A former Deutsche Bank investment banker, who was charged earlier this year in connection with a fraudulent cryptocurrency trading scheme, has pleaded guilty to investment fraud and could face up to 30 years in prison.
According to a report dated September 19 statement From the Department of Justice, Rashawn Russell, 27, pleaded guilty to participating in a scheme in which he operated a fraudulent crypto investment fund called "R3 Crypto Fund."
Between November 2020 and August 2022, Russell defrauded 29 investors out of $1.5 million by leveraging his reputation as an investment banker and licensed financial broker to promise that he would be able to generate guaranteed, outsized returns on a series of cryptocurrency investments. .
CRYPTO CRIMES CONTINUE: Former Deutsche Bank investment banker Rashawn Russell, who had denied defrauding investors in a #cryptocurrency fraud, pleaded guilty today in #EDNY. He was indicted in April and accused of deceiving investors by promising “guaranteed returns.” pic.twitter.com/Da0gYrbqqV
— Inner City Press (@innercitypress) September 19, 2023
On multiple occasions, Russell lied to investors about his investments and fabricated multiple documents showing false information about his returns, according to the Department of Justice.
The prosecution found that Russell sent altered images of his bank balance to his investors. On another occasion, when an investor attempted to profit from one of his cryptocurrency investments, Russell never sent the money and instead sent his victim a fabricated money transfer confirmation.
According to prosecutors, most of the $1.5 million obtained from his victims was never used to invest in crypto assets. Instead, Russell misappropriated the funds and used them “for his personal benefit, to gamble, and to pay previous investors” in the scheme.
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In addition to his investment scheme, Russell also pleaded guilty for his role in a separate identity theft scheme in which he fraudulently obtained credit cards and other devices using false information.
The Justice Department said Russell obtained these identification documents with the intent to use them to conduct illegal and unauthorized transactions.
Once sentenced, he faces up to 30 years in prison for his crimes, and Federal Judge Sanket J. Bulsara ruled that he must pay more than $1.5 million in restitution.
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