SEC Obtains Final Judgment Against Defendant in a Microcap Fraud Scheme Attempting to Capitalize On the Covid-19 Pandemic
(STL.News) On May 26, 2021, the U.S. District Court for the District of Massachusetts entered a final judgment against defendant Michael Luckhoo-Bouch in a previously filed action against 11 defendants alleging a fraudulent scheme that generated more than $25 million from illegal sales of multiple microcap companies’ stock.
According to the Commission’s complaint, beginning around January 2018, Canadian citizen Nelson Gomes, working with Canadian citizen Luckhoo-Bouch 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 alleged 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, such as false claims that a company being promoted could produce medical quality facemasks. The complaint further alleged that Luckhoo-Bouch facilitated Gomes’ and others’ illegal sales by serving as the nominal director of a company, which allowed corporate control persons to conceal their identities, and also by making misrepresentations that facilitated the fraudulent scheme.