A plain-English walk through the public court record in one SEC civil case: what was filed, what the court ordered, what the numbers mean, and what the legal words actually say.
Securities and Exchange Commission v. Dharma Teja Nukarapu, SharkDreams, Inc. (a/k/a Fellow), and D Dollar, Inc.
U.S. District Court, Eastern District of North Carolina · Case No. 5:23-cv-00503
Dharma Teja Nukarapu consented to the final judgment without admitting or denying the allegations in the SEC's complaint (except as to the court's jurisdiction, and as stated in paragraph 12 of his consent for bankruptcy purposes). This page explains the record. It does not argue with it.
Prepared by Dharma Teja Nukarapu from public court records. Not produced by or affiliated with the SEC or the court. Not legal advice.
Four dates on the public record, in order.
The SEC sues in federal court in Raleigh. A complaint states one side's allegations.
The SEC announces the lawsuit and summarizes what it alleges.
Each defendant signs a written consent agreeing to a final judgment, without admitting or denying the allegations.
Chief U.S. District Judge Richard E. Myers II signs the agreed final judgment. The case is resolved.
The SEC publishes its summary of the judgment. This is the number this page is named after.
These are the SEC's allegations, as the SEC summarized them. They are claims made in a lawsuit. The case was resolved by consent, without a trial.
Under paragraph 12 of the consent, these allegations are treated as true for one narrow purpose only: deciding whether the judgment debt can be erased in bankruptcy. The answer is that it cannot.
As part of the settlement, he agreed not to publicly deny the SEC's allegations or suggest they lack a factual basis (Consent ¶12). This is a standard term in SEC settlements, set out in the SEC's own rule, 17 C.F.R. § 202.5(e).
That is why he does not discuss the allegations in public. His silence on them is a condition of the settlement. It is not an admission, and it is not a denial.
What he can talk about: his work, his companies, and the facts of the public record shown on this page.
Flip the switch to see the court's own language, then flip back for the plain-English version.
Never break the anti-fraud rules. He and both companies are permanently ordered to obey the main anti-fraud laws for buying, selling or offering investments. Everyone already has to follow these laws. The order means a future violation would also break a court order.
"permanently restrains and enjoins Defendant from violations of, and/or aiding and abetting violations of, Securities Act Section 17(a) [15 U.S.C. § 77q(a)], Exchange Act Section 10(b) [15 U.S.C. §78j(b)], and Exchange Act Rule 10b-5 [17 C.F.R. § 240.10b-5]"Consent ¶2(a) · Final Judgment §§ I–IV
The order reaches helpers too. Anyone who works for him or acts together with him, and knows about the order, is also bound by it.
Binds "the following who receive actual notice of this Final Judgment … (a) Defendant's officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant." Fed. R. Civ. P. 65(d)(2).Final Judgment §§ II, IV, VI
No raising money through investments, permanently. He may not take part in issuing, offering, buying or selling any security for others, directly or through any company he owns or controls. Exception: he can still buy and sell investments for his own personal account.
"permanently restrains and enjoins Defendant from directly or indirectly, including, but not limited to, through any entity owned or controlled by Defendant, participating in the issuance, purchase, offer, or sale of any security; provided, however, that such injunction shall not prevent Defendant from purchasing or selling securities for his own personal account"Consent ¶2(b) · Final Judgment § V
No leading a public company for 10 years. He cannot be an officer or director of a company registered with the SEC or required to file public reports with it. The bar runs to about March 2035. It covers public (SEC-reporting) companies only.
"pursuant to Section 21(d)(2) of the Exchange Act … Defendant be barred from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act … or that is required to file reports pursuant to Section 15(d) of the Exchange Act … for a period of ten years"Consent ¶2(c) · Final Judgment § VII
Pay back, plus interest, plus a penalty. The court set three disgorgement amounts (one his alone, two shared with a company), interest on each, and a $300,000 civil penalty for each defendant. The Money tab breaks these down.
