Lyell Champagne Jr., a resident of Missouri, has been sentenced to three years in federal prison for committing significant financial crimes involving cryptocurrency and tax fraud. Champagne, along with his accomplice Kristian Gupta, orchestrated a scheme to defraud individuals by accessing their bank accounts and diverting the funds into cryptocurrency accounts they controlled. The fraudulent activities also included filing false tax returns for a fictitious company named “Shireberk International,” which resulted in an illicit tax refund of over $3.4 million.
Between March 2021 and April 2022, Champagne and Gupta carried out their operation by obtaining sensitive personal information from victims. They used this data to create fraudulent email accounts and open cryptocurrency exchange accounts to facilitate the theft. Their plan also involved attempts to corrupt bank insiders, but an undercover investigation by law enforcement agencies, including the FBI and the IRS, successfully thwarted their efforts.
In addition to the theft from bank accounts, Champagne falsely claimed refunds from the IRS by submitting bogus tax returns for the non-existent company, “Shireberk International,” covering the years 2018 to 2021. This resulted in Champagne receiving a total of $3,449,935 in refunds. Fortunately, law enforcement was able to recover most of the stolen funds before they could be fully dissipated.
Champagne pleaded guilty to charges of bank fraud conspiracy and filing false claims on June 11. His co-conspirator, Kristian Gupta, had also pleaded guilty in April and is scheduled for sentencing on September 19. This case serves as a reminder of the severe legal risks and consequences associated with financial fraud, particularly in the realm of cryptocurrency, and underscores the necessity for robust security measures and regulatory compliance in the financial sector.
