Investing.com
Published Sep 20, 2023 09:06
Rashawn Russell, a former investment banker at Deutsche Bank (ETR:DBKGn), could face a prison sentence of up to 30 years for misappropriating investor funds, according to a statement from the U.S. Department of Justice on Wednesday. In addition, Russell is expected to pay restitution exceeding $1.5 million.
Russell was accused of misleading investors with promises of high returns through cryptocurrency trading. He attracted potential investors by posing as a licensed broker with a background in investment banking. He guaranteed significant returns through his purported cryptocurrency fund named R3.
However, his actions were found to be deceitful. According to the prosecution’s findings, Russell transferred a portion of the invested funds into a trading account but misappropriated the remaining amount for personal expenses and gambling activities. To conceal his fraudulent actions, he supplied investors with falsified documentation that inaccurately represented their investments’ performance.
Interestingly, Russell sought investments not only from acquaintances but also from colleagues and friends, breaching their trust by misdirecting the funds.
Russell began his career in the financial sector in July 2018 and remained active until November 2021. During this period, he was employed by an undisclosed financial institution. His LinkedIn profile reveals that he joined Deutsche Bank as an investment banking analyst in July 2018 and later rose to the position of associate in July 2020.
The former banker’s confession comes amid increased focus on fraudulent practices involving digital assets by U.S. prosecutors and regulators.
In response to initial charges against Russell in April, Deutsche Bank emphasized its commitment to aiding law enforcement and regulatory oversight endeavors. The bank expressed willingness to assist with authorized investigations and proceedings but refrained from commenting on the ongoing legal matter.
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Written By: Investing.com
