A federal jury in Puerto Rico has convicted Oluwasegun Baiyewu, the fifth defendant in a transnational money laundering conspiracy involving fraud schemes run by Nigerian Organized Crime Groups. The 37-year-old Texas resident was found guilty following a 22-day trial in San Juan.
According to evidence presented in court, Baiyewu conspired with four others, Oluwaseun Adelekan and Temitope Omotayo of Staten Island, Ifeoluwa Dudubo of Austin, Texas, and Temitope Suleiman of Richmond, Texas, to launder funds generated through multiple fraud schemes. These included romance scams, pandemic unemployment insurance fraud, and business email compromise attacks.
Victims of these fraud schemes were often elderly individuals or small businesses across the U.S., including in states like California, Illinois, Washington, and Nevada. Some scams also targeted companies in Puerto Rico and Missouri. The group operated under the broader umbrella of Nigerian transnational Organized Crime Groups, according to the Department of Justice.
“These criminals turned illicit gains into a facade of legitimacy,” said U.S. Attorney W. Stephen Muldrow. “Justice will prevail, and those who exploit others for personal gain will be held accountable.”
Complex Money Laundering Operations Across Borders
Once the fraud proceeds were collected, the co-conspirators conducted hundreds of financial transactions to hide their origin. Among the methods used were purchasing used cars in the U.S. and shipping them to Nigeria, a tactic intended to make the illicit funds appear legitimate.
A superseding indictment revealed that these money laundering activities took place between 2020 and 2021. The elaborate scheme was part of an ongoing effort by international criminal networks to exploit the open nature of the U.S. financial system.
Assistant Attorney General Brett A. Shumate of the Department of Justice’s Civil Division stated, “This conviction is a message to the transnational organized crime groups and their accomplices: you cannot victimize Americans with impunity.”
Joint Efforts Lead to Conviction
The successful prosecution of Oluwasegun Baiyewu and his co-defendants was the result of coordinated efforts between several federal agencies. These included the U.S. Postal Inspection Service, the U.S. Department of Labor Office of Inspector General, and the FBI’s San Juan Cyber Task Force. Additional support came from the National Unemployment Insurance Fraud Task Force, under the COVID-19 Fraud Enforcement Strike Force.
FBI Assistant Director Brett Leatherman emphasized, “This conviction is a reminder of the durable impact we are having in targeting the entire cybercriminal ecosystem.”
Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service added, “The defendants lined their pockets by defrauding vulnerable members of our society. This conviction is proof that anyone involved with transnational crimes will be tracked down, exposed, and made to face the consequences.”
Sentencing and Resources for Victims
All five defendants, including Baiyewu, will be sentenced by Judge Raúl M. Arias-Marxuach in the District of Puerto Rico. Prosecutors on the case include Trial Attorneys Emily C. Powers and Richard S. Greene IV from the Department of Justice’s Consumer Protection Branch, along with Assistant U.S. Attorney Linet Olinghouse.
In response to the rise in elder-targeted scams, the Department of Justice reminds the public that the National Elder Fraud Hotline (1-833-FRAUD-11) is available for victims aged 60 and older. The hotline provides assistance in English, Spanish, and other languages, helping victims report fraud, access resources, and improve the chances of recovering lost funds.
