Rashawn Russell, a former investment banker and licensed broker, has been charged with crypto investment fraud. He would be indicted in federal court in Brooklyn on charges of defrauding multiple investors by falsely promising that their money would be used for cryptocurrency investments that would generate large returns. Russell was apprehended on April 11 in Brooklyn and would be prosecuted before United States Magistrate Judge Ramon E. Reyes, Jr.
According to the Department of Justice (DoJ), Russell engaged in a scheme to defraud investors by lying about the status of their investments and fabricating multiple documents that he sent to investors. The DoJ claimed that Russell emailed an altered screenshot of his bank balance on the bank’s website to one investor to demonstrate his wealth.
Furthermore, when another investor sought to recoup their investment, the alleged criminal failed to send the money and instead sent the investor a fabricated bank wire transfer confirmation that purported to show the return of the investor’s money.
Russell allegedly spent much of the investors’ money on himself, his gambling habits, and paying back other investors. The detainment and charges were announced by Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and Eric Shen, Inspector-in-Charge, U.S. Postal Inspection Service, Criminal Investigations Group (USPIS).
Naturally, Russell is assumed innocent unless proven guilty beyond a reasonable doubt, according to the accusation in the indictment. The document also pointed out that he might face up to 20 years in jail if convicted.
