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BROOKLYN, NY – Rashawn Russell, a former investment banker, was sentenced to 41 months in prison for a cryptocurrency fraud scheme that swindled investors out of $1.5 million.
Rashawn Russell, a 28-year-old Brooklyn native, was handed down the sentence in federal court in Brooklyn by United States District Judge Hector Gonzalez for his role in the cryptocurrency investment fraud scheme. The scheme saw Russell promise investors large returns, only to misappropriate their funds for personal gain, including gambling and repaying other investors.
Russell pleaded guilty in September 2023 to wire fraud and access device fraud. He was also ordered to pay more than $1.5 million in restitution to the victims of his scheme. The investigation revealed that Russell engaged in the scheme between November 2020 and August 2022, inducing multiple victims to invest with him based on false promises.
Russell used the victims’ assets to gamble and repay other investors, repeatedly failing to repay the victims’ principal investments and provide promised rates of return. After some victims requested to be repaid, Russell falsely represented that he had wired them money. The scheme resulted in approximately $1.5 million in investor losses.
In a separate scheme, Russell fraudulently obtained at least 97 credit/debit cards and at least 43 identification cards in the names of third parties, often from gym lockers in New York and New Jersey. Russell obtained these devices with the intent to use them to complete unauthorized transactions.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, and Eric Shen, Inspector-in-Charge, United States Postal Inspection Service, Criminal Investigations Group (USPIS), announced the sentence. Assistant United States Attorney Drew Rolle of the Eastern District of New York, Trial Attorney Kyle Crawford and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section prosecuted the case.
The case serves as a stark reminder of the dangers of investment scams and the importance of due diligence when investing. It also highlights the importance of law enforcement’s efforts to hold individuals accountable for their crimes.
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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