86-Year-Old Ex-Attorney Hit with $14M Restitution, Five Years Probation in Crypto Ponzi Case
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
David Kagel, an 86-year-old former attorney from California, has been sentenced to five years of probation and ordered to pay nearly $14 million in restitution after admitting to his role in a multi-million-dollar crypto Ponzi scheme.
The sentencing was handed down on October 8 by Judge Gloria Navarro in a Las Vegas federal court, following Kagel’s guilty plea in May to one count of conspiracy to commit commodity fraud.
Kagel, now in hospice care at a senior facility in Las Vegas due to declining health, will serve his probation at the facility.
If he leaves, he will be required to wear a monitoring device.
The sentencing comes after prosecutors charged him last year for his involvement in the fraudulent scheme that spanned from December 2017 to June 2022.
According to the prosecution, Kagel, along with two accomplices, lured investors into a deceptive crypto bot trading program, falsely promising high returns with no risk.
The trio reportedly “fraudulently promoted and solicited investments,” raising about $15 million from victims under the guise of legitimate cryptocurrency trading ventures.
Kagel played a key role in building trust with investors by drafting letters on his law firm’s official letterhead, adding a veneer of legitimacy to the scheme.
These letters, prosecutors noted, convinced victims they were participating in a reliable investment opportunity that employed trading bots to generate profits in the cryptocurrency market.
The fraudulent scheme promised investors guaranteed returns ranging from 20% to 100% within 30
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