US CHARGES TWO NIGERIANS OVER $100M TAX REFUND FRAUD PLOT

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By: Balogun Ibrahim

Two Nigerian men, Akinade Raheem and Abayomi Eletu, are facing up to 50 years in prison each over an alleged large-scale tax fraud scheme involving stolen identities and attempts to defraud the United States Internal Revenue Service (IRS of more than $100 million.

According to a statement released on Wednesday by the U.S. Department of Justice, the defendants allegedly worked with accomplices to impersonate taxpayers and accountants in order to file fraudulent tax refund claims.

They are accused of submitting over 300 false tax returns, seeking refunds exceeding $100 million, and engaging in offences including conspiracy to commit mail and wire fraud, money laundering, aggravated identity theft, and other related crimes.

Prosecutors said Raheem, 43, and Eletu, 42 residing in the United States and the United Kingdom respectively, illegally obtained personal information of taxpayers and tax professionals between 2018 and 2023.

The information reportedly included names, addresses, and Social Security numbers, which they allegedly used to create online IRS accounts and access confidential taxpayer data.

Both men have been charged with conspiracy to commit mail and wire fraud and conspiracy to commit money laundering.

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In addition, Eletu faces multiple counts including mail fraud, wire fraud, access device fraud, and aggravated identity theft, while Raheem is charged with several counts of access device fraud and aggravated identity theft.

The Justice Department noted that the defendants face severe penalties, including up to 20 years for fraud-related conspiracy, 20 years for money laundering, 10 years for access device fraud, and a mandatory minimum of two years for aggravated identity theft.

Indictments related to the case were unsealed in the Northern District of Georgia and the Western District of Texas.

Authorities allege that the suspects also altered victims’ mailing addresses to those controlled by co-conspirators, ensuring that IRS correspondence was diverted away from the real taxpayers.

Funds obtained from the scheme were reportedly laundered through money orders purchased in small amounts to avoid reporting thresholds, and later used to buy prepaid debit cards, vehicles from auction houses some of which were shipped to Nigeria as well as luxury goods.

Eletu has reportedly been arrested in the United Kingdom following a request by U.S. authorities.