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🔥🚨🔥 The Fall of David Kagel: An 85-Year-Old Attorney's Descent into a $9.5 Million Crypto Scam🔥🚨🔥
David Kagel, once a respected 85-year-old attorney in California, has admitted to running a $9.5 million cryptocurrency Ponzi scheme. Using his legal reputation, Kagel convinced investors they could earn huge profits, only to use their money for himself.
Kagel's legal troubles aren't new. He was admitted to the State Bar of California in 1974 but faced numerous disciplinary actions over the years. In 1988, he made false statements to the SEC, leading to a suspension in 1997. In 2009, he mishandled client funds, resulting in further scrutiny and, eventually, his disbarment in April 2023.
Despite his checkered past, Kagel still had some respect in the community. He used this to his advantage in the crypto scheme, promising investors their money was safe and backed by $11 million in Bitcoin. He even used his firm's letterhead to make it all seem legitimate.
The scam fell apart when victims realized their funds were gone. Kagel had spent the money on personal expenses, betraying those who trusted him. Now, he faces up to five years in prison after pleading guilty to conspiracy to commit commodity fraud.
The U.S. Department of Justice criticized Kagel for abusing his position. “David Kagel used his status as an attorney to earn trust and promote false investment opportunities,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri. “He defrauded victims out of millions and used the money for his own gain.”
Kagel’s story is a stark reminder that even trusted professionals can deceive. His fall from grace shows how important it is to be cautious, even when dealing with seemingly reputable figures.
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Source:Reuters
