MORE than 1,000 victims across 19 countries were allegedly defrauded of about $215 million in a sprawling email fraud scheme that has now resulted in several convictions, including those of Nigerian nationals, the United States Attorney’s Office has disclosed.
In a statement issued on Thursday, the office said 25 defendants were convicted on April 24 for their involvement in the fraud and money laundering operation, commonly referred to as “business email compromise.”
Among the 25 convicted persons were four Nigerian nationals identified as Emmanuel Okereke, also known as Omo Igbo, 42; Olalekan Bashiru, also known as Ola Bash, 36; Jeremiah Agina, 29; and Ademola Balogun, 43.
Another five defendants — Ayobami Osas Christopher, also known as Lovely Man, 30; Ayorinde Emmanuel Adebayo, 35; Olabode Bankole, 37; Chukwuemeka Evulukwu, 35; and Kingsley Owusu, 37 — were described as naturalised United States citizens of Nigerian descent.
Oluwafemi Michael Awoyemi was also named as a defendant in a separate trial linked to the same crime, although the statement did not specify whether he is a Nigerian national or a naturalised US citizen.
According to court documents and evidence presented during the trial, the defendants gained unauthorised access to email accounts belonging to individuals and deployed co-conspirators to monitor the communications and activities of the email users.
After gathering sufficient intelligence, members of the syndicate would allegedly send fraudulent emails either directly to the hacked victims or to people communicating with them, requesting payments.
Because the suspects were already familiar with the victims’ activities, the fraudulent messages were reportedly crafted in a convincing manner, making recipients believe the requests were linked to legitimate business transactions.
The statement further revealed that once funds were obtained from victims, members of the conspiracy used a network of fraudulently created bank accounts and cash transfer systems to launder and distribute the proceeds.
Court proceedings also heard that approximately $50 million of the stolen funds was used to purchase cashier’s cheques, which were later presented for payment to the New Dolton Currency Exchange, a Chicago-area money service business allegedly owned and operated by co-defendant Lon Goodman.
According to prosecutors, Goodman accepted cashier’s cheques from co-conspirators who allegedly used false identification documents or presented cheques payable to third parties.
He was also accused of routinely accepting false know-your-customer information and continuing to conduct transactions with individuals even after banks reportedly warned him that some of the cheques had been obtained with stolen funds or were otherwise fraudulent.
The statement added that when it became too risky to process cashier’s cheques in individuals’ names, Goodman allegedly continued accepting cheques made payable to shell companies controlled by those individuals.
Victims linked to the fraud scheme were identified in several countries, including the United States, Canada, Mexico, the United Kingdom, Germany, Italy, Kuwait, the United Arab Emirates, Australia, New Zealand, Malaysia, Panama, Bermuda, Romania, and others.
Authorities said the fraudulent wire transfers sent by victims ranged from tens of thousands of dollars to several millions.
In one instance, a victim business reportedly transferred $2.7 million into a shell company bank account controlled by a member of the conspiracy.
Among the items seized or listed for forfeiture during the investigation were nearly $1.2 million worth of cashier’s cheques, cryptocurrency and cash, as well as luxury assets including a Patek Philippe Nautilus valued at $45,000, an Audemars Piguet Royal Oak worth $30,000, a Richard Mille Felipe Massa valued at $140,000, and a 4,423-square-foot residence in Lawrenceville, Georgia.
The US Attorney’s Office stated that sentencing for each defendant would be determined after the court reviews factors unique to each case, including prior criminal records, roles played in the offences, and the specific nature of the violations.
The investigations were conducted by the Federal Bureau of Investigation Cleveland Division, the United States Postal Inspection Service, and the US Border Patrol Sandusky Bay Intelligence Unit.