According to Odaily, David Kagel, a disbarred lawyer from California, has admitted to masterminding a cryptocurrency Ponzi scheme that defrauded victims of over $9.5 million. The 85-year-old Kagel promised high returns through an artificial intelligence trading robot and falsely claimed to hold $11 million in Bitcoin to ensure investment security.
He exploited his lawyer status to gain trust, providing forged company letterheads to support his false claims. Kagel and his accomplices did not make any investments but used the funds for personal gain. Kagel faces a maximum of five years in prison, with the sentencing date set for September 10. His accomplices, David Gilbert Saffron and Vincent Anthony Mazzotta Jr., are also implicated in the scheme.