Atlanta man charged in $100M IRS stolen identity fraud

ATLANTA - Federal authorities have unsealed indictments against an Atlanta man and a resident of the United Kingdom for a massive scheme to defraud the IRS using stolen identities.

Atlanta man and partner accused of IRS fraud

What we know:

Federal prosecutors say 43-year-old Akinade Adedeji Raheem of Atlanta and 42-year-old Abayomi Quadri Eletu, who lives in Nigeria and the U.K., conspired to steal millions. Between 2018 and 2023, the pair allegedly created online IRS accounts to steal Social Security numbers and addresses from tax professionals and taxpayers.

The group is accused of filing more than 300 false tax returns. To ensure they got the money, investigators say they filed change-of-address requests with the U.S. Postal Service, so the IRS would mail documents to homes they controlled.

What we don't know:

While the indictment mentions "others" who helped Raheem and Eletu obtain debit cards and file paperwork, the government has not yet identified those people or announced further charges. It is also unclear how many people in Georgia had their identities stolen versus people living in other states.

Scheme used luxury goods to hide stolen cash

By the numbers:

The scale of the alleged fraud is significant. Prosecutors say the scheme sought more than $100 million in refunds. Once the IRS deposited the money onto prepaid debit cards, the men allegedly laundered the cash by buying money orders in small amounts to avoid being caught.

Raheem and Eletu reportedly used that money to buy designer clothes and used cars from auction sites. Some of those vehicles were then shipped to Nigeria.

Defendants face decades in federal prison

What's next:

Both men are charged with conspiracy to commit wire and mail fraud and conspiracy to commit money laundering. Eletu faces additional counts of identity theft and fraud, while Raheem is charged with 14 counts of identity theft.

If they are found guilty, they face a maximum of 20 years in prison for the conspiracy charges and mandatory two-year sentences for the identity theft charges. U.S. Attorney Theodore S. Hertzberg noted that an indictment is only an allegation and the men are presumed innocent until proven guilty.