ST. LOUIS – In a stunning turn of events, LYELL CHAMPAGNE, JR., a 24-year-old from St. Louis, Missouri, has pleaded guilty in Connecticut to masterminding a multi-million-dollar tax refund scam and bank fraud conspiracy. According to court documents, Champagne conspired with KRISTIAN GUPTA to steal online banking credentials, siphon funds into cryptocurrency accounts, and file phony tax returns for an imaginary company called ‘Shireberk International’ – a move that netted nearly $3.5 million in fraudulent refunds.
Between March 2021 and April 2022, Champagne and Gupta targeted unsuspecting victims, utilizing Gupta’s access to personal information to open email and cryptocurrency exchange accounts. Their ambitions were thwarted by an undercover law enforcement probe, which prevented them from transferring any funds from compromised accounts. In the meantime, Champagne stood accused of filing false tax returns for Shireberk International, a shell company that never existed.
The IRS was left holding the bag with a refund totaling $3,449,935. Champagne has agreed to pay restitution of $111,738.52, with the remainder recovered by authorities. The U.S. Attorney for the District of Connecticut, VANESSA ROBERTS AVERY, announced today that Champagne pleaded guilty to one count of conspiracy to commit bank fraud and one count of filing false claims with the IRS. He faces up to 30 years in prison for the bank fraud charge alone.
Champagne will be sentenced on September 10, currently released on a $200,000 bond. His co-conspirator, GUPTA, who hails from Port Charlotte, Florida, pleaded guilty to conspiracy to commit bank fraud on April 19, 2024. Gupta is also free on a $100,000 bond pending his sentencing scheduled for September 19.
This sordid tale of financial deception and cybercrime is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. Assistant U.S. Attorney EDWARD CHANG will be handling the prosecution.
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Key Facts
- State: Connecticut
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Cybercrime|White Collar Crime
- Source: Official Source ↗
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