The U.S. Securities and Exchange Commission (SEC) has taken legal action against several individuals and entities for their involvement in the CoinDeal fraudulent investment scheme.
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The scheme raised more than $45 million by selling unregistered securities to tens of thousands of investors around the world, according to the SEC complaint.
Specifically, the SEC has indicted Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, AEO Publishing Inc, Banner Co-Op, Inc, and BannersGo, LLC for their involvement in the CoinDeal investment scheme. . The complaint was filed in the United States District Court for the Eastern District of Michigan.
Chandran, Davidson, Glaspie, Knott, and Mossel have invested in a blockchain technology called CoinDeal that will be sold for trillions of dollars to a group of prominent and wealthy buyers, according to the SEC complaint, allowing investors to make huge profits. It is alleged that he erroneously claimed that he could produce
These individuals allegedly disseminated false and misleading statements to investors regarding the alleged value of CoinDeal, the parties involved in the supposed sale of CoinDeal, and the use of investment proceeds. This happened from January 2019 to 2022. According to the complaint, no CoinDeal was ever sold and no CoinDeal was distributed to investors. The complaint further alleges that defendants diverted millions of dollars of investor funds for personal use. Chandran added that he used the investor’s money to purchase items such as cars, properties and boats.
Daniel Gregas, director of the SEC’s Chicago Regional Office, said, “Defendants falsely claimed access to valuable blockchain technology, and the imminent sale of the technology could cost investors more than half a million times their investment return. “In practice, as our complaint alleges, all this is in order for the defendants to enrich themselves while defrauding tens of thousands of private investors.” It was an elaborate plan of
In June 2022, the U.S. Department of Justice indicted Chandran for three counts of wire fraud and two counts of illegal financial transactions in the United States District Court for the District of Nebraska for his involvement with CoinDeal.
The SEC complaint seeks undue claims and prejudgment interest, penalties, and a permanent injunction against all defendants. Officers and directors ban Chandran, Davidson, Glaspie, Knott, and Mossel. Injunction under conduct against Chandran.