A former investment banker, who was a registered broker with the Financial Industry Regulatory Authority, was arrested yesterday in Brooklyn, New York, on criminal charges related to his alleged involvement in operating a cryptocurrency investment fraud scheme.
According to court documents, Rashawn Russell, 27, of Brooklyn, New York, allegedly participated in a scheme to defraud multiple investors by inducing them to invest with him based on false promises that, among other things, he would use their funds for investments in cryptocurrencies. and that investors would earn large, and sometimes guaranteed, returns on those investments. Russell allegedly misappropriated much of the investors' assets and used them for his own personal gain, gambling and paying other investors.
In addition, the indictment alleges that Russell repeatedly failed to repay investors' principal investments and failed to provide investors with promised rates of return. After certain investors requested redemption of their investments, Russell also allegedly falsely stated that he had sent them money.
Russell is charged with one count of wire fraud. If he is found guilty, he faces a maximum sentence of 20 years in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Criminal Division of the Department of Justice, United States Attorney Breon Peace for the Eastern District of New York, and Inspector in Charge Eric Shen of the Criminal Investigations Group of the Postal Inspection Service of USA (USPIS) made the announcement. .
The USPIS is investigating the case.
Trial attorney Kyle Crawford and Deputy Chief Scott Armstrong of the Criminal Division's Fraud Section and Assistant United States Attorney Drew Rolle for the Eastern District of New York are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section's Victim Witness Unit toll free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.
An accusation is just an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
