A Nigerian National living in San Antonio has pleaded guilty in federal court to participating in a $10 million fraud that targeted businesses, News Radio 1200 WOAI reports.
Chibuzor Uba pleaded guilty to one count of conspiracy to launder monetary instruments. He and his co defendants, all Nigerian nationals living in Austin and Houston, face up to twenty years in prison.
Federal prosecutors say Uba participated in what is called a Business Email Compromise fraud.
The way that works is a comptroller or some other company employee with access to financial accounts gets a very legitimate looking e-mail instructing them to fire finds to an entity identified as a customer or a vendor.
But the e-mail is a fraud, created by the scammers, and the address the employee is told to transfer the money to is in fact controlled by the scammers.
In other cases, the gang would hack into the company's e-mail and alter legitimate e-mails requesting payment to direct that payment to accounts controlled by the gang.
Court records indicate the Nigerian gang was able to take control of some $10 million from targeted corporations, and of that, $6 million was able to make it into the scammer's accounts before the company or law enforcement was able to stop the transfer.
One of the Nigerians indicted in the scam remains at large.