Former attorney admits to $9.5 million cryptocurrency fraud
David Kagel, a disbarred lawyer from California, has pleaded guilty to organizing a $9.5 million cryptocurrency fraud scheme. Kagel, along with his accomplices, promised high returns on investments in cryptocurrency, using his legal reputation to gain the trust of victims.
Despite claiming to have bitcoins worth $11 million to cover potential losses, Kagel and his partners used the funds for personal expenses instead of investing them as promised. As a result, Kagel faces up to 5 years in prison for his fraudulent actions.
Nicole Argentieri, the first deputy assistant attorney general, highlighted the abuse of legal status by Kagel to deceive investors and create a facade of legitimacy for the scheme. Such cases underscore the significant financial losses that victims can suffer when professionals exploit their reputation for fraud.
This case serves as a reminder of the serious consequences of using professional status for deceptive purposes, similar to recent instances where former attorneys have been sentenced to lengthy prison terms for similar crimes.
