Oludayo Adeagbo, a British-Nigerian national known by aliases John Edwards and John Dayo, has been handed a seven-year prison sentence for his involvement in a sophisticated business email compromise (BEC) scam that defrauded businesses of more than $5 million.
The elaborate cyber-enabled scheme targeted institutions and companies across the United States, resulting in significant financial losses.
Adeagbo, alongside accomplices Donald Echeazu and Olabanji Egbinola, employed advanced techniques to impersonate reputable firms, especially those in high-value construction projects, convincing victims to transfer large sums of money into fraudulent bank accounts.
The trio was extradited from the United Kingdom in August 2022 to face charges of conspiracy, wire fraud, and money laundering. Their fraudulent activities extended across several states, including North Carolina, Texas, and Virginia.
Details of the $5 Million Fraud Operation
The BEC scheme mainly targeted educational institutions and construction projects, with one of the largest frauds occurring at a university in North Carolina. Court documents revealed that Adeagbo and his associates registered a domain name nearly identical to that of a legitimate construction company managing the university’s project.
They then created fake email accounts that mimicked company employees, successfully deceiving university officials into wiring $1.9 million to a fraudulent account controlled by the scammers.
The operation did not end there. The group expanded their scheme to Texas, where they targeted local government agencies and educational institutions by impersonating construction firms.
This led to an additional $3 million in stolen funds, bringing the total fraud amount to over $5 million.
Guilty Plea and Sentencing
On April 8, 2024, Oludayo Adeagbo pleaded guilty to conspiracy, wire fraud, and money laundering charges related to the frauds in North Carolina and Texas.
He was sentenced to seven years in prison and ordered to pay restitution of $942,655.03 to compensate the victims affected by the scheme.
The U.S. Department of Justice emphasized that this case is part of broader efforts to combat the rising threat of BEC and other cyber-enabled financial crimes.
The increasing prevalence of BEC scams poses a significant challenge, as criminals exploit technology and social engineering to steal millions from businesses, government agencies, and educational institutions.
The Rising Threat of Business Email Compromise
Business Email Compromise (BEC) is an increasingly common form of cybercrime where attackers impersonate trusted entities, such as contractors, vendors, or company executives, to deceive businesses into making fraudulent wire transfers.
The schemes often involve creating fake email addresses and domain names that closely resemble those of legitimate companies, tricking victims into transferring funds to accounts controlled by the criminals. As cyber tactics evolve, these scams have become more sophisticated, posing serious financial risks to organizations of all sizes.
