GREENBELT, MD – A 29-year-old Nigerian national, Kosi Goodness Simon-Ebo, has confessed to his central role in a sprawling Business Email Compromise (BEC) scheme that bilked victims out of over $1 million, with intended losses exceeding $6 million. Simon-Ebo, residing in South Africa, was extradited from Canada in April and pleaded guilty yesterday to conspiracy to commit wire fraud and conspiracy to commit money laundering.
The scheme, active from February 2017 through at least July 2017, relied on gaining unauthorized access to email accounts belonging to businesses and individuals. Simon-Ebo and his co-conspirators, including accomplices in Maryland, then deployed “spoofed” emails – forged sender addresses designed to deceive – directing victims to wire funds into bank accounts under their control, known as “drop accounts.” The operation was meticulously planned and executed, preying on the trust inherent in legitimate business communications.
But the theft wasn’t the end of the line. Simon-Ebo and his network didn’t simply hoard the stolen funds. The guilty plea reveals a concerted effort to launder the money, moving it through a complex web of accounts, cash withdrawals, and cashier’s checks. They wrote checks to various individuals and entities, deliberately obscuring the origin and true ownership of the ill-gotten gains. This attempt to disguise the money trail is a key element of the money laundering conspiracy.
Federal prosecutors detailed that while the overall scheme aimed for $6,988,249 in fraudulent transactions, the amount directly linked to Simon-Ebo’s involvement totaled approximately $6,988,249, resulting in actual losses of at least $1,072,306. Simon-Ebo himself directly controlled at least $45,925 of the stolen funds. As part of the plea agreement, Simon-Ebo is now obligated to pay a money judgment of $45,925 and full restitution to the victims, amounting to at least $1,072,306.
U.S. Attorney Erek L. Barron praised the collaborative investigation led by Homeland Security Investigations (HSI) and the U.S. Secret Service – Washington Field Office. He also highlighted the critical assistance provided by the Justice Department’s Office of International Affairs in securing Simon-Ebo’s extradition. Assistant U.S. Attorney Kelly O. Hayes is prosecuting the case. Simon-Ebo now faces a maximum sentence of 20 years in federal prison for each charge – wire fraud conspiracy and money laundering conspiracy – and is scheduled to be sentenced on November 29, 2023, at 2:00 p.m. before U.S. District Judge Deborah L. Boardman.
This case underscores the increasing sophistication and international reach of BEC schemes. While often appearing simple on the surface, these scams demand extensive investigative resources to unravel the complex financial networks used to conceal the stolen funds. The Secret Service and HSI continue to prioritize these investigations, working to disrupt these criminal enterprises and bring perpetrators to justice.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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