US jails Nigerian five years for $2.5m fraud
A Nigerian named Kingsley Utulu has been given a prison sentence of five years and three months for his involvement in a significant hacking and identity theft operation that deceived U.S. tax authorities and individuals out of more than $2.5 million.
The sentencing, which was revealed on Saturday by Jay Clayton, the U.S. Attorney for the Southern District of New York, alongside Christopher Raia, the Assistant Director in Charge at the FBI’s New York Field Office, follows Utulu’s guilty plea to charges of conspiracy to commit wire fraud and aggravated identity theft.
Clayton remarked, “Kingsley Uchelue Utulu participated in a scheme to infiltrate U.S. tax preparation businesses, traded in stolen personal identification information, and defrauded the IRS and other governmental entities.
“Scammers operating from abroad, like Utulu and his accomplices, may believe they can target hardworking Americans with their fraudulent hacking schemes and escape legal consequences.
“The message from both the Department and the FBI is unequivocal — they cannot evade justice. We remain dedicated to safeguarding Americans from offshore criminals.”
In his response to the conviction, Raia highlighted the substantial damage caused by Utulu’s actions.
Raia expressed, “Kingsley Utulu, a citizen of Nigeria, was involved in a scheme that infiltrated the electronic systems of U.S.-based companies to unlawfully extract over two million dollars through false tax returns.
“Together with his accomplices, this defendant's operations extended globally, exploiting sensitive information for monetary gain.
“The FBI will not excuse any individual who attempts to gain unlawfully through deceptive methods, no matter their location.”
A report released by DataBreaches.net and obtained by Nigerianwatch on Sunday, drawing from public court documents and statements, indicated that the scheme began in 2019.
“Utulu and other conspirators based in Nigeria engaged in a scheme to breach U.S.-based tax preparation firms. They employed spearphishing emails to gain access to the electronic systems of these companies.
“After securing access, they stole tax and personal identifying information from clients, successfully hacking multiple tax preparation businesses in New York, Texas, and other states,” the report stated.
The stolen identities were subsequently used to submit fraudulent tax returns to the Internal Revenue Service and various state tax agencies.
The report noted, “The conspirators targeted at least $8.4 million in fraudulent refunds and successfully acquired around $2.5 million.
“They also submitted false claims through the Small Business Administration’s Economic Injury Disaster Loan program, obtaining an extra $819,000.”
Utulu, who is 38 years old, was apprehended in the United Kingdom and later extradited to the U.S. to face legal action.
In addition to his 63-month sentence, he was instructed to pay restitution amounting to $3,683,029.39 and to forfeit $290,250.
His conviction contributes to an increasing list of Nigerians prosecuted in the U.S. and Europe for cyber-related financial crimes.
Earlier in January, two other Nigerians, Olutayo Ogunlaja and Abel Daramola, were found guilty of running a $560,000 international romance scam and are now facing potential sentences of up to 20 years in a U.S. federal prison.
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