SEC v. YouPlus, Inc. and Shaukat Shamim — U.S. Securities and Exchange Commission Litigation Release No. 26584, dated July 13, 2026.
The SEC settled a civil enforcement action against YouPlus, Inc. and its former CEO, Shaukat Shamim, for defrauding investors. Shamim misrepresented the company's financial health, claiming millions in revenue and numerous customers when the reality was far less. Both parties consented to final judgments, with Shamim facing an officer and director bar and ordered to pay disgorgement, which was satisfied by a parallel criminal matter.
Imagine a startup CEO telling people they have lots of customers and make tons of money. But, in reality, they had very few customers and made much less money than they claimed. The SEC stepped in, and the CEO agreed to stop being a CEO and pay back money he took from investors. This money was already covered by a criminal case.
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.
On July 10, 2026, the SEC filed consents and proposed final judgments as to YouPlus, Inc. and its former CEO, Shaukat Shamim. The SEC's complaint, filed on July 20, 2020, alleged that between 2018 and 2019, Shamim defrauded investors by misrepresenting the company's financial condition. YouPlus consented to be permanently enjoined from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Shamim consented to similar injunctions, an officer and director bar, and to pay disgorgement of $847,401.46 with prejudgment interest of $23,330.22, which is deemed satisfied by restitution ordered in a parallel criminal matter.
Named in this action: YouPlus, Inc., Shaukat Shamim.