Eugene William Austin Jr., also known as “Hugh Austin,” was sentenced to 18 years in prison for leading a multi-year scheme that defrauded more than two dozen victims out of $12 million. His son, Brandon Austin, was previously sentenced to four years in connection with the fraud, according to the Justice department. According to U.S. Attorney Jay Clayton, Austin’s operation targeted entrepreneurs and investors by offering fake cryptocurrency deals, short-term investment opportunities, and phony brokerage services. He also promised funding from supposed wealthy backers, none of which materialized. Victims were misled into believing their money was being invested, but the funds were used for personal expenses including luxury hotels, flights, and restaurants. You might also like: SEC meets with Ondo Finance to discuss tokenizing US securities Conviction and sentencing A federal jury convicted Austin in September 2024 on charges of conspiracy to commit wire fraud, money laundering, and transporting stolen property across state lines. U.S. District Judge P. Kevin Castel handed down the sentences. Austin, 62, of Port Jefferson, New York, was also ordered to serve three years of supervised release, forfeit more than $6 million, and pay over $12.6 million in restitution. “This Office will continue to pursue those who exploit trust and use cryptocurrency as a cover for fraud,” Clayton said, crediting Homeland Security Investigations and the Complex Frauds and Cybercrime Unit for their work. The case was prosecuted by Assistant U.S. Attorneys Olga Zverovich, Matthew Weinberg, and Andrew Chan. You might also like: Exclusive: Adam Kinzinger slams Trump’s crypto ventures as corruption risk
