U.S. Attorney for the District of Minnesota Andrew Luger announced on Tuesday the federal indictment of two Minneapolis-based business consultants for defrauding COVID-19 pandemic aid programs of more than $1 million while serving as business advisors to Hennepin County, one of whom is reported to be a relative of Minnesota Sen. Bobby Joe Champion, DFL-Minneapolis.
Tezzaree El-Amin Champion, 27, and Marcus Alexander Hamilton, 27, are each charged with three counts of mail fraud, three counts of wire fraud, one count of theft of government money, and one count of engaging in a monetary transaction in property derived from specified unlawful activity. Champion was also charged with one count of possessing a firearm as a felon.
Following the indictment, Tezzaree Champion has been reported by Twin Cities media to be the great nephew of Sen. Champion, as well as the son of Minneapolis North basketball star Khalid El-Amin.
The press release from Luger’s office stated:
Beginning in 2020, through the present, Champion and Hamilton devised and carried out a fraud scheme to obtain funds from a variety of federal, state, local, and private COVID-19 relief programs. Through their company, Futuristic Management Group LLC, a Minnesota-based small business consulting firm, the defendants submitted fraudulent applications for Paycheck Protection Program (PPP) loans, pandemic relief, and other funds on behalf of their small business clients and their own entities.
As part of the scheme, Champion, who was the founder and chief executive officer of Futuristic Management, and Hamilton, who was the chief operating officer, caused the consulting firm to enter into contracts with Hennepin County under a COVID-19 relief program called “Elevate Business,” also known as “Elevate Hennepin.” Elevate Business is a small business assistance program in Hennepin County designed to provide local small businesses with no-cost marketing and website assistance.
Under the contracts, Hennepin County agreed to pay Futuristic Management to provide technical assistance services to client businesses that were located in Hennepin County at no cost to the clients. Instead of abiding by the terms of the contracts, Champion and Hamilton billed Hennepin County for work not actually performed, and for work for which Champion and Hamilton were being paid by their clients, when the contracts required that Futuristic Management’s work be provided at no cost.
As part of the scheme, Champion and Hamilton also submitted fraudulent PPP and Economic Injury Disaster Loan (EIDL) applications and Hennepin County Small Business Relief grant applications on behalf of their clients and their own entities. When clients received the loans and grants, Champion and Hamilton transferred and misappropriated a portion of the funds for themselves.
Additionally, Champion intimidated clients by showing them a firearm and telling them he always carried a firearm, according to Luger’s office.
Law enforcement executed a search warrant at Champion’s residence in Andover in April 2023, where agents found $126,000 in U.S. currency in a locked safe, and a Ruger LCR .357 revolver. Champion has a prior felony conviction, which prohibits him from possessing firearms or ammunition at any time, according to the press release.
In total, Champion and Hamilton’s fraud resulted in losses of more than $1 million in COVID-19 pandemic aid and involved more than 100 fraudulent invoices and grant and loan applications, the press release says.
“During the COVID-19 pandemic, at a time when small businesses were suffering deep economic losses, local and federal government agencies stepped in to provide support. These defendants saw this as an opportunity to defraud the aid programs by submitting phony invoices and applications for benefits,” said Luger. “I commend the skilled investigators and prosecutors who work diligently to hold accountable those who defraud the aid programs designed to support our small business community.”
A search of Minnesota court cases turned up two unrelated civil court judgments against Champion in 2022 and 2023 totaling nearly $200,000, wherein Champion was found liable for incurring loans and/or debts from at least two private persons to whom he failed to fulfill business promises or repay loans.
An emailed inquiry to Tezzaree Champion requesting a response to the new federal charges was not responded to prior to this report.
The federal fraud case is the result of an investigation conducted by IRS-Criminal Investigations, the U.S. Postal Inspection Service, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department’s Special Crimes Investigations Division.
Neither defendant appears to be in custody, and therefore there are no current booking photos.
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Minnesota Crime Watch & Information publishes news, info and commentary about crime, public safety and livability issues in Minneapolis, the Twin Cities and Greater Minnesota.
Crime Watch MN
Minnesota Crime Watch & Information publishes news, info and commentary about crime, public safety and livability issues in Minneapolis, the Twin Cities and Greater Minnesota.
