Securities Regulation Daily Wrap Up, BLOCKCHAIN—S.D.N.Y.: Long Island man gets 18 years for $12M cryptocurrency fraud scheme involving son, (Apr 24, 2025)
Eugene “Hugh” Austin was sentenced to 18 years in prison for leading a yearslong fraud and money laundering scheme that defrauded investors of over $12 million.
Eugene William Austin Jr., also known as Hugh Austin, was sentenced to 18 years in federal prison after being convicted in September 2024 of wire fraud, money laundering, and transporting stolen property across state lines. The fraud scheme, which ran for several years, involved Austin's son, Brandon Austin, who was previously sentenced to four years in prison for his role. The father-son duo defrauded more than two dozen victims out of over $12 million, using fake investment opportunities in cryptocurrency and other ventures to lure victims and then spending the funds on luxury travel, hotels, and personal expenses.
According to prosecutors, the Austins falsely promised investors and entrepreneurs lucrative returns by pretending to broker large cryptocurrency deals or by claiming to have connections to wealthy backers willing to fund startups. In many cases, the victims were persuaded to provide personal loans with the expectation of repayment with interest—none of which materialized. The funds were instead diverted for personal use, and victims were occasionally given small repayments to maintain the illusion of legitimacy. Among the specific scams were a $5 million transaction in 2018 for cryptocurrency that never materialized, along with other six-figure transactions under false pretenses.
Beyond the prison sentence, Eugene Austin, now 62, was ordered to forfeit over $6 million and pay nearly $12.7 million in restitution. U.S. Attorney Jay Clayton stated, “For years, Hugh Austin was the leader of a fraud and money laundering scheme that stole more than $12 million from more than two dozen victims… spending investor money on personal expenses, like luxury hotels.” Clayton added “Thanks to the work of the career prosecutors of this Office and our law enforcement partners, Austin will now be held accountable.” Clayton also reaffirmed his broader mission as U.S. Attorney, stating, “I look forward to protecting public safety, combatting fraud, particularly on the elderly and most vulnerable, ensuring the integrity of our financial system, and defending our national security.”
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