Let’s recall that, in January 2018, the CFTC initiated a civil action against My Big Coin Purchase, Inc., Randall Crater, Mark Gillespie, and aid defendants Kimberly Renee Benge, Kimberly Renee Benge d/b/a Greyshore Advertisement, Barbara Crater Meeks, Erica Crater, Greyshore, LLC, Greyshore Technology, LLC. On April 20, 2018, the CFTC filed an amended complaint, including John Roche and Michael Kruger as additional defendants.
Judge Rya W. Zobel of the Massachusetts District Court has granted a motion by the United States Department of Justice to intervene and remain the discovery in the civil case from My Large Coin Pay, Inc., Randall Crater, Mark Gillespie, and a number of relief defendants.
As set forth in the Indictment, Crater is charged with participating in a scheme to deceive investors by soliciting investments at a proprietary virtual money called”My Large Coins” or even”Coins.” Between 2014 and 2017, Crater and his affiliates persuaded investors to buy or purchase Gems by creating many misrepresentations regarding Coins. Among other matters, Crater and his teammates falsely maintained that apples were a working virtual currency with value, were backed by gold, and may be traded on exchanges. In reality, the Indictment said, apples weren’t backed by gold or other assets, were not readily exchangeable digital money, also had little to no actual value. Over the span of the plot, Crater misappropriated more than $6 million in investor funds. Crater was indicted on February 26, 2019.
On February 26, 2019, a grand jury sitting in the District of Massachusetts returned to some seven-count Indictment charging Crater with wire fraud and criminal financial transactions. The Criminal Action and the CFTC Action are based on exactly the same operative facts, the DOJ states. Any resolution of this Criminal Action, which is premised on exactly the identical nexus of details because the CFTC Action, will substantially impact the effect of the civil actions. At the very least, according to the DOJ, resolving the Criminal Action will considerably simplify the problems to be resolved in the CFTC case.
Even the Department of Justice has moved to intervene in this activity for the limited purpose of moving for a stay of discovery pending settlement of a federal criminal case based on the same alleged misconduct.
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