Fraudster Sentenced to Federal Prison for $182k Email Compromise Scheme Targeting Family-Owned Business

NEW ALBANY- Uchechukwu Gideon Eze, 46, of Nigeria, has been sentenced to 21 months in federal prison, followed by three years of supervised release, after pleading guilty to wire fraud. Eze has also been ordered to pay $182,201.80 in restitution.

According to court documents, in April 2023, Eze and co-conspirators operating overseas orchestrated a sophisticated business email compromise scheme that defrauded a small business in Clark County, Indiana of more than $182,000.

The scheme began when Eze’s co-conspirators gained unauthorized access to an email account used by employees of the business. Using this access, they impersonated a representative of the company and sent fraudulent emails to another small business in Clark County. The emails falsely claimed that the victim business had changed its banking institution and directed future payments to a specified JPMorgan Chase account.

That account, while appearing legitimate, was in fact controlled by Eze and registered under the name Blue Horizon Automobile LLC—a fictitious entity created solely to receive the stolen funds. As a result of the scheme, Eze received $182,201.80 in payments meant for the victim company.

Once the transfers were complete, Eze quickly drained the account, spending much of the money on personal purchases, including a new vehicle. Upon realizing the scheme had been uncovered, he fled the country. Approximately six months later, Eze attempted to re-enter the United States from Canada via a vehicle, at which time he was arrested by law enforcement.

The impact on the victimized business was devastating. The owners, both approaching retirement, were forced to refinance property, extend lines of credit, and postpone their retirement plans in order to keep their business afloat.

“The harm Eze caused was not merely financial. His conduct compromised the ability of two elderly individuals to retire and created undue stress, jeopardizing the livelihood of a family-run business and exploiting the trust that fuels our economy” said Tom Wheeler, United States Attorney for the Southern District of Indiana. “Our office remains committed to holding fraudsters accountable and protecting Hoosier businesses from financial harm.”

“Business email compromise schemes are a growing scourge that cause victims severe financial pain, distress and anxiety,” said Ike Barnes, Special Agent in Charge of the U.S. Secret Service’s Indianapolis Field Office. “The punishment imposed in this case should be a warning to other scammers who use cyber-enabled techniques to harm innocent victims: You won’t get away with it. Thank you to the U.S. District Attorney’s Office for its help in bringing this perpetrator to justice.”

The U.S. Secret Service investigated this case. The sentence was imposed by U.S. District Judge Sarah Evans Barker.    

U.S. Attorney Wheeler thanked Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case.

###