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by Mike Caswell

Raimund Gastauer, a German man associated with a Canadian-linked scheme on the U.S. markets, has lost his appeal of a $4.6-million judgment that the U.S. Securities and Exchange Commission won against him. (All figures are in U.S. dollars.) The SEC claimed that Mr. Gastauer received money from a $150-million scheme run by U.K. national Roger "Rocket" Knox. U.S. authorities said that Mr. Knox facilitated multiple pump-and-dumps, including at least four linked to Vancouver.

Mr. Gastauer's appeal loss, contained in a judgment handed down on Thursday, Aug. 20, is an aside of sorts to the efforts of U.S. authorities to pursue Mr. Knox and others. The SEC listed Mr. Gastauer as a relief defendant, which meant that the regulator was not seeking any fines or bans against him, nor did it accuse him of any wrongdoing. It was only asking that the courts order him to hand over $3.3-million that he received from the scheme, plus interest.

Mr. Gastauer fought the case on and off, mostly protesting the matter on jurisdictional grounds. Among other things, he said that he was a German national living in Germany, who had not done anything that would have any effect in the United States. He ultimately lost, with the SEC winning a $4.6-million judgment on Jan. 29, 2025. Mr. Gastauer appealed that decision, with the appeal court essentially upholding the judgment in Thursday's ruling.

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