A father-son duo from New York has been charged with running a multimillion-dollar cryptocurrency-related crime scheme. EUGENE WILLIAM AUSTIN, JR., also known as ‘Hugh Austin,’ and his son BRANDON P. AUSTIN, have been accused of stealing money from investors and other victims by offering fraudulent cryptocurrency-related investment services.
According to the allegations, the duo operated a scheme that included selling multimillion-dollar batches of cryptocurrency at below-market exchange rates, providing short-term investments in cryptocurrency for purportedly high returns, and offering marketing and advertising services to small businesses. However, in reality, EUGENE AUSTIN and BRANDON AUSTIN would not provide the promised cryptocurrency, returns, or services.
Investors and lenders lost a total of over $10 million to the scheme, with the duo spending the funds on personal expenses such as airline travel, luxury hotels, restaurants, and shopping. The scheme affected over 20 victims.
On July 5, 2023, EUGENE AUSTIN was arrested and presented before U.S. Magistrate Judge Jennifer E. Willis. His son, BRANDON AUSTIN, had already pleaded guilty on April 13, 2023, to participating in a money laundering conspiracy with his father.
U.S. Attorney Damian Williams stated that the duo’s scheme ‘victimized both sophisticated and novice cryptocurrency investors alike out of millions of dollars.’ He added that the duo used the money from victims to fund a lavish lifestyle.
HSI Special Agent in Charge Ivan J. Arvelo commended the prosecutorial team at the Southern District of New York’s Complex Frauds and Cybercrime Unit for their work on the case.
The duo’s scheme highlights the need for caution when investing in cryptocurrency-related services. It is essential to research and verify the legitimacy of any investment opportunity before investing.
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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