Nigerian man faces five-year jail in US for operating illegal money transmitting business

A 49-year-old Nigerian man, Ifeanyi Emmanuel Ugwu, has pleaded guilty to operating an unlicensed money transmitting business involving more than $5 million in illegally obtained funds in the United States.

 

 

 

U.S. Attorney Eric Grant made the announcement in a statement on Monday, April 6, 2026.

 

 

 

 

According to court documents, between December 2020 and August 2023, Ugwu, of Bakersfield, 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.

 

 

 

Several of the individuals who sent Ugwu funds were victims of cybercrimes and fraud.

 

 

 

Ugwu received and transferred approximately $580,000 in fraud proceeds from these victims.

 

 

 

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

 

 

 

Several of the individuals in the United States who sent funds to Ugwu were victims of fraud and cybercrimes.

 

 

 

The IRS Criminal Investigation and Homeland Security Investigations conducted the investigation.

 

 

 

Assistant U.S. Attorney Cody S. Chapple is prosecuting the case.

 

 

 

Ugwu is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 27, 2026.

 

 

 

Ugwu faces a maximum penalty of five years in prison and a $250,000 fine.

 

 

 

The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables.

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