US jails Nigerian five years for $2.5m fraud

A Nigerian, Kingsley Utulu, has been sentenced to five years and three months in prison for his role in a large-scale hacking and identity theft scheme that defrauded the U.S. tax authorities and private individuals of over $2.5m.

The sentencing, announced on Saturday by the U.S. Attorney for the Southern District of New York, Jay Clayton, and the Assistant Director in Charge of the FBI’s New York Field Office, Christopher Raia, follows Utulu’s guilty plea to charges of conspiracy to commit wire fraud and aggravated identity theft.

Clayton noted, “Kingsley Uchelue Utulu took part in a scheme to hack into the U.S. tax preparation businesses, trade in the stolen personal identifying information, and defraud the IRS and other governmental bodies.

“Offshore scammers like Utulu and his co-conspirators may think they can target hard-working Americans with their hacking and fraud schemes and avoid prosecution.

The message from the Department and the FBI is clear — they cannot. We are committed to protecting Americans from criminals operating offshore.”

Raia, also reacting to the conviction, noted that Utulu’s actions caused significant harm.

Raia stated, “Kingsley Utulu, a Nigerian national, was part of a scheme that targeted and infiltrated electronic systems of U.S.-based companies to steal well over two million dollars through fraudulent tax returns

Along with his co-conspirators, this defendant’s scheme reached across the globe to exploit sensitive information for financial gain.

“The FBI will never exempt any individual who seeks to unlawfully profit through deceitful practices, regardless of where they are located.”

A report published by DataBreaches.net and obtained on Sunday, citing public court records and statements, revealed that the scheme dated back to 2019.

“Utulu and other Nigeria-based conspirators took part in a scheme to hack into U.S.-based tax preparation businesses. The conspirators utilised spearphishing emails to obtain access to these businesses’ electronic systems.

“Once access was gained, they stole tax and personal identifying information of clients, hacking into multiple tax preparation firms in New York, Texas, and other states,” the report noted.

The stolen identities were then used to file fraudulent tax returns with the Internal Revenue Service and various state tax agencies.

The report added, “The conspirators sought at least $8.4 million in fraudulent refunds and successfully obtained around $2.5m.

“They also filed fraudulent claims with the Small Business Administration’s Economic Injury Disaster Loan program, securing an additional $819,000.”

Utulu, 38, was arrested in the United Kingdom and later extradited to the United States to face prosecution.

In addition to his 63-month prison sentence, he was ordered to pay restitution totalling $3,683,029.39 and to forfeit $290,250.

His conviction adds to a growing list of Nigerians prosecuted in the U.S. and Europe for cyber-enabled financial crimes.

Earlier in January, two other Nigerians, Olutayo Ogunlaja and Abel Daramola, were convicted of orchestrating a $560,000 international romance scam and now face up to 20 years in a U.S. federal prison