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by Mike Caswell

The U.S. Securities and Exchange Commission has won $6.2-million in fines and disgorgement orders of up to $13-million against several private entities that were part of a $150-million scheme run by Roger "Rocket" Knox. (All figures are in U.S. dollars.) The SEC says that Mr. Knox operated a trading platform that facilitated many stock market schemes, including at least four linked to Vancouver. He previously pleaded guilty to related criminal charges.

The penalties are contained in an order handed down on Friday, June 3, in federal court in Boston. The order imposes fines of $1.03-million on each of six private entities that were part of the scheme and directs that they jointly disgorge gains of up to $13-million, including interest. It is not clear how much of that money the SEC expects to collect, but Friday's judgment lists amounts totalling $1.36-million that the SEC recovered through asset freeze orders.

The entities subject to Friday's order include WB21 US Inc., Silverton SA Inc., WB21 NA Inc., C Capital Corp., Wintercap SA Inc. and B2 Cap Inc. The SEC said that Mr. Knox used those entities as he allowed insiders of public companies to dump shares on the market without disclosing the sales. The entities did not oppose the order, and with Mr. Knox having pleaded guilty it appears the matter was relatively straightforward. The order is a summary judgment, or one handed down without a trial.

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