Nigerian Extradited to Face Charges in $100 Million Tax Refund Scheme

A Nigerian citizen once based in Atlanta is now in federal custody, accused of helping siphon more than $100 million in tax refunds.

Akinade Adedeji Raheem was returned from Benin to the United States last week after his arrest by local authorities, according to the U.S. Attorney's Office for the Northern District of Georgia. Investigators say Raheem and Abayomi Quadri Eletu, who resides in the United Kingdom and Nigeria, worked with a group to gather identifying details from hundreds of taxpayers. Using that information, the group opened accounts with the IRS and requested private data, prosecutors said. Once the details were in hand, the group filed over 300 false returns seeking large refunds.

To collect the money, the group instructed the IRS to divide refunds among prepaid debit cards, which were then sent to various parts of the country. Prosecutors allege the funds were cleaned through money orders and other purchases, including used vehicles transported to Nigeria and other places.

"Raheem and his co-conspirators allegedly obtained hundreds of stolen identities, filed fraudulent tax returns using that information, and laundered the proceeds through prepaid debit cards and purchases of used cars that were shipped to Nigeria and other locations," said U.S. Attorney Theodore S. Hertzberg. "The scope of the alleged fraud is staggering."

A federal grand jury in Georgia indicted Raheem in February on one count of conspiracy to commit wire and mail fraud, one count of conspiracy to commit money laundering, 14 counts of access device fraud, and 14 counts of aggravated identity theft. Law enforcement agents tried to take him into custody in April but could not locate him. Officials say that a week after that attempt, Raheem bought a ticket from Mexico City to Benin, where he was arrested.

Eletu was arrested in the United Kingdom and is being held there while awaiting transfer to the United States. Raheem remains in the custody of the U.S. Marshals Service. A conviction on the charges carries decades in prison.