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Former Investment Banker and Registered Broker Arrested in $1,500,000 Cryptocurrency Fraud Scheme: US Department of Justice
A former investment banker and registered broker was convicted of masterminding a $1.5 million cryptocurrency fraud scheme.
A new press release from the U.S. Department of Justice (DOJ) says Rashawn Russell, who formerly worked for the Financial Industry Regulatory Authority (FINRA), has been sentenced to three years and five months in prison.
The Department of Justice says that between November 2020 and August 2022, Russell ran a scheme in which he defrauded crypto investors using false promises of huge returns. Russell would then misappropriate their funds for his own personal use.
âRussell took most of the investors' assets and used them to finance personal expenses, gambling and pay off debts to other investors. Russell also repeatedly failed to repay investors' principal investments and failed to provide investors with the promised rate of return.
After some investors demanded their investments be returned to them, Russell also falsely stated that he had transferred money to them.â
In a separate scam between September 2021 and June 2023, Russell illegally obtained 97 credit and debit numbers and 43 identification cards from gym lockers in New York and New Jersey and used them for unauthorized transactions, according to the Department of Justice.
In addition to his time behind bars, Russell was ordered to pay $1.5 million in restitution to victims of his digital asset fraud scheme, according to the press release.
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