A U.S. federal court in New York has sentenced Nigerian national, Kingsley Uchelue Utulu, to five years and three months in prison for his role in a coordinated cyber fraud scheme that targeted American tax preparation firms, defrauded the Internal Revenue Service (IRS), and exploited pandemic-era loan programs.

Utulu, 38, who was arrested in the United Kingdom and extradited to the United States, pleaded guilty to conspiracy to commit wire fraud.

The sentence, delivered Friday by U.S. District Judge Paul G. Gardephe, also includes a restitution order of $3.68 million and a forfeiture amount of $290,250.

U.S. Attorney for the Southern District of New York, Jay Clayton, said Utulu and his co-conspirators specifically targeted U.S. tax businesses through spearphishing tactics to gain access to customer data.

“Kingsley Uchelue Utulu took part in a scheme to hack into U.S. tax preparation businesses, trade in the stolen personal identifying information, and defraud the IRS and other governmental bodies,” Clayton said in a statement. “Offshore scammers like Utulu and his co-conspirators may think they can target hard-working Americans with their hacking and fraud schemes and avoid prosecution. The message from the Department and the FBI is clear, they cannot.”

Investigations revealed that beginning around 2019, Utulu and a network of conspirators based in Nigeria hacked into multiple U.S.-based tax preparation services, including firms located in New York and Texas. Once inside the electronic systems of these businesses, the hackers extracted sensitive customer data—most notably tax records and personal identifying information. The information was then used to file fraudulent federal and state tax returns, seeking over $8.4 million in refunds, of which at least $2.5 million was successfully obtained.

According to court documents, the scheme extended beyond tax fraud. The stolen identities were also used to file fraudulent claims with the U.S. Small Business Administration’s Economic Injury Disaster Loan (EIDL) program, introduced during the COVID-19 pandemic to support struggling businesses. Prosecutors say the group secured at least $819,000 through that program using falsified applications.

FBI Assistant Director in Charge, Christopher G. Raia, emphasized the international scope of the case.

“Kingsley Utulu, a Nigerian national, was part of a scheme that targeted and infiltrated electronic systems of U.S.-based companies to steal more than two million dollars through fraudulent tax returns,” Raia said. “Along with his co-conspirators, this defendant’s scheme reached across the globe to exploit sensitive information for financial gain. The FBI will never exempt any individual who seeks to unlawfully profit through deceitful practices, regardless of where they are located.”

The case was prosecuted by the Southern District of New York’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Daniel G. Nessim led the prosecution.

Utulu’s sentencing adds to a growing list of cross-border cybercrime cases pursued by U.S. authorities, as federal agencies expand cooperation with international law enforcement to combat online financial fraud.