DOJ urges victims of Silverton/Wintercap fraud scheme to contact US Attorney’s Office
The United States Department of Justice (DOJ) today published a notice to victims of a microcap securities fraud scheme.
Roger Knox, with others, operated a purported asset management firm based in Switzerland called Silverton, and later renamed Wintercap. Through this business, Knox helped facilitate pump-and-dump, and other market manipulation schemes, by selling massive quantities of microcap securities on behalf of “control groups” who secretly owned the stock through nominee shareholders, and who simultaneously orchestrated promotional campaigns and other efforts to artificially inflate the price and trading volume of those shares.
Knox then funneled the proceeds of the securities fraud—totaling an estimated $164 million over the last three years—to co-conspirators in the United States, and elsewhere, through a complex money transfer system that disguised the source and nature of the funds. Richard Targett-Adams assisted in the firm’s operation.
Individuals who believe they may be potential victims are encouraged to notify the U.S. Attorney’s Office in the District of Massachusetts.
The defendants were previously charged in federal court in Boston. Knox pleaded guilty to securities fraud and conspiracy to commit securities fraud in January 2020, and he is currently scheduled to be sentenced on Jan. 28, 2021. Targett-Adams pleaded guilty to securities fraud, conspiracy to commit securities fraud and money laundering in June 2019, and he is currently scheduled to be sentenced on April 2, 2021.
Individuals who traded in one or more of the securities listed here during the time period indicated, and believe that they may be potential victims of this fraud, should contact the U.S. Attorney’s Office at [email protected]
In the email, please indicate the security traded and the transaction details for the trade(s): date(s), number of shares, price, whether it was bought or sold, and an assessment of gains or losses. Please also indicate whether there is supporting documentation, and a victim assistance specialist will assist you in transferring it in a secure manner.
Email submissions are due by November 30, 2020.