46-year-old Patrick McDonnell is the CEO of the investment firm CabbageTech. As per the press release by Department of Justice published on Tuesday, 26th March, the United States Attorney of Eastern District of New York has arrested McDonnell being charged for deceiving the crypto investors in order to defraud them. He was also alleged with a nine-count indictment. Richard P. Donoghue from United States Attorney stated in the press release:
“As alleged, the defendant defrauded investors by making false promises and sending them fraudulent balance statements, hiding the fact that he was stealing their money for his personal use.”
McDonnell declared himself as an expert crypto trader for around four years. Thereby, he managed to assure his clients reliable trading advice for purchasing and trading digital assets on their behalf. In order to seek investments via Facebook and Twitter, McDonnell allegedly made use of his firm CabbageTech Crop. He was also dubbed as Coin Drop Markets. He delivered “false” balance statements to his clients as there were no investment services provided by CabbageTech or McDonnell. Those false balance sheets indicated profit to the clients; instead he “stole their money for his personal use.” He stopped responding to his clients asking for a refund.
Richard P. stated: “The defendant’s fraud ends now, he will be held responsible for his criminal conduct.” And if McDonnell is found to be the culprit, he will be imprisoned for almost 20 years. Commodity Futures Trading Commission is involved in the investigation. CFTC managed to secure the court hearing against McDonnell and ban him in August 2018. Lastly, he gave up against the alleged charges and said: “For the sake of pure minute-to-minute survival, I must continue to be removed from proceeding.”
McDonnell has defrauded the around 10 crypto traders of $194,000 in U.S.D, 4.41 BTC ($17,551), 206 LTC ($12,215), 620 Ethereum Classic ($2,914) and 1,342,634 Verge ($9,035). Thus he is also also known as “Jason Flack”.