Salesman Lied About Commissions, Pocketed $285K!

SEC v. Santos Kidd — U.S. Securities and Exchange Commission Litigation Release No. 26565, dated June 12, 2026.

The SEC charged Santos Kidd for his role in a fraudulent real estate investment scheme. Kidd, a salesperson, misrepresented his commission earnings and encouraged investors to use home equity lines of credit for investments that were later found to be a Ponzi-like scheme. A default judgment was entered against Kidd, ordering him to pay over $600,000 in disgorgement, interest, and penalties.

In Plain English

Imagine someone selling you a special lemonade stand. They promised you'd make lots of money, but they were actually using money from new customers to pay off earlier customers, not really selling lemonade. This person also told some customers they weren't getting paid for selling these lemonade stands, even though they were. A judge has now ordered this person to pay back the money they made and a penalty, and they can't sell any more investment 'lemonade stands'.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Promising High Returns Chimene Van Gundy, calling herself the 'Queen of Mobile Homes,' and her company ORES, promised investors guaranteed annual returns of 15% to 20% on their investments in mobile homes.
2. Raising Millions Between at least June 2018 and November 2021, Van Gundy and ORES raised approximately $18.5 million from at least 600 investors.
3. Misrepresenting Fund Use Investors were told their funds would be used to purchase, refurbish, and sell mobile homes. However, the SEC alleged that funds were actually misappropriated.
4. Ponzi-Like Payments Instead of legitimate investment activities, investor funds were used to make Ponzi-like payments to earlier investors, masking the scheme's true nature.
5. Secret Commissions Millions of dollars were paid out in undisclosed sales commissions to third-party salespeople like Santos Kidd.
6. Funding Personal Lifestyle A portion of the investor funds was used to cover Chimene Van Gundy’s personal expenses and fund her lifestyle.
7. Salesperson's Deception Santos Kidd, a salesperson, distributed ORES offering materials and presentations to potential investors.
8. Encouraging Risky Borrowing Kidd specifically encouraged some investors to apply for home equity lines of credit to fund their investments in ORES, increasing their personal financial exposure.
9. Lying About Commissions Kidd affirmatively misrepresented to some investors that he did not receive commissions, despite receiving payments totaling $285,155.97 between April 2019 and May 2021.

The Enforcement Action

On June 1, 2026, the U.S. District Court for the Western District of Texas entered a final judgment by default against Santos Kidd. The judgment permanently enjoins Kidd from violating antifraud and broker registration provisions. Kidd is ordered to pay $285,155.97 in disgorgement, $37,467.18 in prejudgment interest, and a civil penalty of $285,155.97, totaling $607,779.12. Kidd has relocated to the Philippines.

Named in this action: Santos Kidd.

Original SEC litigation release ↗ · Browse all cases