Lawyer David Kagel Pleads Guilty in $9.5M Crypto Ponzi Scheme
Kagel faces a maximum of five years in prison, with sentencing set for September 10. Co-conspirators David Gilbert Saffron and Vincent Anthony Mazzotta Jr. are also charged and awaiting trial for their roles in the scheme
David Kagel, a disbarred California attorney, pleaded guilty to orchestrating a cryptocurrency Ponzi scheme that defrauded victims of over $9.5 million. Kagel, 85, promised high returns through artificial intelligence trading bots and falsely claimed to hold $11 million in bitcoin to secure investments.
He used his attorney position to instill trust, providing fake letters on his firm's letterhead to support the false claims. Instead of investing, Kagel and his co-conspirators used the funds for personal gain. Kagel faces a maximum of five years in prison, with sentencing set for September 10. Co-conspirators David Gilbert Saffron and Vincent Anthony Mazzotta Jr. are also charged and awaiting trial for their roles in the scheme.
