A Nigerian national was sentenced to more than five years in prison for his role in a cybercrime operation that raided the internet storefronts of tax preparation businesses in the United States. According to a report by the United States Attorney’s Office, Kingsley Uchelue Utulu, 38, was convicted of conspiracy to conduct wire fraud and faces 63 months in prison after being captured in the United Kingdom and transferred to the United States for prosecution.
U.S. Attorney Jay Clayton said the sentence is a clear message to offshore criminals, warning them not to steal the personal information of industrious Americans for personal benefit. “Kingsley Uchelue Utulu participated in a scheme to hack into U.S. tax preparation businesses, trade in the stolen personal identifying information, and defraud the IRS and other governmental bodies,” according to Clayton’s press release. In a similar spirit, FBI Assistant Director in Charge Christopher G. Raia stated that the FBI will pursue and prosecute people who aim to “unlawfully profit through deceitful practices,” regardless of where they are based.
The specifics of the crime are both plain and illuminating. Utulu and his Nigerian co-conspirators began targeting the electronic systems of tax preparation firms in New York, Texas, and other states as early as 2019. Their primary tactic was spear spearphishing emails, which are false messages designed to trick recipients into allowing illegal system access. Once inside, they collected tax and personal identity information from unsuspecting consumers and used it to file bogus tax returns and apply for reimbursements under the Small Business Administration’s Economic Injury Disaster Loan (EIDL) program. While attempting to defraud around $8.4 million, they only received around $3.3 million.
The district court sentenced Utulu to more than just incarceration for his misdeeds. He was also sentenced to repay $3,683,029.39 in restitution and forfeit $290,250. The financial sanctions aim to partially offset the economic losses resulting from his actions.
Mr. Clayton praised the prosecution’s persistence and the FBI’s exceptional investigative work. The case was handled by the Office’s Complex Frauds and Cybercrime Unit, with Assistant US Attorney Daniel G. Nessim in charge of the legal procedures.