“Coyote of Wall Street” Patrick McDonnell Admits to Committing Crypto Fraud
Patrick McDonnell, a New York resident who goes by the nickname of “the Coyote of Wall Street” recently pleaded guilty to a cryptocurrency related wire fraud in federal court in Brooklyn. This, according to a report by Bloomberg, June 22, 2019.
McDonnell Admits to Stealing Client Funds
A market bull run while encouraging for investors, also very often signals the end of hibernation period for various fraudulent elements in the industry.
This held true when McDonnell, the proprietor of CabbageTech Corp., on June 21, 2019, admitted that he stole cash from clients who thought he’d use it to invest in digital currencies amid the current market uptrend.
“I perpetrated a fraud.”
“I claimed to invest it in virtual currency and spent it on personal expenses.”
The Coyote’s Modus Operandi
As is the case with the vast majority of cyber crimes, McDonnell orchestrated the fraud virtually from behind a monitor screen.
Per sources close to the matter, McDonnell solicited funds from potential investors on social media by falsely claiming that he had “traded more than $50 million in bitcoin for thousands of clients.” The accused used to appear on YouTube videos with his face covered behind a Guy Fawkes mask and talked about cryptocurrencies and how to invest in them.
Prosecutors allege that McDonnell stole client funds to buy cryptocurrencies for himself and spent at least $194,000 for personal expenses. One of his victims was duped by as much as $164,000, McDonnell said.
The presiding judge said that under the terms of the plea agreement, McDonnell can face 24 to 36 months in jail. The “Coyote of Wall Street” is scheduled to be sentenced on September 10, 2019.
It’s worth noting that this isn’t the first instance that McDonnell made rounds of a court of law. The U.S. Commodity Futures Trading Commission (CFTC) in August 2018 had ordered McDonnell to pay $290,429 in restitution and $871,287 in penalties for engineering a similar crime.