US jails Ifeanyi Ugwu over multimillion-dollar money transfer scheme to China, Nigeria

A United States court has sentenced Nigerian Ifeanyi Ugwu to one year in prison for operating an unlicensed money transmitting business that handled more than $5 million in international transfers.

US District Judge Jennifer Thurston sentenced the 50-year-old Bakersfield resident on Monday, according to Peoples Gazette.

Prosecutors said Ugwu operated Franklin Finance Inc., using 20 accounts across nine banks to transfer funds from the US to Nigeria, China and other countries between December 2020 and August 2023.

Despite lacking a licence, Ugwu allegedly promoted his services as “money transfers … at black market rates”.

Authorities said he received funds from more than 100 individuals, including fraudsters who used his accounts to facilitate scams that cost American victims hundreds of thousands of dollars.

Ugwu pleaded guilty on April 6 to operating an unlicensed money transmitting business involving more than $5 million in illegally obtained funds.

2US Attorney Eric Grant said the operation provided a channel for fraud-related transactions.