A woman from New Boston, Michigan, is now facing federal prosecution after authorities say a multimillion-dollar investment meant to launch a child modeling career was instead funneled into online gambling accounts.
Chanise Coyne, 46, was indicted last week on several counts of wire fraud and money laundering. Prosecutors allege she persuaded a family to turn over more than $4.6 million, telling them the money would help build their daughter’s career in child modeling.
Investigators say that is not where the money went.
According to federal authorities, much of the cash was diverted for personal expenses. Court records specifically reference what prosecutors describe as “significant gambling expenditures,” rather than payments for modeling events, travel, or professional representation.
The indictment, unsealed by the U.S. Attorney’s Office for the Eastern District of Michigan, outlines a series of financial transactions that allegedly trace back to online betting accounts. Among the platforms identified by prosecutors is FanDuel, a popular online sportsbook.
Officials have not released a detailed accounting of how much money was placed on bets, how much may have been lost, or whether any winnings were withdrawn. Still, U.S. Attorney Jerome F. Gorgon Jr. made clear that investigators believe the family’s savings were gambled away.
“…this defendant allegedly took advantage of a family’s love for their daughter, stole their nest egg, and then gambled it away,” Gorgon said in a statement.
Gambling transactions detailed in indictment against Michigan child modeling scout
Federal agents say the betting activity surfaced as they combed through digital bank records and payment histories. Instead of seeing routine business expenses tied to modeling agencies or event bookings, investigators say they found repeated transfers connected to sports wagering platforms.
The alleged gambling activity also forms part of the money-laundering charges. Special Agent in Charge Jennifer Runyan of the FBI’s Detroit Field Office said the financial trail suggested efforts to move and disguise the origin of the funds.
Prosecutors argue that using online betting accounts was one way the money was cycled after it was obtained from the family. However, the indictment stops short of explaining whether mounting gambling losses led to additional spending or escalating bets.
The criminal case stands apart from any past civil disputes or customer complaints involving Coyne’s business dealings. Still, some former clients have previously claimed they were told she had “won” money gambling online and used those winnings to offset business costs.
Coyne has entered a plea of not guilty. The case will now move forward in federal court, where prosecutors will be required to prove that the modeling venture was a front for fraud and that the gambling transactions were part of a broader scheme to misuse the family’s money.
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