For his part in the fraudulent cryptocurrency trading operation, Rashawn Russell faces up to 30 years in prison.
An ex-investment banker at Deutsche Bank, previously charged earlier this year in connection with a fraudulent cryptocurrency trading scheme, has admitted guilt in committing investment fraud.
He potentially faces a maximum prison sentence of 30 years.
According to a statement released by the Department of Justice on September 19, Rashawn Russell, aged 27, confessed to his involvement in a scheme where he operated a deceptive cryptocurrency investment fund known as the “R3 Crypto Fund.”
Between November 2020 and August 2022, Russell deceived 29 investors, totaling $1.5 million, by exploiting his status as an investment banker and licensed financial broker, falsely promising substantial, guaranteed returns on a series of cryptocurrency investments.
The Department of Justice revealed that Russell repeatedly provided false information to investors about their investments, fabricating multiple documents that contained inaccurate data concerning their returns.
Russell also sent manipulated images of his bank balance to his investors.
On one occasion, instead of transferring the promised funds to an investor cashing in on their cryptocurrency investments, he sent a fake confirmation of a money transfer.
Prosecutors determined that most of the $1.5 million acquired from victims did not go toward investing in cryptocurrency assets.
Instead, Russell misappropriated these funds for personal use, gambling, and repaying previous investors involved in the scheme.
In addition to his involvement in the investment scheme, Russell pleaded guilty to his role in a separate identity theft scheme, wherein he fraudulently acquired credit cards and other items using false information.
The Department of Justice noted that Russell had obtained these identity documents to utilize them for illegal and unauthorized transactions.
Upon sentencing, Russell could face a maximum prison term of 30 years for his crimes.
United States Magistrate Judge Sanket J. Bulsara has ruled that he must also pay over $1.5 million in restitution.
