SEC Granted Default Judgment in $45 million Coindeal Fraud Case

The U.S. District Court for the Eastern District of Michigan has issued a default judgment against Garry Davidson and Linda Knott for their alleged involvement in a $45 million Coindeal fraud, the SEC announced this week. Davidson and Knott are charged with defrauding investors by falsely promising huge returns by selling blockchain technology Coindeal to wealthy buyers. The fraud began in January 2019 and continued until mid-2022, during which they misled investors about the value of Coindeal and misappropriated funds for personal use. The court ruled that Davidson and Knott violated registration and anti-fraud provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. They were permanently banned from future violations, barred from holding senior positions or directors, and ordered to pay large refunds and civil fines.