85 Year Old Former Attorney On Hospice Care Pleads Guilty To $9.5 Million Crypto Fraud

Crypto fraud crypto theft Ponzi
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Julia Smith
Author Categories
About Author

Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

David Kagel, a now disbarred 85-year-old Beverly Hills attorney on hospice care, pleaded guilty to an elaborate, years-long crypto ponzi scheme on Wednesday.

Former Attorney On Hospice Care Facing 5 Years In Prison

According to a press release from the Department of Justice, Kagel and two co-conspirators promoted non-existent crypto investment programs and promised high-yield results to investors thanks to the use of AI trading bots.A promoter for the massive crypto ponzi scheme alleged that Kagel held over $11 million in escrow that would guarantee victims’ investments “against loss for any reason,” with the now disgraced former attorney going so far as to craft professional documents to verify the promoter’s claims fraudulently.

“Kagel preyed on trusting individuals through a complex scheme to separate people from their hard-earned money,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI)’s Los Angeles Field Office.

In total, Kagel and his co-conspirators defrauded investors of an estimated $9.5 million in order to ultimately use it “for their own personal benefit.”

“David Kagel abused his position as an attorney to earn the trust of investors and to endorse false statements about a purported cryptocurrency investment that was, in fact, a scam,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Kagel and his co-conspirators defrauded their victims out of millions of dollars and used the victims’ money to line their own pockets.”

Crypto Ponzi Scheme Co-conspirators To Stand Trial This Summer

Los Angeles native Vincent Anthony Mazotta Jr. and Australian citizen David Gilbert Saffron are slated to stand trial this August for allegedly promoting the digital asset fraud under several different entity names.“Rather than investing victims’ funds in cryptocurrency, Saffron and Mazzotta allegedly misappropriated victims’ funds to pay for personal expenses including private chartered jet flights, luxury hotel accommodations, private mansion rentals, a personal chef, and private security guards,” the Department of Justice claimed.Kagel has faced a string of disciplinary charges as an attorney over the years. His license was fully revoked in 2022 following claims that he misappropriated thousands of dollars of customer funds.The now disgraced former attorney, who revealed in October court documents that he was receiving hospice care in a Las Vegas facility, has pled guilty to one count of conspiracy to commit commodity fraud and is facing a maximum sentence of five years in prison.

He is expected to be sentenced on September 10.

More Articles

Blockchain News
Japan’s SBI Posts Record Crypto Profits; Aims for Nation’s First USDC Listing
Tim Alper
Tim Alper
2025-02-09 23:30:00
Price Analysis
Price Breakthrough Forecast: The Next XRP Rally Could Be Here Soon
Arslan Butt
Arslan Butt
2025-02-09 14:21:48
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors