The U.S. Department of Justice (DOJ) has announced that distribution of a fund of $15.5 million for 8,000 victims of fraud has begun.
The victims are those impacted by the fraud crimes, orchestrated by Roger Knox and his co-conspirators. Knox is associated with a major global microcap securities fraud scheme, which is often described as a large-scale pump-and-dump operation.
According to a release from the DOJ, the Roger Knox Remission fund has begun distributing over $12.4 million in funds. An additional portion of $3.1 million, related to the securities fraud scheme, has been distributed to the victims by the U.S. Securities and Exchange Commission.
What Is the Roger Knox Remission Fund?
The Roger Knox Remission Fund was established by the DOJ to help distribute the sum of $15.5 million to Knox’s victims.
The fund aims to compensate victims for financial losses incurred because of Knox’s crimes.
Who Is Eligible for Compensation?
The victims are pre-identified, and the fund has already begun distribution to those people. There is no open claims process mentioned.
The victims are most likely to have been identified through the investigation. Brokerage records, transaction data, and Knox’s own records would have shown who bought the artificially inflated shares during the relevant 2016-2018 window.
The $58-million restitution order from January 2024 would have formally established the list of victims.
Who iI Roger Knox?
Knox is a U.K. citizen, born in Belfast, Northern Ireland, and a former soldier in the Parachute Regiment.
He operated an asset-management firm called Silverton, which was later renamed Wintercap. Authorities have said this played a central role in enabling illicit stock-manipulation schemes.
Authorities found that Knox and his co-conspirators helped traders secretly dump large volumes of shares, while hiding their own ownership. The DOJ said that these positions were typically kept below 5 percent of an issuer’s outstanding shares. This was done in order to avoid sales restrictions and disclosure requirements.
The DOJ said in a press release that “Knox then funneled the proceeds of the pump-and-dump schemes—totaling over $137 million between 2016 and 2018—to co-conspirators in the United States and around the world through a complex money transfer system that disguised the source and nature of the funds.”
He was charged in 2018 with securities fraud and conspiracy to commit securities fraud.
Much of the evidence that was brought against him was gathered in an FBI investigation which featured wiretapped conversations.
He pleaded guilty in 2020 and was sentenced in 2023 to three years’ imprisonment.
He expressed remorse when he was sentenced, apologizing for actions that caused “loss and suffering to the victims and their families.”
Then in 2024, he was ordered by the court to pay more than $58 million in restitution to the scheme’s victims.
What Is a Pump-and-Dump Scheme?
A pump-and-dump scheme is a form of securities fraud where perpetrators artificially inflate the price of an asset, then quickly sell their holdings at these inflated prices, leaving the other investors with losses.
In a polarized era, the center is dismissed as bland. At Newsweek, ours is different: The Courageous Center—it’s not “both sides,” it’s sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you.
When you become a Newsweek Member, you support a mission to keep the center strong and vibrant. Members enjoy: Ad-free browsing, exclusive content and editor conversations. Help keep the center courageous. Join today.
Read the full article here
