Two former members of the U.S. Air Force have been sentenced to a combined 189 months in federal jail after they participated in a $2.4 million cyber fraud scheme.
Chijioke Timothy Odimegwu, 25, and Harafat Mogaji, 26, both Airmen at the time of their offenses, were sentenced Sept. 25 to a combined 189 months in federal prison. They were legally found to have diverted more than $2.4 million via wire transfers from two victims into bank accounts controlled by their conspirators, according to a release from the U.S. Attorney’s Office, Southern District of Iowa.
“When cyber intrusion schemes target businesses and nonprofits in our communities, we will aggressively surge resources to protect the American people and their life savings,” said Eugene Kowel, Special Agent in Charge of the FBI Omaha Field Office.
The pair, along with co-conspirators based both in the United States and abroad, attacked business victims across the country with spam and phishing campaigns designed to steal usernames and passwords for victims’ employee email accounts, according to prosecutors.
They then used the stolen credentials to communicate with their victims and redirect payments to and from the victim’s business partners to accounts controlled by their co-conspirators.
They also stole financial information to make and attempt financial transactions without their victims’ consent.
How the Scheme Succeeded
Odimegwu and Mogaji fraudulently diverted more than $1.68 million that was sent by a victim in Iowa City, Iowa. They directed it to a bank account in Chicago controlled by the conspiracy.
They also diverted in excess of $720,000 that a victim in Ohio sent to a similar bank account. Additional attempts to divert money and payments were also made, prosecutors said.
They and their co-conspirators used the stolen credentials, in addition to “spoofed” email addresses mimicking emails associated with the victim or its business partners, to communicate with their victims and redirect payments to and from the victims’ trusted business partners to the conspirators’ accounts.
Prosecutors said they also harvested financial information from victims, such as financial account numbers and information, personal identification numbers, and credit and debit card numbers. That included credit card information for a victim nonprofit located in Pella, Iowa.
Sentences and Restitution
Authorities sentenced Odimegwu to 111 months in prison and ordered him to pay restitution in the amount of $366,617.59.
They sentenced Mogaji to 78 months in jail and ordered him to pay restitution in the amount of $995,680.45. After completing their prison terms, Odimegwu and Mogaji will each serve a three-year term on supervised release.
“Criminals from all backgrounds attack our digital systems,” Kowel said. “They strike targets from corporate networks to personal smartphones. No one and no device is immune from the threat.
“This case demonstrates that we will hold accountable cybercriminals who target our communities. It also serves as a reminder that every organization and every individual should take steps to protect their devices and systems and learn how to recognize and avoid scams.”
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