Securities and Exchange Commission v. Mathias

CourtDistrict Court, District of Columbia
DecidedJune 9, 2026
DocketCivil Action No. 2025-2313
StatusPublished

This text of Securities and Exchange Commission v. Mathias (Securities and Exchange Commission v. Mathias) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Securities and Exchange Commission v. Mathias, (D.D.C. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

SECURITIES AND EXCHANGE COMMISSION

Plaintiff, Civil Action No. 25-2313 (EGS) v.

SHAHNAWAZ MATHIAS, et al.,

Defendants.

MEMORANDUM OPINION AND ORDER

Plaintiff Securities and Exchange Commission (“Commission”

or “SEC”) has filed a Complaint against Defendants Shahnawaz

Mathias a/k/a “Shah” Mathias (“Mr. Mathias”), Ameri Metro, Inc.

(“Ameri Metro”), Penndel Land Development Co. (“Penndel”), and

HSRF Trust (“HSRF”) (collectively “Defendants”). See Compl., ECF

No. 1. 1 The Commission alleges the following Claims for Relief:

(1) Unregistered Offers and Sales of Securities in Violation of

Sections 5(a) and 5(c) of the Securities Act against all

Defendants; (2) Fraud in Violation of Section 17(a) of the

Securities Act against all Defendants; (3) Fraud in Violation of

Section 10(b) and Rule 10b-5 of the Exchange Act against

1 When citing electronic filings throughout this Opinion, the Court cites to the ECF header page number, not the page number of the filed document. 1 Defendants Mr. Mathias and Ameri Metro; (4) Fraud in Violation

of Section 10(b) and Rules 10b-5(a) and (c) of the Exchange Act

against Penndel and HSRF; (5) Periodic Reporting Violations in

Violation of Exchange Act Section 13(a) and Rules 12b-20, 13a-1,

and 13a-11 thereunder against Ameri Metro; (6) Periodic

Reporting Violations-Aiding and Abetting Ameri Metro’s Violation

of Exchange Act Section 13(a) and Rules 12b-20, 13a-1, and 13a-

11 thereunder against Mr. Mathias; and (7) Control Person

Liability for Ameri Metro’s, Penndel’s, and HSRF’s Violations of

the Exchange Act against Mr. Mathias. Id. at 19-25.

On March 3, 2026, the Court denied Mr. Mathias’ Motion to

Dismiss pursuant to Federal Rules of Civil Procedure 12(b)(1),

12(b)(2), and 12(b)(3). See Mem. Opinion and Order, ECF No. 13.

Now pending before the Court is Mr. Mathias’ Motion for Relief

from the Court’s March 3, 2026 Memorandum Opinion and Order

pursuant to Federal Rules of Procedure 12(b)(5) and 60(b)(4),

and to dismiss or quash service of process because Mr. Mathias’

was not properly served (“Mot. for Relief”). See Mot. for

Relief, ECF No. 17. Mr. Mathias proceeds pro se. 2

2 Mr. Mathias may appear pro se on his own behalf, but may not appear on behalf of the corporations named in the Complaint. See Georgiades v. Martin-Trigona, 729 F.2d 831, 835 (D.C. Cir. 1984)(stating individual who was not a member of the bar of any court may appear pro se, but is not qualified to appear as counsel for others). 2 Upon careful consideration of the Motion for Relief, the

Commission’s Opposition, the applicable law, and for the reasons

explained below, the Court DENIES the Motion for Relief. 3

I. Procedural Background

The SEC filed the Complaint against Defendants on July 18,

2025. See Compl., ECF No. 1. On July 21, 2025, summons was

electronically issued to the Defendants. See Summons, ECF No. 3.

The Summons for Mr. Mathias listed the following address:

SHAHNAWAZ MATHIAS a/k/a Shah Mathias 3255 Cape Horn Road, Apt.

163 Red Lion, PA 17356. See id. at 1. Before any Return of

Service was filed for Mr. Mathias, he filed, on August 8, 2025,

a Motion to Dismiss for Lack of Subject Matter Jurisdiction,

Personal Jurisdiction, and Improper Venue pursuant the Federal

Rules of Civil Procedure 12(b)(1), 12(b)(2), and 12(b)(3). See

Mot. to Dismiss, No. 8.

