Nonprofit CEO arrested for allegedly defrauding COVID relief programs

Federal investigators arrested the head of a nonprofit for allegedly scamming COVID-19 relief programs out of $1.5 million. 

Westchester resident Reginald Foster Jr, 37, is accused of working with a pair of accomplices to submit jobless benefits applications. In some cases, the suspects allegedly used stolen identities, according to the United States Department of Justice. 

A federal grand jury indictment charged Foster with 22 counts of bank fraud, nine counts of mail fraud, five counts of aggravated identity theft, one count of use of unauthorized access devices and one count of conspiracy to commit mail fraud and bank fraud. 

He pleaded not guilty and was released on a $50,000 bond. 

Foster allegedly exploited the federal program designed to grant unemployment benefits to self-employed workers, independent contractors and other people who were not eligible for the funds during the pandemic. Foster allegedly submitted 118 fraudulent applications during the scheme. 

In return, he received debit cards and used them to obtain benefits through his nonprofit, Champs Up! LLC. He also used the cards to make $1,000 withdrawals from ATMs before sending them to his accomplices so they could use them to make further withdrawals. 

They allegedly withdrew nearly $1.5 million before the benefits were frozen. The DOJ claimed the crew could have withdrawn nearly $4 million if authorities allowed the accounts to remain open. 

Foster's two accomplices were also charged in the scheme, one of whom lives in Los Angeles County. The federal indictment charged Westlake resident Shelece Counts, 31, with 11 counts of bank fraud, five counts of aggravated identity theft, one count of use of unauthorized access devices and  one count of conspiracy to commit mail fraud and bank fraud, according to the DOJ. 

She pleaded not guilty.