Three Nigerians Accused Of Multi-Million-Dollar Fraud

December 12, 2024 EMMANUEL ADEBAYO AJIBOLA

US Attorney Philip R. Sellinger made public on Wednesday that the attorney’s office in the United States for the District of New Jersey has unlocked charges against three Nigerians staying abroad accused of organising a multimillion-dollar transnational internet-orientated investment fraud scheme.

The three suspected Nigerians are identified as Augustine Chibuzo Onyeachonam, 30; Stanley Asiegbu (popularly called Stanislaus Asiegbu), 37; and Chukwuebuka Nweke-Eze, 29, who faces charges including wire fraud conspiracy, securities fraud conspiracy, and severe identity theft.

According to the indictment, the suspects illegally obtained money from victims by posing as licensed financial representatives, spoofing legitimate websites, and unlawfully using the seal of the U.S. Securities and Exchange Commission (SEC) to make their schemes appear credible.

US attorney Sellinger, in a press release, stated, “These defendants not only defrauded dozens of victims out of millions of dollars of their hard-earned money, but they also impersonated licensed FINRA representatives, spoofed their websites, and misappropriated the seal of the SEC to carry out their fraud.”

The suspects, according to the indictment, were charged with exploiting the internet to lure unsuspecting investors into fake investment opportunities.

Unknowing to the victims that they were presented with fabricated documents and persuaded to transfer substantial sums of money under false pretences.

Each suspect faces charges across multiple counts: one count of wire fraud conspiracy, two counts of wire fraud, one count of securities fraud conspiracy, one count of identity theft conspiracy, and four counts of aggravated identity theft.

Sellinger added, “My office will continue to work with our law enforcement partners to pursue these kinds of scammers no matter where in the world they are and seek justice for their victims.”

The indictment also revealed that Onyeachonam, Asiegbu, Nweke-Eze, and others (the “conspirators”) dated back to 2018 till date arranged an internet-enabled fraud scheme that targeted victims throughout the United States, including in the District of New Jersey.

Sellinger went further to explain that, as part of the fraud operation, the conspirators were using the identity of many people to register as broker-dealers with the Financial Industry Regulatory Authority (“FINRA”) and used those stolen identities to solicit investments from members of the public through fraudulent public-facing websites.

The fraudulent, or “spoofed,” websites were registered in the names of the impersonated victim brokers and often included genuine credentials, such as CRD numbers, associated with the victim brokers.

He stated, “At times, the spoofed websites also included links to (1) the FINRA website associated with the victim brokers that allowed any member of the public to view the victim brokers’ employment history, certifications, licenses, or prior violations; and (2) fake social media accounts created by the conspirators in the names of the victim brokers.

“At times, the spoofed websites also displayed, without authorisation, the seal of the U.S. Securities and Exchange Commission (“SEC”). The conspirators would further use the SEC seal in email communications with victims.

Sellinger explained that the conspirators cajole victims of the fraud scheme to the spoofed websites by touting the services of the victim brokers in the comment sections of online articles or videos discussing financial and cryptocurrency investment-related topics. At times, the conspirators would include links to one or more of the spoofed websites.

He went further. “When a fraud victim visited a spoofed website, he or she was directed to communicate with an individual they believed to be a legitimate broker-dealer by contacting a telephone number or email address listed on the spoofed website.
“The conspirators, posing as the victim brokers, then communicated with fraud victims and, among other things: (1) told fraud victims that their money would be invested in various stocks and cryptocurrencies, and (2) guaranteed fraud victims returns on their investments of up to 25%.”

The US Attorney emphasised that the conspirators used voice-changing software applications to impersonate a female victim broker-dealer when communicating by hand device.

The US Attorney’s statement read, “When a fraud victim decided to invest money with one of the conspirators posing as a victim broker, the fraud victim was told to (1) open an account at a particular cryptocurrency trading platform; (2) purchase cryptocurrency assets through that platform; and (3) send the cryptocurrency assets to a particular cryptocurrency wallet address for investment.

“In reality, the funds transferred by the fraud victims to the conspirators were not invested but were stolen by the conspirators.

“At times, fraud victims’ funds were stolen directly from the account(s) opened by them at a particular cryptocurrency exchange.
Sellinger stated that as part of the fraud scheme, the conspirators further created

fraudulent online investment platforms that falsely displayed monthly returns associated with the fraud victims’ investments.

“A fraud victim visiting one of the fraudulent investment platforms typically would observe substantial returns on their investment.

“At times, when a fraud victim requested to withdraw funds from their account, they would be asked by the conspirators to pay additional money in fees or taxes to withdraw the funds. After paying these fees, the funds would still not be released.

Sellinger finally stated, “In total, the conspirators caused dozens of fraud victims to transmit funds that they believed to be for investments in the aggregate amount of at least approximately $3 million.

“The wire fraud conspiracy charged in Count One carries a maximum potential penalty of 20 years in prison and a $250,000 fine; the wire fraud charged in Counts Two and Three of the Indictment each carry a maximum potential penalty of 20 years in prison and a $250,000 fine.

The conspiracy to commit securities fraud charged in Count Four of the Indictment carries a maximum potential penalty of 20 years in prison and a $250,000 fine; the conspiracy to commit identity theft charged in Count Five of the Indictment carries a maximum potential penalty of 15 years in prison and a $250,000 fine; and the aggravated identity theft counts charged in each carry a mandatory minimum sentence of two years and a $250,000 fine.”