Securities and Exchange Commission v. Thomas Megas

CourtDistrict Court, E.D. Pennsylvania
DecidedJune 3, 2026
Docket5:20-cv-01593
StatusUnknown

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

Bluebook
Securities and Exchange Commission v. Thomas Megas, (E.D. Pa. 2026).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF PENNSYLVANIA __________________________________________

SECURITIES AND EXCHANGE COMMISSION, : Plaintiff, : : v. : No. 5:20-cv-1593 : THOMAS MEGAS, : Defendant. : __________________________________________

O P I N I O N Renewed Motion to Enter Default Judgment, ECF No. 136 - Granted

Joseph F. Leeson, Jr. June 3, 2026 United States District Judge

I. INTRODUCTION Pro se defendant Thomas Megas failed to fully respond to discovery despite numerous extensions of time and orders compelling him to do so. Megas also failed to appear for his court- ordered deposition on several occasions. These willful actions, taken despite warnings that default judgment would be entered, have prejudiced Plaintiff, the Securities and Exchange Commission (“SEC”). For these reasons and those set forth below, the SEC’s Motion to Enter Default Judgment against Megas is granted pursuant to Federal Rule of Civil Procedure 37. II. BACKGROUND On March 23, 2020, the SEC filed a Complaint against Defendants Thomas Megas and Todd Lahr for violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and of the Securities Exchange Act of 1934. See Compl., ECF No. 1. The Complaint explains that Lahr formed THL Holdings LLC, a Nevada limited liability company, in January 2012. See id. ¶ 10. A few years later, according to the Complaint, “Lahr and Megas established Ferran to raise money to help Lahr make the interest payments owed to THL Holdings investors.” Id. ¶ 23. Although Megas is a resident of Switzerland, Ferran was incorporated in Nevada. See id. ¶¶ 8, 10. The Complaint alleges that Defendants engaged in a Ponzi scheme, through which they sold over a million dollars in unregistered securities consisting of promissory notes in THL Holdings

LLC and common stock and warrants in Ferran Global Holdings, Inc. See id. Final judgment was entered against Lahr on June 23, 2020, finding that he is liable for disgorgement in the amount of $976,879.00, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon of $179,88.17, for a total of $1,156,767.17. See ECF Nos. 11-12 (offsetting Lahr’s payment obligation in an amount equal to the orders of restitution and/or forfeiture entered against Lahr in the related criminal action). See also United States v. Lahr, No. 5:19-cr-00496 (E.D. Pa.) at ECF No. 41 (sentencing Lahr to seventy-eight (78) months imprisonment for securities fraud, three (3) years of supervised release, and restitution in the amount of $2,106,918.53). Default was entered against Megas on April 29, 2021, followed by default judgment on July 30, 2021, which found Megas liable for

disgorgement. See ECF No. 27. Judgment was entered in the amount of $30,755, representing net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $8,719, and a civil penalty in the amount of $487,500, for a total amount of $526,974. Id. A few months later, Megas moved to dismiss default judgment, arguing that service of the Complaint was improper under the Hague Convention. See ECF No. 33. After additional filings and an evidentiary hearing, the court issued an Opinion and Order denying Megas’s motion to dismiss default judgment. See ECF Nos. 60-61. Megas appealed. On July 24, 2024, the Third Circuit Court of Appeals determined that Megas was not properly served and, therefore, vacated the entry of default and default judgment. See ECF No. 69. On September 18, 2024, after the action was reassigned from the late Honorable Edward G. Smith, this Court entered an Order vacating the default and default judgment against Megas. See ECF Nos. 71. Additionally, this Court directed that the SEC make proper service on Megas, which was effectuated on December 27, 2024. See ECF Nos. 71, 77. Megas failed to timely

respond to the Complaint and default was again entered against him on February 14, 2025. Ten (10) days later, Megas moved to vacate default because he purportedly miscalculated the time to file a responsive pleading. See ECF No. 79. Given his pro se status and the Third Circuit’s preference for a decision on the merits, this Court granted his motion to vacate default on February 26, 2025. See ECF No. 80. He thereafter filed an Answer, asserting that the SEC’s claims are barred by the statute of limitations and that the SEC mischaracterized the relationship between he and Lahr. See Answer, ECF No. 81. On March 13, 2025, this Court issued a Rule 16 scheduling order setting case management deadlines, which were subsequently extended by sixty (60) days at the SEC’s request because of Megas’s international residence and Swiss law’s restrictions on the SEC to

engage directly with Megas in discovery. See ECF Nos. 82-84 (setting the deadline for serving interrogatories and requests for production as June 13, 2025, the deadline for completion of fact and expert discovery as September 9, 2025, and the deadline for dispositive motions as October 10, 2025). On June 17, 2025, this Court issued Orders allowing the SEC to serve Megas with discovery pursuant to the Federal Rules of Civil Procedure and all other documents related to this case via this Court’s Electronic Case Filing System (“ECF”), and extending all case management deadlines by thirty (30) days. See ECF Nos. 89-90. On July 18, 2025, Megas’s attempts to disallow service of discovery and all other documents via ECF were denied, as was his objection to the entry of a protective order governing the disclosure of sensitive personal information. See ECF Nos. 99-100. The SEC properly served discovery requests on Megas on June 18, 2025, see ECF No. 91 (containing requests for production of documents and interrogatories), which were due on or

before July 18, 2025, see Fed. R. Civ. P. 33-34. Megas failed to respond timely and on August 26, 2025, this Court issued its first order compelling Megas to respond to the SEC’s interrogatories and production requests, extending the deadline to September 2, 2025. See ECF No. 105. By Order dated September 4, 2025, this deadline was extended until September 11, 2025, at Megas’s request because of alleged issues with accessing the documents on ECF. See ECF No. 108. This Order reminded Megas that he had until September 24, 2025, to respond to each of the SEC’s First Request for Admissions. See id. On September 30, 2025, the SEC properly noticed Megas’s deposition for November 14, 2025, in Philadelphia, Pennsylvania. See ECF No. 111. Shortly thereafter, the SEC filed a Motion to Compel Megas’s Deposition in the Eastern District of Pennsylvania, stating “Megas

has repeatedly stated that he will not appear for his deposition in this District, and he has also refused to agree to an acceptable alternative location that will allow the SEC to conduct his voluntary deposition in person pursuant to the Federal Rules.” ECF No. 113. When Megas failed to timely file a brief in opposition to this Motion, he was ordered to do so. See ECF No. 114. After his response was filed, this Court issued an Order dated November 13, 2025, stating in pertinent part as follows: A. Plaintiff’s request to compel Thomas Megas’s deposition on November 14, 2025, is denied without prejudice to noticing a new deposition date. B.

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