SEC Secures Default Judgments in $45 Million Coindeal Fraud Case

The U.S. Securities and Exchange Commission (SEC) announced this week that the U.S. District Court for the Eastern District of Michigan has issued default judgments against Garry Davidson and Linda Knott for their involvement in a fraudulent $45 million Coindeal scheme. Davidson and Knott were accused of deceiving investors with false promises of significant returns from an alleged sale of blockchain technology, Coindeal, to wealthy buyers. The fraud spanned from January 2019 to mid-2022, during which they misled investors about Coindeal’s value and misappropriated funds for personal use. The court found Davidson and Knott guilty of violating registration and antifraud provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. They were permanently enjoined from future violations, barred from serving as officers or directors, and ordered to pay substantial disgorgement and civil penalties.