On April 13th, 2017, the Department of Justice intervened in a $10 million defamation lawsuit filed by Rick Maike and Global1Entertainment, leading to the case's dismissal. This action came just one day before a scheduled pre-trial conference, following the issuance of an arrest warrant for Maike on federal criminal charges.
The civil suit began after Chuck King published a YouTube video in early January 2015. King claimed the FBI was investigating Rick Maike and his company, Global1Entertainment. King had been an investor in Infinity2Global, a predecessor company to G1E. He lost his money when that scheme collapsed. Infinity2Global, like G1E, was owned and operated by Maike. It operated as a Ponzi scheme, paying early investors with funds from new recruits until its inevitable collapse, a common tactic in fraudulent investment operations.
Maike and G1E responded to King's public allegations by filing a $10 million defamation lawsuit. They secured a temporary restraining order in early 2015. The case then progressed slowly through the courts. A trial had been set for April 17th, 2017.
But in late 2016, reports confirmed that G1E and Maike were under FBI investigation. A forfeiture complaint, filed under seal around the time King posted his video, later revealed the investigation targeted Maike and G1E for suspected money laundering and wire fraud. These charges often arise from attempts to conceal the illicit origins of funds generated by schemes like Ponzi operations and the use of electronic communications to execute the fraud.
In light of the confirmed criminal investigation, King filed a Motion to Stay on March 13th. He requested the civil proceedings halt until the criminal case concluded. Maike and G1E, however, filed an opposition two weeks later, insisting the civil defamation matter proceed to trial as scheduled. They sought a swift resolution to King's claims.
With the April 17th trial date approaching, hearings took place, but a decision on King's motion to stay remained pending. A settlement conference was then scheduled for April 10th. The final pre-trial conference moved to April 14th.
Just one day before that final pre-trial meeting, the DOJ filed its Motion to Intervene and Stay Civil Trial. The United States had filed a separate Criminal Complaint on April 12th, 2017. A U.S. Magistrate Judge found probable cause to believe that Richard G. Maike had committed federal criminal violations. The specific charges were mail fraud, money laundering, and structuring of monetary transactions. An arrest warrant for Maike was issued at that time.
The Department of Justice asserted that proceeding with the civil trial would disrupt and unfairly prejudice the interests of the United States in the prosecution of its criminal case. King himself was identified as a victim and potential witness in the federal criminal proceedings. The DOJ argued that a civil trial would consume unnecessary court time and party resources on matters largely resolved by the criminal case's outcome. It also placed an undue burden on witnesses, who might be compelled to testify in civil depositions about facts pertinent to the criminal probe.
The issues in the civil defamation lawsuit were "inextricably intertwined" with those in the pending criminal case. And because King was representing himself pro se, without legal counsel, he could not adequately represent the interests of the United States. He lacked the legal training and resources to properly present evidence and findings related to facts also implicated in the criminal prosecution.
The DOJ requested the court stay G1E and Maike's civil case against King until the conclusion of the criminal case. Maike and G1E again opposed the motion, but their efforts were unsuccessful. The civil defamation lawsuit was dismissed by court order. Individuals who believe they may be victims of Maike's schemes can contact the FBI or the U.S. Attorney's Office for the district where the charges were filed.