David Kagel offered investments in cryptocurrencies that were supposed to guarantee high-yield profits for his clients. He faces a maximum sentence of five years in prison.

A former California lawyer, disbarred, pleaded guilty on Tuesday May 28 to “conspiracy to operate a Ponzi scheme” in cryptocurrencies. He is accused of stealing, with his accomplices, more than $9.5 million from his victims.

David Kagel, now 85, offered his clients investments that he believed promised high-return profits. To reinforce his legitimacy, he explained to his clients that the company he worked for used trading robots, equipped with artificial intelligence, for investments in cryptocurrencies. He also explained that he held around $11 million in Bitcoin to reimburse his customers in case of problems.

Millions of dollars

“David Kagel abused his position as an attorney to gain the trust of investors and to endorse false statements about a cryptocurrency investment that was, in fact, a scam,” says Principal Assistant Attorney General Nicole Argentieri, head of the Criminal Division of the Department of Justice in a statement. David Kagel and his accomplices stole millions of dollars from their victims and kept the money for themselves.

The former California lawyer pleaded guilty to “conspiracy to commit commodity fraud.” His trial will take place on September 10. He faces a maximum sentence of five years in prison.

Source: https://www.bfmtv.com/crypto/cet-ex-avocat-de-85-ans-plaide-coupable-dans-une-affaire-de-pyramide-de-ponzi-liee-aux-cryptomonnaies_AV-202405310789.html

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