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SEC wins $4.6M (U.S.) judgment against Gastauer

2025-02-03 20:36 ET - Street Wire

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by Mike Caswell

After six years of legal back-and-forth, the U.S. Securities and Exchange Commission has won a $4.6-million judgment against Raimund Gastauer, a German man associated with a Canadian-linked scheme on the U.S. markets. (All figures are in U.S. dollars.) The SEC said 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.

The case against Mr. Gastauer has been 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. It was only asking that the courts order him to hand over $3.3-million that he received from the scheme, plus interest.

A federal judge in Boston has now granted that request, entering a $4.6-million judgment against Mr. Knox on Jan. 29, 2025. The judge gave Mr. Gastauer 30 days to hand over the cash, although the SEC likely already has at least some of the money it is seeking. At the outset of the case, the regulator obtained asset freeze orders against scores of accounts that the SEC claimed were linked to the fraud. These included accounts at the Bank of Montreal and at Vancouver brokerages Haywood Securities Inc. and Canaccord Genuity Corp. (There is no indication that the brokerages were anything more than unwitting conduits for the scheme, and the SEC has not accused them of any wrongdoing.)

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