SEC Charges Eight Individuals With $45 Million Scam Through Blockchain Company CoinDeal

Key Points:

• Eight people and companies have been accused by the SEC of allegedly selling unregistered securities using the blockchain technology company CoinDeal.
• The defendants are AEO Publishing Inc., Banner Co-Op, Inc., and BannersGo, LLC. They are Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, and Michael Glaspie.
• Despite no acquisition or distribution of funds to investors, Chandran, Davidson, Glaspie, Knott, and Mossel allegedly stated that CoinDeal would be sold for billions of dollars.

The US Securities and Exchange Commission is hunting down the people behind a massive scam that stole money from tens of thousands of investors.

The SEC has charged eight individuals and businesses with fraud associated with blockchain company CoinDeal, for illegally trading securities, violating US securities laws, and orchestrating a conspiracy to appropriate client assets.

The commission sent the complaint to the Eastern District of Michigan U.S. District Court.

According to a press release, the defendants are Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, AEO Publishing Inc., Banner Co-Op, Inc., and BannersGo, LLC.

Despite no acquisition or distribution of funds to investors, Chandran, Davidson, Glaspie, Knott, and Mossel allegedly stated that CoinDeal would be sold for billions of dollars. Chandran is also accused of using millions of dollars in investor money to purchase a boat, homes, automobiles, and other items for his personal use.

Since September 14, 2022, Neil Chandran has been jailed in the United States for offenses involving wire fraud and two charges of conducting financial transactions involving the illegally obtained property.

According to the SEC, Chandran used CoinDeal and other companies in his investment fraud schemes to defraud more than 10,000 people.

Daniel Gregus, director of the SEC’s Chicago Regional Office, said:

“We allege the defendants falsely claimed access to valuable blockchain technology and that the imminent sale of the technology would generate investment returns of more than 500,000 times for investors. As alleged in our complaint, in reality this was all just an elaborate scheme where the defendants enriched themselves while defrauding tens of thousands of retail investors.”

Additionally, the SEC’s ongoing investigation is being carried out by the Chicago Regional Office’s Dante A. Roldán, Steven Tremaglio, Caryn Trombino, and Lynette Nichols-Newman teams under the supervision of Ana D. Petrovic and Paul A. Montoya. Michael D. Foster, a member of the Chicago Regional Office, will serve as the case’s lead attorney.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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