SEC v. Gomes et al. (unregistered distributions, 2020)

Judgment entered

Checked against the primary document on October 4, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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Judgments have now been entered against all eleven defendants in the microcap case, the last a consent judgment against Shane Schmidt on July 17, 2026. Individual defendants consented to injunctions and in several cases penny stock bars, while the five offshore entities were hit with default judgments totaling $12.9 million.

The record

Structured fields for this action, as recorded in our case library.
Agency	SEC
Release number	LR-24839
Date filed	2020-06-18
Date resolved	2026-07-17
Status	judgment
Asset class	equities
Criminal parallel	Yes: charged (Schmidt), District of Massachusetts
Bars imposed	penny stock bar
Defendants	Nelson Gomes (individual) ; Michael Luckhoo-Bouche (individual) ; Douglas Roe (individual) ; Kelly Warawa (individual) ; Shane Schmidt (individual) ; FFS Capital Limited (entity) ; Atlantean Management Corporation (entity)
Cited as charged or alleged	Exchange Act s.10(b) and Rule 10b-5 ; Exchange Act s.13(d) and 13(g) ; Securities Act s.17(a) ; Securities Act s.5 (statutes and rules cited in the document; not a finding that they were violated)
Techniques	Unregistered distributions

What was ordered

Civil penalty: —
Disgorgement: —
Prejudgment interest: —
Total relief: —
Alleged gain: $25m

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

On June 18, 2020 the SEC announced an emergency action filed June 9 in Massachusetts, alleging a scheme that generated more than $25 million from illegal sales of microcap stock including Sandy Steele, WOD Retail, Bioscience Neutraceuticals and Rivex Technology. Nelson Gomes, Michael Luckhoo-Bouche and others allegedly hid control persons' identities, with COVID-19 promotions in some cases. Charges include Securities Act Sections 5(a) and 5(c) against Gomes, Luckhoo-Bouche, Roe, Warawa, FFS Capital Limited and Atlantean Management Corporation. These are allegations. Only some of the eleven defendants are named in the release.

This library tags the matter as unregistered distributions, based on the conduct the document describes. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

Outcome. SEC releases show the case ended in stages: default judgments on December 4, 2020 against five entities for a combined $12,895,750 in penalties, disgorgement and interest; a consent judgment on May 26, 2021 against Michael Luckhoo-Bouche ($20,000 penalty, five-year penny stock bar); against Nelson Gomes on September 9, 2021 ($1,153,058 disgorgement and interest, $390,094 penalty, five-year penny stock bar); against Douglas Roe, Atlantean Management and Kelly Warawa in 2022, with penalties of $248,435, $300,000 and $9,190 plus disgorgement; and on July 17, 2026 against Shane Schmidt ($15,802 disgorgement deemed satisfied by a criminal forfeiture, with a penny stock bar). The July 2026 release calls the litigation complete. The money fields stay empty because the figures mix penalties with combined disgorgement and interest and some are deemed satisfied.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

Unregistered distributions — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

2020-06-18 Litigation release published
2020-12-04 Default judgments entered against five entity defendants
2021-09-09 Final consent judgment entered against Nelson Gomes
2026-07-17 Final consent judgment entered against Shane Schmidt; SEC calls litigation complete

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Other actions in the library sharing at least one technique tag with this one.

Action	Agency	Filed	Technique	Penalty	Status
SEC v. Zachary Miller (unregistered distributions, 2026)	SEC	2026-03-05	Unregistered Distributions	—	settled
SEC v. David Hudzik (unregistered distributions, 2025)	SEC	2025-12-23	Unregistered Distributions	$70k	judgment
SEC v. Ongkaruck Sripetch and others (pump and dump, 2025)	SEC	2025-06-20	Pump And Dump , Unregistered Distributions	$204k	judgment
SEC v. Peter Scalise III and The3rdBevco Inc. (unregistered distributions, 2025)	SEC	2025-06-17	Unregistered Distributions	$236k	settled
SEC v. Investview, Inc. (unregistered distributions, 2025)	SEC	2025-01-17	Unregistered Distributions	$375k	settled
SEC v. Tai Mo Shan Limited (unregistered distributions, 2024)	SEC	2024-12-20	Unregistered Distributions	$36.7m	settled

Record added September 10, 2026. submit a correction.