The National Science Institute (NSI), previously known as The Geek Group, was a not-for-profit educational organization based in Grand Rapids, Michigan. The group opened to the public on January 1, 2014, and said in May of that year that it had over 25,000 members in 142 countries.[1]
| Abbreviation | NSI |
|---|---|
| Formation | 1994 |
| Founder | Chris Boden |
| Founded at | Grand Valley State University |
| Dissolved | December 31, 2018 |
| Type | NGO |
| Legal status | 501(c)(3) Non-profit |
| Purpose | Education |
| Location | |
| Website | thegeekgroup |
Formerly called | The Boehemian Brothers, GeNext! & The Geek Group |
The organization's president and executive director chose to close the organization on December 31, 2018, following a sealed search warrant executed by the United States Department of Homeland Security and three other federal agencies.[2] Two of its executives were sentenced to jail time, and one of its consultants received probation, for crimes at a bitcoin exchange service that it operated.[3]
History
editThe organization was started in 1996 at Grand Valley State University in Allendale, Michigan as a group of friends, experimenting with university surplus equipment.[citation needed] Over several years, the group grew and changed its name several times, eventually becoming a company called The Geek Group. It leased a building at 344 Ionia Ave SW in Grand Rapids. The Geek Group later moved to Kalamazoo and became a 501(c)(3) non-profit organization.[4] In early 2010 the Kalamazoo County Treasurer seized the organization's headquarters, which was then located in Kalamazoo Township, Michigan, a suburb of Kalamazoo, after the organization refused to pay property taxes of over $100,000.[5][6] The organization appealed, unsuccessfully.[citation needed]
NSI was sponsored by many companies, the majority of them small businesses local to the organization, but also some larger companies such as Rustoleum.[citation needed] They supplemented this donation income by charging for some research and development services.[7]
The organization moved back to Grand Rapids in December 2010,[8] into a 43,000-square-foot (4,000 m2) facility on Leonard Street NW, called "The Leonard Street Labs."[9] On January 2, 2014, the facility was damaged by a fire; although no one was hurt, the building was temporarily closed for repairs.[10][11]
Federal raid and aftermath
editOn December 21, 2018, the Leonard Street Labs building was raided by Homeland Security, the IRS, and several other federal agencies.[12] After the raid, the NSI could not meet its financial obligations, and shut down on December 31, 2018.[13] The building was demolished to make way for Victory on Leonard, a 119-unit apartment building.[14]
On January 5, 2019, Christopher Boden, the founder of the organization, said that the raid took place "because he was commercially trading in cryptocurrency without the proper authorization", and that he believed he was facing prison time.[15] The United States Department of Justice (DOJ) said that Boden, Daniel Reynold DeJager, and Leesa Beth Vogt operated a service whereby cryptocurrency was being purchased, mixed, and resold, including to drug dealers, without following any anti–money laundering or know your customer procedures. The DOJ also said that Boden solicited an undercover agent to collect a bitcoin debt "by using violence if necessary."[16]
Boden pleaded guilty to money laundering, operating an unlicensed money transmitting business, and structuring,[17] and was sentenced to 30 months' incarceration, followed by 3 years of supervised release, of which he served 2 years, 15 days.[18] Vogt pleaded guilty to structuring, and was sentenced to 10 months in prison and 3 years of supervised release. DeJager pleaded guilty to money laundering and conspiracy to operate an unlicensed money-transmitting business, and was sentenced to 4 years of probation.[3]
References
edit- ↑ Weick, Rachel (May 9, 2014). "Geek Group provides access to technology". Grand Rapids Business Journal. Retrieved February 28, 2022.
- ↑ "GR tech group blames fed search fallout for shutdown". 24 Hour News 8. December 31, 2018. Archived from the original on December 31, 2018. Retrieved December 31, 2018.
- 1 2 Tunison, John (February 28, 2022). "Ex-leader of The Geek Group gets prison for Bitcoin money-laundering scheme". MLive. Archived from the original on March 22, 2022. Retrieved May 11, 2025.
- ↑ "Exempt Organizations". IRS. Archived from the original on December 22, 2018. Retrieved September 17, 2017.
- ↑ Thomas, Pat (March 11, 2010). "Does Group Owe Taxes". AM 590 WKZO. Archived from the original on April 26, 2016. Retrieved October 8, 2016.
- ↑ Szczys, Mike (March 16, 2010). "Tax-exempt Geek Group hit with huge tax bill". Hackaday. Archived from the original on October 10, 2016. Retrieved October 8, 2016.
- ↑ Dwyer, Dustin (February 1, 2010). "Geek's Dream Lab Could Create Jobs in Michigan". NPR. Archived from the original on May 22, 2024.
- ↑ "Geek Group Inc". GuideStar. June 20, 2018. Archived from the original on June 20, 2018.
- ↑ Radigan, Mary (January 17, 2011). "Geek Group is renovating former West YMCA as new headquarters". MLive. Grand Rapids Press. Archived from the original on June 27, 2025. Retrieved September 17, 2017.
- ↑ Benchoff, Brian (January 3, 2014). "Fire At The Geek Group". Hack A Day. Archived from the original on January 24, 2026. Retrieved January 3, 2014.
- ↑ "Fire damages Geek Group in Grand Rapids". WZZM13. January 2, 2014. Retrieved January 3, 2014. [dead link]
- ↑ Tunison, John (December 21, 2018). "Grand Rapids tech group raided by feds". MLive. Archived from the original on May 13, 2026. Retrieved May 12, 2025.
- ↑ Agar, John (December 31, 2018). "Tech center, once the 'Geek Group,' shuts down for good after raid". MLive. Retrieved February 28, 2022.
- ↑ Ferguson, Christa (March 6, 2021). "Apartments and more: The vision for Victory on Leonard in Grand Rapids". WOOD-TV. Retrieved May 13, 2025.
- ↑ Deiters, Barton (January 6, 2019). "Geek Group founder discusses criminal investigation". WOODTV.com. Retrieved March 15, 2022.
- ↑ "Three Defendants Sentenced For Illegal Bitcoin Business". U.S. Attorney's Office, Western District of Michigan (Press release). United States Department of Justice. March 1, 2022. Retrieved May 11, 2025.
- ↑ Agar, John (October 18, 2021). "Ex-leader of The Geek Group pleads guilty in Bitcoin money-laundering scheme". MLive. Retrieved May 12, 2025.
- ↑ United States v. Boden, 1:21-cr-00040, (W.D. Mich. Oct 21, 2025) ECF No. 129