Fake Website, Fake Company: Microcap Fraudster CAUGHT!

SEC v. Shane Schmidt — U.S. Securities and Exchange Commission Litigation Release No. 26588, dated July 17, 2026.

The SEC charged Nelson Gomes and 10 others with a microcap fraud scheme involving Sandy Steele Unlimited, Inc. Shane Schmidt, one of the defendants, settled the charges, agreeing to disgorgement of $15,802 (satisfied by a parallel criminal forfeiture) and a penny stock bar. The SEC's action is now complete.

In Plain English

Imagine someone secretly controlled a small company's stock. They then hyped it up with fake information to make it seem valuable. Finally, they sold their shares to unsuspecting buyers at inflated prices. This case involves one person settling charges for their role in such a scheme.

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. Secretly Control the Company Shane Schmidt allegedly used an alias to secretly operate Sandy Steele Unlimited, Inc., a microcap company. This allowed him to control the company's operations and stock without revealing his true identity.
2. Create a False Online Presence Schmidt allegedly created a fake and misleading company website for Sandy Steele Unlimited, Inc. This website was used to present a false image of the company's legitimacy and prospects to potential investors.
3. Distribute Shares to Associates Schmidt allegedly facilitated the distribution of Sandy Steele shares to his associates. This move positioned the shares for a coordinated selling effort.
4. Launch a Promotional Campaign Schmidt's associates then allegedly sold the Sandy Steele shares during a false and misleading promotional campaign. This campaign was designed to artificially inflate demand and price.
5. Sell Shares at Inflated Prices During the promotional campaign, the associates sold the shares they received, presumably at prices driven up by the misleading hype. This allowed them to profit from the scheme.

The Enforcement Action

The SEC obtained a final consent judgment against Shane Schmidt on July 17, 2026, in a microcap fraud scheme case. Schmidt consented to be enjoined from violating antifraud provisions, ordered to pay $15,802 in disgorgement (satisfied by a parallel criminal forfeiture), and barred from the penny stock market. Judgments were previously entered against other defendants, and the SEC's litigation is now complete.

Named in this action: Shane Schmidt, Douglas Roe, Kelly Warawa, Nelson Gomes, Michael Luckhoo-Bouche, Atlantean Management Corporation.

Original SEC litigation release ↗ · Browse all cases