DOJ to Send $15.5 Million to Identified Victims of Global Securities Fraud: Are You Eligible?

The US Department of Justice (DOJ) has announced a significant restitution initiative that could return more than $15.5 million to victims of a major global securities fraud scheme. This is one of the more visible efforts by federal authorities to compensate unwitting investors whose savings were targeted and misused over several years.

Scheme and Restitution Overview

On 2 March 2026, the DOJ confirmed that the Roger Knox Remission Fund had begun distributing more than $12.4 million in forfeited funds to more than 8,000 victims of a sprawling pump‑and‑dump securities fraud operation involving a Swiss‑based asset manager, Silverton, later renamed Wintercap. The US Securities and Exchange Commission (SEC) also distributed an additional $3.1 million tied to the scheme, bringing total restitution to upwards of $15.5 million.

The scheme involved systematically inflating the market for microcap stocks, penny shares of companies with small market capitalisations, then profiting by selling large blocks of those shares at artificially high prices. Investors who bought into the promotions often saw their holdings crash once insiders exited their positions.

How the Scheme Operated

Prosecutors described how Knox and co‑conspirators used undisclosed control groups and nominee entities to circumvent federal securities regulations and orchestrate pump‑and‑dump schemes. Shares were held in small blocks to avoid disclosure requirements, while coordinated promotional campaigns created an illusion of demand and rising prices.

Once the price was artificially elevated, the conspirators sold at a profit, leaving ordinary investors to absorb the losses. According to court documents, the schemes generated more than $137 million in illicit proceeds between 2016 and 2018.

Knox pleaded guilty in January 2020 in federal court in Boston, was sentenced to 36 months' imprisonment in October 2023, and in January 2024 was ordered to pay over $58 million in restitution to more than 8,000 victims. The remission fund distribution reflects years of asset forfeiture and recovery efforts following that sentence.

Accountability and Restitution in Market Fraud Cases

United States Attorney Leah B. Foley for the District of Massachusetts stressed the importance of both accountability and restitution in market fraud cases. 'Illegal pump-and-dump schemes cause financial hardship on countless innocent investors and erode the integrity of our capital markets,' she said. 'We are fully committed to recovering funds to compensate victims of crime and ensuring that crime does not pay.'

Ted E. Docks, Special Agent in Charge of the FBI's Boston Division, echoed that sentiment, saying 'the distribution of $15 million is an important first step in making these unwitting investors whole and putting market manipulators on notice that they too will pay a hefty price for their criminal conduct.'

Victim Eligibility and Distribution Process

The remission fund distribution targets individuals identified as direct victims of the Knox‑related frauds brought to justice in Boston. Eligible recipients are those whose losses were tied to purchases of the manipulated microcap stocks at artificially inflated prices resulting from the defendants' actions. The DOJ, through its Asset Forfeiture Program's victim compensation initiative, and the SEC are reaching out to known victims and providing instructions on how to claim their share of the distributed funds.

Since its inception, the DOJ's victim compensation work has seen billions of dollars in forfeited assets returned to crime victims, reflecting a broader commitment to redressing the harm caused by complex financial crimes. The Asset Forfeiture Program's victim compensation process is overseen by the Criminal Division's Money Laundering, Narcotics and Forfeiture Section's specialised team.

International Scope and Co‑Conspirators

The fraud was not limited to the United States. The US Attorney's Office recovered assets in the United States and abroad, including the United Kingdom, Malta, Mauritius, the United Arab Emirates, Canada, and Switzerland, where co‑conspirators and hidden proceeds were traced. Forfeited funds from related defendants, including Eric Landis, Richard Targett‑Adams, and Morrie Tobin, were also applied to the remission fund.

The international enforcement and recovery efforts underscore the global dimension of securities fraud and the collaborative work undertaken by regulators and law‑enforcement agencies to detect and dismantle sophisticated schemes.

Context and Broader Enforcement

The restitution in this case forms part of a broader trend in global and federal enforcement aimed at addressing financial fraud that exploits investors through deceptive practices. Fraud schemes that manipulate stock prices or mislead investors can devastate retirement savings, dampen confidence in markets, and impose long‑lasting financial harm on individuals. The DOJ's efforts to return forfeited assets to victims are intended to help mitigate those effects and reinforce legal deterrence.

While the current distribution covers more than $15.5 million tied to the Knox scheme, federal authorities continue to pursue additional assets and potential compensation in related cases where victims suffered losses. As with many financial crime prosecutions, asset recovery can be a protracted process, but the latest payouts demonstrate a commitment to holding fraudsters accountable and delivering some measure of justice to those defrauded.