Canadian Agent Gets 5 Years in $2.1M Fraud Scheme

HARRISBURG, PA – Alex Mgbolu, 45, of Toronto, Canada, is facing five years in federal prison after being sentenced February 23, 2017, for his role in a sprawling international fraud scheme that bilked hundreds of American citizens out of over $2.1 million. Chief United States District Court Judge Christopher C. Conner handed down the 60-month sentence and ordered Mgbolu to pay $1,372,602 in restitution.

Mgbolu, a former agent for both Western Union and MoneyGram, pleaded guilty in August 2016 to conspiracy to commit mail fraud, wire fraud, and money laundering. Prosecutors detailed a decade-long conspiracy, stretching from July 2002 to May 2010, involving Mgbolu and co-conspirators including Chima Nneji and William Nneji. Mgbolu was extradited from Canada to face justice in the United States.

The scheme operated through two Toronto-based agencies owned and operated by Mgbolu: FA CAM Associates, a Western Union agency, and a MoneyGram agency also known as FA CAM. These agencies served as critical nodes in a network funneling funds from victims across the U.S. to Canada. Fraudsters instructed victims to send money via Western Union and MoneyGram transfers, which Mgbolu then disbursed, masking the true identities of the criminals by falsifying names and identification data in the agency’s computer systems. An analysis by Toronto Police and U.S. Postal Inspection Service revealed that over 90% of the information entered at FA CAM was bogus.

Mgbolu didn’t work for free. He retained a cut of each fraudulent transfer before forwarding the remainder to the perpetrators. Between 2002 and 2006, FA CAM paid out 213 money transfers totaling $453,119 flagged as fraud-induced by senders. From 2006 to 2007, another 67 MoneyGram transfers totaling $149,723 were similarly identified as stemming from fraud. Even after Western Union terminated FA CAM and MoneyGram restricted its payout capabilities, Mgbolu continued the scheme, utilizing a practice known as “check pooling” – depositing fraudulently obtained funds into FA CAM’s account from other complicit agents, then reissuing the money via checks and wire transfers to further conceal the source.

The total amount of fraud-induced transfers processed through FA CAM and 13 other implicated Western Union and MoneyGram agents reached a staggering $2,127,410 across 907 transfers. Chima Nneji, a codefendant, pleaded guilty to the same conspiracy charge and received a 45-month sentence and $381,729 in restitution in December 2016. The lower restitution amount reflects compensation already provided to victims through deferred prosecution agreements with MoneyGram and Western Union, which established restitution funds totaling $100 million and $586 million, respectively.

However, one key figure remains at large. William Nneji is currently a fugitive from justice. The investigation was conducted by the Harrisburg Office of the United States Postal Inspection Service, demonstrating a continued federal commitment to dismantling these international fraud networks and bringing perpetrators to account. This case serves as a stark warning: crossing borders won’t shield you from U.S. justice when you prey on American citizens.

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