A Florida man recently pleaded guilty to charges in orchestrating a $55 million investment fraud scheme.
Palm City resident Michael Glaspie, 72, pleaded guilty to one count of wire fraud for his role in organizing an investment fraud scheme that swindled more than $55 million from more than 10,000 victims, according to a Feb. 23 news release.
“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. said in the release. “The Department of Justice is committed to rooting out investment fraud and holding wrongdoers accountable to protect the financial security of all Americans.”
Glaspie allegedly advertised a lucrative business opportunity known as CoinDeal, based on the premise that a group of wealthy buyers was about to acquire a technology company known as ViRSE which was allegedly owned by Neil Suresh Chandran, the release reported. To entice investors, Glaspie reportedly made false promises that he would repay the money with 7% interest over three years if the deal didn't go through. When the deal failed to materialize, Glaspie allegedly transferred investor funds to Chandran.
Glaspie also reportedly misappropriated $2.5 million in CoinDeal investor funds for personal purposes, including trading cryptocurrency, paying employee wages and buying a life insurance policy for a family member, according to the release.
“Investment fraud schemes of any type will not be tolerated. The FBI will continue to do what we have done for over 100 years and investigate those who attempt to defraud unsuspecting Americans of their hard-earned money,” Assistant Director in Charge David Sundberg, of the FBI Washington field office, said in the release. “I would like to thank our partners at FBI offices across the country and the Department of Justice for their work and collaboration to bring justice on behalf of these victims.”
For his actions, Glaspie faces a maximum penalty of 20 years in prison and is scheduled to be sentenced June 16, the release reported. A separate lawsuit has been filed against Chandran, charging him with three counts of wire fraud and two counts of engaging in monetary transactions in criminally derived property.
