Akinade Adedeji Raheem, a 43-year-old Nigerian, has been arraigned in the United States over an alleged scheme to obtain more than $100 million in fraudulent tax refunds. Raheem was extradited from the Republic of Benin, where he was arrested in April, to face federal charges. The charges include fraud, money laundering, and aggravated identity theft. He appeared in court on Monday following his indictment and was remanded in the custody of the US Marshals Service pending further proceedings.
According to the US Attorney's Office, Raheem and his co-conspirators filed more than 300 fraudulent tax returns between 2018 and 2023. They used the identities of tax professionals and American taxpayers to obtain personal information, including names, addresses, and Social Security numbers. This information was allegedly used to file false tax returns, with refund payments directed by the Internal Revenue Service (IRS) to prepaid debit cards sent to addresses controlled by the suspects.
Prosecutors allege that some of the proceeds from the fraudulent tax refunds were laundered through money orders and used to purchase second-hand vehicles at auctions. Some of the cars were subsequently shipped to Nigeria. The funds were also allegedly spent on designer clothing and other items. The scope of the alleged fraud has been described as "staggering" by Theodore Hertzberg, the US attorney.
Raheem's arrest followed an international manhunt. US authorities said federal agents attempted to arrest him at his home in April, but he was not found. Less than a week later, investigators discovered that he had booked a flight from Mexico City to Benin. He was arrested by local authorities in Benin on April 15 following an INTERPOL red notice.
Raheem was extradited to the United States last week, marking the second extradition of its kind from Benin. A federal grand jury in Georgia indicted him on February 24 on multiple charges. He faces a maximum of 20 years in prison for conspiracy to commit mail and wire fraud, another 20 years for money laundering, and up to 10 years for access device fraud.
Raheem also faces a mandatory two-year prison sentence for aggravated identity theft. Meanwhile, Abayomi Quadri Eletu, a co-conspirator, was separately indicted in Texas on February 17 and later arrested in the United Kingdom, where extradition proceedings are pending. The US Attorney's Office said it would continue to work with international partners to combat fraud and protect the financial system.
The arraignment of Raheem marks a significant step in the US government's efforts to combat tax refund fraud. The case highlights the importance of international cooperation in investigating and prosecuting financial crimes. Raheem's extradition from Benin demonstrates the commitment of US authorities to pursue individuals involved in large-scale financial crimes, regardless of their location.
Key points
- Akinade Adedeji Raheem faces up to 50 years in prison if convicted of all charges.
- Raheem was extradited from Benin to face federal charges in the US.
- The alleged scheme involved over 300 fraudulent tax returns and $100m in refunds.
