Securities and Exchange Commission v. Mathias

Summary

The United States District Court for the District of Columbia denied Shahnawaz Mathias's motion for relief from a prior order and to dismiss or quash service of process. The court held that Mathias waived an insufficient-service defense by failing to raise it in an earlier motion and alternatively held that service at his usual place of business was valid under Pennsylvania law. The underlying SEC action alleges unregistered securities offerings, securities fraud, reporting violations, aiding and abetting, and control-person liability.

Holdings

1. Mathias waived his Rule 12(b)(5) objection because he did not amend his earlier pre-answer motion or otherwise timely present the service defense after he was served.
2. Even if the service objection had not been waived, service was valid because Mathias was served at his usual place of business by leaving the summons with the property manager.
3. Mathias was not entitled to relief from the court's prior order because his service-of-process objection was waived and, alternatively, the service was valid.

Questions Presented

1. Whether Mathias waived an insufficient-service-of-process defense by failing to include it in or amend his earlier Rule 12 motion after service became available.
2. Whether service on Mathias at his usual place of business by delivery to the property manager complied with Federal Rule of Civil Procedure 4(e)(1) and Pennsylvania law.
3. Whether Mathias was entitled to relief from the court's prior order under Federal Rule of Civil Procedure 60(b)(4).

Disposition

other