"orders Defendant to pay disgorgement in the amount of $333,490, plus prejudgment interest thereon of $90,108; and … on a joint and several basis with SharkDreams, Inc., disgorgement in the amount of $522,320 and prejudgment interest thereon of $143,946; and … on a joint and several basis with D Dollar, Inc., disgorgement in the amount of $52,020 and prejudgment interest thereon of $12,212 … [and] a civil penalty in the amount of $300,000"Consent ¶2(d)–(e) · Final Judgment § VIII
How and when to pay. The money is paid to the SEC in installments due within 90, 180, 270 and 360 days. The penalty cannot be written off on taxes or covered by insurance. If a payment is missed, the SEC can demand the whole balance at once. The SEC may give the money to investors through a "Fair Fund."
Penalty "shall be treated as a penalty paid to the government for all purposes, including all tax purposes" (Consent ¶3). Defendant "shall not seek or accept, directly or indirectly, reimbursement or indemnification from any source, including … any insurance policy" (¶4). Installment schedule and acceleration on default: Final Judgment § XI.Consent ¶¶3–4 · Final Judgment §§ IX–XI
Bankruptcy will not erase it. For bankruptcy purposes only, the allegations are treated as true, so this debt counts as one that bankruptcy cannot wipe out.
"solely for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, … the allegations in the complaint are true, and further, that any debt … is a debt for the violation by Defendant of the federal securities laws … as set forth in Section 523(a)(19)"Consent ¶12(iv) · Final Judgment § XII
The no-deny promise. He agreed not to publicly deny the allegations, or suggest they lack a factual basis. If he ever says he doesn't admit them, he must also say he doesn't deny them. If he breaks this, the SEC can ask the court to reopen the case. He keeps the right to take legal positions in other lawsuits where the SEC is not a party.
Defendant "(i) will not take any action or make or permit to be made any public statement denying, directly or indirectly, any allegation in the complaint or creating the impression that the complaint is without factual basis; (ii) will not make or permit to be made any public statement to the effect that Defendant does not admit the allegations … without also stating that Defendant does not deny the allegations"Consent ¶12 · 17 C.F.R. § 202.5(e)
The judge keeps the file open for enforcement. If any term is not followed, the SEC can go back to the same court.
"this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment."Final Judgment § XIII
Tap a bucket to see what it is, who shares it and when it was due. These are the amounts the court ordered. This page says nothing about what has been paid.
Read straight from the terms of the order.
Other laws, licensing boards and regulators can attach their own consequences to an SEC injunction (Consent ¶11). This list covers only what the judgment itself says.
Make a call on each one, then see what the record says.
"He was found guilty of fraud."
This was a civil case, not a criminal one, so no one was found "guilty." There was no trial and no verdict. The case ended with a consent judgment entered without admitting or denying the allegations.
"The SEC can only bring civil cases."
The SEC is a regulator. It sues in civil court for orders and money. Criminal charges are brought by prosecutors.
"There was jail time."
The judgment orders injunctions, bars and payments. It contains no prison sentence.
"The SEC release is the judgment."
Release No. 26275 is the SEC’s announcement. The binding document is the final judgment the court signed on March 6, 2025, 14 days before the release was published.
"He’s banned from running any business."
The 10-year officer/director bar covers public, SEC-reporting companies. The separate permanent bar covers issuing, offering, buying or selling securities. The judgment has no general ban on working or running a business.
"He can still buy and sell stocks for himself."
The securities bar expressly allows purchases and sales for his own personal account (Final Judgment § V).
"This debt can’t be erased in bankruptcy."
Paragraph 12 of the consent and § XII of the judgment make it a debt that bankruptcy cannot discharge, under 11 U.S.C. § 523(a)(19).
"The judgment was entered in 2024."
The consents were signed November 22, 2024. The court entered the final judgment on March 6, 2025.
Type a word you saw in the release or the judgment.
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Every statement on this page comes from these public documents.