Nigerians among ring leaders as US dismantles $215m email scam spanning 19 countries

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More than 1,000 victims across 19 countries were defrauded of about $215 million in a sprawling email fraud scheme that has now led to multiple convictions, including Nigerian nationals, the United States attorney’s office has said.

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In a statement on Thursday, the attorney’s office said 25 defendants were convicted on April 24 for their roles in the fraud and money laundering scheme, commonly referred to as “business email compromise”.

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Of the 25, four, Emmauel Okereke, aka Omo Igbo, 42; Olalekan Bashiru, aka Ola Bash, 36; Jeremiah Agina, 29; and Ademola Balogun, 43, were Nigerian nationals

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Another five: Ayobami Osas Christopher, aka Lovely Man, 30; Ayorinde Emmanuel Adebayo, 35; Olabode Bankole, 37; Chukwuemeka Evulukwu, 35; and Kingsley Owusu, 37 were naturalised US citizens of Nigerian descent.

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Oluwafemi Michael Awoyemi, 40, was also named as a defendant in a separate trial of the same crime but it was not stated if he was a Nigerian national or a naturalised US citizen.

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According to documents and evidence presented in court, the defendants gained access to email accounts held by individual users and deployed their co-conspirators to monitor the communications and other activities of the individual email users.

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After gaining sufficient intelligence, the co-conspirators would send a fraudulent email to either the hacking victim, or to someone communicating with the hacking victim, requesting payment.

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Because the co-conspirators were familiar with the victims’ activities, the fraudulent emails were crafted in a way to convince recipients that the request for payment was for legitimate business activities.

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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.

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Approximately $50 million of the stolen money was used to purchase cashier’s cheques that were presented for payment to the New Dolton Currency Exchange, a Chicago-area money service business owned and operated by co-defendant Lon Goodman, the court heard.

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Goodman accepted cashier’s cheques from co-conspirators who presented false identifications or presented cheques payable to others.

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He also routinely accepted false know-your-customer (KYC) information and continued doing business with individuals after being warned by banks that cheques were obtained with stolen funds or otherwise returned as fraudulent.

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When it became too risky to accept cashier’s cheques in an individual’s name, Goodman would nonetheless accept cheques from those individuals payable to shell companies that those individuals controlled, according to the statement.

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International victims were identified in the US, Canada, Mexico, United Kingdom, Germany, Italy, Kuwait, United Arab Emirates, Australia, New Zealand, Kuwait, Malaysia, Panama, Bermuda, Romania, and other countries.

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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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Among the items seized or subject to forfeiture during the investigation included nearly $1.2 million worth of cashier’s cheques, cryptocurrency, and cash; a Patek Philippe Nautilus watch with a $45,000 value; an Audemars Piguet Royal Oak watch with a $30,000 value; a Richard Mille Felipe Massa watch with a $140,000 value, and a 4,423 square foot residence in Lawrenceville, Georgia.

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The US attorney’s office said each defendant’s sentence will be determined by the court after a review of factors unique to the case, including each defendant’s prior criminal record, if any, their role in the offence, and the characteristics of the violation.

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The investigations were conducted by the Federal Bureau of Investigation (FBI) Cleveland Division, the US Postal Inspection Service, and the US Border Patrol Sandusky Bay Intelligence Unit.

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