85-year-old David Kagel, a former lawyer from California, admitted his role in creating a $9.5 million cryptocurrency fraud scheme.
A year ago, David Kagel was expelled from the California Bar Association. Therefore, he decided to make money in another way ― using his "reputation as an experienced lawyer", he gave legitimacy to the cryptocurrency pyramid that his friend launched.
Kagel, together with his accomplices, attracted investors by promising huge profits. Under the guise of a lawyer, Kagel convinced victims that his accomplice owned $11 million worth of bitcoins and that this money could be used to compensate for any potential losses. He even used his firm's letterheads to support these claims.
Kagel and his accomplice used the money they received for their own purposes. The 85-year-old lawyer pleaded guilty to one count of fraud and could face up to 5 years in prison.
"David Kagel abused his position as a lawyer to gain the trust of investors and support false claims about the profitability of investments in cryptocurrency. Kagel and his associates swindled millions of dollars from their victims and used the funds to line their own pockets. When lawyers give fraudulent schemes the appearance of legitimacy, this can lead to large-scale losses for victims," said Nicole M. Argentieri, head of the criminal division of the Department of Justice, First Deputy Assistant Attorney General.
A year ago, David Kagel was expelled from the California Bar Association. Therefore, he decided to make money in another way ― using his "reputation as an experienced lawyer", he gave legitimacy to the cryptocurrency pyramid that his friend launched.
Kagel, together with his accomplices, attracted investors by promising huge profits. Under the guise of a lawyer, Kagel convinced victims that his accomplice owned $11 million worth of bitcoins and that this money could be used to compensate for any potential losses. He even used his firm's letterheads to support these claims.
Kagel and his accomplice used the money they received for their own purposes. The 85-year-old lawyer pleaded guilty to one count of fraud and could face up to 5 years in prison.
"David Kagel abused his position as a lawyer to gain the trust of investors and support false claims about the profitability of investments in cryptocurrency. Kagel and his associates swindled millions of dollars from their victims and used the funds to line their own pockets. When lawyers give fraudulent schemes the appearance of legitimacy, this can lead to large-scale losses for victims," said Nicole M. Argentieri, head of the criminal division of the Department of Justice, First Deputy Assistant Attorney General.
