A Minnesota businessman has been sentenced to seven years in federal prison and ordered to pay nearly $3.5 million after defrauding more than $6 million from pandemic relief programs.
Tezzaree El-Amin Champion pleaded guilty in February to wire fraud, money laundering, and illegally possessing a firearm as a felon.
Prosecutors say Champion used his roles at Futuristic Management LLC, a marketing company, and Encouraging Leaders, a nonprofit, to file fraudulent grant applications. According to court documents, Encouraging Leaders submitted dozens of applications to agencies including the U.S. Department of Justice, Hennepin County, the CDC Foundation, and the Minnesota State Arts Board. Although the group received $2.7 million, Champion diverted “significant portions” of the funds into his personal accounts, leaving the nonprofit with only $1.5 million.
Investigators say Champion also recruited clients for Futuristic Management and filed fraudulent applications to Hennepin County’s Small Business Relief grant program. Court records indicate this scheme caused more than $2.1 million in losses.
A search of Champion’s home uncovered financial records, a safe containing $127,000, and a revolver with his DNA on it. Because of a 2018 conviction for second-degree assault with a dangerous weapon, he is barred from possessing firearms or ammunition.
Champion will also serve five years of supervised release after completing his prison term.
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