Nigerian-British man jailed in US for multi-million dollar email compromise scheme 

Oludayo Adeagbo, a 45-year-old Nigerian-British man, has been sentenced to seven years in a US prison over  involvement in a “multimillion-dollar business email compromise (BEC) scheme”. 

WHAT IS A BEC SCHEME? 

A BEC scheme, also referred to as cyber-enabled financial fraud, is a sophisticated scam that often targets individuals, employees, or businesses involved in financial transactions, or businesses that regularly perform wire transfer payments.

There are many variations of BEC scams. Generally, the schemes involve perpetrators gaining unauthorised access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses.

The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to con the victims into sending money to bank accounts controlled by perpetrators of the scheme.

Generally, the money is quickly transferred to other accounts in the United States or overseas.

‘AN EPIDEMIC’

A statement issued by the US department of justice says court documents show that Adeagbo conspired to participate in multiple cyber-enabled BEC schemes in an attempt to steal more than $3 million from entities in Texas, including local government entities, construction companies, and a Houston-area college.

Adeagbo and his conspirators also allegedly defrauded a North Carolina university of more than $1.9 million.

Adeagbo was said to have arrived in the US in August 2022 after he was extradited from the United Kingdom to face criminal charges filed in Charlotte and Houston.

The justice department said Adeagbo pleaded guilty to one count each of wire fraud and conspiracy to commit wire fraud for his criminal conduct in both cases on August 8, following the transfer of the case in the US district court for the southern district of Texas to the US district court for the western district of North Carolina.

“Oludayo Adeagbo and his coconspirators perpetrated transnational cyber-enabled fraud schemes that targeted schools, government entities, and companies across the United States, and caused millions of dollars in losses,” Nicole Argentieri, head of the justice department’s criminal division, said.

“Adeagbo’s extradition, plea, and sentencing underscore the criminal division’s commitment to working with our law enforcement partners to pursue cybercriminals who target American victims, no matter where that pursuit leads.

“We are especially grateful to the government of the United Kingdom for its assistance in this case.”

Alamdar S. Hamdani, attorney for the southern district of Texas, said Adeagbo “ran a sophisticated 21st-century cyber-criminal operation hiding behind fake email accounts and anonymous internet addresses to steal from the innocent, a crime as old as time itself”.

“BEC scams have become an epidemic with individuals and businesses suffering debilitating financial losses, while eroding society’s trust in digital communications and undermining overall economic stability,” Hamdani said.

“That’s why prosecutors and agents in two jurisdictions worked tirelessly to identify Adeagbo and reach across the Atlantic to bring him to justice.”