A spam folder in an email service. CTV
A major international hacking scheme that defrauded victims across 19 countries, including Canada, out of nearly US$215 million has led to the conviction of 25 individuals. A U.S. federal jury found the criminals guilty of running a complex email scam, primarily targeting individuals, businesses, and organizations across the United States. The scam operated using a technique known as "business email compromise" (BEC), which allowed fraudsters to infiltrate victims' email accounts to monitor their activities and make fraudulent financial requests.
How the Scam Worked: Targeting Victims Through Email
The fraudsters first gained access to victims' email accounts, allowing them to observe business communications. With this knowledge, the criminals would send out fraudulent emails designed to look like legitimate business transactions. These emails would either ask the victims or those in contact with them to send money, often for goods or services that didn’t exist. The victims, trusting the apparent authenticity of the request, would transfer funds to the scammers.
Once the money was transferred, the criminals used fake bank accounts and various cash transfer systems to launder and distribute the stolen funds. Nearly US$50 million of the stolen money was used to buy cashier’s checks, which were presented for payment at a money service business in the Chicago area. The business, known as New Dolton Currency Exchange, was owned by Lon Goodman, who continued to accept fraudulent checks even after being warned multiple times by banks about the fraudulent nature of the transactions.
Investigations Reveal Extensive Fraud and Luxury Purchases
Wire transfers sent by the victims ranged from thousands to millions of dollars. In one case, a business was defrauded of $2.7 million via a shell company bank account. Investigators also uncovered substantial assets, including $1.2 million worth of cryptocurrency, cash, and cashier’s checks. Among the seized items were high-end watches, such as a Patek Philippe Nautilus worth $45,000 and an Audemars Piguet Royal Oak valued at $30,000.
Additionally, authorities discovered a luxury residence in Lawrenceville, Georgia, measuring 4,423 square feet, which was allegedly purchased with some of the stolen money.
Convictions and Plea Deals in the Case
The individuals behind the scheme, including key players Oluwafemi Michael Awoyemi, Aruan Drake, and Peter Reed, were convicted of wire fraud and money laundering conspiracies. Awoyemi and Drake were also found guilty of participating in money laundering activities. Along with the three main defendants, 22 other individuals pleaded guilty to their involvement in wire fraud and money laundering conspiracies related to the scam.
