Patrick McDonnel, also known as Jason Flack, was also ordered to pay $224,352 in restitution fees. “Mr. McDonnell used his knowledge of virtual currencies to scam investors. While he thought he could outsmart law enforcement, his arrest, and today’s sentence shows, no matter where you are, what’s done in the dark will be brought to the light,” stated USPIS Inspector-in-Charge Philip R Bartlett. [Read: CabbageTech owner charged with running $200K cryptocurrency and cash swindle] As previously reported by Hard Fork, McDonnel was initially accused of scamming at least 10 individuals out of $194,000, 4.41 Bitcoin ($17,706.11), 206 Litecoin ($12,520), 620 Ethereum Classic ($2,976), and 1,342,634 Verge ($10.079). He was accused in a nine-count indictment unsealed in a New York federal court in March last year. McDonnell’s operation fraudulent operation ran from approximately November 2014 until January 2018. During this time, McDonnell portrayed himself as an experienced virtual currency trader on social media, promising investors he would provide trading advice and buy cryptocurrency on their behalf. However, neither McDonnell nor CabbageTech provided investment services. Instead, McDonnell sent investors false documents showing that their investments had been profitable. He then stole their money for personal use.
