Jay Clayton, america Legal professional for the Southern District of New York, introduced that EUGENE WILLIAM AUSTIN, JR., a/ok/a “Hugh Austin” (“AUSTIN”) was sentenced in the present day to 18 years in jail. AUSTIN was convicted following a jury trial in September 2024 of conspiracy to commit wire fraud, conspiracy to commit cash laundering, and conspiracy to commit interstate transportation of stolen property. The defendant’s son, BRANDON AUSTIN (“BRANDON”), was beforehand sentenced to 4 years in jail in connection along with his function within the scheme. U.S. District Choose P. Kevin Castel imposed each sentences.
U.S. Legal professional Jay Clayton mentioned: “For years, Hugh Austin was the chief of a fraud and cash laundering scheme that stole greater than $12 million from greater than two dozen victims. Austin concerned his personal son in his crimes, working with him to tear off victims and spending investor cash on private bills, like luxurious inns. Because of the work of the profession prosecutors of this Workplace and our legislation enforcement companions, Austin will now be held accountable for the hurt he brought on to particular person traders and others.”
As mirrored within the proof introduced at trial and different public filings:
AUSTIN was the chief of a scheme along with his son BRANDON and others to steal cash from entrepreneurs, traders, and different victims by fraudulently providing to, amongst different issues: function a dealer for gross sales of massive portions of cryptocurrency; present short-term investments in cryptocurrency for purportedly excessive returns; and safe traders for startups and different small companies from their community of excessive internet price people. AUSTIN additionally steadily sought private loans from buddies and acquaintances in reference to AUSTIN’s purported cryptocurrency and funding companies, falsely promising to pay lenders again with curiosity. In every occasion, traders and lenders misplaced their cash. AUSTIN and BRANDON steadily spent traders’ funds on private bills, together with airline journey, luxurious inns, eating places, purchasing, in addition to nominal funds to victims to lengthen the scheme. In whole, AUSTIN and BRANDON have brought on greater than $12 million in losses to greater than two dozen victims.
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In addition to the jail time period, AUSTIN, 62, of Port Jefferson, New York, was sentenced to 3 years of supervised launch and ordered to forfeit $6,062,564 and pay restitution within the quantity of $12,662,564.
Mr. Clayton praised the excellent investigative work of Homeland Safety Investigations.
The prosecution of this case is being dealt with by the Workplace’s Complicated Frauds and Cybercrime Unit. Assistant U.S. Attorneys Olga I. Zverovich, Matthew Weinberg, and Andrew Okay. Chan are in cost of the prosecution, with help from Paralegal Specialists Chanel-Ashley Foster, Frank Mastroianni, and Christine Woods.
