HARTFORD, Conn. – A St. Louis man appeared in a federal court in Hartford, Connecticut, on Tuesday to plead guilty to his role in two different fraud schemes.
Prosecutors with the U.S. Attorney’s Office for the District of Connecticut said Lyell Champagne Jr., 24, conspired with Kristian Gupta between March 2021 and April 2022 to steal online banking information from victims and then transfer money from the victims’ accounts to cryptocurrency accounts managed by Champagne and Gupta.
Prosecutors said Champagne and Gupta tried to recruit banker insiders to help them, but they encountered undercover law enforcement and ultimately were prevented from transferring any money from the victims’ accounts.
Champagne’s other scheme saw him create and file tax returns for Shireberk International, a fictitious company, for tax years 2018 to 2021. The tax returns resulted in Champagne receiving $3,449,935.
This past June, Champagne pleaded guilty to one count of conspiracy to commit bank fraud and one count of filing false claims with the IRS.
A U.S. District Court judge sentenced Champagne to 36 months in federal prison, followed by three years of supervised release.
Since law enforcement recovered nearly all the money, the judge only ordered Champagne to pay $111,738.52 in restitution.
Meanwhile, Gupta pleaded guilty on April 19 to one count of conspiracy to commit bank fraud. He’s out on a $100,000 bond until he’s sentenced on Sept. 19.
