85-Year-Old Ex-Lawyer on Hospice Care Admits to $9.5 Million Crypto Scam
An 85-year-old former attorney from Beverly Hills, David Kagel, who is currently receiving hospice care, pleaded guilty to orchestrating an extensive cryptocurrency Ponzi scheme that spanned several years. Kagel and two accomplices enticed investors with promises of high returns from non-existent crypto investment programs, supposedly facilitated by AI trading bots. The defendants allegedly held over $11 million in escrow to assure investors that their funds were secure, even going so far as to produce fraudulent documents to support their claims. In the end, they defrauded victims of approximately $9.5 million, using the money for their personal gain.
Tyler Hatcher, the Special Agent in Charge of the IRS Criminal Investigation’s Los Angeles Field Office, stated, “Kagel preyed on trusting individuals through a complex scheme to separate people from their hard-earned money.” Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division added, “David Kagel abused his position as an attorney to earn the trust of investors and to endorse false statements about a purported cryptocurrency investment that was, in fact, a scam.”
Kagel’s co-conspirators, Vincent Anthony Mazotta Jr., a Los Angeles native, and Australian citizen David Gilbert Saffron, are scheduled to face trial in August for their alleged involvement in promoting the fraudulent digital asset scheme through various entity names. The Department of Justice claims that Mazotta and Saffron misused victims’ funds for personal expenses, including luxury travel, accommodations, and security services.
Kagel has a history of disciplinary charges as an attorney and had his license revoked in 2022 due to allegations of misappropriating customer funds. He has now admitted to one count of conspiracy to commit commodity fraud and faces a maximum prison sentence of five years. Sentencing is set for September 10.