A man of Long Island, known as Eugene William Austin Jr., also known as “Hugh Austin”, was sentenced to 18 years in prison for having defrauded more than two dozen victims through a fraudulent cryptocurrency investment regime of several million dollars. His son, who was part of his team, was sentenced to four years in a previous judgment.
Austin was sentenced for the first time in September 2024 by a jury for a conspiracy to commit fraud by wire, money laundering and an interstate transport of stolen goods. His sentence of 18 years in prison as well as three years of supervised release were pronounced on April 23, 2025 by the district judge P. Kevin Castel. His son, Brandon, was also sentenced by the same judge.
Fraudulent investment scheme in Long Island
According to prosecutorsThe father, the son and a team of others organized a fraudulent investment program for years. They asked for victims' funds by wrongly promising high returns thanks to investments in the cryptocurrency and exchange markets.
Austin would have obtained funds from friends, knowledge, startups and small businesses under the cover that it will help them find investors from its network of individuals. The team would have obtained around $ 5 million in one agreement and $ 4 million in another.
Instead of keeping their promise, they used money to finance a luxurious lifestyle. Prosecutors revealed that they had spent purchases, travel, entertainment and other personal expenses. The two also used new investors money to pay the most previous, which is a classic tactic of the Ponzi program.
According to American lawyer Jay Clayton, who announced the condemnation of the duo, “Hugh Austin was the chief of a fraud and money laundering program which stole more than $ 12 million to more than two dozen victims. Austin involved his own son in his crimes, working with him to tear the victims and spend money investor for personal expressions, such as luxury hotels. ”.
A combined effort to combat crime and obtain a restitution
Clayton also thanked the prosecutors and the law enforcement partners who were involved in the implementation of the case, adding that because of their efforts, “Austin will now be held responsible for the damage he has caused to individual investors and others.”
In addition to his conviction, Austin, aged 62, was ordered to pay $ 12.66 million on return. He must also lose $ 6,062,564 and a Jaguar SUV in 2022 alongside other properties at the time of his arrest.
This case is added to the growing list of fraud linked to cryptocurrencies in the US Trend has drawn the attention of American regulators, and the organizations responsible for the application of laws report that they have increased efforts to suppress these diets.
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