The U.S. Securities and Exchange Commission (SEC) has charged the founder of CoinDeal, Neil Chandran, and seven other individuals for their involvement in a fraudulent investment scheme that raised over $45 million through the sale of unregistered securities to thousands of investors worldwide.
The SEC filed the complaint with the Eastern District of Michigan U.S. District Court, accusing Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, Banner Co-Op, Inc., and BannersGo, LLC of making false statements and violating the Securities Act and Exchange Act’s antifraud and registration rules.
These individuals and entities were accused of making fraudulent claims that investment in a blockchain technology dubbed CoinDeal, which would be sold to wealthy customers for trillions of dollars, would allow investors to earn significant returns.
Chandran, Davidson, Glaspie, Knott, and Mossel are also accused of spreading false information to investors about the value of CoinDeal, the parties involved in the alleged sale of CoinDeal, and the intended use of investment profits from January 2019 to 2022.
The complaint further alleges that Chandran used investor funds to purchase assets such as vehicles, real estate, and boats, and that the defendants collectively misappropriated millions of dollars of investor funds for personal use. The complaint claims that neither a sale of CoinDeal nor any dividends to investors took place.
In the SEC’s complaint, violations of the Securities Act and Exchange Act’s antifraud and registration provisions are asserted against Chandran, Davidson, Glaspie, Knott, Banner Co-Op, and BannersGo. It also accuses Mossel and AEO Publishing of assisting Glaspie in violating the antifraud and registration laws of the Securities Act and Exchange Act and Davidson, Glaspie, Knott, Banner Co-Op, and BannersGo of assisting Chandran in violating some of these provisions.
In addition to permanent injunctions, the SEC is seeking disgorgement, pre-judgment interest, fines, and bars against all defendants, as well as conduct-based injunctions against Chandran, Davidson, Glaspie, Knott, and Mossel.
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