86-Year-Old Lawyer to Pay $14M for Crypto Ponzi Scheme

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As a seasoned analyst with decades of experience under my belt, I’ve seen my fair share of financial misdeeds and unscrupulous characters. However, the case of David Kagel stands out as particularly egregious. At 86 years old, one might expect wisdom and integrity from someone in his position; instead, we find a man using his legal background to perpetrate a massive cryptocurrency Ponzi scheme.

As a crypto investor myself, I’ve found myself in a precarious situation, much like David Kagel, the 86-year-old ex-attorney from California. Unfortunately, my involvement in a vast cryptocurrency pyramid scheme has led to a five-year probation sentence and an order to repay nearly $14 million. It serves as a stark reminder of the risks involved in this dynamic market and the importance of due diligence before investing.

On October 8th, I found myself receiving a sentence from Judge Gloria Navarro of the Las Vegas federal court, following my admission of guilt for conspiring to commit commodity fraud back in May.

Currently, he’s residing in a hospice care center because of his health issues, and during this time, he’ll also be fulfilling his probation in Las Vegas. In case he leaves the facility, he’ll need to wear an electronic monitoring device.

From December 2017 to June 2022, Kagel and two other parties deceived people into investing in a non-existent cryptocurrency bot trading system that promised zero risk and huge profits. They falsely promoted this scheme and managed to gather approximately $15 million from the investors.

As a lawyer, Kagel was able to utilize his law firm’s letterhead, lending an air of credibility to his dealings with the victims. He enticed investors with promises of substantial profits ranging from 20% to 100%, all within a mere 30-day timeframe. Furthermore, he deceptively claimed to possess 1,000 Bitcoins valued at approximately $11 million as collateral for their investments.

In 2023, the California Supreme Court suspended Kagel’s law license due to his theft of $25,000 from clients. His two associates, David Saffron and Vincent Mazzotta, have maintained their innocence and are scheduled for trial in April 2025.

David Kagel’s sentencing underscores the fact that deceitful financial activities, particularly in the realm of cryptocurrencies, will not be ignored. It’s imperative to prosecute offenders to safeguard investors and rebuild confidence in the market.

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2024-10-09 11:17