A former Deutsche Bank investment banker, Rashawn Russell, has pleaded guilty to investment fraud in connection with a fraudulent cryptocurrency trading scheme. Russell, aged 27, was charged earlier this year for his involvement in a scheme where he operated a fraudulent cryptocurrency investment fund known as the “R3 Crypto Fund.”
Between November 2020 and August 2022, Russell defrauded 29 investors of $1.5 million by using his reputation as an investment banker and a licensed financial broker to promise guaranteed high returns on various cryptocurrency investments. He deceived investors by fabricating documents and providing false information about their investments.
Russell sent manipulated images of his bank balance to investors and even fabricated money transfer confirmations instead of paying out returns. Most of the funds obtained from investors were not used for cryptocurrency investments but were misappropriated for personal use, gambling, and repaying earlier investors in the fraudulent scheme.
Former Deutsche Bank Investment Banker Pleads Guilty to $1.5 Million Cryptocurrency Investment Fraud
In addition to the investment scheme, Russell also pleaded guilty to his involvement in a separate identity theft scheme, where he fraudulently obtained credit cards and other identity-related documents using false information.
Upon sentencing, Russell could face up to 30 years in prison and will be required to pay over $1.5 million in restitution.
This case underscores the importance of due diligence and caution when considering investment opportunities, especially in the cryptocurrency space, where fraudulent schemes can target unsuspecting investors.