US Sentences Nigerian to 5 Years for $2.5m Tax Fraud and Identity Theft

A Nigerian national, Kingsley Utulu, has been sentenced to five years and three months in prison for his role in a large-scale cyber fraud and identity theft scheme that defrauded the US government and private individuals of over $2.5 million.

The sentence was announced on Saturday by the US Attorney for the Southern District of New York, Jay Clayton, and the FBI’s New York Field Office Assistant Director in Charge, Christopher Raia.

Utulu pleaded guilty to charges of conspiracy to commit wire fraud and aggravated identity theft.

Clayton said Utulu and his co-conspirators hacked into US tax preparation businesses, stole personal identifying information, and used it to file fraudulent tax returns and claims.

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

Raia also condemned the crime, saying Utulu’s actions caused significant harm.

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

“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.”

According to court documents cited by DataBreaches.net, the scheme began in 2019. Utulu and his Nigeria-based accomplices hacked US tax preparation businesses using spearphishing emails to gain access to their systems.

Once inside, the conspirators stole tax and personal data from clients in New York, Texas, and other states. The stolen identities were then used to file fraudulent tax returns with the Internal Revenue Service and state tax agencies.

The group sought at least $8.4 million in fraudulent refunds and successfully obtained about $2.5 million. They also filed fake claims under the Small Business Administration’s Economic Injury Disaster Loan programme, securing an additional $819,000.

Utulu, 38, was arrested in the United Kingdom and later extradited to the US for trial.

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

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

Earlier this year, two other Nigerians, Olutayo Ogunlaja and Abel Daramola, were convicted of running a $560,000 international romance scam and now face up to 20 years in US federal prison.