Three Nigerian men have been indicted in the United States for orchestrating a multi-million dollar internet-based investment fraud scheme that targeted victims across the country.
The men, identified as Augustine Chibuzo Onyeachonam, 30, Stanley Asiegbu, 37, and Chukwuebuka Nweke-Eze, 29, face a series of serious charges, including wire fraud conspiracy, securities fraud conspiracy, and aggravated identity theft.
According to the United States Attorney’s Office for the District of New Jersey, the trio used deceptive tactics to defraud their victims out of millions of dollars by posing as legitimate financial representatives. They allegedly impersonated licensed brokers, spoofed websites, and even misused the seal of the U.S. Securities and Exchange Commission (SEC) to appear credible.
“These defendants not only defrauded dozens of victims out of millions of dollars of their hard-earned money, but they also impersonated licensed FINRA representatives, spoofed their websites, and misappropriated the seal of the SEC to carry out their fraud,” U.S. Attorney Philip R. Sellinger said.
The fraud was carried out over several years, starting at least in 2018, and victims were targeted from various states, including New Jersey. The indictment outlines a sophisticated scheme where the accused created fake investment opportunities, often involving stocks and cryptocurrencies, to lure unsuspecting individuals.
The suspects made use of a series of fraudulent websites, which appeared legitimate because they included real credentials, such as the numbers of registered brokers. These fake sites, mimicking trusted financial platforms, included links to real sites, such as the Financial Industry Regulatory Authority (FINRA), and created fake social media accounts to enhance their deception.
To increase their credibility, the conspirators also used the SEC’s official seal on their fraudulent websites and in communications with victims. They would promote their fake services on online forums and videos about finance, drawing people into their trap.
When victims visited the fraudulent websites, they were told they could invest in high-return ventures. Some victims were promised returns as high as 25%. To proceed with investments, victims were instructed to transfer funds to cryptocurrency accounts controlled by the fraudsters. However, once the victims transferred the money, the funds were stolen, with no real investment taking place.
“The Conspirators used voice-changing software to impersonate female brokers, and through phone calls, convinced the victims to make further investments,” Sellinger explained.
One of the key tactics used in this scam involved creating fraudulent online platforms that showed impressive returns on investments. When victims tried to withdraw their funds, they were often asked to pay additional fees or taxes. Even after paying these fees, the promised withdrawals never materialized.
The fraudulent operation caused victims to lose at least $3 million in total, as the defendants continued their scam across state lines.
Each of the men faces multiple charges. The wire fraud conspiracy alone carries a maximum sentence of 20 years in prison and a fine of $250,000. The other charges, including securities fraud and identity theft, also carry severe penalties, with the possibility of additional prison time.
Sellinger promised that the U.S. Attorney’s Office would continue its efforts to track down scammers, no matter where they are located. “My office will continue to work with our law enforcement partners to pursue these kinds of scammers and seek justice for their victims,” he said.
