Swiss Asset Management Founder Roger Knox Sentenced to 3 Year Prison for $150 Million Securities Scheme

Roger Knox, a 53-year-old who founded a Swiss asset management firm initially known as Silverton, later renamed Wintercap, has been sentenced to 36 months in prison. The U.S. Department of Justice has reported his conviction for his involvement in a global securities scheme that unlawfully generated around $150 million.

Roger Knox Swiss Asset Management Founder Sentenced to 3 Year Prison

Acting United States Attorney Joshua S. Levy emphasized the harm caused by illegal pump-and-dump schemes to innocent investors and the integrity of capital markets. Knox, along with his associates, effectively managed Wintercap, which sold significant quantities of microcap securities on behalf of hidden control groups. These shares were owned by third parties in blocks of less than 5% of the issuer’s total value, allowing them to avoid federal disclosure laws and sales limits, thereby enhancing the pump-and-dump schemes.

Knox boosted demand for these securities through promotional campaigns that inflated share prices and trading volumes, resulting in income of over $137 million from 2016 to 2018. Knox channeled these funds, utilizing a complex money transfer system, to co-conspirators both locally and internationally to conceal the origin and true nature of the funds.

Several securities, including Environmental Packaging Technologies, Inc. (EPTI), Garmatex Holdings Ltd. (GRMX), OneLife Technologies Corp. (OLMM), and Vitality Biopharma, Inc. (VBIO), traded through Knox’s firm, were part of these illicit schemes. The illicit profits for these securities ranged from $1.5 million to over $17 million.

Some of Knox’s co-conspirators, such as Morrie Tobin, Milan Patel, and Matthew Ledvina, have already admitted their involvement in the EPTI pump-and-dump scheme.

Despite the penalties imposed on Knox, this case highlights the ongoing issue of fraudulent financial schemes. Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, stressed that Knox’s sentencing sends a message but cannot fully compensate for the financial and emotional suffering inflicted on the victims. This case serves as a reminder of the importance of vigilant oversight and regulation in financial markets to protect investors from fraudulent schemes.