A Nigerian national, Kingsley Utulu, has been handed a prison sentence of five years and three months in the United States for his involvement in an extensive cybercrime operation that swindled the U.S. government and private individuals out of more than $2.5 million.
The conviction was made public on Saturday by the U.S. Attorney for the Southern District of New York, Jay Clayton, alongside Christopher Raia, Assistant Director in Charge of the FBI’s New York Field Office.
Utulu had earlier pleaded guilty to charges of conspiracy to commit wire fraud and aggravated identity theft.
Clayton explained that Utulu and his accomplices were behind a plot to infiltrate U.S. tax preparation companies, steal sensitive personal data, and use that information to defraud the Internal Revenue Service (IRS) and other government agencies.
“Criminals like Utulu who think they can exploit Americans from overseas through cyber fraud should know they will be held accountable,” Clayton said.
“Our agencies remain steadfast in protecting citizens from such threats.”
Raia also stressed the damage caused by Utulu’s activities, noting the scheme’s international reach and its impact on both individuals and institutions.
“Utulu participated in a sophisticated cyberattack that compromised U.S. firms and enabled the theft of millions through fake tax returns,” Raia stated.
“Regardless of where they operate from, cybercriminals will face justice.”
According to court documents referenced by DataBreaches.net and obtained by PUNCH Metro, the fraudulent scheme began around 2019.
Utulu and his associates, operating mainly from Nigeria, used spearphishing tactics to gain unauthorized access to U.S. tax firms’ electronic systems.
Once inside, they harvested personal and tax data from clients, primarily targeting businesses in states such as New York and Texas.
The stolen information was then used to file fake tax returns with the IRS and state agencies, ultimately leading to over $2.5 million in fraudulently obtained refunds.
In addition, the group submitted bogus applications to the Small Business Administration’s Economic Injury Disaster Loan program, receiving about $819,000.
Utulu, aged 38, was arrested in the United Kingdom and extradited to the U.S. to face trial.
Along with his prison term, he has been ordered to pay restitution amounting to $3,683,029.39 and forfeit $290,250.
His sentencing adds to the growing number of Nigerians convicted abroad for cyber-enabled financial crimes.
Earlier this year, two other Nigerians, Olutayo Ogunlaja and Abel Daramola, were found guilty of running a $560,000 international romance scam and now await sentencing, which could see them imprisoned for up to 20 years.
