Two British-Nigerian men sentenced in the US for business email compromise scam
Duo defrauded organisations of over $1.9 million in North Carolina and more than $3 million in Texas
Two British-Nigerian men have been sentenced in the US for their involvement in a business email compromise (BEC) scam that defrauded local governments, colleges and construction companies out of millions of dollars.
The men, Oludayo Kolawole John Adeagbo, 45, and Donald Ikenna Echeazu, 42, were convicted for their roles in cybercrime schemes that took place in Texas and North Carolina, targeting institutions with ongoing construction projects and large, recurring payments.
Adeagbo was sentenced to seven years in federal prison for his part in the widespread fraud. In addition to his prison sentence, Adeagbo was ordered to pay $942,655.03 in restitution.
Echeazu received 18 months and was ordered to pay $655,408.87 in restitution.
BEC frauds typically involve cybercriminals posing as trusted business contacts, tricking victims into sending money to fraudulent accounts.
Both men orchestrated their schemes between 2016 and 2018, during which they defrauded organisations of over $1.9 million in North Carolina and more than $3 million in Texas.
According to court documents, Adeagbo and Echeazu masterminded their North Carolina scam by exploiting a major construction project at an unnamed university, thought to be Appalachian State based on media reports from 2022.
The duo spent six months planning the operation, uncovering information about high-value construction projects at the institution. Posing as contractors, they deceived university officials into diverting payments for the construction works into their own accounts instead of the legitimate contractor.
To achieve this, the fraudsters registered a domain name resembling that of the actual construction company overseeing the project, tricking university staff into transferring the funds. In total, nearly $2 million intended for the contractor was transferred into accounts controlled by the criminals, which was then quickly laundered.
Meanwhile, in Texas, Adeagbo and his accomplices carried out a series of BEC frauds between November 2016 and July 2018, defrauding entities out of over $3 million. Among the victims were construction companies, local government organisations, and a college in Houston.
Local reports indicated that one of the victims was Galveston County, which lost more than half a million dollars after Adeagbo posed as a local road construction company. Another scam worth $888,000 targeted Harris County, where Adeagbo and his co-conspirators impersonated D&W Contractors, a comnpany hired to repair a parking lot.
In a similar fashion to their North Carolina fraud, the perpetrators in Texas registered domain names almost identical to those of legitimate construction firms.
Posing as contractors for firms including the Tellepsen Group, which was contracted by West Houston Institute community college, Adeagbo deceived college officials into making routine payments to his accounts.
The Department of Justice (DOJ) revealed that Adeagbo was behind multiple coordinated scams, each designed to exploit unsuspecting staff members who processed the fraudulent transactions.
Despite their sophisticated approach, the cybercriminals were eventually caught and brought to justice. Adeagbo was extradited from the UK to the United States in August 2022. He pleaded guilty to wire fraud and conspiracy to commit wire fraud in April 2024.
The DOJ indicated that other accomplices were involved in these schemes, though they were not named in the court proceedings.
"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," said principal deputy assistant attorney general Nicole M. Argentieri, head of the Justice Department's Criminal Division.
"We are especially grateful to the government of the United Kingdom for its assistance in this case."