Alleged Scheme and Family Ties
The case traces back to Gastauer’s son, Michael Gastauer, an alleged associate of Roger “Rocket” Knox, the owner of Swiss finance firm Wintercap SA. Knox has since been convicted on criminal charges linked to the scheme.
According to the SEC, Michael Gastauer moved more than $3 million in illicit proceeds into accounts controlled by his father — including $500,000 to a German bank and $2.8 million to a trust used to buy a London condominium. Michael Gastauer now faces a $17 million civil forfeiture order, the agency says.
A Second Chance — and a Second Warning
Two years ago, the First Circuit reversed a prior ruling by U.S. District Judge Richard Stearns that ordered Raimund Gastauer to surrender the funds. The appellate court found the lower court erred in concluding Gastauer had waived his due process challenge by partially litigating before contesting jurisdiction, and it sent the case back.
This time, however, the panel hinted that Gastauer may indeed have forfeited his challenge — not by litigating too much, but by saying too little. Judges focused on his failure to comply with discovery probing whether jurisdiction could be established through interactions with U.S. banks, rather than physical presence in the United States.
When Gastauer did not respond, Judge Stearns entered a default judgment, which with interest climbed to $4.6 million.
Cassel-Walker described the renewed discovery order as an “egregious” violation of the First Circuit’s 2024 ruling, lacking any factual footing.
