US-Based Nigerian Ifeanyi Ugwu Pleads Guilty to $5m Unlicensed Money Transfer Scheme
A United States-based Nigerian, Ifeanyi Emmanuel Ugwu, aged 49 and resident in Bakersfield, California, has pleaded guilty to operating an unlicensed money-transmitting business involving over $5 million in illegally obtained funds.
According to a statement by Eric Grant, U.S. Attorney for the Eastern District of California, Ugwu admitted to running the illegal operation between December 2020 and August 2023.
Court documents reveal that Ugwu, acting as Chief Executive Officer of Franklin Finance Inc., opened and controlled 20 bank accounts across nine financial institutions. Through these accounts, he received approximately $5 million from more than 100 individuals in the United States.
The funds were subsequently transferred to recipients in China, Nigeria, and other jurisdictions, despite Franklin Finance lacking the requisite licenses to operate as a money-transmitting business.
Investigators further established that Ugwu handled proceeds of cybercrime and fraud, including approximately $580,000 traced to victims of fraud schemes. He sustained the operation by making misrepresentations to individuals, banks, and financial institutions to conceal his activities.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and Homeland Security Investigations (HSI). Prosecution is being led by Assistant U.S. Attorney Cody S. Chapple.
Ugwu is scheduled for sentencing before U.S. District Judge Jennifer L. Thurston on 27 July 2026. He faces a maximum penalty of five years’ imprisonment and a $250,000 fine, subject to statutory factors and the Federal Sentencing Guidelines.
