A Nigerian citizen, Kingsley Utulu, has been sentenced to five years and three months in prison by a U.S. court for his involvement in a large-scale cyber fraud scheme that defrauded the Internal Revenue Service (IRS) and private individuals of more than $2.5 million.
The sentencing was announced on Saturday by Jay Clayton, the U.S. Attorney for the Southern District of New York, alongside Christopher Raia, Assistant Director of the FBI’s New York Field Office. Utulu had previously entered a guilty plea to charges of conspiracy to commit wire fraud and aggravated identity theft.
According to prosecutors, Utulu was part of a cybercriminal group that infiltrated U.S.-based tax preparation companies and stole confidential personal data, which was then used to submit fraudulent tax filings.
“Kingsley Uchelue Utulu was involved in an elaborate hacking scheme that specifically targeted American tax institutions and agencies,” Clayton said. “Those operating cyber fraud rings from outside the country should be aware that they are not beyond the reach of U.S. law.”
Raia noted the substantial impact of the crime, stating that Utulu and his co-conspirators used phishing tactics to breach sensitive systems, exploiting stolen identities for illegal financial gains.
The fraud operation, which dates back to 2019, involved sending deceptive emails to staff of tax firms in multiple states, including New York and Texas, granting the hackers unauthorized access to client data.
Court documents revealed that the criminals aimed to claim at least $8.4 million in fake tax refunds and succeeded in obtaining about $2.5 million. In addition, they filed fraudulent applications with the Small Business Administration under the COVID-19 Economic Injury Disaster Loan initiative, receiving an extra $819,000.
Utulu, aged 38, was arrested in the United Kingdom and extradited to the United States to face trial. In addition to his prison sentence, the court ordered him to pay restitution amounting to approximately $3.68 million and to forfeit over $290,000.
This case reflects ongoing international cooperation in fighting cybercrime. Earlier this year, two other Nigerians, Olutayo Ogunlaja and Abel Daramola, were convicted in the U.S. for conducting a $560,000 romance scam. Both face potential sentences of up to 20 years in federal prison.
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