The Securities and Exchange Commission (SEC) filed a complaint against five individuals and six offshore entities involved in a microcap fraud scheme, in which they attempted to capitalize on the COVID-19 pandemic.
The defendants in the SEC complaint included Canadians Nelson Gomes, Michel Lukhoo-Bouchee, Shane Schmidt, Douglas Roe, Kelly Warawa, FFS Capital Limited, Paifang Trading Limited, Artefactor Limited, Atlantean Management Corporation, Meadow Asia Limited, and Thyme International Limited.
Allegations against the defendants
In the lawsuit, the SEC alleged that the defendants engaged in a fraudulent scheme that allowed them to generate more than $25 million in profits from the unlawful sale of their stock in multiple microcap companies including Sandy Steele Unlimited Inc., WOD Retail Solutions Inc., Bioscience Neutraceuticals, Inc., and Rivex Technology Corp.
From at least January 2018 to present, Gomes used unknown corporate control persons to illegally dump his stock in the public markets for acquisition. He arranged to sell shares without effective registrations statements of the microcap companies.