United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

FEDERAL GRAND JURY CHARGES ANOTHER DEFENDANT IN
IRS LOCKBOX THEFT CONSPIRACY

IRS Contract Worker Previously Charged with Stealing Tax Payments from IRS Lockbox

United States Attorney Jane J. Boyle announced that a federal grand jury in Dallas, Texas, has indicted another individual and charged that he conspired with previously-indicted defendant, Edmond Nkem Ekene, to steal taxpayers' payments sent to the IRS Lockbox in Dallas. The 36-count indictment charges Ekene and Theophilos Oluyinka Okuribido, also known as Michael Avon, with conspiracy, theft of government property, and embezzlement by a bank employee. Ekene is also charged with false statements, false representation of a Social Security Number, interstate transportation of stolen property, bank burglary and possession of stolen mail. Okuribido is also charged with illegal reentry after deportation. Both defendants are presently in federal custody and a trial date of April 26, 2004, before the Honorable Jorge A. Solis has been set.

An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted on all counts charged in the indictment, Edmond Nkem Ekene, age 31, and Theophilos Oluyinka Okuribido, age 43, face a statutory maximum of hundreds of years imprisonment, millions of dollars in fines, and restitution.

The IRS contracts with numerous commercial banks to operate "Lockbox" centers across the country. "Lockbox" is a process through which taxpayers mail their tax payments and tax documents to a designated post office box for processing. Bank employees collect the remittance checks and forms from these post office boxes and then process them on an accelerated schedule, usually forwarding the transaction records to the IRS by the following day. This speedy collection/processing service allows the U.S. Treasury to receive the funds promptly, thereby earning substantial interest revenue for the United States.

Bank of America maintained a lockbox facility in Richardson, Texas, under an agreement with the U.S. Treasury Department Financial Management Service and the IRS, that served the Midwestern and Western United States. To handle the processing at this IRS Dallas Lockbox, Bank of America used temporary employees supplied by Bank of America contractors. Adecco Employment Agency and Remedy Staffing were temporary employment agencies that were Bank of America Contractors. Edmond Ekene was employed by Adecco from mid-March, 2002 through mid-September 2002, when his employment was terminated for cause. Okuribido knew Ekene and together they operated this fraudulent scheme. The indictment alleges that during this time frame, Ekene stole more than $2,690,750 in funds sent to the IRS Dallas Lockbox in Richardson.

According to the indictment, Ekene aided and abetted by Okuribodo:

• stole remittance checks from the IRS Dallas Lockbox;

• altered the stolen checks to change the payee from the IRS or Treasury Department to fictitious and fraudulent names or individuals or entities;

• deposited the stolen checks into bank accounts they had opened in these fraudulent or fictitious names; and

• then withdrew the proceeds from the accounts.

The indictment also charges that Ekene and Okuribido copied stolen checks to make templates for counterfeit checks, deposited the counterfeit checks in bank accounts in the names of people or entities whose identities had been stolen, or were fictitious or fraudulent, and then withdrew the proceeds from the accounts. The indictment also alleges that the defendants sold some of the stolen checks, or the counterfeit checks they made, on the black market.

United States Attorney Boyle commended the investigative efforts of the Treasury Inspector General for Tax Administration, the U.S. Postal Inspection Service, and the Farmers Branch Police Department. The case is being prosecuted by Assistant United States Attorney Joseph M. Revesz.

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