Patrick McDonnell, also known as “Jason Flack,” has been arrested for allegedly defrauding crypto investors, the U.S. Attorney’s Office of the Eastern District of New York announced. It unsealed a nine-count indictment accusing McDonnell of carrying out a fraudulent scheme.
From Nov. 2014 to Jan. 2018, McDonnell is accused of posing as an experienced cryptocurrency trader offering advice and crypto investment services. However, he allegedly never invested any of the funds he received and never provided actual investment services. Instead, he is accused of using the money for his own purposes. From 2016, he also used his Staten Island-based company—CabbageTech, also known as Coin Drop Markets—to trick possible investors.