Missouri resident Lyell Champagne Jr. was sentenced to three years in federal prison for fraud and tax violations related to cryptocurrency. He and an accomplice attempted to steal money by accessing victims’ bank accounts and filing fraudulent tax returns. Law enforcement has recovered most of the stolen funds. Champagne pleaded guilty to multiple charges in June, while his accomplice awaits sentencing in September.
Missouri man sentenced for fraud and tax violations
The United States 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 cryptocurrency-related fraud and tax violations. The Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS) investigated the case.
The Justice Department explained that between March 2021 and April 2022, the Missouri man, along with co-defendant Kristian Gupta, attempted to steal money from victims’ bank accounts by obtaining online login credentials and transferring the money to cryptocurrency accounts under their control, according to court documents. The two also attempted to recruit people inside the bank, but an undercover investigation thwarted their efforts. Court documents detail:
As part of the scheme, Gupta provided Champagne with the victims' personal identification information, and Champagne used that information to open email accounts and accounts at a cryptocurrency exchange.
In addition to this fraud, Champagne filed false tax returns for a non-existent company, “Shireberk International,” from 2018 to 2021, receiving a tax refund of $3,449,935. The DOJ stated:
The remaining amount was recovered by law enforcement.
Champagne pleaded guilty on June 11 to conspiracy to commit bank fraud and filing false claims. His co-defendant Gupta, who pleaded guilty in April, is scheduled to be sentenced on September 19.
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