CabbageTech Bitcoin Schemer Indicted By New York Attorney in Investor Fraud Case
A press release has confirmed that the US Attorney of New York, Richard P. Donoghue has indicted Patrick Mcdonnell, also known as “Jason Flack” has been indicted on 9 counts.
McDonnell, 46, offered trading advice and promises to buy and trade virtual currency on investors’ behalf through his company CabbageTech between 2016 and 2018, according to court papers. The crypto-currency promoter even marketed himself using the moniker,
“the Coyote of Wall Street.”
McDonnell falsely claimed to one victim he had more than 8,000 active investors and traded over $50 million in bitcoin. He even allegedly made a video of himself talking about the virtual currency scene while wearing a mask.
“Patrick K. McDonnell used to smoke and mirrors to allegedly dupe investors into paying his company, CabbageTech, for advice and strategies on cryptocurrency trading,”
United States Postal Inspection Service Special Agent-in-Charge Bartlett said.
“However, postal inspectors and their federal law enforcement partners unmasked McDonnell and his scheme.”
He would send his clients bogus bank statements claiming their investments in virtual currency were doing well, prosecutors said. And when they asked for their money back, he made excuses and then stopped answering.
The press release of the indictment summarizes the entire episode.
“Beginning in approximately May 2016, McDonnell made similar representations through his Staten Island-based company, CabbageTech, Corp., also known as Coin Drop Markets. However, neither McDonnell nor CabbageTech provided investment services. Instead, McDonnell sent investors false balance statements purportedly showing that their investments had been profitable, and stole their money for his personal use. When investors requested refunds, McDonnell initially offered excuses for delays in repayment, and eventually stopped responding at all. In total, McDonnell defrauded at least 10 victims of at least $194,000 in U.S. currency, 4.41 Bitcoin, 206 Litecoin, 620 Ethereum Classic, and 1,342,634 Verge currency.”
It is important to remember that the forth mentioned charges are just allegations as of now. However, if convicted, McDonnell faces a maximum sentence of 20 years’ imprisonment.