Ex-Deutsche Bank employee to pay $1.5 million for Crypto fraud

[Carding]

Rashon Russell, a former employee of the German investment bank Deutsche Bank, admitted to involvement in a scam scheme to defraud 29 clients of the R3 crypto fund for $1.5 million.

According to the federal court in Brooklyn, the defendant also confessed to stealing personal information, including bank card details and access to electronic devices with the intention of using them for unauthorized transactions.

"Russell used the interest of investors in the cryptocurrency markets to implement a scheme to deceive customers who trusted him. The swift sentencing in this case underscores the authorities 'desire to bring attackers in the digital asset markets to justice," said U.S. Attorney Breon Peace.

According to court documents, in the period from November 2020 to August 2022, an ex-Deutsche Bank broker deceived investors of the R3 fund, promising them profits from trading cryptocurrencies.

At the same time, Russell embezzled most of the funds and used them for gambling, paying off debts to previous depositors and paying for his expenses, the court said.

The defendant faces a maximum term of up to 30 years in prison. As part of the plea agreement, he is required to pay compensation in the amount of more than $1.5 million.

 

[Tomcat]

A federal court in Brooklyn, New York, has sentenced an ex-employee of Deutsche Bank to 41 months in prison and pay $1.5 million to investors affected by the clerk's actions.

Rashawn Russell was an investment analyst at Deutsche Bank from 2018 to 2021. In November 2020, the clerk began raising money from friends, former college classmates, and colleagues, assuring them that he would invest in digital assets. For some investors, he guaranteed a profit from crypto investments of 25%, according to the case file.

Russell used part of the money raised to pay interest to investors, but the state prosecution insisted that most of the funds were spent on personal expenses and gambling. The former clerk collected money from people until August 2022. In April 2023, Russell was arrested, and in September, a 28-year-old man pleaded guilty to fraud using electronic means of communication.

Russell was also charged with organizing a second fraudulent scheme, which began operating in September 2021. The former investment analyst obtained data on 97 other people's credit and debit cards and about 43 identity cards belonging to residents of the states of New York and New Jersey. Russell used the personal data of cardholders for online purchases and gambling.

In an address to the sentencing judge, Rashon Russell expressed deep remorse that his actions had affected close friends and acquaintances. The defendant regretted that he spent the money received, not finding the strength to cope with his gambling addiction.