A formal investor banker and registered broker Rashwan Russell (27 years) was charged by federal court in Brooklyn, New York, for apparently deceiving numerous investors by promising profits on fake cryptocurrency investments and expropriating the funds received to finance his lifestyle.
Documents of the court claimed Rashwan for embezzlement of the investor’s growing interest in crypto investments to mislead them. He allegedly used his credibility as a former investor banker and registered broker with the Financial Industry Regulatory Authority to convince investors about fake cryptocurrency investment schemes often promising significant and promising returns. The court however stated that money from investors was used by Russel to gamble and repay other investors and fund his lifestyle.
In addition the accusation charges Russel with one count of wire fraud and repeated failure in repayment of principal investments to investors with the promised rate of return.
The case is being investigated by U.S Postal Inspection Services(USPIS).Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement and disclosed the court’s resolution to track the case against former banker:
As alleged, Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to fund his lifestyle. This Office will continue to aggressively pursue fraudsters perpetrating these schemes against investors in the digital asset markets.
Trial Attorney Kyle Crawford and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Drew Rolle for the Eastern District of New York are prosecuting the case.
As per the report shared by US department of justice (DOJ) documents were concocted by Russell to delude the unobservant investors about the status of their crypto investment. The fabrication involved modification in the image of the bank’s website to illustrate fake balances and bank wire transfer confirmation.
If proven guilty, Russel could face a maximum imprisonment of 20 years. Other investors were also warned and requested by the DOJ to reach out if they find themselves as underdogs of putative crime.
A consumer protection alert against the crypto exchange Eucoinotrade was issued by the Washington State Department of Financial Institutions on April 6 2023. As per the report, Eucoinotrade assisted an “advanced fee fraud” wherefore users were demanded to reimburse for upgrading accounts and withdrawing funds. While no complications were faced by the users for depositing money, problems were encountered when they tried to encash.