On August 21, 2025, the SEC requested that the Summons be

reissued to Mr. Mathias at a different address: 2575 Eastern

Boulevard, York, PA 17402. See Request for Summons to Issue, ECF

No. 10. Mr. Mathias’ Declaration avers that his “primary mailing

address is PO Box 163, Red Lion, Pennsylvania 17356. For safety

reasons I do not declare my address anywhere. The business

3 Mr. Mathias did not file a Reply brief in response to the SEC’s opposition brief. See generally Dkt. for Civil Action No. 25- 2313. 3 address associated with Ameri Metro, Inc., Penndel Land

Development Co., and HSRF Trust is 2575 Eastern Boulevard, York,

Pennsylvania 17402.” Mathias Decl., ECF No. 16-2 ¶ 1. The

Summons for Mr. Mathias was reissued on August 22, 2025, see

Summons, ECF No. 11; and the Return of Service/Affidavit was

filed on August 29, 2025, see ECF No. 12. The process server

avers that “I left the summons at the office or usual place of

business of Shahnawaz Mathias with Tracie Snyder, property

manager, at 2575 Eastern Blvd., East York, PA 17402 on 8/26/2025

at 11:53 am.” Id. at 2.

II. Legal Standards and Analysis

A. Mr. Mathias Waived Insufficient Service of Process as a Ground for Dismissal

Pursuant to Federal Rule of Civil Procedure 12(b)(5), a

party may move to dismiss for insufficient service of process.

FED. R. CIV. P. 12(B)(5). Federal Rule of Civil Procedure 12(g)(2)

“forbid[s] a defendant who makes a preanswer motion under this

rule from making a further motion presenting any defense or

objection which was available to him at the time he made the

first motion and which he could have included, but did not in

fact include therein. Thus if the defendant moves before answer

to dismiss the complaint for failure to state a claim, he is

barred from making a further motion presenting the defense of

improper venue, if that defense was available to him when he

4 made his original motion.” FED. R. CIV. P. 12(g)(2), Commentary to

1966 Amendment.

Here, Mr. Mathias moved to dismiss, specifically citing

Federal Rules of Civil Procedure 12(b)(1), 12(b)(2), and

12(b)(3), on August 4, 2026. See Mot. to Dismiss, ECF No. 8. Mr.

Mathias had not been served when he filed the Motion to Dismiss.

However, a Rule 12(b)(5) motion became available to him when he

was served on August 26, 2025. See Return of Service/Affidavit,

ECF No. 13. If Mr. Mathias wanted the Court to consider whether

the case should be dismissed for insufficient service of

process, he “should have amended [his] motion to dismiss” after

he was served. Holley v. United States, Civil Action No. 24-

1536, 2025 WL 266532, at *3 (D.D.C. Jan. 22, 2025). “Having

failed to do so, the [C]ourt will treat the issue as waived.”

Id.

The Court is mindful that pleadings by pro se litigants are

generally held “to less stringent standards than formal

pleadings drafted by lawyers.” Haines v. Kerner, 404 U.S. 519,

520 (1972) (per curiam). This liberal construction “is not,

however, a license to ignore the Federal Rules of Civil

Procedure.” Sturdza v. United Arab Emirates, 658 F. Supp. 2d

135, 137 (D.D.C. 2009).

5 B. Even if Mr. Mathias Had Not Waived Insufficient Service of Process, Service of Process Was Sufficient and Valid

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Related

Haines v. Kerner
404 U.S. 519 (Supreme Court, 1972)
Owen F. Silvious v. Ghaith R. Pharaon
54 F.3d 697 (Eleventh Circuit, 1995)
Sturdza v. United Arab Emirates
658 F. Supp. 2d 135 (District of Columbia, 2009)
Calista Enterprises Ltd. v. Tenza Trading Ltd.
40 F. Supp. 3d 1371 (D. Oregon, 2014)

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