Palm City man pleads guilty to $55 million investment fraud

PALM CITY, Florida. A Martin County man pleaded guilty Thursday to running an investment fraud scheme that netted more than 10,000 victims more than $55 million, according to the U.S. Department of Justice.

Court documents revealed that Michael Glaspie, 72, of Palm City, was selling investment opportunities under the name “CoinDeal” or “Coin Deal”.

Federal prosecutors said Glaspie argued that CoinDeal would generate very high profits if one or more technology companies were acquired by a consortium of wealthy buyers.

To encourage investors to invest in CoinDeal, the Justice Department said that Glaspie falsely promised that if CoinDeal revenues did not materialize, he would return investors their money at 7% per annum within three years. However, prosecutors said Glaspie knew he did not have the funds to pay those amounts.

“For his brazen and repeated lies that defrauded more than 10,000 victims of more than $55 million, the defendant now rightfully faces a lengthy prison sentence,” said Assistant Attorney General Kenneth A. Polite Jr. of the Criminal Division. Ministry of Justice. statement.

The Justice Department said that, in support of his false promise to repay the debt, Glaspie deceptively claimed that he had an exclusive and lucrative contract with AT&T to distribute government-sponsored phones, and that the application he developed was being distributed by the Better Business Bureau and would bring in more than $400 million when he had no such contract or distribution agreement.

Additionally, when the promised sale to CoinDeal did not materialize, prosecutors alleged that Glaspie passed investors’ funds to a partner after falsely telling CoinDeal investors that he would not do so.

The Justice Department said the Palm City man misappropriated nearly $2.5 million of the victim’s investment for personal purposes, including cryptocurrency trading, paying salaries to his employees, and buying a life insurance policy for a family member.

“Investment fraud schemes of any type are unacceptable. The FBI will continue to do what we have done for over 100 years and investigate those who are trying to swindle unsuspecting Americans of their hard-earned money,” said Assistant Director David Sandberg. This is stated in a statement from the FBI field office in Washington.

Glaspie pleaded guilty to one count of wire fraud. He is due to be sentenced on June 16 and faces a maximum sentence of 20 years in prison.