Nigerian Man Arrested In U.S. Over Multi-State Email Fraud And Money Laundering Scheme

A 33-year-old Nigerian man, Edikan Adiakpan, has been arrested in the United States for his alleged involvement in a sprawling business email compromise (BEC) and money laundering scheme that targeted companies in eight U.S. states.

According to a statement released Thursday by the U.S. Department of Justice, Adiakpan is accused of orchestrating a sophisticated fraud that included spoofing emails to impersonate legitimate vendors and diverting payments into bank accounts under the conspirators’ control.

Among the victims was a California-based medical research organisation focused on developing treatments for U.S. military veterans.

The announcement was made by U.S. Attorney for the Eastern District of Texas, Nicholas J. Ganjei. Adiakpan is expected to appear before Magistrate Judge Peter Bray in Houston following a three-count indictment returned by a federal grand jury on June 11.

He faces charges of conspiracy to commit wire fraud, conspiracy to commit money laundering, and operating an unlicensed money transmission business.

The indictment alleges that Adiakpan and his co-conspirators sent fake emails in 2021 to mislead organisations into making payments to fraudulent accounts. The funds were then allegedly shuffled through multiple bank accounts before being withdrawn as cashier’s checks. Adiakpan is accused of cashing the checks and taking a cut of the funds.

Another Nigerian national, 26-year-old Ayobami Omoniyi, has already been charged in connection to the scheme and is currently awaiting sentencing.

If convicted, Adiakpan could face up to 20 years in federal prison for the fraud and money laundering charges, and an additional five years for the money transmission charge. Each offence also carries a possible fine of up to $250,000.

The investigation is being led by the FBI’s Houston Field Office, the Bryan Resident Agency, and the IRS Criminal Investigation unit. Prosecutors Belinda Beek and Christine Lu are handling the case.