A scammer that called himself the “coyote of Wall Street” has admitted to telling clients he would invest their money in cryptocurrency only to keep it for himself. Patrick McDonnell, a 46-year-old from Staten Island in New York, pleaded guilty to one count of wire fraud on Friday.
He explained to U.S. District Judge Nicholas Garaufis, in comments reported by Bloomberg, that he spent the money on himself:
"I perpetrated a fraud. I claimed to invest it in virtual currency and spent it on personal expenses."
How the “Coyote of Wall Street” Worked
McDonnell, also known as Jason Flack, ran a company called CabbageTech Corp., which also went by the name Coin Drops Market. Over a three-year period, he claimed on social media to have traded over $50 million for over 8,000 investors.
The Friday case claimed that McDonnell took investor money for himself and spent at least $194,000. He took over $164,000 from the man at the center of the Friday case, telling the investor the stake had risen to $274,000.