A Nigerian national, Kingsley Uchelue Utulu, has been sentenced to five years and three months in a U.S. federal prison for his involvement in a large-scale hacking and identity theft scheme that defrauded the Internal Revenue Service (IRS) and private individuals of more than $2.5 million.
The sentencing was announced on Saturday by U.S. Attorney for the Southern District of New York, Jay Clayton, alongside FBI New York Field Office Assistant Director, Christopher Raia.
According to court documents and a 9am News report citing DataBreaches.net, Utulu, 38, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft, having played a key role in a scheme that targeted U.S. tax preparation businesses since 2019.
The criminal network, largely based in Nigeria, used spearphishing emails to infiltrate electronic systems of U.S.-based firms, stealing tax and personal identifying information of clients from companies in New York, Texas, and other states.
Once they had access, Utulu and his co-conspirators filed fraudulent tax returns with the IRS and various state tax agencies. They also manipulated the Small Business Administration’s Economic Injury Disaster Loan (EIDL) program, fraudulently obtaining an additional $819,000.
“The conspirators sought at least $8.4 million in tax refunds, ultimately securing over $2.5 million, which they funneled into personal accounts and offshore schemes,” authorities stated.
Jay Clayton emphasized the international implications of the cyberattack:
“Utulu took part in a scheme to hack into U.S. tax businesses, trade in stolen personal data, and defraud the IRS. Offshore scammers like him may think they can avoid prosecution — they cannot.”
Echoing this, FBI official Christopher Raia added:
“Utulu’s actions caused significant financial harm. He and his accomplices reached across the globe to exploit American taxpayers and companies for personal gain.”
Utulu was arrested in the United Kingdom and later extradited to the United States to face prosecution. In addition to his 63-month sentence, he was ordered to pay $3.68 million in restitution and forfeit $290,250 in fraud proceeds.
His conviction adds to a growing list of Nigerian nationals involved in cyber-enabled crimes across Europe and North America. Earlier in January 2025, two other Nigerians, Olutayo Ogunlaja and Abel Daramola, were convicted in the U.S. for running a $560,000 international romance scam, facing up to 20 years in federal prison.
The conviction of Utulu and others continues to spotlight Nigeria’s association with global cybercrime networks, particularly in the areas of romance scams, business email compromise, and identity fraud.
Cybersecurity experts warn that without serious investment in digital literacy, youth employment, and law enforcement collaboration, more young Nigerians may be lured into such illegal ventures.
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