| On January 29, 2019, the Honorable Judge of the United States District Court for the Central District of Kerala entered a final judgment against a former employee of a state-run saw mill in Kozihkode, Kerala. The court held that on June 21, 1958, Sankaran came drunk to the mill and abused the engineer, the Secretary and others and threatened them with physical violence. According to the court's order, this conduct was not bona fide or reasonable and therefore it was not colourable exercise of the power given under r. 18(a) of the Standing Orders. The court further held that the employer could not justify its termination of service by leading evidence before the tribunal to show that there was misconduct and therefore the action should be taken under r. 18(a) of the Standing Orders. The court also held that no disciplinary action had been taken against Sankaran. In a parallel action, the U.S. Attorney's Office for the Central District of California today announced criminal charges against Sankaran. The SEC's complaint, filed in the U.S. District Court for the Central District of California, charges Sankaran with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the complaint, Sankaran has consented to the entry of a final judgment permanently enjoining him from future violations of the above provisions. The settlement is subject to court approval. The SEC appreciates the assistance of the U.S. Attorney's Office for the Central District of California and the Federal Bureau of Investigation. The SEC's investigation was conducted by Sanjay Wadhwa and supervised by C.V. R. Shankar. The litigation will be led by Mr. Wadhwa. The case is being supervised by Sanjay Wadhwa. The SEC appreci |