A former funding banker and registered dealer has been sentenced for masterminding a $1.5 million crypto fraud scheme.
In a brand new press launch, the US Division of Justice (DOJ) says that Rashawn Russell, who used to work for the Monetary Business Regulatory Authority (FINRA), has been sentenced to a few years and 5 months behind bars.
The DOJ says that between November 2020 and August 2022, Russell ran a scheme the place he defrauded crypto buyers utilizing false guarantees of huge returns. Russell would then misappropriate their funds for private use.
“Russell misappropriated a lot of the buyers’ property and used them to fund private bills, to gamble, and to repay different buyers. Russell additionally repeatedly did not repay buyers’ principal investments and failed to offer buyers with promised charges of return.
After sure buyers requested to be repaid their investments, Russell additionally falsely represented that he had wired the cash to them.”
In accordance with the DOJ, In a separate rip-off between September 2021 and June 2023, Russell illegally obtained 97 credit score and debit numbers and 43 identification playing cards from health club lockers in New York and New Jersey and used them for unauthorized transactions.
Along with his time behind bars, Russell has been ordered to pay $1.5 million in restitution towards the victims of his digital asset fraud scheme, in keeping with the press launch.
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