Nigerian National Sentenced to 8 Years for Tax Business Hacking Scheme
A Nigerian national has received an eight-year prison sentence for his role in a cybercrime ring that targeted tax preparation businesses, leading to millions in fraudulent refunds and damages.
Chukwuemeka Amachukwu, a Nigerian national, has been sentenced to eight years in federal prison and ordered to pay over $3.6 million in restitution for his involvement in a sophisticated cybercrime operation. Amachukwu was extradited from France last year to face charges including fraud, hacking, and identity theft. U.S. District Judge Paul Gardephe handed down the sentence, which also includes one year of supervised release.
Prosecutors accused Amachukwu of leading a group that used spearphishing emails to breach tax preparation businesses starting as early as 2019. The group successfully infiltrated these businesses, stealing sensitive customer data. This illicitly obtained information was then leveraged to file fraudulent state and federal tax returns, with the attackers attempting to claim approximately $8.4 million in refunds and successfully obtaining $2.5 million.
Court documents revealed that Amachukwu collaborated with Kingsley Uchelue Utulu and other hackers based in Nigeria. Their operations involved compromising the data of around 800 business customers. One notable incident occurred in May 2021, when the group sent a phishing email to an employee of a Manhattan-based tax preparation firm, installing malware that granted them access to customer information.
Beyond tax fraud, the cybercrime ring also exploited the stolen data for other illicit purposes. The group filed fraudulent claims with the Small Business Administration’s Economic Injury Disaster Loan program, managing to secure approximately $819,000 in illegitimate payouts. This diversification of fraud schemes highlights the group's broad criminal enterprise.
Amachukwu was also involved in separate fraud schemes that generated substantial profits. He reportedly earned over $7 million by impersonating wealthy overseas businessmen and offering fake standby letters of credit to unsuspecting U.S. victims. This indicates a pattern of elaborate financial deception beyond the tax preparation business hacks.
Amachukwu's co-conspirator, Kingsley Uchelue Utulu, was previously sentenced to five years in prison for his role in the scheme after his arrest in the U.K. The sentencing of Amachukwu underscores the commitment of law enforcement agencies to prosecute individuals involved in large-scale financial cyberattacks and identity theft operations.
U.S. Attorney Jamie McDonald emphasized the significant harm caused by these crimes, stating, “Amachukwu took part in sophisticated schemes to hack into U.S. businesses, steal and use stolen identity information of victims, and commit fraud.” The substantial sentence reflects the severity of the offenses and their impact on victims and the public.