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A Missouri man has been sentenced to three years in prison for his role in a fraudulent scheme involving bank accounts and corporate tax refunds. Lyell Champagne Jr., of St. Louis, was sentenced by U.S. District Judge Sarala V. Nagala on Tuesday in a Connecticut federal court. The sentencing also includes three years of supervised release and restitution of $111,738, according to U.S. Attorney Vanessa Roberts Avery.

Missouri Bank Fraud Trial : Details of the Fraud Schemes

Champagne's criminal conduct involved two separate fraud operations. In one scheme, Champagne conspired with co-defendant Kristian Gupta to steal online bank account credentials. Using personal identifying information from account holders, they planned to transfer the stolen funds to cryptocurrency exchange accounts under their control. Their plan, however, was thwarted when undercover agents caught them trying to recruit bank insiders to facilitate the fraudulent transfers. No funds were successfully siphoned in this case.

The second scheme proved more lucrative for Champagne. He filed fraudulent tax returns for a fictitious company, Shireberk International, between 2018 and 2021. The scheme resulted in a $3.4 million tax refund from the Internal Revenue Service (IRS).

Plea and Sentencing

Champagne pleaded guilty in June to one count of conspiracy to commit bank fraud and one count of filing false claims with the IRS. His co-defendant, Gupta, who is from Port Charlotte, Florida, also pleaded guilty in April and is scheduled for sentencing on September 19.

Champagne had initially been released on bond but was detained in October 2022 after violating the terms of his release. Authorities monitoring his electronic devices discovered suspicious money transfers and that he possessed prohibited items, including ammunition, a gun bag, pepper spray, and handcuffs.

Missouri Bank Fraud Trial : Legal Representation

The U.S. government was represented by Edward Chang of the U.S. Attorney’s Office for the District of Connecticut. Champagne was represented by Todd Bussert of Frost Bussert LLC, while Gupta is represented by Allison Kahl and Carly Levenson of the Federal Defender's Office in Connecticut.