86-Year-Old Hospice Patient Masterminds Ponzi Scheme!
David Kagel, a retired American lawyer, was sentenced to five years in prison for operating a Ponzi scheme. In May 2024, Kagel admitted to conspiracy charges and has now received his formal sentence.
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David Kagel, a retired American lawyer, was sentenced to five years in prison for operating a Ponzi scheme. In May 2024, Kagel admitted to conspiracy charges and has now received his formal sentence.
The 86-year-old fraudster is currently residing in hospice care (a facility for terminally ill patients). A judge from the Las Vegas Federal Court ruled that due to Kagel’s declining health and advanced age, he would serve his sentence in the hospice, effectively on probation.
Indictment: Kagel deceived victims through a Ponzi scheme.
Nevertheless, Kagel has been ordered to pay approximately $14 million in restitution to the victims.
Prosecutors charged Kagel last year. The documents reveal that from December 2017 to June 2022, David Kagel operated with two accomplices, attracting victims to a fraudulent scheme that involved cryptocurrency trading with bots.
Related: Pig Butchering Scams and the Dangers of Trusting People
People were hooked by promises of high dividends and claims of zero financial risk. Kagel and his team promised to return the principal capital with profits of up to 100% in just a month.
To make the offer more convincing, Kagel used official letterhead from the law firm where he had worked, drafting his proposals in a way that instilled trust in his victims.
Kagel also told his victims he was a seasoned crypto investor with 1,000 BTC in his account. This fictitious fortune, supposedly secured in an escrow account, served as a guarantee of the scheme’s reliability.
Interestingly, Kagel’s two accomplices have not admitted guilt. They are set to face further proceedings in the Los Angeles Federal Court in April 2025.
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