CabbageTech CEO Sentenced to 33 Months in Prison After Pleading Guilty in Fraud Case


Patrick McDonnell was sentenced to 33 months in federal prison Thursday right after pleading guilty to fees of defrauding buyers in his crypto buying and selling agency CabbageTech, if not known as Coin Drop Markets.

McDonnell was also purchased to spend back his victims $224,352, according to the U.S. Attorney’s Office environment for the Japanese District of New York. Thursday’s sentencing caps McDonnell’s again-to-back again legal fights with the federal government, which saw the 47-12 months-outdated New York resident in civil and then legal court docket on fraud prices. He pleaded guilty in June 2019, a press launch stated.

Each cases stemmed from his tenure as CabbageTech CEO, exactly where he defrauded victims of about $200,000, according to prosecutors.

Thursday’s launch claimed he stole bitcoin, litecoin, ethereum and verge from 10 victims below the change-moi “Jason Flack.” New victims ended up solicited on social media. Although McDonnell promised buyers would gain, he alternatively provided wrong financial statements, prosecutors sai.

The CabbageTech platform began in May 2016, according to prosecutors. By 2018 the federal government was having detect.

That January, the Commodity and Futures Investing Fee (CFTC) submitted a civil fit versus McDonnell, accusing him of defrauding investors. It rested its correct to enforce on a 2014 IRS ruling: bitcoin and other “convertible virtual currencies” are commodities.

The Justice Division adopted up with legal action. It was assisted by the CFTC’s prior perform and secured a guilty plea from McDonnell in June 2019, in accordance to a push release.

“This Business will proceed to vigorously prosecute white-collar criminals who defraud the investing public,” U.S. Lawyer Richard P. Donoghue mentioned in a statement Thursday.

Disclosure Browse Far more

The leader in blockchain news, CoinDesk is a media outlet that strives for the greatest journalistic requirements and abides by a stringent set of editorial insurance policies. CoinDesk is an impartial functioning subsidiary of Digital Forex Team, which invests in cryptocurrencies and blockchain startups.

Previous articleThis clever R/C car leans and drifts like it weighs tons, not pounds
Next articleHow to Program an RCA Universal Remote