Canadians victims of an international hacking network that siphoned nearly $215M

A federal jury convicted 25 people for orchestrating an international hacking network that defrauded over 1,000 victims, extracting over $215 million from individuals, businesses, and organizations in dozens of American states and 19 countries, including Canada.

This article is a translation of content from CTV News.

According to a statement released on Thursday by the federal prosecutor’s office in northern Ohio, evidence and court documents revealed that American individuals, companies, and organizations were targeted and hacked by fraudulent groups with ties to Nigeria, in what is sometimes referred to as “business email compromise.”

Their main goal was to access individual’s email accounts, allowing their accomplices to search through their business practices and contacts by monitoring their activities.

“After gathering enough information about the victim’s business activities, the accomplices would send a fraudulent email either to the victim or to someone in contact with them, asking for payment,” authorities said.

This information was used to craft fraudulent emails in which victims were convinced to make payments under the guise of a legitimate business transaction. Once payments were made, the suspects used a “network” of fake bank accounts and money transfer systems to launder and distribute the stolen funds.

Nearly $50 million from the stolen money was used to purchase bank drafts presented for payment to a monetary services company in the Chicago region owned and operated by co-defendant Lon Goodman, called New Dolton Currency Exchange.

Goodman allegedly “regularly” accepted these payments with false information and continued to work with these individuals, despite multiple warnings from banks about checks obtained through fraudulent means.

“When it became too risky to accept cashier’s checks in an individual’s name, Goodman still accepted checks from these people made out to fictitious companies they controlled,” the press release said.

Bank transfers by the victims ranged from tens of thousands to several million dollars. One company was scammed out of $2.7 million through a bank account of a shell company controlled by a conspiracy member.

Investigators found over $1.2 million in bank drafts, cryptocurrency, and cash during the investigation.

Additionally, they also discovered a Patek Philippe Nautilus watch worth $45,000, an Audemars Piguet Royal Oak watch worth $30,000, a Richard Mille Felipe Massa watch worth $140,000, and a 4,410 sq ft residence in Lawrenceville, Georgia.

Among the 25 defendants, Oluwafemi Michael Awoyemi, 40, of Romeoville (Illinois), Aruan Drake, 37, of Atlanta, and Peter Reed, 35, of Oak Forest (Illinois), were convicted of conspiracy to commit electronic fraud.

Awoyemi and Drake were also convicted of money laundering conspiracy.

Twenty-two other individuals pleaded guilty to electronic fraud and money laundering conspiracy following the conviction of Awoyemi, Drake, and Reed.