The UK FCA withdraw a warning against the Black Banx scheme for the UK market as “the FCA accepts that Black Banx was not trading unlicensed in the UK.” This is good news for Black Banx and its founder Michael Gastauer. The bad news, however, is that the U.S. SEC obtained a final judgment against the German Gastauer “for facilitating a multi-million dollar international fraud scheme” that generated more than $165 million of illegal sales of stock on the U.S. markets. Gastauer is ordered to pay over $17 million. Gastauer and Black Banx strictly deny the allegations and have issued the following statement:
Michael Gastauer Statement [start]
Toronto, March 25th, 2022: The Securities and Exchange Commission (SEC) obtained on March 23th, 2022 final Judgement in a Federal Court in Boston, Massachusetts ordering Billionaire Founder and CEO of Black Banx Group Michael Gastauer to pay USD 17 million. Despite its initial claim filed in October 2018, where the SEC sought to recover USD 165 million plus fines and
penalties from Gastauer, the final Judgement ordered a disgorgement of USD 11.3 million held in Wintercap SA client account by Black Banx`s Singapore branch plus USD 1.7 million interest and a civil penalty of USD 4.3 million, which is approximately one tenth of the sum originally demanded by the SEC.
The case commenced in October 2018, when the SEC filed a complaint for microcap securities fraud against Black Banx`s client Roger Knox and his company Wintercap SA. The SEC alleged the US entities of Black Banx Group (formerly known as WB21) and Gastauer personally as the Group’s CEO aided and abetted Knox by providing bank accounts to send and receive payments derived from the alleged illegal securities trading. Notably, the SEC proceedings are civil proceedings. No criminal charges have been filed against Black Banx nor any of its employees.
Black Banx denied the allegations and claimed neither Mr. Gastauer nor Black Banx as a licensed Financial Institution had any knowledge of Knox violating US securities laws. Contesting the lack of personal jurisdiction and lack of valid service, following the advice of his legal team Mr. Gastauer did not participate in the US court proceedings. In parallel proceedings Black Banx`s US based entities are opposing the SEC`s claim.
Michael Gastauer Statement [end]
Read our report on Michael Gastauer and Black Banx here.
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