A Minnesota businessman has been sentenced to seven years in federal prison and ordered to pay nearly $3.5 million after defrauding over $6 million from pandemic relief programs.
Tezzaree El-Amin Champion pleaded guilty in February to wire fraud, money laundering, and illegally having a firearm as a felon.
Prosecutors allege that Champion used his roles at Futuristic Management LLC, a marketing company, and Encouraging Leaders, a nonprofit, to file bogus grant applications. According to court records, Encouraging Leaders sent dozens of applications to various agencies, including the United States Department of Justice, Hennepin County, the CDC Foundation, and the Minnesota State Arts Board. Although the group received $2.7 million, Champion moved “significant portions” of the monies to his accounts, leaving the nonprofit with only $1.5 million.
Investigators believe Champion also solicited clients for Futuristic Management and submitted fraudulent applications to Hennepin County’s Small Business Relief grant program. According to court papers, the scam resulted in losses of more than $2.1 million.
A search of Champion’s residence revealed financial papers, a safe containing $127,000, and a revolver bearing his DNA. He is prohibited from carrying firearms or ammunition after being convicted of second-degree assault with a deadly weapon in 2018.
Champion will also serve five years on supervised release after completing his prison sentence.
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