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A former investment banker has been sentenced to prison after pleading guilty to fraud charges in connection with a crypto investment scheme, among other crimes.

Rashawn Russell, a former banker and broker with Deutsche Bank Securities Inc. in New York, was ordered to serve three years and five months in jail and to pay US$1.5 million in restitution, after he pled guilty to wire fraud and device access fraud.

According to court filings, Russell pledged to trade crypto on investors’ behalf, in some cases promising them guaranteed returns. Instead, he allegedly misappropriated most of their money, which he used to repay other investors, fund personal expenses and gamble.

Additionally, authorities alleged that Russell “fraudulently obtained” at least 97 credit and debit cards, along with at least 43 identification cards, “often from gym lockers in New York and New Jersey” with the intent to use them to complete unauthorized transactions.

In addition to the criminal sanctions, Russell was permanently banned from the securities industry by the U.S. Financial Industry Regulatory Authority after he failed to respond to the self-regulatory organization’s requests for information following the filing of criminal charges.

The U.S. Commodity Futures Trading Commission also previously filed a civil enforcement action against Russell in the U.S. district court for the Eastern District of New York, seeking restitution, disgorgement, monetary penalties, and permanent trading and registration bans in connection with the crypto Ponzi scheme.