$10M fraud scheme: NY father-son duo spent investor cash on lavish lifestyle, feds say

According to prosecutors, the men fraudulently offered to serve as a broker for sales of large quantities of cryptocurrency at below-market exchange rates and provide short-term investments in cryptocurrency for purportedly high returns.

They also provided marketing and advertising services to small businesses despite having no intention of actually providing the promised cryptocurrency, returns, or services, prosecutors allege.

Investigators said Eugene Austin also duped friends and acquaintances into giving him personal loans by falsely claiming he would pay them back with interest.

Prosecutors highlighted several victims who were allegedly defrauded by the pair, including a partner at a California investment firm who was duped into wiring $5 million, erroneously believing it was to purchase cryptocurrency.

In all, the duo caused 20 victims more than $10 million in losses, prosecutors said.

That money allegedly went toward things like airline tickets, luxury hotels, restaurants, and shopping trips.

Eugene Austin was arrested on Wednesday, July 5. He is charged with the following crimes:

* Conspiracy to commit wire fraud

* Conspiracy to commit money laundering

* Conspiracy to commit interstate transportation of stolen property

Together, the charges carry a maximum prison sentence of 35 years.

In April 2023, Brandon Austin pleaded guilty to conspiracy to commit money laundering in connection with the scheme.

He faces up to 20 years in federal prison when he's sentenced on Wednesday, Sept. 6.

He also agreed to forfeit $3.4 million, pay $1.9 million in restitution to the victims, and forfeit a 2022 Jaguar E-Pace P250, which start at $41,000.