Nigerian Man Sentenced to Eight Years in US for Cybercrime and Fraud
A 40-year-old Nigerian man, Chukwuemeka Victor Amachukwu, has been sentenced to eight years in prison in the United States for his involvement in cybercrime, tax fraud, identity theft and a separate investment fraud scheme that defrauded victims of millions of dollars.
Amachukwu, who also operated under the names Chukwuemeka Victor Eletuo and So Kwan Leung, was sentenced by US District Judge Paul G. Gardephe after pleading guilty to conspiracy to commit computer intrusions and conspiracy to commit wire fraud.
According to a statement from the US Attorney’s Office for the Southern District of New York, Amachukwu participated in schemes that targeted American tax preparation businesses, stole customers’ personal information and used the data to file fraudulent tax returns.
The conspirators sought at least $8.4 million in fraudulent tax refunds, successfully obtaining approximately $2.5 million, according to court documents.
They also used stolen identities to submit fraudulent applications to the US Small Business Administration’s Economic Injury Disaster Loan programme, securing at least an additional $819,000 in illicit payments.
US Attorney Jamie McDonald said Amachukwu had believed he could avoid accountability by operating from outside the United States.
“Chukwuemeka Amachukwu believed he was operating safely offshore when he targeted his victims, but he has now been held to account and now faces a serious sentence for his crimes,” McDonald said.
He added that Amachukwu participated in sophisticated schemes involving hacking, identity theft and fraud, causing significant harm to victims and the public. According to McDonald, the severity of the offences warranted a substantial prison sentence.
Court documents revealed that Amachukwu, his co-conspirator Kingsley Uchelue Utulu and other accomplices based in Nigeria began targeting US tax preparation businesses around 2019.
The group allegedly used spear-phishing emails to gain unauthorised access to the companies’ electronic systems. They subsequently stole tax records and other personal information belonging to approximately 800 customers of the affected businesses.
The targeted firms were located in New York, Texas and other parts of the United States.
Using the stolen information, the conspirators filed fraudulent tax returns with the Internal Revenue Service and state tax authorities in an attempt to obtain millions of dollars in refunds. They also exploited the stolen identities to apply fraudulently for financial assistance under the Small Business Administration’s Economic Injury Disaster Loan programme.
Beyond the cybercrime and tax fraud schemes, Amachukwu was involved in a separate investment fraud in which he impersonated a wealthy foreign financier to deceive victims into investing in fictitious financial instruments, according to the US Attorney’s Office.
Prosecutors said Amachukwu and his co-conspirators persuaded victims to invest in purportedly valuable standby letters of credit, which are financial instruments generally issued by banks to guarantee payment when a customer fails to meet an obligation.
However, the investment opportunities presented to the victims did not exist. The scheme generated more than $7 million for Amachukwu and his associates.
In addition to the eight-year prison sentence, Judge Gardephe ordered Amachukwu to serve one year of supervised release after completing his prison term.
The court also directed him to pay $3,647,629.39 in restitution to victims and forfeit $10,846,634.39.
The Federal Bureau of Investigation assisted in the investigation, while Assistant US Attorney Daniel G. Nessim prosecuted the case on behalf of the Southern District of New York.
The case was handled by the office’s Complex Frauds and Cybercrime Unit.
