Former Deutsche Bank Executive Pleads Guilty in “R3 Crypto Fund” Scheme

Read full article at Coinnounce.

In a significant legal development, Rashawn Russell, a former investment banker at Deutsche Bank, has pleaded guilty to charges of investment fraud linked to the “R3 Crypto Fund.” This cryptocurrency investment scheme defrauded investors of a substantial sum, potentially landing Russell behind bars for up to 30 years.

False Promises, Fabricated Documents, and Stolen Funds

Russell’s fraudulent activities spanned a nearly two-year period, from November 2020 to August 2022. During this time, he deceived 29 unsuspecting investors out of a staggering $1.5 million by making audacious promises of guaranteed, high returns on their crypto investments. Leveraging his background as an investment banker and a licensed financial broker, Russell lured investors with the prospect of outsized returns.

However, these promises were nothing more than a ruse. Russell concocted a web of deception by providing false information about the investments and even going to the extent of fabricating various documents, such as statements that displayed fictional returns. To further perpetuate his scheme, he manipulated images of his own bank balance to present to investors. When an investor sought to liquidate one of their crypto investments, Russell failed to follow through with the transaction, instead sending a counterfeit money transfer confirmation.

Most alarmingly, it has been discovered that the majority of the $1.5 million Russell obtained from his victims did not go towards crypto assets as promised. Instead, these funds were misappropriated, funnelled into his personal expenses, gambling activities, and, notably, to repay earlier investors in this elaborate scheme of deceit.

Additional Charges: Identity Theft Scheme

Apart from the fraudulent cryptocurrency investment scheme, Russell has also admitted his culpability in a separate but equally troubling identity theft scheme. In this scheme, he was involved in the fraudulent acquisition of credit cards and other financial devices through the submission of false information. The purpose of obtaining these identity documents was to carry out unauthorized and illegal transactions.

A Severe Penalty Looms

Upon sentencing, Rashawn Russell faces the ominous prospect of up to 30 years of incarceration due to the gravity of his crimes. In addition to the prison term, U.S. Magistrate Judge Sanket Bulsara has mandated that Russell pay restitution of over $1.5 million, ensuring that victims of this extensive cryptocurrency investment fraud are compensated for their losses.

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#Bitcoin #Crypto #Cryptocurrency

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