Odunowo Gets 54 Months for $1.5M Tax Fraud Scheme

MEDFORD, Ore. – Oluwole Oluwaseun Odunowo, 37, of Houston, Texas, is headed to federal prison after being sentenced to 54 months for his part in a sprawling, multi-million dollar scheme to steal identities and file fraudulent tax returns. The sentence, handed down today, also includes three years of supervised release. Odunowo’s conviction marks the sixth sentencing in this case, exposing a sophisticated operation that drained over $11.6 million from the U.S. Treasury.

The fraud first came to light in May 2013 when a Medford, Oregon resident contacted the IRS after discovering false tax returns had been filed using her and her husband’s personal information – including their Social Security numbers and dates of birth. An investigation by IRS-Criminal Investigation quickly revealed a far-reaching conspiracy. The scheme relied on a massive stockpile of stolen taxpayer identities, illegally obtained IRS filing PINs, and prepaid debit cards registered under the names of victims.

Investigators found the co-conspirators operated with chilling efficiency, utilizing fake email addresses to file the fraudulent returns and then funneling the ill-gotten refund proceeds through wire transfers directly to Nigeria. The scope of the fraud was staggering, with thousands of Oregon and Washington taxpayers falling victim to the identity theft. Odunowo himself, utilizing approximately 700 stolen identities provided by an accomplice, filed bogus tax returns seeking over $1.5 million in refunds. The IRS ultimately paid out nearly $403,000 based on these fraudulent claims.

Odunowo was indicted by a federal grand jury in Medford on September 6, 2018, and later pleaded guilty on May 15, 2020, to charges of conspiring to commit mail fraud, mail fraud, and aggravated identity theft. During sentencing, U.S. District Court Judge Ann L. Aiken didn’t mince words, ordering Odunowo to pay $402,846 in restitution to the IRS – a small fraction of the damage caused by his actions. This isn’t just about money; it’s about the violation of trust and the real harm inflicted on innocent citizens.

This wasn’t a solo operation. The investigation was a collaborative effort involving IRS-Criminal Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and Homeland Security Investigations. Support was also provided by the Department of Treasury, Inspector General for Tax Administration, the U.S. State Department, and the Oregon Department of Revenue Policy and Systems Unit. Assistant U.S. Attorneys Byron Chatfield and Gavin Bruce of the District of Oregon prosecuted the case.

As the Department of Justice celebrates its 150th anniversary, cases like this serve as a stark reminder of the ongoing battle against financial crime and the commitment to holding those who exploit the system accountable. For more on the DOJ’s history, visit www.Justice.gov/Celebrating150Years. This case underscores the need for continued vigilance and robust law enforcement efforts to combat increasingly sophisticated fraud schemes.