SEC Settles GigaMedia Fraud Case With Former CFO Nihat Cardak
SEC seeks final judgment against former Giga CFO Nihat Cardak, with a permanent injunction and $227,631.02 tied to an alleged $37 million investor fraud.
Summary
In Litigation Release No. 26674, issued October 19, 2026, the SEC said it filed Nihat Cardak’s consent and proposed final judgment on October 16 in SEC v. Robert Bernardi, Nihat Cardak, and Sunil Chandra, No. 21-cv-08598, in the Southern District of New York. Cardak was CFO of private software company GigaMedia Access Corporation. Daniel Bernardi, Diane Olson, and Jenifer Bernardi are relief defendants in the civil case, filed October 20, 2021.
The complaint alleges Cardak and Giga’s former CEO raised more than $37 million between March 2018 and August 2019 while repeatedly misrepresenting Giga’s financial condition. Subject to court approval, Cardak agreed to a permanent injunction covering Securities Act Section 17(a), Exchange Act Section 10(b), and Rule 10b-5, plus $210,400 in disgorgement and $17,231.02 in prejudgment interest. Those amounts will be deemed satisfied by restitution ordered in United States v. Nihat Cardak, No. 21 CR 616 (PGG), a parallel criminal case. SEC attorneys Melissa Armstrong, David Nasse, and Kristen Warden conducted the litigation with assistance from Ashley Dolan Barrachina.
Positives
- The October 16, 2026 filing moves the SEC’s civil enforcement case against Cardak toward a final judgment.
- A permanent injunction would subject Cardak to continuing federal antifraud restrictions if the court approves the settlement.
- The $210,400 disgorgement and $17,231.02 interest obligations are tied to restitution ordered in Cardak’s parallel criminal case.
Risks & concerns
- More than $37 million was allegedly raised from investors through repeated misrepresentations about GigaMedia Access Corporation’s financial condition.
- The alleged misconduct lasted from March 2018 through August 2019 and involved Cardak and Giga’s former CEO.
- The $227,631.02 civil monetary obligation will be deemed satisfied by existing criminal restitution rather than imposed as an additional payment.
- Cardak’s consent and the proposed final judgment remain subject to approval by the Southern District of New York.