Nigerian Sentenced to Seven Years in Prison for Multi-Million Dollar Business Email Scam Targeting Universities

A Nigerian man, Oludayo Kolawole John Adeagbo, has been sentenced to seven years in prison for orchestrating a sophisticated business email compromise (BEC) scheme that defrauded universities and businesses in the United States of more than $5 million. Adeagbo, 45, who also went by the aliases John Edwards and John Dayo, was extradited from the United Kingdom in 2022 to face charges of conspiracy, wire fraud, and money laundering. His sentencing on October 1, 2024, marks the conclusion of a case that spanned multiple states, including North Carolina and Texas.

According to a Department of Justice (DOJ) press release, Adeagbo, along with co-conspirators, targeted institutions like Appalachian State University in North Carolina, stealing nearly $2 million, and various entities in Texas, from which they stole over $3 million. The DOJ stated that the criminals used a cyber-enabled fraud method known as a business email compromise scheme to deceive their victims into sending funds to fraudulent accounts.

How the Scheme Worked

A BEC scam typically involves cybercriminals creating fake email accounts that closely resemble those of legitimate businesses. They use these accounts to trick companies or institutions into believing that they are communicating with a trusted partner, according to the Federal Bureau of Investigation (FBI). This often includes using email addresses with slight variations, such as changing one letter in the email domain, making it difficult for recipients to spot the difference.

In Adeagbo’s case, he and his associates used the scam to gather information about construction projects and their contractors at Appalachian State University. They learned the names, emails, and phone numbers of university staff and employees at Rodgers Builders, a construction firm involved in the projects.

On December 2, 2016, Adeagbo and his team sent an email to an Appalachian State employee, impersonating Rodgers Builders. The email provided a fraudulent direct deposit form, instructing the university to send payments to a new bank account. The email came from the address “accounts@rodgersbuildersinc.com,” while the real company’s domain was “rodgersbuilders.com,” without the “inc.” suffix. The subtle change went unnoticed, leading the university to process a payment of $1,959,925.02 to the fake account six days later.

Once the funds were transferred, a co-conspirator named Lee opened several business bank accounts, splitting the stolen money into smaller amounts and transferring it to different locations, making it harder for authorities to trace.

Similar Scams Targeted Entities in Texas

Adeagbo’s fraudulent activities were not limited to North Carolina. According to the DOJ, he also targeted local government entities and universities in Texas using similar tactics. The scammers impersonated construction companies and persuaded their victims to redirect payments for ongoing projects to fraudulent accounts. In total, the group managed to obtain more than $3 million from Texas-based entities as part of the larger scheme.

The DOJ press release emphasized the organized nature of these crimes. “This case is a reminder that criminals using sophisticated methods like BEC schemes can cause significant financial damage,” said a DOJ spokesperson. “We are committed to pursuing and bringing to justice those who exploit the trust and integrity of our financial systems.”

Extradition and Guilty Plea

Adeagbo’s arrest and extradition from the United Kingdom in 2022, along with two other Nigerian nationals, Donald Ikenna Echeazu and Olabanji Egbinola, marked a significant breakthrough in the case. All three had been living in the UK as residents before being taken into custody on charges related to the fraudulent activities in North Carolina, Texas, and Virginia.

On April 8, 2024, Adeagbo pled guilty in both North Carolina and Texas to participating in the business email compromise scheme. This admission of guilt came after years of investigations and legal proceedings, which involved close cooperation between U.S. and international law enforcement agencies.

As part of his sentencing, Adeagbo has been ordered to pay $942,655.03 in restitution to his victims, including Appalachian State University and other defrauded institutions. The DOJ hopes this restitution will provide some relief to those impacted by the scheme.

Combating Cyber Fraud

The sentencing of Adeagbo is part of a broader effort by the DOJ to combat cyber-enabled financial fraud, which has become a growing problem in recent years. Business email compromise schemes have been particularly damaging, targeting businesses and institutions that conduct regular financial transactions.

“This case demonstrates the far-reaching impact of cybercrime and our dedication to pursuing justice for the victims,” said a DOJ official. “We urge businesses and institutions to remain vigilant against email-based scams and to implement stronger safeguards to protect against such fraudulent activities.”

While Adeagbo will serve time in a U.S. federal prison, the financial losses from his schemes highlight the serious consequences of cyber-enabled fraud. The DOJ continues to encourage organizations to report any suspicious activities and work closely with law enforcement to prevent future scams.