HARRISBURG, PA – Henry Okpalefe, 50, formerly of Toronto, Ontario, Canada, will spend the next 18 years behind bars after being sentenced for a brazen, multi-million dollar fraud scheme that preyed on unsuspecting lawyers across the United States. U.S. District Court Judge John E. Jones, III, handed down the 216-month sentence, plus three years of supervised release, on Monday following a bench trial that concluded in March 2017.
Between 2008 and 2010, Okpalefe and his network of co-conspirators systematically stole over $23 million from hundreds of attorneys and law firms, including many in the Middle District of Pennsylvania. The operation was built on deception: posing as potential clients seeking legal representation, they flooded U.S. law firms with emails from fabricated accounts. Once a firm agreed to take the case, the con artists would send counterfeit checks, instructing attorneys to deposit the funds into their IOLTA (Interest on Lawyers’ Trust Accounts) accounts.
The scheme hinged on speed. Before the fraudulent checks could bounce, Okpalefe’s crew directed the lawyers to wire the legitimate funds – their own money – to bank accounts in Asia. Co-conspirators in Japan and South Korea quickly withdrew the cash, funneling it into accounts controlled by the fraudsters in Nigeria and Canada. The entire operation was a meticulously planned international money laundering scheme, stretching from North America to Asia and Africa.
“This wasn’t some fly-by-night operation,” stated David J. Freed, United States Attorney for the Middle District of Pennsylvania. “This was a sophisticated, coordinated effort to defraud American lawyers on a massive scale.” The investigation, led by the U.S. Secret Service, the FBI, and the U.S. Postal Inspection Service, spanned multiple countries and required significant cooperation from law enforcement agencies in Canada, notably the Toronto Strategic Partnership and the Toronto Police Service.
Judge Jones didn’t stop at imprisonment. He ordered Okpalefe to pay $23 million in restitution to the victims – a tall order considering the funds were dispersed across continents. He also mandated the forfeiture of $504,787, representing assets directly linked to the fraudulent activity. While the recovery of all stolen funds remains unlikely, the sentencing of Okpalefe sends a clear message: preying on the legal profession won’t go unpunished.
Assistant U.S. Attorneys Chelsea Schinnour and Kim Douglas Daniel skillfully prosecuted the case, navigating the complexities of international law and financial tracing. The conviction of Okpalefe marks a significant victory in the ongoing battle against financial crimes, but authorities warn that similar schemes continue to evolve, requiring constant vigilance from both law enforcement and potential victims.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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