Two Nigerian nationals and a Texan were sentenced to federal prison for their roles in a multi-million dollar tax refund fraud scheme that exploited stolen identities and laundered proceeds through U.S. and foreign banks.
Imafedia Adevokhai, 47, received 46 months, while Osazuwa Peter Okunoghae, 46, faced the harshest penalty with 78 months.
Michael Martin, 52, was sentenced to 18 months in prison. Collectively, they were ordered to pay restitution and forfeiture totalling hundreds of thousands of dollars.
Details of the stolen identity refund fraud (SIRF) scheme
According to court records, the three were part of an intricate operation using stolen personal information to file fraudulent tax returns, amounting to nearly $5 million.
This caused a confirmed loss of over $390,000 to the U.S. Department of Treasury and the IRS.
Adevokhai prepared and submitted fake returns, while Okunoghae and Martin laundered the proceeds, transferring funds through a network of financial accounts to obscure the source.
Authorities issue warning against tax fraud
Acting U.S. Attorney Abe McGlothin, Jr. and IRS Criminal Investigation (IRS-CI) agents highlighted the importance of prosecuting tax fraud schemes.
Special Agent Christopher J. Altemus Jr. praised the investigative efforts, stating the sentences serve as a warning to deter future criminal activities targeting taxpayers and the U.S. Government.
This case, dating back to a 2019 indictment, unveiled a broader transnational fraud network involving individuals in the U.S. and Nigeria.
Dollar tax fraud schemes
Multi-million dollar tax fraud schemes in the US often involve sophisticated methods, such as the use of stolen identities to file fraudulent tax returns, commonly referred to as Stolen Identity Refund Fraud (SIRF).
These operations exploit vulnerabilities in financial systems and target the Internal Revenue Service (IRS), causing significant losses to public funds.
Criminals launder the proceeds through complex networks involving domestic and foreign bank accounts to obscure their source.
Such schemes undermine the integrity of the US tax system, leading to billions in losses annually. Federal authorities remain committed to prosecuting offenders and strengthening measures to prevent these crimes.
Three Nigerians jailed by US court
The defendants, Fatai Okunola, Oluwaseyi Adeola, and Ijeoma Adeola, were arraigned on a three-count charge of conspiracy to commit mail and wire fraud, unlawful procurement of naturalisation, and making false statements relating to naturalisation.
The defendants pleaded guilty to the charges. According to the US Department of Justice, they conspired with individuals in Nigeria to defraud US residents using interstate wire transmissions and the mail system.
