California lawyer pleads guilty to $9.5 million crypto Ponzi scheme, faces up to five years in prison

California lawyer David Kagel, who had his license revoked, admitted to planning a cryptocurrency Ponzi scheme that defrauded victims of more than $9.5 million. The 85-year-old Kagel promised high returns through an AI trading robot and falsely claimed to hold $11 million in Bitcoin to ensure investment safety. He used his lawyer status to gain trust and provided forged letters on company letterhead to support false claims. Kagel and his accomplices did not invest the funds but instead used them for personal gain. Kagel faces up to five years in prison, with the sentencing date set for September 10. His accomplices are David Gilbert Saffron and Vincent Anthony Mazzotta Jr.