A United States-based Nigerian, Ifeanyi Emmanuel Ugwu, is facing up to five years in federal prison after pleading guilty to operating an unlicensed money-transmitting business linked to over $5 million in illegally obtained funds.
Ugwu, 49, a resident of Bakersfield, California, admitted to running the illegal operation between December 2020 and August 2023, according to a statement released by the U.S. Attorney for the Eastern District of California, Eric Grant.
Court documents revealed that Ugwu owned and operated a company identified as Franklin Finance Inc., through which he conducted the illicit transactions.
Acting as the company’s chief executive officer, he reportedly opened and controlled at least 20 bank accounts across nine financial institutions.
Through these accounts, Ugwu received approximately $5 million from more than 100 individuals across the United States.
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The funds were subsequently transferred to recipients in countries including China and Nigeria, despite the company lacking the necessary licenses to operate as a money-transmitting business.
Authorities further disclosed that a portion of the funds handled by Ugwu was linked to cybercrime and fraudulent activities. Investigators traced about $580,000 directly to fraud proceeds from victims.
To sustain the scheme, Ugwu allegedly deceived individuals, banks, and financial institutions by making false representations aimed at concealing the true nature of his operations.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and Homeland Security Investigations (HSI), while Assistant U.S. Attorney Cody S. Chapple is prosecuting.
Ugwu is scheduled to be sentenced on July 27, 2026, by U.S. District Judge Jennifer L. Thurston. He faces a maximum penalty of five years imprisonment and a fine of $250,000.
However, the final sentence will be determined based on federal sentencing guidelines and other statutory considerations.
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