As per a press release of the SEC on Jan. 4, 2023, The U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have taken down the fraudulent operation known as the “Mike G Deal,” which allegedly defrauded investors of over $45 million.
The mastermind of the scheme, Neil Suresh Chandran, has been arrested and charged with various securities law violations.
The SEC and DOJ have also charged Chandran, Glaspie, Davidson, Knott, Amy Mossel, Banner Co-Op Inc., BannersGo LLC, and AEO Publishing Inc. for their roles in the scheme.
What is Mike G Deal Scam?
Michael Glaspie AKA Mike G was a key figure in the Mike G Deal and is the individual for whom the scam is named. He has a history of involvement in multi-level marketing (MLM) schemes, and it is alleged that he used the Mike G Deal as a way to funnel victims into these schemes.
The Mike G Deal promised victims lucrative deals that never materialized.
The details of the transaction and the story surrounding it may change. Still, the mode of operation remains the same: investors are attracted by the promise of getting in early on a reportedly profitable opportunity.
The SEC’s federal lawsuit against the Mike G Deal was preceded by cease and desist actions taken at the state level by regulatory authorities in Michigan and Alabama.
As a result, two of the defendants in the SEC’s complaint, Michael Glaspie and Linda Knott, were previously fined $15,000 and $10,000, respectively.
The SEC’s complaint specifically names CoinDeal, as the latest version of the Mike G Deal.
According to the SEC, Chandran falsely claimed to own this unique technology and that it was on the verge of being sold for trillions of dollars to a group of reputable billionaire buyers.
He then solicited investments from mostly unsophisticated investors with the promise of high returns from the imminent sale of the business.
Chandran and his co-conspirators provided updates on the supposed deal, including the involvement of foreign central banks and the U.S. Department of Homeland Security, to give the impression that the deal was legitimate and to induce investors to continue putting money into the scheme.
The criminal case involving Chandran is still in progress, and a Status Conference is planned for March 2nd, 2023.
Glaspie, who was recruited by Davidson, a former victim of Chandran, is alleged to have knowingly or recklessly disseminated false information about CoinDeal to tens of thousands of investors in multiple states and countries.
He used near-daily written updates and weekly teleconferences to communicate with investors and promote the opportunity.
The SEC and DOJ are seeking permanent injunctions, disgorgement of ill-gotten gains, and civil monetary penalties against the defendants. The SEC also seeks officer-and-director bars and penny stock bars against Chandran and Glaspie.
Chandran Bought 39 Tesla
This case serves as a reminder to investors to exercise caution when presented with opportunities that seem too good to be true, and to thoroughly research any investment before handing over their money.
The SEC is seeking disgorgement of ill-gotten gains and financial penalties, while the DOJ has charged Chandran with wire fraud and conspiracy to commit wire fraud.
All the $45 Million funds are mainly distributed among 4 people. Neil Chandran ($37 Million), Michael Glaspie ($5.9 Million), Garry Davidson ($3 Million) and Linda Knott ($749,000).
Scammers personally use the funds and Neil Chandran buys various properties in California & Nevada.
Neil Suresh Chandran also got the limelight when he bought 39 Tesla cars using scam money and made false claims to have ties with Elon Musk.