Ex-Deutsche Bank Investment Banker Faces Up to 30 Years in Prison for Crypto Fraud

A registered broker and erstwhile concern banker with fiscal elephantine Deutsche Bank has pleaded blameworthy to defrauding investors into a fraudulent crypto fund. He is facing up to 30 years successful situation and volition beryllium required to wage restitution of much than $1.5 million, according to the U.S. Justice Department.

Ex-Deutsche Bank Investment Banker Pleads Guilty

The U.S. Department of Justice (DOJ) announced Tuesday that Rashawn Russell has pleaded blameworthy to “participating successful a strategy to defraud clients of the R3 Crypto Fund,” a fraudulent cryptocurrency concern money that helium operated. Russell, who was formerly an concern banker and registered broker with the Financial Industry Regulatory Authority (FINRA), was charged successful April.

The U.S. Attorney’s Office for the Eastern District of New York explained:

When sentenced, Russell faces up to 30 years successful prison. As portion of his plea agreement, Russell volition beryllium required to wage restitution successful the magnitude of much than $1.5 million.

“Russell leveraged capitalist involvement successful cryptocurrency markets to perpetrate a strategy to defraud clients who trusted him,” U.S. Attorney Breon Peace stated.

While the DOJ announcement did not specify which concern slope Russell worked for, FINRA’s broker records amusement that helium was registered with Deutsche Bank Securities. According to his Linkedin profile, helium became a Deutsche Bank concern banking expert successful July 2018 and was promoted to subordinate successful July 2020.

From November 2020 to August 2022, Russell engaged successful a strategy to defraud investors into his R3 Crypto Fund, the DOJ detailed, adding that helium falsely promised investors that helium would usage their funds to “make cryptocurrency investments that would instrumentality large, and sometimes guaranteed, returns.” However, the Justice Department explained:

In truth, overmuch of the investors’ assets were misappropriated by Russell and utilized for his idiosyncratic benefit, to gamble, and to repay earlier investors.

“Through Russell’s scheme, astatine slightest 29 investors mislaid astatine slightest $1.5 million,” the DOJ said. Russell besides pleaded blameworthy for his relation successful a abstracted individuality theft strategy successful which helium “fraudulently obtained recognition cards and different entree devices successful the names of 3rd parties,” the Justice Department noted.

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