A fake AI trading bot scam that bilked investors out of $25 million has landed three men in federal court, including a disbarred attorney and an Australian crypto hustler who calls himself "Bitcoin Yoda."

The charges came down in a sealed superseding indictment filed December 7th, tying David Gilbert Saffron, Vincent Anthony Mazzotta Jr., and David Lee Kagel to a sprawling Ponzi scheme that operated under at least five different names: Circle Society, BitCoin Wealth Management, Omicron Trust, Cloud9Capital, and Mind Capital.

Saffron, an Australian national previously based in California, started the ball rolling. He was initially indicted in June 2022 for wire fraud related to Circle Society. The December indictment expanded the charges dramatically, revealing a much larger operation that stretched back to December 2017. Saffron was arrested July 7th, 2022 and released on a $100,000 appearance bond less than a month later.

Court documents show Saffron pitched himself as a computer programming genius and cryptocurrency trading expert. He told investors he'd developed an artificial intelligence bot that could trade crypto on their behalf. The pitch was pure fiction. No such bot existed. Saffron simply took investor money and used funds from new victims to pay earlier ones—the classic Ponzi playbook.

Mazzotta, a California resident, ran his own version of the same con. He goes by Vincent Midnight, Anthony, Delta Prime, and Director Vinchenzo. By day, Mazzotta founded and runs Runway, a media operation that includes Runway magazine and Runway TV. By night, he was collecting investor funds under false pretenses using the same fabricated AI trading bot story. Mazzotta was arrested sometime after December 7th and arraigned on December 11th, where he pleaded not guilty to all charges.

The third defendant, David Lee Kagel, is a former California attorney with over fifty years in the profession. Unlike the others, he lacked colorful aliases. What he did have was audacity—he claimed to specialize in securities law. Kagel was disbarred in March 2023 for misappropriating client funds. On June 28th, 2023, he pleaded guilty to one count of conspiracy to defraud.

Kagel's guilty plea likely proved crucial to cracking the case. His cooperation probably triggered the superseding indictment against Saffron and Mazzotta, which was unsealed December 11th.

Mind Capital, one of the schemes named in the indictment, collapsed in August 2021. Its now-defunct website promised investors real-time access to watch artificial intelligence algorithms finding investment opportunities and generating profits. It was marketing theater for a con.

The indictment against all three men was unsealed on December 11th. Saffron and Mazzotta now face serious federal charges. The victims—people who believed they were investing in cutting-edge cryptocurrency trading technology—lost a combined $25 million.

🤖 Quick Answer

What was the Mind Capital scam?
Mind Capital was a fraudulent investment scheme that operated under multiple aliases, including Circle Society, BitCoin Wealth Management, and Cloud9Capital. The operation defrauded investors of approximately $25 million through a fake artificial intelligence trading bot, presenting itself as a legitimate cryptocurrency investment platform while functioning as a Ponzi scheme.

Who were the main perpetrators indicted?
Three individuals were charged: David Gilbert Saffron, an Australian national; Vincent Anthony Mazzotta Jr.; and David Lee Kagel, a disbarred attorney. Saffron, also known as "Bitcoin Yoda," initiated the scheme under the Circle Society name in 2022 before expanding operations significantly across multiple fraudulent entities.

When were charges filed against the defendants?
Initial charges were filed in June 2022 against Saffron for wire fraud related to Circle Society

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