Russell, arrested on Monday in Brooklyn after being charged
in a sealed indictment last Thursday, faces one count of wire
fraud for a scheme that prosecutors said ran from November 2020
through August 2022. He pleaded not guilty at a Tuesday
afternoon hearing in Brooklyn federal court.
A lawyer for Russell did not respond to a request for
comment.
According to the indictment, Russell was an investment
banker from July 2018 through November 2021 at a financial
institution that was not identified in the document. His
LinkedIn profile states that he became a Deutsche Bank
investment banking analyst in July 2018 and was promoted to
associate in July 2020.
U.S. prosecutors and regulators have been working to crack
down on fraud involving digital assets.
"Russell turned the demand for cryptocurrency investments
into a scheme to defraud numerous investors," Breon Peace, the
U.S. attorney in Brooklyn, said in a statement.
Deutsche Bank said in a statement that while it would not
comment on an ongoing legal proceeding, it "regularly supports
law enforcement and regulatory oversight efforts, including
appropriately responding to and cooperating with authorized
investigations and proceedings."
(Reporting by Luc Cohen in New York; Editing by Will Dunham and
Edwina Gibbs)
(Adds Russell's not guilty plea in paragraph 5)
By Luc Cohen
NEW YORK, April 11 (Reuters) - A former Deutsche Bank AG investment banker has been charged in an indictment
unsealed on Tuesday with misappropriating funds from investors
whom he wooed with promises of big returns from cryptocurrency
trading.
Rashawn Russell, 27, of Brooklyn, solicited investments from
friends and colleagues but used the funds for gambling and other
personal expenses, federal prosecutors said.
According to the indictment, Russell told prospective
investors that he was a licensed broker who worked in investment
banking and could help them earn large and sometimes guaranteed
returns from R3, a cryptocurrency fund he claimed to run.
Prosecutors said Russell transferred some funds into a
trading account but siphoned the rest, and sent fake
documentation to investors about how their money was doing.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.