Missouri resident Lyell Champagne Jr. has been sentenced to three years in federal prison for fraud and tax offenses involving cryptocurrency. He and his accomplice attempted to steal funds by accessing victims’ bank accounts and filing false tax returns. Law enforcement recovered most of the stolen funds. Champagne pleaded guilty to multiple charges in June while his co-conspirator awaits sentencing in September.
Missouri Man Sentenced for Fraud and Tax Offenses
The U.S. Attorney’s Office for the District of Connecticut announced on Tuesday that Missouri resident Lyell Champagne Jr. has been sentenced to three years in federal prison for fraud and tax offenses involving cryptocurrency. The Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS) investigated the case.
The Department of Justice explained that between March 2021 and April 2022, the Missouri man, along with co-conspirator Kristian Gupta, attempted to steal money from victims’ bank accounts by obtaining online credentials and transferring funds to cryptocurrency accounts under their control, according to court documents. The two also tried to enlist bank insiders, but an undercover investigation thwarted their efforts. Court documents detail:
As part of the scheme, Gupta provided Champagne with personal identifying information of victims, and Champagne used that information to open email accounts and accounts at a cryptocurrency exchange.
In addition to this fraud, Champagne submitted false tax returns for a nonexistent company, “Shireberk International,” from 2018 to 2021, receiving a refund of $3,449,935. The DOJ stated:
The remaining funds were recovered by law enforcement.
Champagne pleaded guilty on June 11 to bank fraud conspiracy and filing false claims. His accomplice Gupta, who pleaded guilty in April, will be sentenced on Sept. 19.
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