The man behind Staten Island company CabbageTech (also known as Coin Drop Markets), Patrick McDonnell, is facing nine charges in a federal court in Brooklyn for alleged wire fraud, which cost more than 10 people to lose a total of $194,000.
In a press release by the US Department of Justice (Mar 26), Attorney for the Eastern District of New York Richard Donoghue said McDonell had “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”.
Sometime between November 2014 and January 2018, McDonnell painted himself to be a seasoned crypto trader, promising investors that he could offer trading advice, and additionally trade on their behalf. He also allegedly duped investors into paying CabbageTech for advice and strategies on crypto trading. For all his promises, he apparently never delivered.
When investors began asking for refunds, McDonnell initially made excuses for payment delays before eventually halting any response at all. In total, he defrauded his victims of 4.41 Bitcoin ($17,551), 206 Litecoin ($12,215), 620 Ethereum Classic ($2,914), and 1,342,634 Verge ($9,035).
McDonnell could face up to 20 years’ imprisonment if convicted.