Former Investment Banker and Registered Broker Charged with Operating Cryptocurrency Investment Fraud Scheme

Today, in federal court in Brooklyn, Rashawn Russell, a former investment banker and registered broker, will be arraigned on an indictment charging him with perpetrating a cryptocurrency investment fraud scheme.  Russell was arrested yesterday in Brooklyn and will be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.

Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and Eric Shen, Inspector-in-Charge, U.S. Postal Inspection Service, Criminal Investigations Group (USPIS), announced the arrest and indictment.

“As alleged, Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to fund his lifestyle,” stated United States Attorney Peace.  “This Office will continue to aggressively pursue fraudsters perpetrating these schemes against investors in the digital asset markets.”   

As alleged in court documents, Russell engaged in a scheme to defraud multiple investors by falsely promising that their money would be used for cryptocurrency investments that would generate large—and sometimes “guaranteed”—returns.  In truth, much of the investors’ money was misappropriated by Russell and used for his personal benefit, to gamble, and to repay other investors.  Russell formerly worked as an investment banker and was a registered broker with the Financial Industry Regulatory Authority.

As part of the scheme, Russell lied to investors about the status of their investments and fabricated multiple documents that he sent to investors.  As alleged, Russell sent one investor an altered image of a bank balance displayed on a bank website that purported to show Russell’s substantial liquidity.  When another investor sought to recoup their investment, Russell never sent the money and instead sent the investor a fabricated bank wire transfer confirmation that purported to show the return of the investor’s money.   

The charge in the indictment is an allegation and Russell is presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, he faces a maximum of 20 years in prison.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.

The government’s case is being handled by Assistant United States Attorney Drew Rolle from the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and.  Assistant Chief Scott Armstrong and Trial Attorney Kyle Crawford from of the Department of Justice’s Criminal Division, Fraud Section.

The Defendant:

RASHAWN RUSSELL
Age:  27
Brooklyn, New York

E.D.N.Y. Docket No.: 23-CR-152 (HG)