Nigerian Man Sentenced to Eight Years in US Prison Over Multi-Million-Dollar Cyber Fraud

A 40-year-old Nigerian, Chukwuemeka Amachukwu, has been sentenced to eight years in prison in the United States for his involvement in hacking, identity theft and fraud schemes involving millions of dollars.

Amachukwu, also known as Chukwuemeka Victor Eletuo and So Kwan Leung, was sentenced by US District Judge Paul G. Gardephe, according to a statement released by the US Attorney’s Office for the Southern District of New York on Monday.

He had pleaded guilty to conspiracy to commit computer intrusions and conspiracy to commit wire fraud.

According to prosecutors, Amachukwu and his co-conspirators, including Kingsley Uchelue Utulu, began targeting US tax preparation businesses in 2019 through spear-phishing emails designed to gain unauthorised access to their computer systems.

The group allegedly stole tax records and other personal information belonging to approximately 800 customers of several businesses in New York, Texas and other states.

Millions Sought Through Stolen Identities

The stolen personal information was used to file fraudulent tax returns with the Internal Revenue Service and state tax authorities, according to the US Attorney’s Office.

Prosecutors said the conspirators sought tax refunds totalling at least $8.4 million and successfully obtained at least $2.5 million.

The group also used stolen identities to submit fraudulent applications to the Small Business Administration’s Economic Injury Disaster Loan programme, obtaining at least $819,000 in illicit payments.

The programme was established to provide financial assistance to eligible businesses affected by economic hardship, including during the COVID-19 pandemic.

Separate Investment Fraud Scheme

In another scheme, Amachukwu allegedly offered victims in the United States investment opportunities involving purportedly valuable standby letters of credit.

Prosecutors said he impersonated a wealthy foreign financier to persuade victims to invest in the supposed financial instruments.

However, the investments did not exist. Amachukwu and his co-conspirators obtained more than $7 million through the scheme, according to the statement.

US authorities said the activities caused significant financial harm to victims and the public.

US Authorities React to Sentence

United States Attorney Jamie McDonald said Amachukwu had participated in sophisticated schemes involving computer hacking, identity theft and financial fraud.

“Amachukwu took part in sophisticated schemes to hack into U.S. businesses, steal and use stolen identity information of victims, and commit fraud,” McDonald said.

“These crimes imposed significant harm on the victims and the public, and so it is only appropriate that the crimes also come with a significant sentence for the defendant,” he added.

Beyond the eight-year prison sentence, Amachukwu was ordered to serve one year of supervised release after his imprisonment.

He was also directed to pay $3,647,629.39 in restitution to compensate victims and forfeit $10,846,634.39.

The Federal Bureau of Investigation assisted in the investigation, while Assistant US Attorney Daniel G. Nessim handled the prosecution.

The case highlights the consequences of cybercrime and financial fraud under US law, particularly schemes involving unauthorised access to computer systems, stolen personal information and fraudulent investment offers.