As an 86-year-old former attorney from California, I find myself reflecting on my life choices with a heavy heart. David Kagel, once a respected professional, has now been sentenced to five years of probation and ordered to pay nearly $14 million in restitution due to his involvement in a crypto Ponzi scheme.
An ex-California lawyer named David Kagel, aged 86, has been given five years of supervision and instructed to repay approximately $14 million as part of his role in a fraudulent cryptocurrency scheme which amassed millions of dollars through illegal activities.
In October, after admitting guilt for his involvement in a commodity fraud conspiracy earlier this year, Kagel was handed down his sentence by Judge Gloria Navarro of the Federal Court in Las Vegas.
As a crypto investor currently residing in a senior facility in Las Vegas due to deteriorating health, I am serving my probation within these premises. In case my health recovers, I will be required to wear a monitoring device should I be granted permission to step outside.
How It All Went Down
The court’s decision stems from a crypto Ponzi scheme that Kagel and two accomplices—David Saffron and Vincent Mazzotta—operated between December 2017 and June 2022, luring investors into a fraudulent cryptocurrency trading bot program.
Investigators disclosed that the business strategy run by David Kagel and his associates was estimated to yield around $15 million at the expense of unsuspecting victims. The operation was marketed as providing “exceptional profits with minimal or no danger.
In his role as a central player, Kagel helped perpetuate the fraud by employing his law firm’s authentic stationery to generate an air of credibility, persuading prospective investors that their involvement was with a reliable and trustworthy endeavor.
Numerous individuals, placing faith in the authenticity of a lawyer’s statement and formal paperwork, were deceived by the plan, as evidenced by the documents themselves.
Beyond this, they assured that those who suffered losses would recover their initial investment along with returns of up to 100%, in as little as 30 days. They conveyed to investors that sophisticated trading algorithms would manage trades, purportedly reducing risk while guaranteeing steady profits.
Once, Kagel boasted about having 1,000 BTC, equivalent to $11 million, locked away as collateral, deceitfully suggesting that these funds served as a security for investors’ investments. Moreover, Kagel tricked his victims into thinking he had prior experience in cryptocurrency investments, thereby enhancing their trust in him.
Authorities asserted that Kagel’s actions paved the way for the extensive propagation of the deceptive scheme. This deceitful act persisted for numerous years, accumulating a vast sum from victims’ funds before eventually being uncovered by the authorities.
Consequences And Legal Ramifications
Even though Kagel has confessed to his part in the plan and served his punishment, the aftermath of the legal process persists for his associates.
Saffron and Mazzotta have denied the charges against them and will stand trial at a federal court in Los Angeles next year in April. If found guilty, they could potentially be subjected to severe penalties due to their alleged role in the Ponzi scheme.
For Kagel, the repercussions stretch far beyond his latest sentencing. In 2023, the California Supreme Court took away his legal license due to his persistent unwillingness to address “disciplinary allegations.
On three separate occasions, his professional license was at risk: he faced suspension in 1997 and again in 2012. His background in legal matters, along with his involvement in the Ponzi scheme, portrays an individual who consistently disregarded professional and ethical norms.
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2024-10-10 09:12