A court in Las Vegas has sentenced 86-year-old David Kegel, a former California attorney, to a five-year probation for orchestrating a cryptocurrency Ponzi scheme. Kegel has also been ordered to pay $13.95 million in restitution to victims of the fraud. He pleaded guilty to one count of conspiracy.

Details of the Scheme

The fraudulent operation lured victims with promises of extraordinary returns—ranging from 20% to 100% monthly—using a supposedly safe trading bot. Kegel and two accomplices exploited their law firm’s credibility to gain the trust of investors.

The scheme managed to amass at least $15 million. Kegel’s co-defendants, David Saffron and Vincent Mazzotta, have denied their involvement and are awaiting trial in Los Angeles.

Official Statement

“This was a blatant case of manipulation and deceit, preying on trusting individuals with promises of impossible returns,” a prosecution representative stated.

Health and Sentencing Conditions

Due to severe health issues, Kegel is currently in hospice care. His probation will be monitored through a medical facility.

Broader Implications

This case highlights the ongoing issue of fraudulent schemes in the cryptocurrency industry. In October, another fraudster, David Carmona, the mastermind behind the IcomTech Ponzi scheme, was sentenced to 10 years in prison.

Conclusion

Kegel’s use of his law firm to earn investor trust enabled him to amass millions, ultimately leading to his conviction. As fraudulent activities in the crypto space persist, law enforcement is intensifying efforts to combat these crimes and protect investors.