DOJ Charges Two With $100M IRS Refund Fraud Using Stolen Identities

Akinade Adedeji Raheem, 43, of Atlanta, and Abayomi Quadri Eletu, 42, of the United Kingdom and Nigeria, face charges of conspiracy to commit mail and wire fraud, money laundering, aggravated identity theft, and other crimes, according to the DOJ. The indictments were unsealed in the Northern District of Georgia and the Western District of Texas.

According to the indictment, the defendants obtained identifying information for tax professionals and taxpayers by creating fraudulent online IRS accounts and requesting private taxpayer data. The DOJ said they allegedly changed victim addresses to locations they controlled and submitted postal service change-of-address requests to intercept IRS correspondence.

Over the course of the scheme, the co-conspirators allegedly filed more than 300 false tax returns claiming over $100 million in refunds from the IRS, prosecutors said.

The defendants allegedly directed fraudulent refunds to be split among multiple prepaid debit cards, then laundered the proceeds through money orders purchased in amounts below reporting thresholds, according to the indictment. They used the laundered funds to buy used cars from auction sites — some shipped to Nigeria — along with designer clothing and other items.

When the IRS sent verification letters, the conspirators impersonated taxpayers to fraudulently verify identities and authorize refund releases, prosecutors allege. Eletu was arrested in the UK at U.S. request.

Assistant Attorney General A. Tysen Duva of the Criminal Division and U.S. Attorney Theodore S. Hertzberg for the Northern District of Georgia made the announcement.

Eletu faces the most serious charges, including five counts of mail fraud, three counts of wire fraud, seven counts of access device fraud and 21 counts of aggravated identity theft. Both defendants face maximum penalties of 20 years for conspiracy charges and 10 years for access device fraud, plus mandatory two-year sentences for aggravated identity theft.

Senior Litigation Counsel Michael C. Boteler and Trial Attorney Michael Jones of the Criminal Division's Tax Section are handling the case alongside Assistant U.S. Attorney Brian Pearce. The Western District of Texas provided substantial investigative assistance to the multi-district prosecution, the DOJ said.