German Financial Instruction Employee Concedes Fault for Wagering Away Gainful Assets' Resources
A former investment banker from Deutsche Bank is expected to serve jail time and pay a hefty fine after defrauding investors through a fake cryptocurrency-related fund. Rashawn Russell stole millions from clients for several years, utilizing the money for gambling and maintaining his facade.
In April, the major fraud case came to light, prompting Russell to appear in court this week, as per a Department of Justice (DOJ) notice. He currently stands accused of running a quasi-Ponzi scheme and investment scam, cheating his clients out of over a million dollars while working for Deutsche Bank.
While the DOJ notice didn't explicitly mention a connection between Russell and Deutsche Bank, the former's LinkedIn profile reveals that he was employed by the finance institution during the period of the fraud.
Deception and Misleading
Prosecutors charged Russell in April for misleading investors by promising guaranteed returns. He convinced them to invest in a digital investment fund dubbed R3 Crypto Fund, but the money wasn't used to make actual investments.
Utilizing cryptocurrency for transactions, Russell provided his clients with fake documents that seemed to demonstrate his high liquidity with the fund. Instead of following through with the clients' expectations, Russell mostly used the money for his personal expenses, such as gambling and paying back previous investors. From November 2020 to July 2022, he is said to have embezzled more than $1.5 million from 29 clients.
At the same time, Russell was also involved in another identity theft scheme. According to the DOJ notice, he obtained more than 15 credit cards and "other access devices" unlawfully. From September 2021 to June 2022, he fraudulently secured these cards.
Russell is facing both criminal and civil consequences. He could spend up to 30 years in prison and must reimburse all of the money. Additionally, he will also have to respond to a separate lawsuit from the Commodity Futures Trading Commission (CFTC).
Deutsche Bank isn't implicated in any wrongdoing in this specific case. The bank previously stated that it had been cooperating with the authorities throughout the probe.
Determined to Deceive
To execute his scam and maintain the deception, Russell went to great lengths. He promoted the fund as a suitable investment prospect for his investors while slandering anyone who questioned the process.
During presentations to investors, he presented the R3 Crypto Fund adhering to a three-month investment cycle, leading them to believe they couldn't join at the beginning of each cycle. However, he assured them they could either receive their returns or reinvest their capital once a cycle concludes.
This "cycle" concept was simply a ploy to create a sense of transparency and authenticity. Meanwhile, each investor received inconsistent information regarding the fund's operation.
Additionally, Russell deceived investors by presenting fraudulent evidence of income generated by the fund. The CFTC's indictment highlighted instances of this, with Russell showcasing a snapshot of an anxious investor as they suddenly spotted hundreds of thousands of dollars in their bank account.
At these times, the combined balance in Russell's trading accounts was less than $60K, with $50K acquired from merely one investor.
To evade confrontation from investors about payouts, Russell fabricated multiple excuses. He misplaced his phone, was dealing with accountants, or even claimed that his accounts were frozen due to large financial transactions.
These excuses were fabrications, and Russell now faces the likely consequences of jail time. Despite the restitution order, it's unlikely he'll be able to settle his debt.
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Source: www.casino.org
