Ex-Deutsche Banker Admits to $1.5M Crypto Fraud, Faces 30 Years in Prison
Summary:
Rashawn Russell, a former Deutsche Bank investment banker, has pleaded guilty to a fraudulent cryptocurrency investment scheme, admitting to duping 29 investors out of $1.5 million by promising unrealistic returns. Besides, he admitted his role in an identity theft scheme. The 27-year-old, who operated a fraudulent crypto fund, faces potential imprisonment of up to 30 years and is ordered to pay over $1.5 million in restitution.
Rashawn Russell, a previous investement advisory at Deutsche Bank, has recently accepted responsibility for his part in an illicit cryptocurrency investment fraud. As a result of his admission, he now risks a potential incarceration of up to 30 years. On September 19, an official statement from the Justice Department confirmed the 27-year-old had conceded his guilt in operating the deceptive "R3 Crypto Fund". Throughout November 2020 to August 2022, he used his credibility as a licensed broker and past investment banker to con 29 investors out of $1.5 million, assuring them of unrealistically high return rates on their crypto investments.
According to the prosecution, Russell not only lied to his investors about their capital but also fabricated documents showcasing false profit values. In one instance, he was found to have shared doctored images of inflated bank balances to instill unjust confidence in his investors. Furthermore, when one investor decided to withdraw the profits, Russell failed to transfer the funds, providing them instead with a fraudulent transaction acknowledgement. Prosecutors claim that Russell did not invest the bulk of the $1.5 million he acquired from his victims into any cryptocurrency, choosing instead to misuse these funds for personal purposes, including gambling and repaying early investors in his deceitful scheme.
In conjunction with this scam, Russell also admitted his involvement in another offense- identity theft. He was charged with illicitly obtaining credit cards and other financial tools using incorrect information, with a plan to execute unauthorized transactions illegally.
Once sentenced, he may serve up to 30 years in jail for his transgressions. US Magistrate Judge Sanket J. Bulsara has ordered that he must repay over $1.5 million as compensation.
Published At
9/20/2023 5:57:00 AM
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