Air Peace CEO, Allen Onyema, Has Been Indicted For Fraud & Money Laundering In The US
Written by Smooth FM on November 23, 2019
Allen Ifechukwu Athan Onyema, the Chairman, CEO, and founder of Air Peace, a Nigerian airline, has been charged with bank fraud and money laundering for moving more than $20 million from Nigeria through United States bank accounts in a scheme involving false documents based on the purchase of airplanes. The international airline’s Chief of Administration and Finance, Ejiroghene Eghagha, has also been charged with bank fraud and committing aggravated identity theft in connection with the scheme.
According to a press release by the United States Department of Justice, “Onyema allegedly leveraged his status as a prominent business leader and airline executive while using falsified documents to commit fraud,” said U.S. Attorney Byung J. “BJay” Pak. “We will diligently protect the integrity our banking system from being corrupted by criminals, even when they disguise themselves in a cloak of international business.”
“Onyema setup various innocent sounding multi-million dollar asset purchases which were nothing more than alleged fronts for his scam,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama.
Beginning in 2010, Onyema began travelling frequently to Atlanta, where he opened several personal and business bank accounts. Between 2010 and 2018, over $44.9 million was allegedly transferred into his Atlanta-based accounts from foreign sources.
Beginning in approximately May 2016, Onyema, together with Eghagha, allegedly used a series of export letters of credit to cause banks to transfer more than $20 million into Atlanta-based bank accounts controlled by Onyema. The letters of credit were purportedly to fund the purchase of five separate Boeing 737 passenger planes by Air Peace. The letters were supported by documents such as purchase agreements, bills of sale, and appraisals proving that Air Peace was purchasing the aircraft from Springfield Aviation Company LLC, a business registered in Georgia.
However, the supporting documents were fake — Springfield Aviation Company LLC, which is owned by Onyema and managed by a person with no connection to the aviation business, never owned the aircraft, and the company that allegedly drafted the appraisals did not exist. Eghagha allegedly participated in this scheme as well, directing the Springfield Aviation manager to sign and send false documents to banks and even using the manager’s identity to further the fraud.
After Onyema received the money in the United States, he allegedly laundered over $16 million of the proceeds of the fraud by transferring it to other accounts.
The Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Aviation Administration, Department of Commerce, and Department of Treasury are investigating this case.
Assistant U.S. Attorneys Garrett L. Bradford, Deputy Chief of the Narcotics and Dangerous Drugs Section and Lead Strike Force Attorney, Irina K. Dutcher, and Christopher J. Huber, Deputy Chief of the Complex Frauds Section, are prosecuting the case, with assistance from the Department of Justice’s Money Laundering and Asset Recovery Section and Office of International Affairs.