A Minnesota businessman pleaded guilty to his role in a scheme to defraud pandemic relief programs, resulting in a loss of over $6 million.

Tezzaree El-Amin Champion, 28, engaged in fraud using two Minneapolis-based organizations: Futuristic Mangement LLC, a marketing company he owned, and Encouraging Leaders, a nonprofit he led.

Court documents say that Encouraging Leaders, under Champion, submitted at least 42 grant and public contract applications containing false material to obtain funding.

The nonprofit sought more than $3.8 million in funding and was awarded more than $2.7 million from 27 grants. 

Champion used "significant portions" of the funds by transferring money to himself and using organizational funds for personal matters, according to court records. As a result, Encouraging Leaders only received $1.5 million.

Through his marketing company, charges say Champion assisted clients in submitting fraudulent applications to Hennepin County's Small Business Relief grant program and the U.S. Small Business Administration's Paycheck Protection and Economic Injury Disaster Loan programs. Additionally, Champion submitted nine fraudulent applications on his behalf.

In total, court documents say Futurstic Management resulted in a loss of more than $2.1 million.

During a search of Champion's home, investigators found Futuristic Management financial records, a safe containing $127,000 and a revolver with his DNA on it. Champion is prohibited from possessing firearms or ammunition due to a 2018 conviction of second-degree assault with a dangerous weapon.

On Feb. 27, Champion pleaded guilty to one count each of wire fraud, money laundering and illegally possessing a firearm as a felon.

Champion agreed to pay nearly $3.5 million in restitution to his victims. His sentencing hearing will be scheduled at a later date.

Champion's co-defendant, Marcus Hamilton, pleaded guilty to participating in the Futuristic Management part of the scheme just weeks prior.