FRAUDSTERS HIT WITH $5.8 MILLION BILL FOR ILLEGAL STOCK SCHEME!

SEC v. Kautilya Sharma, Perian Salviola, Pallas Holdings, LLC — U.S. Securities and Exchange Commission Litigation Release No. 26313, dated May 23, 2025.

The SEC charged Joshua Sason and others for illegally selling microcap securities without proper registration. On May 19, 2025, final judgments were entered against Kautilya Sharma, Perian Salviola, and Pallas Holdings, LLC. They will pay over $5.8 million in disgorgement and interest, plus penalties totaling $680,000, and face permanent injunctions and penny stock bars.

In Plain English

Imagine someone is selling tickets to a concert, but they don't have permission from the band or the venue. They're selling these tickets without following any rules. The SEC stepped in and said this is not allowed. Now, the people who sold these unauthorized tickets have to pay back the money they made and also pay extra fines. They are also banned from selling similar tickets for a while.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

  1. Offer and Sell Securities The Pallas Defendants, including Kautilya Sharma, Perian Salviola, and Pallas Holdings, LLC, participated in the offer and sale of certain securities. These securities were offered and sold without a registration statement being in effect.
  2. Lack of Registration or Exemption Crucially, the defendants did not have any applicable exemption to the registration requirements under the Securities Act. This means they bypassed the standard legal process for offering securities to the public.
  3. Violation of Securities Act Sections 5(a) and 5(c) The U.S. District Court for the Southern District of New York found that the Pallas Defendants violated Sections 5(a) and 5(c) of the Securities Act. These sections prohibit the sale or offer to sell securities unless a registration statement is filed and effective.
  4. SEC Motion for Summary Judgment On May 4, 2023, the SEC's motion for summary judgment was granted by the District Court. This ruling confirmed the defendants' violations of the securities laws based on the evidence presented.
  5. Entry of Final Consent Judgments On May 19, 2025, the court entered final consent judgments against the Pallas Defendants. This resolved all remaining claims in the SEC's February 15, 2019 complaint.

The Enforcement Action

On May 19, 2025, the U.S. District Court for the Southern District of New York entered final consent judgments against Kautilya Sharma, Perian Salviola, and Pallas Holdings, LLC, resolving claims that they participated in illegal microcap securities offerings without a registration statement or applicable exemption. The Pallas Defendants consented to pay disgorgement of $5,396,629.54 plus prejudgment interest of $404,631.17. Sharma and Salviola were each ordered to pay a $90,000 civil penalty and are permanently enjoined from violating Sections 5(a) and 5(c) of the Securities Act, and barred from participating in any offering of a penny stock for two years. Pallas Holdings, LLC was ordered to pay a $500,000 civil penalty and is permanently enjoined from violating Sections 5(a) and 5(c) of the Securities Act.

Named in this action: Kautilya Sharma, Perian Salviola, Pallas Holdings, LLC.