Disbarred Attorney Pleads Guilty to Promoting $9.5M Cryptocurrency Ponzi Scheme | United States Department of Justice

A disbarred California attorney pleaded guilty yesterday to conspiring to operate a cryptocurrency Ponzi scheme that defrauded victims of more than $9.5 million.

erly Hills, conspired to fraudulently induce victims to participate in a cryptocurrency Ponzi scheme. Kagel and his co-conspirators promoted investment programs that falsely guaranteed high-yield profits and promised to use artificial intelligence trading bots to trade victims’ investments in cryptocurrency markets. The Ponzi scheme promoter falsely told victims that Kagel, as the promoter’s attorney, held Bitcoin then equivalent to approximately $11 million in escrow that guaranteed victims’ investments against loss for any reason. To create a false sense of security and trust, Kagel provided letters to victims on his firm’s letterhead to fraudulently confirm the promoter’s false statements. Kagel admitted that he and his co-conspirators used victims’ funds for their own personal benefit.

Source: Disbarred Attorney Pleads Guilty to Promoting $9.5M Cryptocurrency Ponzi Scheme | United States Department of Justice