Two Nigerians Charged in U.S. Over Alleged $100 Million Tax Fraud Scheme

U.S. federal prosecutors have charged two Nigerian nationals in connection with an alleged large-scale tax fraud scheme involving stolen identities and fraudulent refund claims exceeding $100 million.

The defendants, Akinade Adedeji Raheem, based in Georgia, and Abayomi Quadri Eletu, who is reported to have ties to both the United Kingdom and Nigeria, were named in indictments unsealed in the Northern District of Georgia and the Western District of Texas.

According to court documents, prosecutors allege the pair conspired with others over several years to file fraudulent tax returns using stolen personal and professional information belonging to accountants and taxpayers.

Authorities say the group submitted more than 300 false tax filings to the Internal Revenue Service (IRS), seeking refunds totaling over $100 million.

Investigators allege that between 2018 and 2023, the suspects obtained sensitive data—including names, addresses, and Social Security numbers—by creating and exploiting fraudulent online IRS accounts. They are also accused of altering taxpayer records to redirect official correspondence to addresses under their control.

Prosecutors further claim the group filed change-of-address requests with the U.S. Postal Service to intercept victims’ mail, allowing them to respond to verification requests and avoid detection.

The scheme reportedly involved directing tax refunds to prepaid debit cards, which were then used to withdraw or transfer funds. Authorities allege that Eletu coordinated the acquisition of these debit cards through associates.

Funds obtained from the alleged fraud were reportedly laundered through structured financial transactions, including the purchase of money orders below reporting thresholds. Investigators say proceeds were used to buy items such as vehicles from auction platforms, some of which were shipped to Nigeria, along with other goods.

Raheem, 43, and Eletu, 42, each face charges of conspiracy to commit mail and wire fraud, as well as conspiracy to commit money laundering. Eletu faces additional counts, including multiple charges of mail fraud, wire fraud, access device fraud, and aggravated identity theft. Raheem also faces several counts of access device fraud and aggravated identity theft.

If convicted, the charges carry potential prison sentences of up to 20 years for fraud and money laundering offences, up to 10 years for access device fraud, and mandatory additional penalties for identity theft.

Prosecutors noted that the indictments are allegations, and both defendants are presumed innocent unless proven guilty in court.

The case is being investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration, with assistance from U.S. and U.K. authorities.