Eight individuals have been charged by The U.S Securities and Exchange Commission (SEC) for allegedly selling unregistered securities through blockchain tech firm, CoinDeal.
The accused include Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, AEO Publishing Inc, Banner Co-Op, Inc, and BannersGo, LLC.
According to the SEC, Chandran, Davidson, Glaspie, Knott, and Mossel lied to investors by claiming that “CoinDeal would be sold for trillions of dollars,” despite no acquisitions deals lined up, nor funds allocated to investors. The defendants also led investors on by reiterating that the “imminent sale of CoinDeal would reap returns of 500,000 times for investors.”
Furthermore, the SEC alleges that Chandran used millions of dollars in investor funds for personal expenses and the purchase of a boat, real estate, and cars.
The SEC further claims that Chandaran has defrauded over 10,000 victims through CoinDeal and other companies and has filed the complaint in the U.S. District Court for the Eastern District of Michigan. Chandran has already been detained in the U.S for crimes related to wire fraud and two counts of engaging in monetary transactions in criminally derived property since September 14, 2022.
The accused parties face charges of violating the registration provisions of the federal securities laws and the antifraud provisions of the federal securities laws. If found guilty, they could face significant fines and prison sentences. The SEC’s investigation into the matter is ongoing.