Ten Nigerian nationals have been convicted of their roles in a wire fraud and international email hacking scheme that defrauded over 1000 people of $215 million.
The Nigerians were convicted by the US federal court in Ohio last Friday after pleading guilty to the charges of money laundering and email compromise. A district judge, James Knepp II, oversaw the trial.
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Of the group, five are naturalised US citizens – Nigerians who became US citizens through naturalisation.
These are: Ayobami Osas Christopher, Ayorinde Emmanuel Adebayo, Olabode Bankole, Chukwuemeka Evulukwu, and Kingsley Owusu.
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The other four are Nigerian citizens residing in the US. These are Emmanuel Okereke, Olalekan Bashiru, Jeremiah Agina, and Ademola Balogun.
The US Attorney’s office, in a statement on Thursday, disclosed that the Nigerians were convicted alongside 15 American nationals, including a certain Aruan Drake and Peter Reed.
These were members of large, “Nigeria-linked” scam rings whose operations spanned 47 states and 19 countries.
A Nigerian, Michael Awoyemi, was also convicted after he was found guilty by a jury of three, and one Ghanaian, Emmanuel Essilfie, was identified as part of the scheme.
“After a four-day trial, a federal jury found two men and a woman guilty of involvement with an international email hacking scheme that defrauded more than 1,000 victims out of approximately $215 million.
“In total, 25 defendants have been convicted for their roles in this fraud and money laundering scheme, commonly referred to as a ‘business email compromise,” the statement read.
Business email compromise
According to the US Attorney’s Office, the group operated as criminal rings that targeted individuals, businesses, and organisations from states both inside and outside the US.
They hacked into the victims’ email accounts and used the compromised information to carry out fraudulent financial transactions.
After hacking into email accounts, the scammers would monitor communications between the user and business partners.
The email users “learn about their business practices and contacts.” After gaining sufficient intelligence about their activities, “they proceed to send a fraudulent e-mail to either the hacking victim or to someone communicating with the hacking victim, requesting payment. “
“Because the co-conspirators were familiar with the victims’ activities, the fraudulent e-mails were crafted in a way to convince recipients that the payment request was for legitimate business activities.
“Once members of the conspiracy obtained payment from victims, conspiracy members used a web of fraudulently created bank accounts and cash transfer systems to launder and distribute the funds,” the statement read.
Victims of business email compromise were identified in the US, Canada, Mexico, Great Britain, Germany, Italy, and Kuwait.
Other countries where victims were identified include the United Arab Emirates, Australia, New Zealand, Kuwait, Malaysia, Panama, Bermuda, and Romania.
Money laundering scheme
Funds swindled from victims were laundered by purchasing cashier’s checks, which were then presented to the New Dolton Currency Exchange, a Chicago-area money service business owned and operated by Lon Goodman, who is currently on trial.
Mr Goodman is also on trial for accepting cashier’s checks from scammers who presented false identifications.
The Attorney’s office said Mr Goodman continued accepting checks from the fraudsters even when it became “too risky.”
“The wire transfers sent by the victims ranged from tens of thousands to millions of dollars. In one instance, a victim business sent $2.7 million to a shell company bank account that was controlled by a conspiracy member.”
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It also noted that US law enforcement seized several high-end items from the fraudsters.
These include a cashier’s check, cryptocurrency, and cash worth about $1.2 million.
It also seized a Patek Philippe Nautilus watch valued at $45,000, an Audemars Piguet Royal Oak watch worth $30,000, a Richard Mille Felipe Massa watch worth $140,000, and a 4,423-square-foot residence in Lawrenceville, Georgia.
While the date of their sentencing remains unknown, the US government said it is expected to follow a “review of factors unique to each case.”
