In a recent large-scale business email compromise (BEC) case, three Nigerian individuals allegedly used spoofed emails and WhatsApp messages to defraud victims of more than $6 million. Kosi Goodness Simon-Ebo, aged 29, was extradited from Canada last week and appeared in the U.S. District Court in Greenbelt, Maryland, while his co-defendants, James Junior Aliyu, 28, and Henry Onyedikachi Echefu, 31, were arrested in South Africa, where all three reside.
A persistent threat
The men are charged with conspiracy, wire fraud, and money laundering in relation to a BEC scheme where victims were tricked into wiring over $6.4 million into bank accounts controlled by the trio. The alleged scam took place between February 2016 and July 2017, according to a seven-count indictment.
BEC fraud remains a significant threat, costing victims $2.7 billion in 2022 and ranking as the second most expensive type of scam (behind investment scams), according to the FBI’s 2022 Internet Crime Report. The FBI received 21,832 BEC complaints in 2022, and losses from BEC and email account compromise scams have totaled over $43 billion since 2016.
In this case, it is alleged that Simon-Ebo and his co-accused moved stolen money from “drop accounts” they controlled to other accounts, attempting to conceal the true ownership and source of the funds. They used various methods, including account transfers, cash withdrawals, cashier’s checks, and writing checks to other individuals and entities.
Simon-Ebo is charged with three wire fraud counts involving $6,343,533.10 of victim funds allegedly wired to accounts controlled by his conspirators. Aliyu, known by the aliases “Old Soldier” and “Ghost,” is charged in connection with a $350,000 wire transfer from a Bank of America drop account in Maryland to a bank account he allegedly controls in South Africa.
Potential penalties
If convicted, each of the men faces a maximum sentence of 20 years in federal prison for wire fraud conspiracy, money laundering conspiracy charges, and for each count of wire fraud. Aliyu also faces a maximum of 20 years in federal prison for money laundering.
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