A U.S. federal court has sentenced Nigerian national Kingsley Utulu to five years and three months in prison for his involvement in a wide-ranging hacking and identity theft operation that defrauded the U.S. government and private individuals of over $2.5 million.
The sentence was announced by the U.S. Attorney for the Southern District of New York, Jay Clayton, alongside FBI New York Field Office Assistant Director in Charge, Christopher Raia. Utulu had previously pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft.
According to prosecutors, Utulu was part of a sophisticated scheme that targeted U.S.-based tax preparation businesses. Using spearphishing techniques, Utulu and his co-conspirators—many based in Nigeria—gained unauthorized access to the firms’ systems, stealing sensitive personal and financial data belonging to clients.
“Kingsley Uchelue Utulu played a significant role in a criminal enterprise that hacked into tax preparation businesses and exploited stolen information to defraud the IRS and other agencies,” said Clayton. “This case sends a strong message: international scammers are not beyond the reach of U.S. law enforcement.”
FBI official Raia added that the group exploited weaknesses in cybersecurity systems for financial gain, causing serious harm. “Utulu and his associates infiltrated electronic systems and filed fraudulent tax returns using stolen identities,” he said. “Their global scheme highlights the continuing threat of cyber-enabled financial crimes.”
Court documents and a report by DataBreaches.net revealed that the scheme began in 2019. The hackers breached multiple tax firms across New York, Texas, and other states.
The stolen data was used to file fake tax returns, seeking refunds totaling at least $8.4 million, with about $2.5 million successfully obtained.
In addition, the conspirators filed fraudulent applications with the U.S. Small Business Administration’s Economic Injury Disaster Loan (EIDL) program, securing approximately $819,000 in COVID-19 relief funds.
Utulu, 38, was arrested in the United Kingdom and later extradited to the United States. In addition to his 63-month prison sentence, he has been ordered to pay over $3.68 million in restitution and to forfeit $290,250.
His conviction adds to a growing list of Nigerians prosecuted internationally for cyber-related fraud. Earlier this year, two other Nigerian nationals, Olutayo Ogunlaja and Abel Daramola, were convicted in the U.S. for orchestrating a $560,000 romance scam and now face up to 20 years in prison.
