HARTFORD, Conn. — A Missouri man was sentenced in Hartford federal court on Tuesday to three years in prison, followed by three years of supervised release, for offenses that stem from two separate fraud schemes, according to the U.S. Attorney for the District of Connecticut.
Lyell Champagne, Jr., 24, of St. Louis, conspired with Kristain Gupta to acquire online bank account credentials from possible victims between March 2021 and April 2022, according to court documents and statements.
Prosecutors said that the two individuals then transferred money from victims’ bank accounts to cryptocurrency accounts that they controlled. During the scheme, Gupta would provide Champagne with personal identifying information of victims, and Champagne used the information to open email accounts and accounts at a cryptocurrency exchange.
According to prosecutors, the two individuals then attempted to recruit bank “insiders” to participate in the scheme. However, they failed to transfer any funds from comprised accounts after being interrupted by an undercover law enforcement investigation.
In a separate scheme, prosecutors said Champagne filed “wholly fictitious” tax returns for “Shireberk International,” which they said had no actual business operations, for the 2018 through 2021 tax years. The returns reportedly resulted in a refund of $3,449,935.
On Tuesday, a judge ordered Champagne to pay restitution of $111,738, and the remaining funds were recovered by law enforcement.
Champagne pleaded guilty on June 11 to one count of conspiracy to commit bank fraud and one count of filing false claims with the IRS. Prosecutors said he has been detained since October 2022 when his bond was revoked.
Prosecutors add that Gupta, of Port Charlotte, Fla., pleaded guilty to conspiracy to commit bank fraud on April 19 and is scheduled to be sentenced Sept. 19.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.
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Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at dzbierski@FOX61.com.
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