A former Deutsche Bank executive appears to have operated a fraudulent “crypto fund,” according to a New York indictment.
On Tuesday, authorities in New York indicted Rashawn Russell, a former FINRA-registered broker and investment banker, for wire fraud.
Russell allegedly made false promises to clients of his R3 Crypto Fund between November 2020 and August 2022.
Lawyers for the Eastern District of New York filed the indictment on April 6. It alleges that Russell falsely promised guaranteed returns and misrepresented his investment banking and broker credentials. Furthermore, he reportedly used the investors’ assets for his personal benefit. Including gambling and repaying other investors rather than using the funds for cryptocurrency investments.
He allegedly encouraged investors to “roll over” or reinvest their investments and promised to return their principal investment regardless of actual performance.
A Fraudulent Crypto Fund
According to the indictment, the former investment banker also misled investors by fabricating documents to make them believe their investments were secure. In one instance, Russell allegedly sent an investor a screenshot of a falsified bank balance. The screenshot showed a balance of approximately $355,000. However, in reality, the real balance was ten times smaller. Russell also allegedly falsified wire transfers when investors asked for their funds back.
A New York-based LinkedIn profile for a Rashawn Russell shows that he worked as an investment banking associate at Deutsche Bank.
In a US context, an indictment is a formal accusation that an individual has committed a crime. In the New York justice system, cases are typically heard by a grand jury which will evaluate evidence brought forward by a prosecutor.
This is a developing story.
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