The Federal court in Brooklyn sentenced Patrick McDonnell, also known as “Jason Flack”, to 33 months in federal prison. McDonnel was also ordered to pay $224,350 in restitutuion to his victims. He pled guildy to cryptocurrency fraud last year after he was accused of defrauding at least ten people of around $194,000 as well as additional virtual currency funds through his company Cabbage Tech Corp., also known as Coin Drop Markets. The crime was perpetrated between November 2014 and January 2018. McDonnell used social media to present himself as an experienced cryptocurrency trader and offered investors trading advice, as well as to purchase and trade digital currencies for them, sending them false financial statements as proof of profitable investments. In reality, he did no trading activity, he simply took the funds and use them for his own means. Another scammer who ripped people off for years before he was finally caught. I will never understand why it takes so long.
Better later than never, Happy Holidays for him & wonder which gang, he will join... >:-D (behind bars) - Yo buddy, what are you here for ? - Was selling crypto. - It's a new type of meth or wut ? - No, it's like money, but not real, so i sold fake version of a fake money. - Word... F***** genius bro !
It's very encouraging to know that scammers and hackers are having problems getting away with stolen funds since everything is recorded on the blockchain. Soon it will be impossible for anyone to get away with any hacking once crypto becomes adopted... I hope this guy has fun being fucked in the ass in prison...
Hardly a punishment. Do the math: $194,000 * 10 = $1,940,000. Subtract the restitution: $1,715,560. His total punishment is 33 months. Let's call it 3 years. Assuming he sacked it away in a low risk actively managed fund he might expect 7% return y/y. He will have $2,101,745.023 when he gets out. So now we see the real cost. The real story should be: "Man scams tens of victims of millions, receives 33 month jail sentence and $386,185.02 in compensation for his time served". There is no justice. He makes money going to taxpayer funded prison where he eats, sleeps, and lives for free for 36 months and collects a paycheck through interest assuming he isn't an idiot and signed power of attorney of his money over to his broker. He will make more in jail than the average American will see in 15 years of honest work.
I doubt very seriously this guy gets to keep any funds. He was convicted of a crime in Federal Court and that court imposed what they could against him. But now he will have to deal with all of the Federal and State Agencies that will come swooping in to seize everything else now that he is convicted. But that information won't be published or become available to the general public.
I thought the others if they want more than the judge's ruling, will have to file a civil suit against him. Until then, he can keep his other assets.
Injured parties do typically file civil lawsuits, which won't allow him touch any assets. When people do things like this they're finished, he won't be able to reap rewards for such behavior. The reason why these things take so long is because they leave nothing to chance and make sure there's no way to escape a conviction.