CEO of nonprofit that mentored kids in Los Angeles, Long Beach pleads guilty in COVID fraud scheme, DOJ says
Federal authorities say Reginald Foster Jr. of Los Angeles and two co-conspirators stole more than a million dollars in unemployment benefits during the COVID-19 pandemic.
A 38-year-old man who mentored kids in Los Angeles and Long Beach through his nonprofit pleaded guilty today for his role in fraudulently obtaining more than a million dollars in unemployment insurance benefits during the COVID-19 pandemic, according to federal authorities.
Officials with the Department of Justice say that from June to October 2020, Los Angeles resident Reginald Foster Jr. exploited the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that was meant to help people and businesses with the economic impact of the COVID-19 pandemic.
Using stolen identities, Foster Jr. and two co-conspirators falsified 118 applications with the Employment Development Department (EDD), according to federal authorities.
Once these applications were approved, the debit cards were sent to a mailing address used by Foster Jr., according to the DOJ.
Foster Jr. used those debit cards to make transfers to his nonprofit, Champs Up! LLC, which he told federal authorities provides guidance programs to middle school students in Los Angeles and Long Beach, according to the DOJ.
On several other occasions, he withdrew thousands of dollars at ATMs, according to the DOJ. He'd then give the card to his co-conspirators so they could withdraw money at ATMs, they added.
In total, Foster Jr. and his co-conspirators withdrew almost $1.5 million in benefits, according to the DOJ.
The scheme only stopped when the EDD and Bank of America discovered what was happening and froze the remaining benefits, according to the DOJ, who added that the crew could have stolen nearly $4 million if officials hadn't noticed.
Federal authorities didn't say when Foster Jr. was caught or arrested in connection to the scheme.
But on Monday, he pleaded guilty to one count of conspiracy to commit mail fraud and bank fraud, and one count of use of unauthorized access devices, according to the DOJ.
Foster Jr. faces a maximum of 40 years in federal prison at his sentencing on March 24, 2025, authorities said. He's currently out of jail on $50,000 bond, they added.
His co-conspirators, Shelece Counts, 31, of Los Angeles, and Isaiah Herbert Lawrence, 31, of Houston, Texas, have pleaded not guilty to charges filed against them, according to the DOJ. Their case is scheduled to go to trial on Jan. 21, 2025.
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