Nigerians charged in $100m U.S. tax refund fraud scheme

U.S. prosecutors have charged two Nigerians over an alleged scheme to defraud the Internal Revenue Service (IRS) of more than $100 million using stolen identities.

The two accused are identified as Nigerian-British resident and a Georgia-based man.

The U.S. Department of Justice said indictments unsealed in federal courts in Georgia and Texas accuse Akinade Adedeji Raheem, 43, and Abayomi Quadri Eletu, 42, of conspiracy to commit mail and wire fraud, money laundering, aggravated identity theft and related offences.

According to the indictment, the pair and their associates allegedly filed more than 300 fraudulent tax returns, seeking over $100 million in refunds from the Internal Revenue Service.

Prosecutors said that between 2018 and 2023, the suspects obtained sensitive personal data— including names, addresses and Social Security numbers — of taxpayers and tax professionals by creating online IRS accounts and requesting private information. They then allegedly altered taxpayers’ addresses to locations under their control, ensuring official correspondence was redirected to them.

The scheme also involved submitting change-of-address requests to the U.S. Postal Service to divert mail. Using the stolen identities, the defendants allegedly filed electronic tax returns and directed the IRS to deposit refunds onto multiple prepaid debit cards.

In some cases, authorities said, the IRS sent verification letters to the altered addresses. The suspects allegedly posed as legitimate taxpayers to confirm identities and authorise the release of funds.

Prosecutors further allege that the proceeds were laundered through structured purchases, including money orders bought in amounts designed to avoid reporting thresholds. Some of the funds were used to acquire used vehicles from auction sites—some of which were shipped to Nigeria—as well as designer goods.

Eletu was arrested in the United Kingdom at the request of U.S. authorities.

Both defendants face one count each of conspiracy to commit wire and mail fraud and conspiracy to commit money laundering. Eletu faces additional charges, including multiple counts of mail and wire fraud, access device fraud and aggravated identity theft, while Raheem faces further counts of access device fraud and identity theft.

If convicted, they could face up to 20 years in prison for fraud and money laundering offences, up to 10 years for access device fraud, and a mandatory two-year sentence for aggravated identity theft.

The case is being investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration, with assistance from U.S. and UK authorities.

Prosecutors stressed that the charges are allegations, and the defendants are presumed innocent until proven guilty in court.