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by Mike Caswell

Shane Schmidt, a Vancouver man charged in the United States for the illegal sale of shares in purported "wearable tech" company Sandy Steele Unlimited Inc., has agreed to plead guilty. Federal prosecutors in Boston claimed that Mr. Schmidt was part of a pump-and-dump that sent Sandy Steele to 60 cents from 10 cents amidst claims about "revolutionary heated garments." (All figures are in U.S. dollars.) His part included controlling Sandy Steele through an alias and helping others conceal their substantial positions in the stock, the government said.

Mr. Schmidt's guilty plea is contained in an agreement filed on Feb. 6, 2025, in federal court in Boston. He has agreed to plead guilty to one count of securities fraud. While the charge carries a maximum sentence of 20 years, prosecutors have agreed that they will recommend a three-month jail term. The final determination will, of course, be up to the judge.

Mr. Schmidt has not yet entered the plea. As he will have to travel to Boston from Vancouver, he has requested that the court schedule his plea hearing and sentencing for the same date. It is not clear from court filings if he would then return to Canada until he reports to jail, or if the judge would simply send him straight to prison.

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