A former Deutsche Bank executive appears to have managed a fraudulent “crypto fund,” according to the New York indictment.

On Tuesday, New York authorities indicted Rashon Russell, a former FINRA-registered broker and investment banker, for wire fraud.

Russell allegedly made false promises to clients of his R3 crypto fund between November 2020 and August 2022.

Attorneys for the Eastern District of New York filed the indictment on April 6. It alleges that Russell falsely promised guaranteed returns and misrepresented his investment banking and broker credentials. Moreover, he reportedly used the investors’ assets for his own personal benefit. Including gambling and paying off other investors instead of using the money for cryptocurrency investments.

He allegedly encouraged investors to “renew” or reinvest their investments and promised to return their principal investment regardless of actual performance.

Scam crypto fund

According to the indictment, the former investment banker also misled investors by fabricating documents to make them believe their investments were safe. In one case, Russell allegedly sent an investor a screenshot of a fake bank balance. The screenshot showed a balance of approximately $355,000. However, in reality, the true balance was ten times smaller. It is also alleged that Russell falsified wire transfers when investors requested refunds.

LinkedIn based in New York profile account Rashaun Russell appears to have worked as an investment banker at Deutsche Bank.

In the United States context, an indictment is a formal accusation that an individual has committed a crime. In the New York justice system, cases are usually heard by a grand jury who evaluates evidence presented by the district attorney.

This is a developing story.