Former investment banker and registered broker Rashawn Russell was arrested in Brooklyn for allegedly scamming investors using cryptocurrency investment fraud schemes. Russell’s arraignment is set to take place in a federal court in Brooklyn on April 12.
Russel charged with crypto fraud
Rashawn Russell, a former investment banker for Deutsche Bank AG and a registered broker, will be arraigned on April 12 in federal court in Brooklyn on charges of running a cryptocurrency investment fraud scheme.
According to a press release from the Office of the United States Attorney, Russell was detained in Brooklyn on April 11 and will appear for arraignment before U.S. Magistrate Judge Ramon E. Reyes, Jr.
Breon Peace, U.S. attorney for the eastern district of New York, said Russel scammed numerous investors in order to fund his lifestyle. He added that the U.S. attorney’s office would continue pursuing fraudsters who scam investors in the marketplaces for digital assets.
Rusell’s conspiracy to scam investors
According to the prosecution records, Rusell lied to investors that their money would be invested in crypto and would guarantee them high returns. Russell instead used the money to fund his personal life, gamble, and repay other investors.
The report stated that Russell is accused of fudging the investor’s asset condition and sending falsified documentation to back up his claims.
One investor was sent a fabricated bank balance from a bank website that said it had a lot of liquidity. Moreover, when a different investor asked for their investments back, Russell gave a fake bank transfer confirmation instead of returning the funds.
Rashawn Russell is presumed innocent of the allegations in the indictment until proven guilty beyond a reasonable doubt. He is likely to receive a sentence of up to 20 years in jail if proven guilty.