86-Year-Old Crypto Scammer Sentenced to Five Years of Probation

An 86-year-old former lawyer David Kagel has been sentenced to five years of probation for a $9.5 million cryptocurrency Ponzi scheme, according to Reuters.

Kagel, a disbarred attorney, pleaded guilty to one count of conspiracy to commit commodities fraud and was ordered by the court to pay about $14 million in restitution. Prosecutors sought  a five-year probation sentence for Kagel for him.

The disbarred attorney sent letters to victims on law firm letterhead, creating a “false sense of security and trust” to help promote the cryptocurrency investment scam.

Victims thought they were participating in a cryptocurrency investment supported by trading bots, and thought Kagel had $11 million in escrow to guarantee their investments.

Kagel has a history of having his law license revoked several times. In 2023, Kagel had his license revoked by the California Supreme Court for failing to respond to disciplinary charges of misappropriation of client funds in another case. The California state bar also has records of his license suspensions in 1997 and 2021.

In addition, his co-conspirators David Saffron and Vincent Mazzotta, who were also charged, are awaiting trial.