Long Island residents Eugene Austin, 60, hailing from Port Jefferson, and his son Brandon Austin, 27, residing in Coram, have been accused of engaging in fraudulent activities related to cryptocurrency. The indictment against them was unsealed in Manhattan federal court on July 12.
According to prosecutors, the duo allegedly offered their services as brokers for large-scale cryptocurrency transactions at rates below the market value. They also claimed to provide short-term investments in cryptocurrency, promising substantial returns to their clients. However, prosecutors argue that these services were never intended to be fulfilled by the Austins.
Additionally, the pair purportedly offered marketing and advertising services to small businesses, but allegedly had no intention of delivering on their promises of cryptocurrency, returns, or any other services as advertised.
Investigators further revealed that Eugene Austin deceived friends and acquaintances into lending him personal funds, falsely assuring them that he would repay the loans with interest.
Prosecutors have pointed out multiple victims who were allegedly defrauded by Eugene and Brandon Austin, including a partner at a California investment firm who mistakenly wired $5 million, believing it was for the purchase of cryptocurrency.
Overall, the father and son are accused of causing losses exceeding $10 million to a total of 20 victims, with the misappropriated funds allegedly being spent on luxury expenses such as airline tickets, lavish hotels, fine dining, and shopping sprees.
Eugene Austin was apprehended on July 5 and now faces several charges, including conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to commit interstate transportation of stolen property. If convicted on all charges, he could face a maximum prison sentence of 35 years.
In April 2023, Brandon Austin pleaded guilty to conspiracy to commit money laundering in connection with the fraudulent scheme. He is scheduled to be sentenced on September 6 and may face up to 20 years in federal prison. As part of his plea agreement, Brandon has agreed to forfeit $3.4 million and pay $1.9 million in restitution to the victims. Additionally, he will surrender a 2022 Jaguar E-Pace P250, which carries a starting price of $41,000.