David Lee Kagel has submitted a guilty plea in response to charges related to the Mind Capital scam.
Initially, Kagel was set to enter his guilty plea on May 13th but lost consciousness on his way to the proceedings. Consequently, the session was postponed to May 28th, at which time Kagel’s plea documentation was officially recorded.
Mind Capital, a collapsed crypto Ponzi scheme, touted an AI trading bot and operated within the MLM cryptocurrency space until its downfall in December 2020.
Kagel, an out-of-practice lawyer with a background claiming expertise in securities law, aided David Gilbert Saffron and Vincent Anthony Mazzotta Jr. in the orchestration of Mind Capital.
Under Kagel’s plea deal, he concurs to forgo the right to be indicted by a grand jury and has admitted guilt to a single count of conspiracy to commit electronic fraud.
The defendant acknowledges that he is indeed culpable of the charge to which he is conceding guilt.
In terms of sentencing repercussions, Kagel could be subjected to a maximum of five years of incarceration and a financial sanction reaching $250,000, or alternatively, an amount double the “gross gain” that Kagel received from Mind Capital’s operations.
As of Kagel’s plea agreement, the restitution is tentatively appraised at approximately $13.5 million, a figure that could be revised during Kagel’s sentencing phase.
Kagel has been granted release on a personal recognizance bond after the plea deal was entered on May 28th, awaiting the scheduling of his sentencing date.