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by Mike Caswell

It appears that Roger "Rocket" Knox, the U.K. national who received three years in a U.S. prison for helping multiple pump-and-dump schemes, will be spending his winter on a ski hill in New Hampshire while he awaits jail. A judge has approved a request from Mr. Knox to modify his release conditions so that he can live near a resort where he will be part of a volunteer ski patrol. Prosecutors did not oppose the request.

The decision is part of a case in which the government claimed that Mr. Knox helped run multiple pump-and-dumps, including at least four linked to Vancouver, inflicting losses of $58-million or more on investors. (All figures are in U.S. dollars.) Over a six-year period, Mr. Knox allowed hidden insiders to repeatedly unload shares on the U.S. markets, prosecutors said. There was no trial for Mr. Knox, as he pleaded guilty and received three years in prison.

After imposing the sentence, the judge did not immediately send Mr. Knox to prison, as he was actively co-operating with prosecutors. That co-operation extends to testifying against others. (There are many cases he could be part of, but the only one where he has been specifically mentioned is the case against California's Joseph Padilla and Kevin Dills. Prosecutors accused Mr. Padilla and Mr. Dills of improperly selling $100-million worth of shares, in part through an unnamed Canadian brokerage. Mr. Padilla has since pleaded guilty, and received 5-1/2 years in prison, while Mr. Dills awaits trial.)

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