SCHEME SENTENCED TO 41 MONTHS IN FEDERAL PRISON

The Securities and Exchange Commission ("Commission") announced that a federal judge in San Diego sentenced Mohit A. Khanna, age 33, for his role in perpetrating a phony investment pool scheme through his former company, MAK 1 Enterprises Group LLC, both formerly of San Diego.

Judge Larry Alan Burns of the U.S. District Court for the Southern District of California sentenced Khanna on November 15, 2010 to serve 41 months in federal prison, three years supervised release thereafter, and to pay restitution of $15,901,724.44. The sentencing arises from Khanna's guilty plea to felony counts of conspiracy to commit mail and wire fraud (in connection with his role in MAK 1) and filing a false tax return. United States of America v. Mohit A. Khanna, U.S. District Court for the Southern District of California, case no. 10CR2271LAB (filed June 17, 2010).

MAK 1 was a Ponzi scheme that was halted by an emergency action filed by the Commission in federal court in San Diego in August 2009. In that action, the Commission charged MAK 1, Mohit Khanna, and Sharanjit Khanna with violations of the federal securities laws. All defendants in the action consented to entry of judgments of permanent injunction and orders of disgorgement of their ill-gotten gains.

Separately, the Commission charged Gustav G. Bujkovsky, a lawyer who represented MAK 1 and the Khannas, with violations of the federal securities laws. Securities and Exchange Commission v. Gustav George Bujkovsky, et al., United States District Court for the Southern District of California, Case No. 10-CV1965BEN (filed Sept. 21, 2010). Bujkovsky pleaded guilty to felony counts of obstruction of justice (for making false statements to Commission staff in connection with the Commission's investigation of MAK 1 and Mohit Khanna) and income tax evasion. United States of America v. Gustav G. Bujkovsky, U.S. District Court for the Southern District of California, case no. 10CR3467LAB (filed Aug. 31, 2010). He is scheduled to be sentenced on December 12, 2010.

For further information, see Litigation Release Nos. 21659 (September 22, 2010), 21306 (November 19, 2009), and 21181 (August 20, 2009) and Administrative Proceedings 34-60891 (October 19, 2009) and 34-61604 (March 1, 2010).