U.S. Charges Pan Ocean Oil Staff With Wire Fraud

Chukwuemeka Onyegbula

An IT staff of Pan Ocean Oil Corporation Nigeria Limited, Chukwuemeka Onyegbula, has been arrested in the U.S. State of Washington for wire fraud and identity theft.

Onyegbula, who was arrested on 5 June in Lagos, is awaiting extradition to the United States to face trial.

Authorities said he and his co-conspirators filed false claims for pandemic-related unemployment benefits in 17 states.

Onyegbula, who uses the name “Phillip Carter,” was linked to at least 253 fraudulent filings for unemployment benefits, according to an indictment unsealed Thursday in Seattle.

According to the Seattle U.S. Attorney’s Office, Washington, Arizona, California, Colorado, Illinois, Indiana, Kansas, Massachusetts, Michigan, Minnesota, Missouri, Montana, Ohio, Nevada, Rhode Island, Texas and Wisconsin paid out a total of nearly $290,000 on claims related to the case.

Additionally, the federal Small Business Administration paid out $54,000 in COVID-19 economic disaster claims filed by Onyegbula and his co-conspirators, prosecutors said.

Onyegbula is the second Nigerian national charged with such fraud in U.S. District Court for western Washington.

Abidemi Rufai, 42, a suspended Ogun state government official, has been accused of filing $350,000 in fraudulent claims in Washington and other states, with $288,000 making it into a bank account he controlled.

He also sought to bilk the Internal Revenue Service of nearly $1.6 million, according to federal prosecutors.

Rufai was arrested May 14 as he tried to travel from New York to Nigeria.

Paul Roberts of Seattle Times wrote that the method used by Onyegbula and Rufai to bilk the states are identical.

Like Rufai, Onyegbula used a feature of Gmail, Google’s free email service, to file multiple claims for benefits with the Washington state Employment Security Department and other states, according to the indictment.

According to prosecutors, Onyegbula and unnamed co-conspirators used his original Gmail address, [email protected], to create dozens of variants such as [email protected].

Onyegbula and co-conspirators used the email addresses along with stolen Social Security numbers and other personal data to file at least 253 unemployment claims with the ESD and unemployment agencies in Arizona, California and 14 other states, prosecutors say.

At least $289,604 in benefits were paid out on those claims, according to a June 7 complaint.

Onyegbula and co-conspirators used a similar approach in filing at least 63 applications for so-called Economic Injury Disaster Loans through the federal Small Business Administration, according to the complaint. Those applications netted Onyegbula and his co-conspirators at least $53,900, prosecutors say.

The status of the stolen funds remains under investigation, the U.S. Attorney’s spokesperson said.

Investigators said they also found indications that the [email protected] account was used to seek fraudulent tax refunds. That’s potentially another parallel with Rufai, who also attempted to defraud the Internal Revenue Service of nearly $1.6 million, according to a May 28 federal filing.

But as with Rufai’s case, Onyegbula’s Gmail account also appears to have helped federal investigators track him down.

According to the complaint, the Gmail account contained information about a bank account in Onyegbula’s name, his U.S. visa application, and a work email from a Nigerian-based oil company, Pan Ocean Oil Corporation Nigeria Limited.

A LinkedIn profile lists an individual named Chukwuemeka Onyegbula as a “system engineer at Pan Ocean Oil Corporation,” and as a 2005 graduate in computer engineering from the University of Benin.

This case is being investigated by the FBI, with assistance from the Department of Labor Office of Inspector General and the Department of Justice and the cooperation of the ESD.