Litigation Releases (Raimund Gastauer)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26241 February 6, 2025

Securities and Exchange Commission v. Knox et al.

;

Civil Action No. 1:18-cv-12058 (D. Mass. filed Oct. 2, 2018)

Court Enters Final Judgment Ordering Relief Defendant to Pay Over $4.6 Million Based on Receipt of Fraudulent Proceeds

On January 29, 2025, the U.S. District Court for the District of Massachusetts entered a final judgment against relief defendant Raimund Gastauer, of Germany, who allegedly received approximately $3.3 million in proceeds from an international scheme that generated more than $165 million from illegal sales of stock of at least 50 microcap companies. The final judgment orders Raimund Gastauer to pay over $4.6 million.

On October 2, 2018, the SEC charged Michael Gastauer and six U.S.-based entities that he controlled, Silverton SA Inc., Wintercap SA Inc., WB21 US Inc., WB21 NA Inc., C Capital Corp., and B2 Cap Inc., (together, the "Entities") with aiding and abetting a microcap fraud orchestrated by U.K. citizen Roger Knox and his Swiss entity, Wintercap SA. The SEC's complaint alleges that Knox and Wintercap SA helped sellers of large volumes of microcap securities evade U.S. securities laws that restrict sales by controlling shareholders. According to the complaint, Knox used Wintercap SA to conceal sellers' stock ownership by providing them anonymous access to offshore brokerage accounts. Michael Gastauer allegedly used his six entities' U.S. bank accounts to disburse the proceeds of those illegal stock sales. In late 2017 through early 2018, Michael Gastauer allegedly transferred approximately $3.3 million of the proceeds to Raimund Gastauer or accounts held for Raimund Gastauer's benefit.

On June 3, 2022, the Court granted the Commission's motion for summary judgment as to the Entities and entered final judgments ordering, among other relief, that they pay over $15 million. On March 23, 2022, the Court granted the SEC's motion for default judgment against Michael Gastauer, ordering him to pay over $17 million.

The court previously entered judgment against Raimund Gastauer on October 7, 2022. Raimund Gastauer appealed that decision, and in February 2024, the U.S. Court of Appeals for the First Circuit reversed that decision and sent the matter back to the U.S. District Court. After further proceedings, on January 29, 2025, the U.S. District Court again entered judgment against Raimund Gastauer, ordering him to pay $3.3 million representing the net proceeds gained as a result of the conduct alleged in the complaint and $1.3 million in pre-judgment interest. This judgment concludes the litigation.

This matter was handled by Kathleen Shields, Nita Klunder, and Amy Gwiazda in the Boston Regional Office.

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