Nigerian Hacker Kingsley Utulu Sentenced to Over 5 Years in U.S. Prison for $2.5M Fraud Scheme

A Nigerian man, Kingsley Uchelue Utulu, has been sentenced to 5 years and 3 months in a U.S. federal prison after pleading guilty to charges of wire fraud conspiracy and aggravated identity theft.

According to an announcement by U.S. Attorney Jay Clayton and FBI Assistant Director Christopher Raia, Utulu played a key role in a global hacking and identity theft scheme that stole over $2.5 million from U.S. tax agencies and private citizens.

How the Fraud Was Carried Out

Court records and an investigative report from DataBreaches.net show the operation began as far back as 2019. Utulu and other Nigeria-based hackers used spearphishing emails to break into the computer systems of U.S. tax preparation companies in states like New York and Texas.

Once they gained access, the hackers stole personal and tax information from thousands of unsuspecting clients. Using these stolen identities, they filed fake tax returns to claim millions in refunds from the IRS and state tax authorities.

They also submitted fraudulent claims to the Small Business Administration’s COVID-19 Economic Injury Disaster Loan (EIDL) program, receiving over $819,000.

“They attempted to steal $8.4 million in total, successfully receiving around $2.5 million,” the report stated.

FBI and DOJ React to the Conviction

U.S. officials made strong statements following the sentencing:

“Utulu was part of a scheme to hack into tax systems, steal identities, and defraud the IRS,” said U.S. Attorney Jay Clayton. “This sentence sends a message: cybercriminals can’t hide behind borders.”

FBI’s Raia added, “This was a coordinated, international crime. We will not stop tracking down individuals who exploit digital systems for illegal gain — no matter where they are.”

Details of the Sentence

• Prison time: 63 months (5 years, 3 months)

• Restitution ordered: $3,683,029.39

• Assets forfeited: $290,250

• Arrested in: The United Kingdom

• Extradited to: The United States for prosecution

Utulu’s conviction is the latest in a growing list of Nigerian nationals sentenced in the U.S. for cyber fraud. Just this past January, Olutayo Ogunlaja and Abel Daramola were convicted in a $560,000 international romance scam and could face up to 20 years in prison.

Rising Concern Over Global Cybercrime

This case highlights how cyber-enabled fraud continues to pose a major challenge to global law enforcement. U.S. agencies are increasing efforts to crack down on international fraud networks, especially those targeting financial and tax systems.

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