A Nigerian national, Oludayo Kolawole John Adeagbo, was sentenced to seven years in prison for orchestrating a business email compromise (BEC) scheme that defrauded American organizations of over $5 million.
Extradited from the United Kingdom in 2022, Adeagbo, also known as John Edwards and John Dayo, worked with co-conspirators to target universities and businesses across North Carolina, Texas, and Virginia.
The scheme involved impersonating legitimate businesses by creating email accounts that closely resembled authentic ones. Adeagbo’s group used these fake accounts to trick victims into transferring funds to fraudulent bank accounts. At Appalachian State University, for instance, Adeagbo and his accomplices obtained information about a multi-million-dollar construction project. They sent an email posing as Rodgers Builders, a contractor for the project, with false instructions to update payment details. This led the university to transfer nearly $2 million to the fraudulent account. Similar tactics were used in Texas, resulting in over $3 million in stolen funds.
The funds were laundered through multiple bank accounts to obscure their origin. Adeagbo pleaded guilty in April 2024 to charges of conspiracy, wire fraud, and money laundering. In addition to his prison sentence, he was ordered to pay $942,655.03 in restitution.
This case highlights the sophistication of BEC schemes and their reliance on exploiting minor lapses in cybersecurity and verification processes. It underscores the need for organizations to remain vigilant and implement stricter financial controls to prevent such fraudulent activities.
