The founder and operator of a Swiss asset management firm was indicted yesterday by a federal grand jury on charges of engaging in a massive global securities fraud scheme that netted trading proceeds of approximately $164 million.

Roger Knox, 47, a citizen of the United Kingdom who resides in Switzerland, was indicted on one count of securities fraud and one count of conspiracy to commit securities fraud. Knox was arrested and charged by criminal complaint on Oct. 3.

Together with others, Knox operated a purported asset management firm based in Switzerland called Silverton, later renamed Wintercap. Knox allegedly helped facilitate pump-and-dump and other market manipulation schemes by selling massive quantities of microcap securities on behalf of “control groups.”

These groups secretly owned the stock through nominee shareholders and simultaneously orchestrated promotional campaigns and other efforts to artificially inflate the price and trading volume of those shares.

It is further alleged that Knox then funneled the proceeds of the securities fraud – totaling an estimated $164 million over the last three years – to co-conspirators in the United States and elsewhere through a complex money transfer system that disguised the source and nature of the funds.