GOMES ET AL. REVIEW
This complaint was posted on NAS on 6th Jan, 2021 and is a permanent record located here: https://www.nameandshame.com/gomes-et-al-5YCWK/12-million-fine-they-tried-to-monetize-coronavirus-id5ydqe .
A $12 Million Fine! They Tried To Monetize The Coronavirus!
Today, The Smart Investor Feed brings you another morally reprehensible fraud.
Gomes et al. (Schmidt,) has been seized/arrested by the U.S. Securities And Exchange Commission (SEC). Shocking right?
We weren’t expecting this as well, but these scammers are getting smarter by the minute, making it harder for us to identify.
Such swindlers seem to be booming in numbers lately. This case is kind of interesting, why don’t I show you why:
Full Report On Gomes et al. (Schmidt,)
On December 4, 2020, the U.S. District Court for the District of Massachusetts entered final judgments against FFS Capital Limited, Paifang Trading Limited, Artefactor Limited, Meadow Asia Limited, and Thyme International Limited. Among other things, the judgments order these entities to pay a total of $12,895,750 in civil penalties, disgorgement, and prejudgment interest.
On June 9, 2020, the Commission filed an emergency action and obtained an asset freeze against five individuals and six offshore entities for an alleged fraudulent scheme that generated more than $25 million from illegal sales of multiple microcap companies' stock.
The SEC's complaint alleges that, beginning around January 2018 Canadian citizen Nelson Gomes, working with Canadian Michael Luckhoo-Bouche and others, ran a fraudulent business through which corporate control persons could conceal their identities while illegally dumping their company's stock into the market for purchase by unsuspecting investors. The complaint alleges that these illegal stock sales were often boosted by promotional campaigns that, in some instances, included false and misleading information designed to fraudulently capitalize on the COVID-19 pandemic. The complaint also charged Canadians Shane Schmidt, Douglas Roe, and Kelly Warawa with fraudulently dumping shares of a microcap company, Sandy Steele Unlimited, Inc. The individual defendants used the entities FFS Capital, Paifang, Artefactor, Meadow Asia, and Thyme International to secretly hold shares for undisclosed control groups and sell those shares into increased demand that was generated through false and misleading stock promotions.
The court entered judgments by default against entity FFS Capital, Paifang, Artefactor, Meadow Asia, and Thyme International. FFS Capital was enjoined from further violations of the registration and antifraud provisions of Sections 5(a), 5(c), 17(a)(1) and 17(a)(3) of the Securities Act and Section 10(b) of the Exchange Act and Rules 10b-5(a) and (c) thereunder, barred from participating in any offering of a penny stock, and ordered to pay disgorgement and prejudgment interest in the total amount of $8,186,376 and a civil penalty of $963,837. The order also imposed a conduct-based injunction restricting FFS Capital's future trading in any stock. Paifang, Artefactor, Meadow Asia, and Thyme International were enjoined from further violations of the registration provisions of Sections 5(a) and 5(c) of the Securities Act and barred from participating in any offering of a penny stock. Paifang, Artefactor, Meadow Asia, and Thyme International were ordered to pay disgorgement and prejudgment interest in the amounts of $1,148,864, $1,236,234, $236,409, and $40,190 respectively, and civil penalties of $481,920, $481,920, $100,000, and $20,000, respectively.
Conclusion: Gomes et al. (Schmidt,) Is A Fraud
The report on SEC clearly suggests that Gomes et al. (Schmidt,) never had any intentions to do honest business or provide helpful services. Main intention behind all their actions was to take advantage of the honesty & gullibility of people and scam them. It would be an understatement to call this a mere fraud, this one is a scandal.
If you feel like you are a victim of this scam, then I recommend contacting a law firm and consulting with them about a lawsuit. Companies & firms pay huge reprimands to settle serious lawsuits.
Help Us Fight These Criminals
Do you have evidence against Gomes et al. (Schmidt,) or one of their associates, then please post it here. These criminals rely on their witnesses’ & victims’ silence, if you speak up, then they get exposed and punished for their horrific acts. I started The Smart Investor Feed on this site with only one purpose; to become a nightmare for the financial frauds in the country. I try to post often, so you can bookmark my profile for regular updates on frauds & con-artists.
Full Disclosure: We sourced this piece of information from the SEC database