A Nigerian national, Kingsley Utulu, has been sentenced to five years and three months in prison for his involvement in a large-scale hacking and identity theft operation that defrauded the U.S. tax authorities and private individuals of over $2.5 million.
The sentencing was announced on Saturday by U.S. Attorney for the Southern District of New York, Jay Clayton, and the Assistant Director in Charge of the FBI’s New York Field Office, Christopher Raia. Utulu had earlier pleaded guilty to charges of conspiracy to commit wire fraud and aggravated identity theft.
Clayton remarked, “Kingsley Uchelue Utulu took part in a scheme to hack into the U.S. tax preparation businesses, trade in the stolen personal identifying information, and defraud the IRS and other governmental bodies. Offshore scammers like Utulu and his co-conspirators may think they can target hard-working Americans with their hacking and fraud schemes and avoid prosecution. The message from the Department and the FBI is clear — they cannot. We are committed to protecting Americans from criminals operating offshore.”
Raia, commenting on the conviction, emphasized the significant harm caused by Utulu’s actions. “Kingsley Utulu, a Nigerian national, was part of a scheme that targeted and infiltrated electronic systems of U.S.-based companies to steal well over two million dollars through fraudulent tax returns. Along with his co-conspirators, this defendant’s scheme reached across the globe to exploit sensitive information for financial gain. The FBI will never exempt any individual who seeks to unlawfully profit through deceitful practices, regardless of where they are located.”
A report by DataBreaches.net and obtained by PUNCH Metro revealed that the fraudulent activities dated back to 2019.
“Utulu and other Nigeria-based conspirators took part in a scheme to hack into U.S.-based tax preparation businesses. The conspirators utilised spearphishing emails to obtain access to these businesses’ electronic systems. Once access was gained, they stole tax and personal identifying information of clients, hacking into multiple tax preparation firms in New York, Texas, and other states,” the report noted.
The stolen identities were subsequently used to file fraudulent tax returns with the Internal Revenue Service and various state tax agencies.
The report further revealed, “The conspirators sought at least \$8.4 million in fraudulent refunds and successfully obtained around $2.5 million. They also filed fraudulent claims with the Small Business Administration’s Economic Injury Disaster Loan program, securing an additional $819,000.”
Utulu, 38, was arrested in the United Kingdom and later extradited to the United States for prosecution. Alongside his prison term, he was ordered to pay restitution of $3,683,029.39 and to forfeit $290,250.
His conviction highlights the growing list of Nigerians prosecuted in the U.S. and Europe for cyber-enabled financial crimes. In January, two other Nigerians, Olutayo Ogunlaja and Abel Daramola, were convicted for orchestrating a $560,000 international romance scam and now face up to 20 years in a U.S. federal prison.