US Authorities Reveal Alleged $100 Million Tax Refund Scam Linking Georgia, the United Kingdom and Nigeria in Shocking IRS Fraud Case

Federal prosecutors in the United States have unveiled a major fraud case accusing two men of helping run a large-scale scheme that allegedly targeted the Internal Revenue Service using stolen identities.

The charges were unsealed in federal courts in Georgia and Texas and center on claims that the defendants used personal information taken from taxpayers and accountants to file false tax returns and seek huge refund payouts.

Prosecutors Say Stolen Identities Were Used to Access IRS Data

According to the indictment, 43-year-old Akinade Adedeji Raheem of Atlanta and 42-year-old Abayomi Quadri Eletu, who is described as a resident of both the United Kingdom and Nigeria, worked with others to exploit stolen identities in order to obtain fraudulent tax refunds.

Investigators allege the group filed more than 300 fake tax returns and sought over $100 million from the IRS.

Authorities say the operation ran from 2018 through 2023.

During that period, the defendants and their alleged co-conspirators are accused of gathering sensitive personal data, including names, addresses and Social Security numbers, by creating online IRS accounts and requesting private taxpayer information.

Scheme Allegedly Redirected Mail and IRS Communications

Prosecutors say the group did more than just steal identities.

They allegedly changed taxpayers’ mailing addresses so IRS correspondence would be sent to locations under their control instead of reaching the actual taxpayers.

In some cases, they are also accused of submitting address-change requests through the U.S. Postal Service so that victims’ mail would be forwarded to addresses linked to the scheme.

Investigators say the conspirators then used the stolen information to file electronic tax returns seeking fraudulent refunds. The refunds were allegedly routed onto several prepaid debit cards.

Before releasing some payments, the IRS reportedly sent verification letters to the altered addresses, allowing members of the scheme to pose as taxpayers, confirm identities and push the agency to release the money.

Debit Cards, Money Orders and Cars Allegedly Used to Launder Funds

The indictment says Eletu directed Raheem and others to obtain prepaid debit cards to receive the expected refund money.

Once the funds were loaded, prosecutors allege some of the money was laundered through purchases designed to avoid financial reporting thresholds.

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Among the transactions cited were money orders bought at U.S. post offices and local stores in smaller amounts.

Authorities also say some of those money orders were later used to buy used vehicles at auction, with several of the cars allegedly shipped to Nigeria. Investigators further claim the proceeds were spent on designer clothing and other goods.

UK Arrest Follows U.S. Request

Eletu was arrested in the United Kingdom at the request of U.S. authorities, according to the Justice Department. That international arrest highlights the cross-border dimension of the case, which involved agencies on both sides of the Atlantic.

Charges Against the Defendants

Both men are charged with conspiracy to commit wire and mail fraud, as well as conspiracy to commit money laundering.

Eletu faces additional charges that include five counts of mail fraud, three counts of wire fraud, seven counts of access device fraud and 21 counts of aggravated identity theft.

Raheem also faces further counts, including 14 counts of access device fraud and 14 counts of aggravated identity theft. If convicted, the defendants could face lengthy prison terms.

Prosecutors said the top penalties include up to 20 years for conspiracy to commit mail and wire fraud, 20 years for money laundering, 10 years for access device fraud, plus a mandatory two-year sentence for aggravated identity theft.

U.S. Officials Highlight Multi-Agency Investigation

The announcement was made by senior Justice Department and federal prosecutor officials, including Assistant Attorney General A. Tysen Duva and U.S. Attorney Theodore S. Hertzberg for the Northern District of Georgia.

The investigation was led by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration.

The Justice Department’s Office of International Affairs also assisted, while U.S. officials publicly thanked the United Kingdom for its support in the investigation.

Prosecutors from the Justice Department’s Tax Section and the Northern District of Georgia are handling the case, with additional assistance from the U.S. Attorney’s Office for the Western District of Texas.

Impact and Consequences

The case underscores how identity theft can be used not only to steal personal data, but also to manipulate government systems on a large scale.

If the allegations are proven, the scheme would represent a major attempted fraud against the U.S. tax system, with more than $100 million in claimed refunds tied to stolen taxpayer identities.

The alleged use of redirected mail, prepaid cards and structured money-order purchases also points to the challenges investigators face when tracking complex financial crimes that cross borders and rely on multiple layers of deception.

What’s next?

The criminal cases will now move through the federal court system in the United States. Prosecutors will seek to prove the allegations, while the defendants will have the opportunity to challenge the charges in court.

Because Eletu was arrested in the UK at the request of the United States, legal proceedings related to his transfer and prosecution may also draw attention as the case develops. For now, the indictment marks the formal beginning of the prosecution, not a conviction.

Summary

U.S. prosecutors have unsealed charges against two men accused of helping run a years-long scheme that allegedly used stolen identities to claim more than $100 million in fraudulent IRS tax refunds.

Investigators say the operation involved filing hundreds of false returns, redirecting taxpayer mail, using prepaid debit cards to receive funds and laundering proceeds through money orders, used vehicles and luxury purchases.

One of the suspects has already been arrested in the United Kingdom at the request of the United States.

Bulleted Takeaways:

• Federal prosecutors in Georgia and Texas unsealed charges tied to an alleged IRS refund fraud scheme.
• The defendants are Akinade Adedeji Raheem of Atlanta and Abayomi Quadri Eletu, described as a resident of the UK and Nigeria.
• Prosecutors say the group filed more than 300 false tax returns claiming over $100 million in refunds.
• The alleged scheme relied on stolen identities belonging to taxpayers and tax professionals.
• Authorities say taxpayer addresses were changed so IRS letters and other mail would be redirected.
• Fraudulent refunds were allegedly sent to prepaid debit cards controlled by the conspirators.
• Investigators say some of the money was laundered through money orders, vehicle purchases and other spending.
• Eletu was arrested in the UK at the request of U.S. authorities.
• All defendants are presumed innocent unless and until proven guilty in court.