US-based Nigerian faces five-year jail over $5m money laundering

A United States-based Nigerian, Ifeanyi Ugwu, is facing up to years’ imprisonment after pleading guilty to operating an unlicensed money-transmitting business involving more than $5m in illegally obtained funds.

PUNCH Metro learnt from a statement by U.S. Attorney for the Eastern District of California, Eric Grant, and obtained on Thursday that Ugwu, 49, of Bakersfield, admitted to running the illegal operation between December 2020 and August 2023.

According to the statement, “Ifeanyi Emmanuel Ugwu, 49, of Bakersfield, pleaded guilty today to operating an unlicensed money transmitting business involving more than $5 million in illegally obtained funds.”

Grant noted that court documents revealed that Ugwu opened and operated at least 20 bank accounts, through which he received the funds.

Grant continued, “According to court documents, between December 2020 and August 2023, Ugwu owned, operated, and served as chief executive officer of Franklin Finance Inc.

“Through this business, Ugwu opened and controlled 20 bank accounts across nine banks and financial institutions, where he received approximately $5 million from more than 100 individuals in the United States.

“He then transferred the funds to individuals in China, Nigeria, and elsewhere. At no point did the company have the required licenses to operate a money-transmitting business.”

Grant noted that several of the funds handled by Ugwu were proceeds of cybercrime and fraud, adding that, “Ugwu received and transferred approximately $580,000 in fraud proceeds from these victims.”

He revealed that Ugwu sustained the illegal operation by deceiving individuals, banks, and other financial institutions.

“Ugwu was able to operate his unlicensed business by making various misrepresentations to individuals, banks, and other financial institutions to conceal his fraudulent activity,” the statement added.

Grant noted that investigations into the case were conducted by the Internal Revenue Service Criminal Investigation and Homeland Security Investigations, while Assistant U.S. Attorney Cody S. Chapple is prosecuting the case.

The attorney announced that Ugwu is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 27, 2026, where he faces a maximum penalty of five years’ imprisonment and a fine of $250,000.

However, he noted that the court would determine the final sentence after considering statutory factors and the Federal Sentencing Guidelines.(Punch)