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Canadian Fraudster Obi Admits $4.4M Scheme
HARRISBURG – Lucas Obi, 53, of Toronto, Canada, a former agent for both Western Union and MoneyGram, confessed today to orchestrating a massive $4.4 million fraud that bilked thousands of unsuspecting victims. The guilty plea, entered before United States Magistrate Judge Martin C. Carlson, marks a significant step forward in a case that spanned over a decade and two nations.
The United States Attorney’s Office for the Middle District of Pennsylvania revealed that Obi was initially indicted in December 2012, but his extradition from Canada wasn’t secured until much later – he wasn’t arraigned in Harrisburg until August 2016. The delay underscores the complex international cooperation required to bring this fraudster to justice. Obi, also known as Suleman Ajukwusualim, operated “Canada Cash Express, Inc.” which housed both a Western Union and MoneyGram agency at the same Toronto address.
According to the indictment, Obi wasn’t just a facilitator; he was the architect of the scheme. Between 1999 and 2010, he built a network of complicit MoneyGram and Western Union agents across the greater Toronto area, effectively training them in the art of mass marketing fraud and complicit money transfer activity. Obi taught these agents how to process fraudulent transactions, rewarding them with a 5% to 10% cut of the ill-gotten gains. He also recruited individuals to act as figurehead owners of money transfer outlets, and used fictitious names to deposit fraudulent checks into his own bank accounts.
The scope of the damage is staggering. The total loss associated with reported fraudulent money transfers processed through Canada Cash Express and Obi’s network of agents reached $4,482,927. But the fallout extends beyond that figure. MoneyGram, in a deferred prosecution agreement, established a $100 million victim restitution fund. Western Union is establishing a much larger, $586 million fund following its own deferred prosecution agreement with the U.S. Attorney’s Office, finalized January 19, 2017.
This wasn’t a solitary operation. The investigation involved a multi-agency task force including the Harrisburg Office of the U.S. Postal Inspection Service, the Federal Trade Commission, and various Canadian law enforcement agencies – the Toronto Police Service, Royal Canadian Mounted Police, Ontario Provincial Police, Canadian Anti-Fraud Centre, Canada Competition Bureau, and the Ministry of Government Services. The Justice Department’s Office of Internal Affairs aided in Obi’s extradition. Assistant United States Attorney Kim Douglas Daniel is leading the prosecution.
Obi faces a potential sentence of up to 20 years imprisonment, supervised release, and a $250,000 fine. Sentencing is tentatively scheduled for August 15, 2017. However, the final sentence will be determined by the Judge, taking into account federal sentencing guidelines and a range of factors concerning Obi’s history and the severity of his crimes. This case serves as a harsh reminder that international fraud schemes will be relentlessly pursued, and those responsible will be held accountable.
Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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