The former attorney has received probation for his actions due to his advanced age
An 86-year-old former attorney from California, David Kagel, has been sentenced to five years of probation after admitting to his role in a multimillion-dollar cryptocurrency Ponzi scheme. The sentencing, which took place in early October, was handed down by Judge Gloria Navarro at a Las Vegas federal court. Kagel, now in hospice care at a senior facility in Las Vegas, will remain on probation unless his health improves, in which case he will be required to wear a monitoring device.
Kagel, along with two accomplices, ran the fraudulent scheme from December 2017 until mid-2022, convincing victims to invest in what was pitched as a high-return, low-risk cryptocurrency trading bot program. According to federal prosecutors, the trio managed to deceive their investors by promising substantial profits of up to 100% within just 30 days. Over the course of the scheme, they took in at least $15 million from unsuspecting investors.
Kagel played a key role by using his former legal credentials to gain the trust of victims. He drafted official letters on his law firm’s letterhead, assuring investors that their funds were secure. In one instance, he falsely claimed to hold 1,000 Bitcoins worth $11 million in escrow to guarantee the investments.
Despite his involvement, Kagel is not headed to prison due to his deteriorating health. However, he has been ordered to pay nearly $14 million in restitution to the victims. Kagel’s law license was revoked by the California Supreme Court earlier this year, following previous suspensions in 1997 and 2012. His co-conspirators, David Saffron and Vincent Mazzotta, pleaded not guilty and are expected to face trial in Los Angeles next April.
