David Kagel, a former lawyer from California, has pleaded guilty to masterminding a cryptocurrency Ponzi scheme that deceived victims out of more than $9.5 million. At the age of 85, Kagel lured people in with promises of high returns from trading bots powered by artificial intelligence, and falsely asserted that he possessed $11 million worth of bitcoin to secure investments. Exploiting his legal profession, Kagel went as far as providing counterfeit letters on his law firm’s letterhead to further bolster his deceitful claims. Instead of using the funds for investment purposes, Kagel and his accomplices diverted the money for personal enrichment. Kagel could face a maximum prison sentence of five years, and his sentencing is scheduled for September 10. His partners in crime, David Gilbert Saffron and Vincent Anthony Mazzotta Jr., are also facing charges and are currently awaiting trial for their involvement in the fraudulent scheme.
