A Florida man pleaded guilty to orchestrating an investment fraud scheme that defrauded more than 10,000 victims of over $55 million.
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Michael Glaspie, 72, of Palm City, defrauded his victims of over $55 million by marketing an investment opportunity under the name “CoinDeal” or “Coin Deal,” a spokesperson for the United States Department of Justice informed. Glaspie claimed that CoinDeal would yield extremely high returns after one or more technology companies, “operated under the banner of “ViRSE” and allegedly owned by Neil Suresh Chandran,” were purchased by multiple wealthy buyers.
To entice more investors, Glaspie falsely promised he would repay investors their money with seven percent annual interest over three years if the returns from CoinDeal failed to materialize, the spokesperson said.
To support his false repayment promise, Glaspie claimed that he had an exclusive and lucrative contract with AT&T to distribute government‑funded phones, the spokesperson informed. In addition, he claimed that an app he developed was being distributed by the Better Business Bureau and would yield over $400 million in revenue.
Glaspie also falsely claimed that he never paid himself with CoinDeal investor funds. However, investigators found he misappropriated nearly $2.5 million of victim investments for personal purposes, including “trading cryptocurrency, paying his employees’ salaries, and buying a life insurance policy for a family member,” the spokesperson stated.
“For his brazen and repeated lies that defrauded more than 10,000 victims out of more than $55 million, the defendant now justifiably faces a lengthy prison term,” Assistant Attorney General Kenneth A. Polite, Jr., of the Justice Department’s Criminal Division, said.
“Michael Glaspie admitted today to his involvement in a widespread scheme to defraud investors for his personal benefit,” U.S. Attorney Steven A. Russell for the District of Nebraska said.
Glaspie pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on June 16 and faces a maximum penalty of 20 years in prison.
Neil Suresh Chandran was charged separately with three counts of wire fraud and two counts of monetary transactions in unlawful proceeds for his role in the investment fraud scheme.
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