A 33-year-old Nigerian man, Edikan Adiakpan, has been arrested in the United States for allegedly masterminding a multimillion-dollar fraud scheme that targeted businesses and nonprofits, including a California-based medical research group focused on U.S. military veterans.
The U.S. Department of Justice announced the arrest on Thursday, stating that Adiakpan will face his initial court appearance before Magistrate Judge Peter Bray in Houston. He is facing a three-count federal indictment returned by a grand jury on June 11, which includes charges of conspiracy to commit wire fraud, conspiracy to commit money laundering, and operating an unlicensed money transmission business.
Prosecutors say Adiakpan and co-conspirators executed a business email compromise (BEC) scam in 2021, tricking organisations across eight U.S. states into wiring payments to bank accounts controlled by the fraudsters. One of the victims was a nonprofit organisation conducting medical research for the benefit of American military veterans.
According to the indictment, after receiving the funds, the group quickly moved the money through various bank accounts, converted them into cashier’s checks, and Adiakpan allegedly cashed the checks and kept a commission.
A second Nigerian, 26-year-old Ayobami Omoniyi, has already pleaded guilty in connection to the same scheme and is awaiting sentencing.
If convicted, Adiakpan faces up to 20 years in prison for the wire fraud and money laundering charges, and five years for operating an illegal money transfer business. Each count carries a fine of up to $250,000.
The case is being investigated by the FBI’s Houston Field Office, its Bryan Resident Agency, and the IRS Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorneys Belinda Beek and Christine Lu.
Officials have reiterated calls for stronger cybersecurity protocols to combat rising cases of international financial fraud.
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