A Nigerian national was handed down a sentence of over five years for engaging in a cybercrime operation that raided the digital storefronts of U.S-based tax preparation businesses. According to a report by the U.S. Attorney's Office, Kingsley Uchelue Utulu, 38, was convicted of conspiracy to commit wire fraud and is now facing 63 months in prison, after being arrested in the United Kingdom and later extradited to the United States for prosecution.
U.S. Attorney Jay Clayton described the sentence as a clear message to offshore criminals, cautioning against stealing the personal information of hardworking Americans for personal gain. "Kingsley Uchelue Utulu took part in a scheme to hack into U.S. tax preparation businesses, trade in the stolen personal identifying information, and defraud the IRS and other governmental bodies," Clayton said in the press release. In a similar vein, FBI Assistant Director in Charge Christopher G. Raia highlighted that the FBI will pursue and bring to justice those who seek to "unlawfully profit through deceitful practices," no matter where they are located.
The details of the crime are both clear and revealing. Beginning in at least 2019, Utulu and his co-conspirators based in Nigeria targeted the electronic systems of tax preparation firms across New York, Texas, and other states. Their primary tactic involved spearphishing emails—fraudulent messages crafted to deceive recipients into granting unauthorized system access. Once inside, they stole tax and personal identity information from unsuspecting clients, using it to file fraudulent tax returns and apply for payouts through the Small Business Administration’s Economic Injury Disaster Loan (EIDL) program. While they attempted to defraud approximately $8.4 million, they ultimately obtained around $3.3 million.
For his offenses, the district court imposed more than just a prison sentence on Utulu. He was also ordered to pay $3,683,029.39 in restitution and to forfeit $290,250. These financial penalties aim to partially offset the economic harm caused by his actions.
Mr. Clayton acknowledged the prosecution’s persistence, commending the FBI for its outstanding investigative work. The case was led by the Office’s Complex Frauds and Cybercrime Unit, with Assistant U.S. Attorney Daniel G. Nessim spearheading the legal proceedings.
