Rashawn Russell, a former employee of Deutsche Bank, has pleaded guilty to charges of embezzling funds from investors, as announced by the US Justice Department. He was arrested in April 2023 and accused of causing at least 29 investors to lose a total of $1.5 million.
According to the plea hearing, Russell, who had previously worked as an investment banker and was registered with the Financial Industry Regulatory Authority, fabricated documents and misled investors about the status of their investments as part of his fraudulent scheme. US Attorney Breon Peace issued a statement regarding the case, saying “Russell exploited the fascination of investors in cryptocurrency markets to orchestrate a deception against trusting clients.” He went on to add, “The expeditious conviction in this instance underscores our commitment to holding those engaging in deceitful practices within the digital asset sector accountable.”
As part of the fraud, Russell enticed investors with false promises of substantial returns from cryptocurrency trading. However, a large portion of the funds were instead used for his own personal gain, gambling, and repaying previous investors.
According to the April indictment, Russell targeted “numerous individuals, including his friends, former college classmates, and former colleagues at a financial institution,” with his fraudulent activities. Russell’s LinkedIn profile, which has since been deleted, revealed his employment history at JP Morgan, Moody’s, and Deutsche Bank, where he began his banking career in July 2018.
Russell now faces up to 30 years in prison and must reimburse the investors for the $1.5 million he scammed them out of.
