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FRAUDSTER PAYS MILLIONS AFTER SWINDLING INVESTORS IN $165 MILLION SCAM!

  
February 6, 2025


  
  

    

      
      

    

  




  



        


SEC v. Raimund Gastauer, Michael T. Gastauer, WB21 US INC., et al. — U.S. Securities and Exchange Commission Litigation Release No. 26241, dated February 6, 2025.


The SEC charged Michael Gastauer and several entities he controlled with aiding and abetting a microcap fraud orchestrated by Roger Knox. Relief defendant Raimund Gastauer, who received over $3.3 million in fraudulent proceeds, was ordered to pay over $4.6 million, including disgorgement and pre-judgment interest. This judgment concludes the litigation.




In Plain English
Imagine someone secretly sold a lot of stock in small, unknown companies. They used a special service to hide who they were. Then, they sent the money they made from selling the stock to a relative. The SEC stepped in, and a court ordered the relative to pay back the money they received, plus extra for the delay, to make things right.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.


How the Alleged Scheme Worked
  1. Concealing Stock Ownership Roger Knox and his Swiss entity, Wintercap SA, allegedly helped sellers of microcap securities hide their ownership. They provided anonymous access to offshore brokerage accounts to evade U.S. laws that restrict sales by controlling shareholders.
  2. Facilitating Illegal Sales Knox used Wintercap SA to conceal sellers' stock ownership, enabling them to sell large volumes of microcap securities illegally without detection.
  3. Disbursing Fraudulent Proceeds Michael Gastauer allegedly used his six U.S.-based entities' bank accounts to disburse the proceeds from these illegal stock sales, acting as a conduit for the illicit funds.
  4. Transferring Funds to Relief Defendant Between late 2017 and early 2018, Michael Gastauer allegedly transferred approximately $3.3 million of the proceeds from these illegal sales to his relative, Raimund Gastauer, or accounts controlled by him.
  5. SEC Charges and Initial Judgments On October 2, 2018, the SEC charged Michael Gastauer and his entities. The court later granted summary judgment against the Entities, ordering over $15 million, and default judgment against Michael Gastauer, ordering over $17 million.
  6. Initial Judgment Against Relief Defendant The court initially entered judgment against Raimund Gastauer on October 7, 2022, ordering him to pay $3.3 million plus pre-judgment interest for unjust enrichment.
  7. Appeals and Remand Raimund Gastauer appealed, and in February 2024, the U.S. Court of Appeals for the First Circuit reversed the decision, sending the matter back to the district court due to jurisdictional issues.
  8. Further Proceedings and New Judgment After further proceedings and discovery, on January 29, 2025, the U.S. District Court again entered judgment against Raimund Gastauer, ordering him to pay $3.3 million in net proceeds and $1.3 million in pre-judgment interest.


The Enforcement Action
On January 29, 2025, the U.S. District Court for the District of Massachusetts entered a final judgment against relief defendant Raimund Gastauer, ordering him to pay over $4.6 million, concluding the litigation. This judgment follows an earlier judgment against him that was reversed on appeal. The SEC had previously charged Michael Gastauer and six U.S.-based entities for aiding and abetting a microcap fraud orchestrated by Roger Knox and his Swiss entity, Wintercap SA. The SEC's complaint alleged that Knox and Wintercap SA helped sellers of microcap securities evade U.S. laws by providing anonymous access to offshore brokerage accounts, while Michael Gastauer allegedly used his entities' U.S. bank accounts to disburse the proceeds of illegal stock sales. In late 2017 through early 2018, Michael Gastauer allegedly transferred approximately $3.3 million of these proceeds to Raimund Gastauer. The court had previously entered judgments against the Entities for over $15 million and against Michael Gastauer for over $17 million.


Named in this action: Raimund Gastauer, Michael T. Gastauer, WB21 US INC., Silverton SA Inc., WB21 NA INC., C Capital Corp..


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