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Michael Glaspie, a 72-year-old resident of Palm City, Florida, has pleaded guilty to charges related to an investment fraud scheme that defrauded over 10,000 victims of more than $55 million.
According to the department of justice, Glaspie marketed the investment opportunity under the name “CoinDeal” or “Coin Deal,” claiming it would yield high returns by investing in technology companies owned by Neil Suresh Chandran’s “ViRSE” banner, which were purportedly about to be acquired by a group of wealthy buyers.
Glaspie falsely promised to repay investors with seven percent annual interest over three years if the returns failed to materialize, but in reality, he had no means to make such repayments, according to court documents.
“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,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
“The Department of Justice is committed to rooting out investment fraud and holding wrongdoers accountable to protect the financial security of all Americans.”
To support his false repayment promise, Glaspie deceptively claimed that he had an exclusive and lucrative contract with AT&T to distribute government‑funded phones, and that an app that he developed was being distributed by the Better Business Bureau and would yield over $400 million in revenue, when he had no such contract or distribution agreement.
Furthermore, when the promised sale of CoinDeal did not close, Glaspie transmitted investor funds to Chandran after falsely representing to CoinDeal investors that he would not do so.
Glaspie also falsely claimed that he never paid himself with CoinDeal investor funds, when in truth, 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.
“Michael Glaspie admitted today to his involvement in a widespread scheme to defraud investors for his personal benefit,” said U.S. Attorney Steven A. Russell for the District of Nebraska.
“Thanks to the tireless efforts of our law enforcement partners to untangle this fraud, Glaspie will now be held accountable for this serious crime.”
“This case identified a fraudulent online investment scheme that defrauded over 10,000 victims,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division.
“The subject promised investors high rates of returns then misused investor funds for personal use. The FBI and our law enforcement partners will continue to work diligently to identify and pursue those who seek to deceive and defraud the American public.”
“This elaborate investment fraud scheme defrauded more than 10,000 victims of over $55 million,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Investment fraud schemes of any type will not be tolerated.
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.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
