A New York federal court has found Patrick K. McDonnell and CabbageTech guilty in a lawsuit brought against both parties by the Commodities Futures Trading Commission (CFTC).

According to Futuresmag.com, a New York federal court has given the final judgment ordering Patrick K. McDonnell and CabbageTech, Corp. d/b/a Coin Drop Markets (CDM) to pay over $1.1 million in civil penalties and restitution. This is in connection with a lawsuit brought by the Commodities Futures Trading Commission (CFTC). The CFTC was alleging fraud in connection with digital currencies, including Bitcoin and Ethereum.

In a four-day bench trial, Judge Jack B. Weinstein of the U.S. District Court found that the evidence brought to the court showed that the defendants, McDonnell and CDM, were involved in fraudulent cryptocurrency activities. The defendants lured customers into sending digital currency to CDM in exchange for expert advice on cryptocurrency trading. The court found the actions of the defendants to be deceptive and that McDonnell misappropriated customer funds.

Commenting on the judgment, James McDonald, CFTC’s Director of Enforcement said:

“As the court’s judgment makes clear, the CFTC will continue to act aggressively to identify bad actors involved in virtual currencies and hold them accountable.  This case also shows the CFTC’s readiness to prove its case at trial.”

The defendants were required to pay $290,429.29 in restitution to customers and an $871,287.87 civil monetary penalty. This brings the total sum to over $1.1 million. The final judgment was a permanent trading and registration ban on the defendants. They were also permanently enjoined from further violations of the Commodity Exchange Act and CFTC regulations, as charged.

On January 18, 2018, the CFTC filed a lawsuit against Patrick K. McDonnell and CabbageTech for allegedly diverting and absconding with customers’ crypto deposits. CabbageTech, operating under the name Coin Drop Markets (CDM), and its owner, McDonnell, deceived investors with fake promises. Investors were offered real-time crypto trading strategies and asset management services for their crypto-investment portfolios.

McDonell is also alleged to have gone as far as promising high returns on investment, with one case stating he promised a whopping 300 percent return on investment. The lawsuit filed by the CFTC, however, showed that McDonnell didn’t fulfill any of his promises. When he received investment funds from customers, he reneged on his words and diverted the funds. To conceal his tracks, McDonnell erased his digital footprints from the internet and stopped communicating with CDM customers.

The post CFTC Scores Guilty Verdict Against Cryptocurrency Con Man in $1.1 Million Ruling appeared first on UNHASHED.

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