U.S. court sentences Chukwuemeka Amachukwu to eight years in prison over $15 million fraud

A U.S. court, on Monday, sentenced a Nigerian, Chukwuemeka Amachukwu, to eight years in prison over his role in multiple fraud schemes involving more than $15 million.

U.S. District Judge Paul G. Gardephe sentenced Mr Amachukwu to eight years in prison for his role in multiple fraud, hacking and identity theft offences.

Mr Amachukwu was sentenced after pleading guilty to conspiracy to commit computer intrusions and conspiracy to commit wire fraud, the U.S. Department of Justice announced. He was also ordered to pay restitution of $3,647,629.39 and forfeit $10,846,634.39.

According to public court filings and statements made in court, beginning in or around 2019, Amachukwu, his co-conspirator Kingsley Uchelue Utulu and other Nigeria-based conspirators took part in a scheme to hack into U.S.-based tax preparation businesses.

Mr Amachukwu and other conspirators used spear-phishing emails to gain access to these businesses’ electronic systems. Once they had obtained access, the conspirators stole tax and other identifying information belonging to at least 800 of the businesses’ customers.

“The conspirators hacked into several U.S. based tax businesses, located in New York, Texas, and other states. The conspirators obtained the stolen identity information of thousands of individuals. They used this information to file fraudulent tax returns with the Internal Revenue Service and state tax authorities,” the DoJ said.

Mr Amachukwu and his associates filed fraudulent tax refund claims totalling about $8.4 million in one scheme. In another fraud scheme, he and his co-conspirators pocketed about $7 million.

“Mr Amachukwu and other conspirators sought fraudulent refunds of at least approximately $8.4 million, of which they successfully obtained at least approximately $2.5 million. In addition to filing fraudulent tax returns, the conspirators used the stolen identities to file fraudulent claims with the Small Business Administration’s Economic Injury Disaster Loan program. The conspirators were able to obtain at least an additional approximately $819,000 in fraudulent payouts,” the DoJ said.

It added, “in addition, Amachukwu took part in a fraud scheme in which he offered U.S. victims investments in purportedly valuable standby letters of credit. In the course of this scheme, Amachukwu impersonated a wealthy overseas financier in order to fool his victims. In reality, these investments did not exist, and Amachukwu and his co-conspirators were able to pocket more than $7 million in fraudulent proceeds.”

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