Two Nigerians Face 100 Years in US Prison Over $100m IRS Tax Fraud

$100 Million Tax Fraud Scheme Exposed

Two Nigerian men, Akinade Raheem and Abayomi Eletu, are staring at a combined 100 years in US prison after being charged with running a massive tax fraud scheme that stole more than $100 million from the Internal Revenue Service.

The Department of Justice unsealed indictments in the Northern District of Georgia and the Western District of Texas on Wednesday, detailing a conspiracy that ran from 2018 to 2023 and involved filing over 300 false tax returns.

How the Scheme Worked

Raheem, 43, and Eletu, 42, obtained identifying information for tax professionals and everyday taxpayers, including names, addresses, and social security numbers. They used that data to create online accounts with the IRS and request private taxpayer information, then changed the victims’ addresses to ones controlled by co-conspirators so the IRS would correspond with them instead.

When fraudulent refunds landed in prepaid debit cards, the pair laundered the money by purchasing money orders from US postal offices and local stores in amounts small enough to dodge reporting thresholds. Some of the funds went toward used cars bought from auction sites, several of which were shipped to Nigeria, along with designer clothing and other luxury goods.

The Charges

Both defendants face one count of conspiracy to commit wire and mail fraud and one count of conspiracy to commit money laundering, each carrying up to 20 years. Eletu, arrested in the United Kingdom at the request of US authorities, was also hit with five counts of mail fraud, three counts of wire fraud, seven counts of access device fraud, and 21 counts of aggravated identity theft. Raheem faces 14 counts of access device fraud and 14 counts of aggravated identity theft.

The aggravated identity theft charges alone carry a mandatory two-year sentence per count, and the access device fraud charges carry up to 10 years each. In total, the pair face maximum penalties approaching 50 years each if convicted on all counts.

Sources: Punch, Department of Justice