A 33-year-old Nigerian national, Edikan Adiakpan, has been arrested in the United States for his alleged involvement in a multimillion-dollar business email compromise and money laundering operation.
According to a statement released by the U.S. Department of Justice on Thursday, the scheme targeted several organizations across eight states, including a California-based medical research institution dedicated to developing treatments for U.S. military veterans.
The arrest was announced by U.S. Attorney for the Eastern District of Texas, Nicholas J. Ganjei. Adiakpan is expected to make his initial court appearance before Magistrate Judge Peter Bray in Houston.
A federal grand jury indicted Adiakpan on June 11, charging him with conspiracy to commit wire fraud, conspiracy to commit money laundering, and operating an unlicensed money transmission business.
The Justice Department stated that Adiakpan and his co-conspirators executed the fraud in 2021 by sending fraudulent emails that mimicked legitimate vendors.
These emails deceived victims into transferring funds to bank accounts controlled by the perpetrators instead of the intended suppliers.
The indictment further alleges that the group laundered the stolen funds by moving the money through various accounts before converting it into cashier’s checks. Adiakpan is accused of cashing those checks and retaining a portion as his commission.
Another Nigerian, 26-year-old Ayobami Omoniyi, has also been charged in connection with the same fraud.
He is currently awaiting sentencing before U.S. District Judge Andrew S. Hanen.
If convicted, Adiakpan faces a maximum of 20 years in federal prison for the wire fraud and money laundering charges, and up to five years for operating an illegal money transmission business. Each count also carries a potential fine of up to $250,000.
The investigation was conducted by the FBI’s Houston Field Office, its Bryan Resident Agency, and the IRS Criminal Investigation Division.
The case is being prosecuted by Assistant U.S. Attorneys Belinda Beek and Christine Lu.