Non-profit CEO arrested for alleged COVID benefit fraud

A South Bay resident, Reginald Foster Jr., 37, has been arrested on charges related to a scheme involving fraudulent COVID-19 jobless benefits applications. Foster, who provided coaching services through his non-profit organization Champs Up! LLC, is accused of using stolen identities to apply for unemployment insurance benefits under the CARES Act.

The indictment alleges that Foster submitted numerous false applications to secure approval and receive debit cards with the benefits at an address he controlled. These cards were allegedly used to withdraw funds, which were then transferred to his non-profit and withdrawn from ATMs. Prosecutors claim that nearly $1.5 million was illicitly obtained before the scheme was uncovered, preventing further losses exceeding $4 million.

Two other individuals have been charged in connection with this case: Shelece Counts, 31, from Los Angeles' Westlake neighborhood; and Isaiah Herbert Lawrence, 30, from Houston, Texas. Both Counts and Lawrence face similar charges alongside Foster.

Foster faces multiple counts including conspiracy to commit mail fraud and bank fraud, aggravated identity theft, unauthorized access device use, mail fraud, and bank fraud. If convicted on all counts, each defendant could face significant prison time.

The investigation was conducted by several agencies including the United States Department of Labor Office of Inspector General and Homeland Security Investigations. Assistant United States Attorney Ranee A. Katzenstein is prosecuting the case.

This case is part of broader efforts by the COVID-19 Fraud Enforcement Task Force established by the Attorney General in May 2021 to combat pandemic-related fraud.

Anyone with information regarding attempted COVID-19 fraud can contact the Department of Justice’s National Center for Disaster Fraud Hotline or submit a complaint online.