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A resident of Las Vegas is being charged by the US Justice Department with scamming investors out of $45 million. The DOJ posted the allegations on its official website. According to reports, American Brian Lee assisted CoinDeal creator Neil Chandran in defrauding over 10,000 investors.
Lee Faces Charges of Conspiracy, Wire Fraud, and Criminal Money Transactions
Lee has been charged with conspiracy, wire fraud, and engaging in criminal money transactions. Prosecutors allege that Lee and his associates deceived investors of CoinDeal by assuring them of the legitimacy of their family business. The business purportedly developed its own cryptocurrency and products for the meta-universe.
According to prosecutors, Lee worked directly under Chandran, who posed as a co-owner of the business. Another individual involved was American Michael Glaspie, who, like Lee, played a role in raising funds from investors.
To entice victims into the scheme, Lee and other promoters employed deceptive tactics. They claimed that the company was in talks with a “consortium of wealthy clients,” although the exact identity of these clients remained unclear. The scammers made allusions to a certain billionaire running an online retailer (hinting at Amazon founder Jeff Bezos) and a billionaire who founded an electric car company (referring to Elon Musk).
CoinDeal promoters argued that investments were necessary for covering operating expenses while promising significant returns to investors. However, the prosecutor’s office revealed that the accused individuals actually spent the investments on luxury cars and real estate.
It is worth noting that in January 2023, the US Securities and Exchange Commission (SEC) accused Chandran of conducting unregistered sales of securities. The SEC’s investigation revealed that from January 2019 through 2022, CoinDeal advertisers disseminated “false and misleading” statements to investors regarding the perceived value of the company.