US SEC issues default judgment against Coindeal fraud suspect

The US SEC announced this week that the US District Court for the Eastern District of Michigan issued a default judgment against Garry Davidson and Linda Knott for their alleged involvement in the $45 million Coindeal fraud case. Davidson and Knott are accused of falsely promising to obtain huge returns by selling the Blockchain technology Coindeal to wealthy buyers, thereby deceiving investors. 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 the registration and anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. They are permanently prohibited from future violations, banned from holding senior positions or directorships, and ordered to pay huge restitution and civil fines.