US Indicts 80 People, Mostly Nigerians, in Massive International Fraud, Money Laundering Conspiracy

8

By Alex Enumah in Abuja

About 80 Nigerians have been indicted by the United States government in series of coordinated internet scam running into billions of dollars fraudulently obtained from victims in the United States and other parts of the world.

The indictment was sequel to the investigation and subsequent arrest of some of the mastermind of the criminal network in the USA.

Among those indicted and already being prosecuted are Valentine Iro, 31, of Carson, and Chukwudi Christogunus Igbokwe, 38, of Gardena, both Nigerian citizens.

They are being accused of operating various bank and money-service accounts that could receive funds fraudulently obtained from victims.

A press release from the United States Attorney’s office, central district of California, the perpetrators were said to have used “various online fraud schemes – including business email compromise (BEC) frauds, romance scams, and schemes targeting the elderly – to defraud victims out of millions of dollars”.

Their indictment was contained in a 252-count federal grand jury unsealed by the attorney’s office.

The 80 defendants, most of whom are Nigerian nationals, according to the statement were charged with participating in a massive conspiracy to steal millions of dollars through a variety of fraud schemes and launder the funds through a Los Angeles-based money laundering network.

“The indictment was unsealed after law enforcement authorities this morning arrested 14 defendants across the United States, with 11 of those arrests taking place in the Los Angeles region. Two defendants were already in federal custody on other charges, and one was arrested earlier this week. The remaining defendants are believed to be abroad, with most them located in Nigeria”, the statement read.

Narrating how the defenfants defrauded their victims, the statement said, “Once members of the conspiracy convinced victims to send money under false pretenses, Iro and Igbokwe coordinated the receipt of funds and oversaw an extensive money-laundering network”.

 The indictment and criminal complaint alleged that Iro and Igbokwe, who were among those arrested this morning, were involved in schemes resulting in the fraudulent transfer of at least $6 million in fraudulently-obtained funds – and the overall conspiracy was responsible for the attempted theft of at least an additional $40 million.

The statement disclosed further that the alleged fraudsters targeted victims in the United States and across the globe, including individuals, small and large businesses, and law firms, adding that some of the victims of the conspiracy lost hundreds of thousands of dollars to fraud schemes, and many were elderly.

“This case is part of our ongoing efforts to protect Americans from fraudulent online schemes and to bring to justice those who prey upon American citizens and businesses,” said United States Attorney Nick Hanna.

“Today, we have taken a major step to disrupt criminal networks that use BEC schemes, romance scams and other frauds to fleece victims. This indictment sends a message that we will identify perpetrators – no matter where they reside – and we will cut off the flow of ill-gotten gains.

 “Today’s announcement highlights the extensive efforts that organized criminal groups will engage in to perpetrate BEC schemes that target American citizens and their hard-earned assets,” said Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office.

“Billions of dollars are lost annually, and we urge citizens to be aware of these sophisticated financial schemes to protect themselves or their businesses from becoming unsuspecting victims.

“The FBI is committed to working with our partner agencies worldwide to continue to identify these cyber criminals and to dismantle their networks.”

 It said Iro and Igbokwe essentially were brokers of fraudulent bank accounts.

According to the indictment, Iro and Igbokwe collected bank accounts, fielded requests for bank account information, provided that information to co-conspirators around the world, and laundered the money obtained from victims – all of this in exchange for a cut of the money stolen from victims of the various fraud schemes.

“If a bank account with a specific business name was required to trick a business-victim into making a payment, Iro and Igbokwe often coordinated with “money mules” to open accounts that could receive funds obtained, according to court documents. In addition to making the fake business name mirror the name of a legitimate company, members of the conspiracy routinely filed fictitious business name statements with the Los Angeles County Registrar/Recorder’s Office that were presented to banks when the fraudulent accounts were opened.

 “Once a victim deposited funds into a bank account or a money services account, Iro and Igbokwe allegedly coordinated with others to further launder the funds”, the statement added.

It also noted that members of the conspiracy sometimes wired funds to other bank accounts under their control and in other cases, they simply withdrew funds as cash or negotiable instruments such as cashier’s checks.

When stolen funds were withdrawn as cash, the defendants frequently used illicit money exchangers to move funds overseas, generally avoiding transferring the funds directly through banking institutions, the indictment alleges.

“To do this, Iro and Igbokwe coordinated the transfer of a victim’s funds from a fraudulent bank account they controlled to U.S. bank accounts belonging to illicit money exchangers. Those money exchangers, in turn, used a Nigerian banking application to transfer other funds in naira (₦), the currency of Nigeria, from Nigerian bank accounts they controlled to the Nigerian bank accounts specified by Iro and Igbokwe.

“This method was used to transfer millions of dollars to Nigerian co-conspirators without directly transferring funds overseas.

“The indictment alleges that Jerry Ikogho, 50, of Carson (who was taken into custody on Sunday), and Adegoke Moses Ogungbe, 34, of Fontana, were among those who served as illicit money exchangers for the conspiracy.

“Each of the 80 defendants named in the indictment is charged with conspiracy to commit fraud, conspiracy to launder money, and aggravated identity theft. A number of the defendants also face substantive fraud and money laundering charges.

“Additionally, Iro, Igbokwe, Ikogho, Ogungbe and three other defendants –Izuchukwu Kingsley Umejesi, 30, of Los Angeles, Tityaye Marina Mansbangura, 33, of Palmdale, and Obi Madekwe, 31, of Nigeria – are charged with operating illegal money transmitting businesses. Ogungbe and Mansbangura were also among those arrested this morning, and Umejesi is a fugitive currently being sought by authorities.

“Iro, Igbokwe and Chuks Eroha, 39, face additional charges for attempting to destroy their phones when the FBI executed a search warrant in July 2017. Iro also is charged with lying to the FBI in an interview conducted during the search.

“The complaint alleges that, when the FBI arrived to conduct the court-authorized search at Iro’s apartment in Carson, Iro broke his phone in half, while Igbokwe and Eroha threw phones from a bedroom window of the apartment.

“While Iro claimed he previously had broken the phone during an argument with his wife, the complaint details how the FBI was able to determine that the phone was operational until seconds after the FBI knocked on Iro’s apartment door to execute the search warrant. Eroha is believed to have fled to Nigeria shortly after the FBI executed the warrant”, the statement added.

Click the link to read the  145-page Indictment