ST. LOUIS, MISSOURI – LYELL CHAMPAGNE, JR., 24, of St. Louis, Missouri, has dug himself into a $3.4 million hole after pleading guilty to bank fraud and tax evasion charges in a Connecticut federal court.
According to court documents, LYELL CHAMPAGNE, JR. conspired with Kristian Gupta, 26, of Port Charlotte, Florida, to obtain online bank account credentials from potential victims between March 2021 and April 2022. The scheme involved transferring money from victims’ bank accounts to cryptocurrency accounts controlled by Champagne and Gupta.
As part of the scheme, Gupta provided Champagne with personal identifying information of victims, which he used to open email accounts and accounts at a cryptocurrency exchange. The duo attempted to recruit bank “insiders” to participate in their scheme, but were disrupted by an undercover law enforcement investigation and failed to transfer any funds from compromised accounts.
In a second scheme, Champagne filed wholly fictitious tax returns for “Shireberk International,” which had no actual business operations, for the 2018 through 2021 tax years. The returns resulted in a refund of $3,449,935.
Champagne pleaded guilty to one count of conspiracy to commit bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of filing false claims with the IRS, which carries a maximum term of imprisonment of five years.
Champagne has agreed to pay restitution of $111,738.52, and the remaining funds were recovered by law enforcement. Judge Sarala V. Nagala scheduled sentencing for September 10, and Champagne is released on a $200,000 bond pending sentencing.
Gupta, 26, pleaded guilty to conspiracy to commit bank fraud on April 19, 2024, and is released on a $100,000 bond pending sentencing, which is scheduled for September 19.
The matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Edward Chang.
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Key Facts
- State: Connecticut
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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