Who is David Kagel? 86 Year Old Pensioner Turned Crypto Ponzi Kingpin
Who is David Kagel? The 86-year-old geriatric pensioner who ran the crypto theft ponzi scheme for 5 years with his two accomplices.
David Kagel, a former attorney in California, has been sentenced to five years of probation and ordered to pay close to $14 million after he admitted to carrying out an 8-figure crypto ponzi scheme.
Yesterday (October 8), a judgment was filed by federal court judge Gloria Navarro in Las Vegas, which saw Mr. Kagel sentenced after he pleaded guilty to one count of conspiracy to commit commodity fraud in May.
86-Year-Old Crypto Scammer from the U.S. Created a $15 Million Pyramid Scheme.
A federal court in Las Vegas sentenced David Kagel to 5 years of probation and a $14 million fine for creating a cryptocurrency pyramid scheme.
The man promised investors a monthly return of 20% to… pic.twitter.com/qrUFZBvOwf
— TU_Crypto_News (@TU_Crypto_News) October 9, 2024
86-Year Old Crypto Ponzi Kingpin To Serve Out His 5-Year Probation In A Vegas Care Facility
Due to poor health conditions, the pensioner is currently in hospice care at a senior facility in Las Vegas. Kagel will serve out his 5-year probation in the hospice. If he were to leave the facility during his probation period, he would be required to wear a monitoring device.
Kagel was charged last year by prosecutors who found that Kagel and two accomplices were operating the Ponzi from December 2017 to around June 2022. The trio lured victims into investing in a fraudulent crypto bot trading scheme with promises of high returns and zero risk.
Prosecutors claimed that during the five-year period, the scammers “fraudulently promoted and solicited investments and obtained at least $15 million in victim-investor funds for various cryptocurrency trading programs.”
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David Kagel Used His Law Firms Letterhead Paper To Draft Letters To Victims For Credibility
Kagel used his law firm to lend credibility to the crypto scam by drafting letters using his law firm’s letterhead before being sent to victims of the Ponzi. Prosecutors argued that the official letterheads helped to build trust.
The unsuspecting victims believed they were investing in a legitimate scheme that used intelligent trading bots to invest in the crypto markets. Kagel’s scheme guaranteed to repay the principal investment and profit from upward of 20% to 100% of the principal investment within 30 days.
To further build trust and allay investors’ fears, Kagel claimed to have 1000 Bitcoin in a wallet worth $11 million in January 2018 and that it was held in escrow to guarantee investments.
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Geriatric Scammer Has Had His Law Licence Suspended 3 Times In Less Than 30 Years
How could he practice Law?!
Kagel's law license was revoked by the CA Supr. Court in 2023 after he didn't respond to disciplinary charges in another case – he misappropriated $25,000 in client funds. His law license was suspended twice, in 1997 & 2012, according to CA Bar records https://t.co/rE4Azjz133— Nataly Minkina (@MinkinaNataly) October 9, 2024
Mr. Kagel has a history of misdemeanors, with his law license having been suspended three times, in 1997, 2012, and more recently, 2023.
Last year, the California Supreme Court pulled Kagel’s law license for failing to respond to disciplinary charges. The court claimed the pensioner misappropriated $25,000 in client funds.
David Saffron and Vincent Mazzotta, Mr. Kagel’s alleged accomplices, have pleaded not guilty. The pair currently await trial in a Los Angeles federal court set for April 2025.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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