U.S. authorities have charged two UK-based Nigerian nationals over an alleged large-scale tax fraud scheme that sought to siphon more than $100 million from the Internal Revenue Service (IRS) using stolen identities.
According to indictments unsealed on Wednesday in the Northern District of Georgia and the Western District of Texas, Akinade Adedeji Raheem, 43, based in Atlanta, and Abayomi Quadri Eletu, 42, a resident of the United Kingdom and Nigeria, are accused of orchestrating a multi-year conspiracy involving mail and wire fraud, money laundering, and aggravated identity theft.
Prosecutors allege that the defendants, alongside other co-conspirators, filed over 300 fraudulent tax returns between 2018 and 2023, claiming refunds exceeding $100 million by impersonating legitimate taxpayers and tax professionals.
What the court document is saying
Court document reveals that the suspects allegedly obtained sensitive personal data, including names, addresses, and Social Security numbers, by creating fraudulent online accounts with the IRS and requesting confidential taxpayer information.
- They allegedly altered taxpayer mailing addresses to locations under their control, enabling them to intercept official IRS correspondence.
- In some cases, they also filed change-of-address requests with the U.S. Postal Service to redirect victims’ mail.
- Using the stolen identities, the group allegedly submitted false tax returns electronically and instructed the IRS to disburse refunds across multiple prepaid debit cards.
To bypass verification safeguards, they allegedly impersonated taxpayers to confirm identities when the IRS sent authentication letters.
More insights
Investigators further claim that Eletu directed associates, including Raheem, to procure prepaid debit cards to receive the fraudulent refunds. Once funds were deposited, the proceeds were allegedly laundered through structured transactions, including the purchase of money orders in amounts designed to avoid regulatory reporting thresholds.
Authorities say the illicit funds were used to acquire used vehicles from U.S. auction platforms, some of which were shipped to Nigeria, alongside luxury clothing and other high-value goods.
Eletu has since been arrested in the United Kingdom following a request by U.S. authorities.
What you should know
Both defendants face charges of conspiracy to commit wire and mail fraud, as well as conspiracy to commit money laundering.
Eletu faces additional counts, including mail fraud, wire fraud, access device fraud, and aggravated identity theft. Raheem is also charged with multiple counts of access device fraud and identity theft.
- If convicted, the defendants could face up to 20 years imprisonment for each of the fraud and money laundering charges, up to 10 years for access device fraud, and a mandatory two-year sentence for aggravated identity theft.
- The case is being investigated by IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration, with support from international partners, including UK authorities.
- U.S. prosecutors emphasized that the charges remain allegations, and the defendants are presumed innocent until proven guilty in court.
