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The owner of CabbageTech, 46, was charged in New York with deceiving investors with more than $ 200,000 in cryptocurrency and cash.
The US District Attorney's Office in New York City announced Tuesday that it has issued a nine-count indictment to charge Patrick McDonnell, also known as "Jason Flack," and has stopped.
Between November 2014 and January 2018, McDonnell reportedly appeared as an experienced cryptocurrency trader, promising clients to provide trading advice, as well as buying and exchanging cryptocurrency for their account. McDonnell reportedly used its Staten Island-based company, CabbageTech Crop., Also known as Coin Drop Markets, to solicit investments via social media platforms, including Facebook and Twitter.
According to the indictment, neither McDonnell nor CabbageTech provided investment services. Instead, he sent investors "fake" pay stubs indicating that their investments were profitable and "stealing their money for personal use". When customers asked for a refund, McDonnell would initially have claimed repayment delays before he stopped responding.
In total, McDonnell has defrauded at least 10 victims of at least $ 194,000 in cash, 4,41 bitcoins ($ 17,500 at the time of going to press), 206 litecoins ($ 12,304), 620 ethereum clbadic ( $ 2,914) and $ 1,342,634 ($ 9,965), according to the indictment.
"The defendant's fraud is coming to an end now, he will be held accountable for his criminal conduct," said Richard P. Donoghue, attorney for the East District of New York. If he is found guilty and convicted, McDonnell incurs a maximum jail term of 20 years.
In January 2018, McDonnell had already been sued by the US commodity regulator, the Commodity Futures Trading Commission (CFTC), for allegedly fleeing the encryption badets of its customers.
Later in July, the CFTC concluded the case against McDonnell and sought a permanent injunction against him. McDonnell at the time gave up the fight by stating that he had neither the resources nor the ability to continue to challenge the charges against him.
"By pure survival, minute by minute, I have to stop going," he said.
In the same case, the presiding district judge notably supported the CFTC in its definition of cryptocurrencies as goods. The issue was whether the board had the power to regulate cryptocurrency as a commodity in the absence of federal rules, and whether the law allowed the CFTC to exercise its jurisdiction in the matter. .
NYPD Car Image via Shutterstock
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