A 33-year-old Nigerian national, Edikan Adiakpan, has been arrested in the United States in connection with an extensive business email compromise (BEC) and money laundering operation that allegedly targeted multiple organisations across eight U.S. states, including a California-based medical research institution dedicated to veterans’ health.
The U.S. Department of Justice (DOJ), in a statement released Thursday, revealed that Adiakpan was indicted by a federal grand jury on June 11. He faces charges of conspiracy to commit wire fraud, conspiracy to commit money laundering, and operating an unlicensed money transmission business.
According to the DOJ, the alleged scheme was carried out in 2021, during which Adiakpan and unnamed co-conspirators impersonated legitimate vendors by sending spoofed emails to unsuspecting employees at various organisations. The emails allegedly misled victims into transferring payments to fraudulent bank accounts under the conspirators’ control.
“Instead of paying their actual suppliers, victims were tricked into diverting substantial funds to the defendants’ accounts,” the DOJ stated.
The indictment further alleges that the defendants rapidly transferred the illicit funds across multiple accounts to obscure the money trail, ultimately converting the proceeds into cashier’s checks. Adiakpan is accused of personally cashing several of these checks and retaining a percentage as a commission.
He was taken into custody in Houston and is expected to make his initial court appearance before U.S. Magistrate Judge Peter Bray. If convicted, Adiakpan faces up to 20 years in federal prison for the conspiracy and money laundering charges, and up to five years for operating an illegal money transmission business. Each offence also carries a potential fine of up to $250,000.
The case is part of a broader investigation led by the FBI’s Houston Field Office, the IRS Criminal Investigation Unit, and the FBI’s Bryan Resident Agency. The prosecution is being handled by Assistant U.S. Attorneys Belinda Beek and Christine Lu.
Adiakpan is the second Nigerian national linked to the alleged scheme. A 26-year-old co-conspirator, Ayobami Omoniyi, has already been charged and is awaiting sentencing before U.S. District Judge Andrew S. Hanen.
The DOJ emphasised its continued commitment to investigating and prosecuting cyber-enabled financial crimes, particularly those targeting public institutions and organisations serving vulnerable populations such as military veterans.