SEC v. Adesh Kumar Tyagi (marking the close, 2017)

Settled

✓ Checked against the primary document on October 4, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sec-adesh-kumar-tyagi-marking-the-close-2017) by email

In May 2017 the SEC sued Adesh Kumar Tyagi, former CEO of Systems America, Inc. (later Cloudeeva), alleging false press releases and annual reports and that he marked the close on at least 16 trade dates. He had pleaded guilty to securities fraud in a parallel criminal case in November 2016. A consent final judgment entered on August 17, 2017 enjoined him, imposed officer-and-director and penny stock bars and ordered about $294,000 in disgorgement and interest.

The record

What was ordered

Civil penalty

—

Disgorgement

$294k

Prejudgment interest

—

Total relief

$294k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced this action on June 1, 2017 as litigation release LR-23850. The complaint was filed on May 31, 2017 in the U.S. District Court for the Northern District of California (No. 3:17-cv-03128). The defendant is Adesh Kumar Tyagi (1 individual, 0 entities).

The SEC alleges that between July 2010 and September 2011 Tyagi issued press releases overstating the company's customers and international operations, omitted that he was party to litigation and two pending criminal proceedings, and failed to file required ownership reports. It alleges he also placed buy limit orders in small increments during trading days and marked the close on at least 16 trade dates to inflate the share price and volume. The charges are under Section 17(a) of the Securities Act and Sections 10(b), 13(d) and 16(a) of the Exchange Act, with control-person and aiding-and-abetting claims.

On November 9, 2016 Tyagi pleaded guilty to one count of securities fraud in the Central District of California. In the complaint the SEC asked for injunctions, disgorgement with interest, penalties and officer-and-director and penny stock bars.

For the regulator's own account of the facts, read the primary document linked above.

Outcome: according to SEC litigation release LR-23913, the U.S. District Court for the Northern District of California entered a final judgment by consent on August 17, 2017. The release says the judgment permanently enjoins Tyagi from violating the antifraud provisions of the Securities Act and the Exchange Act, imposes officer-and-director and penny stock bars, and requires roughly $294,000 in disgorgement and interest. It mentions no civil penalty. The release says the judgment ends the litigation as to him. It does not break the $294,000 into disgorgement and interest, so the full figure is stored as disgorgement. Consent judgments are entered without admitting or denying the allegations. Checked on 2026-10-04.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Marking the close — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2017-06-01 Litigation release published
2. 2017-08-17 Final judgment entered by consent

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release
• SEC litigation release on the final judgment (LR-23913)

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.