Former Canadian Moneygram And Western Union Agent Sentenced To 12 Years’ Imprisonment For $4.4 Million Fraud Scheme

HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lucas Obi, age 53, of Toronto, Canada, a former Western Union and MoneyGram agent, was sentenced to 12 years’ imprisonment on October 23, 2018, by United States District Court Judge Yvette Kane for defrauding thousands of victims out of approximately $4.4 million via international mass marketing, consumer fraud schemes.

According to United States Attorney David J. Freed, Lucas Obi, A/K/A “Suleman Ajukwusualim, was the owner/operator of a Western Union and a MoneyGram agency, both of which were known as Canada Cash Express, Inc., and located at the same Toronto address. Obi conspired with others between 1999 and 2010 to commit the wire fraud offense and was the leader of a group of fraud complicit MoneyGram and Western Union agents in the greater Toronto area. Obi was the group’s mentor and leader who taught others how to engage in mass marketing fraud and complicit money transfer agent activity.  Obi trained the agents on how to process fraud induced money transfers and allowed them to keep a cut, 5% to 10%, for their role in the schemes.  Obi also recruited persons to act as money transfer outlet owners on his behalf, gathered fraudulently induced money transfer checks from other fraud complicit agents, and deposited the checks with fictitious name endorsements into his bank accounts.  Obi then distributed the fraud proceeds, less his cut, to numerous greater Toronto area fraudsters and money launderers.

The known total dollar loss associated with all fraud reported money transfers paid out at Canada Cash Express and Obi’s other fraud complicit check-pooling agents is $4,482,927.  Pursuant to a deferred prosecution agreement with MoneyGram, a $100 million victim restitution fund was established for victims of Obi’s fraud.  A $586 million restitution fund is also being established for victims who sent their money via Western Union pursuant to the filed, January 19, 2017, Western Union deferred prosecution agreement with the U.S. Attorney’s Office for the Middle District of Pennsylvania and the U.S. Justice Department.

Judge Kane ordered Obi to pay $2,393,906.34 in restitution to 2,641 Western Union and MoneyGram victims.  The restitution was reduced from the total loss amount of $4,482,927 due to monies that were previously paid out by MoneyGram.

The case was investigated by the Harrisburg Office of the U.S. Postal Inspection Service, the Federal Trade Commission, the Toronto Police Service, the Royal Canadian Mounted Police, the Ontario Provincial Police, the Canadian Anti-Fraud Centre, the Canada Competition Bureau, and the Ministry of Government Services.  The Justice Department's Office of International Affairs provided assistance with the extradition of the defendant.  Assistant United States Attorney Kim Douglas Daniel prosecuted the case.

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