Disbarred Attorney Plead Guilty in $9.5M Crypto Ponzi Scheme

As a researcher with a background in finance and law, I find the case of David Kagel deeply concerning. It’s disheartening to see an attorney, someone who is supposed to uphold the law, instead choosing to manipulate it for personal gain. The victims in this cryptocurrency Ponzi scheme lost over $9.5 million, trusting that they were investing in legitimate opportunities.

David Kagel, a disbarred lawyer now 85 years old, has admitted guilt for his involvement in a cryptocurrency scam. This deceitful scheme, as outlined in court records, defrauded innocent victims of approximately $9.5 million. Kagel and his accomplices marketed supposed investment programs that promised exorbitant returns through the use of fictitious cryptocurrency trading bots.

As a crypto investor, I’ve come across deceitful actors like Kagel and his associates who manipulated information to swindle unsuspecting victims. Instead of holding the claimed 11 million Bitcoins in escrow as an attorney, Kagel falsely represented this fact to secure investments. To add credibility to their lies, they issued misleading letters, using my firm’s letterhead to give an air of authenticity.

Kagel admitted his guilt in devising a plan for commodity fraud. He faces a potential imprisonment term of up to five years, with sentencing slated for September 10th. The federal judge will base the final penalty on U.S. Sentencing Guidelines.

As a researcher delving into this topic, I uncovered that David Gilbert Saffron from Australia and Vincent Anthony Mazzotta Jr. of Los Angeles were implicated in the same cryptocurrency Ponzi scheme alongside Kagel in late 2023. They are scheduled to stand trial beginning August 13, with allegations that they misused victims’ funds for their own personal expenses.

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2024-05-30 01:56