Key takeaways:
- A former investment banker was accused in federal court in Brooklyn of allegedly stealing money from investors under the guise of making profitable cryptocurrency transactions.
- Rashawn Russell utilized the rising popularity of cryptocurrency investments to deceive investors.
A former investment banker and licensed broker were accused of defrauding several investors by promising returns on fictitious cryptocurrency investments and using the money obtained to maintain his lifestyle, according to charges filed in federal court in Brooklyn, New York.
According to court documents, the defendant, Rashawn Russell, utilized the rising popularity of cryptocurrency investments to deceive investors. Russell persuaded a number of investors to convert their fiat savings into cryptocurrency by frequently guaranteeing or promising high profits. But it’s claimed that Russell misused the investors’ money to support his lifestyle.
The indictment claims that Russell worked as an investment banker at an unnamed financial firm from July 2018 until November 2021. His LinkedIn profile states that he joined Deutsche Bank in July 2018 as an investment banking analyst and was promoted to associate in July 2020.
The court intends to prosecute the case against the former banker, according to Breon Peace, the US attorney for the Eastern District of New York:
“As alleged, Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to fund his lifestyle. This Office will continue to aggressively pursue fraudsters perpetrating these schemes against investors in the digital asset markets.”
The US government has charged 27-year-old Rashawn Russell of scamming numerous investors and has ordered his arrest. Russell is accused of using investors’ money to gamble and pay back other investors after persuading them to join in a phony cryptocurrency investment scheme using his reputation as an investment banker in the past and an authorized broker with the Financial Industry Regulatory Authority.
In order to deceive naïve investors about the status of their cryptocurrency investments, Russell allegedly faked documents, according to information provided by the US Department of Justice (DOJ). The fabrication entailed modifying a screenshot of a bank’s website to show fictitious amounts and confirmations of bank wire transfers.
Russell may spend as much as 20 years in jail if found guilty. The DOJ also asked other investors to get in touch if they believe they may have been a victim of the suspected criminal activity.
