Nigeria - 419 Coalition 2002 News on Nigerian Scam / 419
Operations
24 DEC 2002
From Sierra-Leone.org site :
419ers Arrested in Sierra Leone
Four Nigerians and a Ghanaian national are in Sierra Leone Police custody, and
officials were searching Monday for at least three other members of an alleged ‘419'
scam ring thought to be operating in Sierra Leone and a half-dozen other West African
countries. A Sierra Leonean schoolgirl was also arrested, but later was released on
bail.
Raphael Ajukwara, Richard Ekechukwu, Frank Uche and Uche Okafor, all Nigerians,
and Ghanaian Charles Doe were arrested in a series of police stings which began in
Freetown last Wednesday. Police are still searching for John Edeh and two other men:
one identified only as "Francis," and the other known as "Alex" or "James" a Nigerian
who reportedly lives at the UNAMSIL barracks in Freetown.
The suspects are alleged to have gained access to the internet dialup account
belonging to a Freetown business, which they used to send out thousands of email
letters to would-be victims with offers of a phony get-rich-quick scheme. The fraud came
to light when a Dominican businessman suspected that his would-be Sierra Leonean
business partners "James Kakudu," his uncle, former Transport Minister "Hon. Chief
Momoh Joe Pujeh," and their lawyer, "Barrister Kunle Cole" might actually be
perpetrating an elaborate scam. They were. Under their proposed scheme, the
businessman was to help the three to set up a phony gold and diamond business in
Freetown. His "partners" would then use the business to smuggle tens of millions of
dollars worth of diamonds out of the country. "James Kakudu" (John Edeh) made the
initial contact, while Raphael Ajukwara posed as parliamentarian and former Transport
Minister Momoh Pujeh. The real Pujeh, who was not involved in the scheme, lost his
cabinet post last year after he and his wife were charged with illicit diamond smuggling.
"Ajukwara-Pujeh" assured the businessman he had a large stash of diamonds which he
had managed to conceal from the authorities.
The "Advance Fee Fraud," also known as the "Nigerian 419 Scam" after an article of the
Nigerian criminal code which deals with fraud, has been around for decades, but has
mushroomed with the growth of the internet. Typically the intended victim receives an
unsolicited letter from someone claiming to be in possession of a large fortune. The
writer cannot gain access to the funds himself and so needs the victim’s assistance,
offering him a generous percentage and assurances that there is no risk involved. Often,
but by no means always, the scam artist hints that the money was obtained illegally. The
victim soon learns, however, that getting the money is not as easy as he had been led to
believe. There are rents and expenses to settle, and fees and bribes to pay all of
which have to come out of his pocket. By the time it dawns on him that perhaps this
"fortune" does not exist after all, it is too late: His money has vanished and the scam
artist has disappeared.
And so, on December 7, the Dominican businessman turned to the Sierra Leone Web
for assistance. The website’s editor in turn forwarded the information to internet expert
Sylvia Blyden in Freetown. Just a year earlier Blyden, again acting on information
provided by the Sierra Leone Web, used her computer knowledge to track down a pair
of Nigerian con men in the Gambia. The two, who had been posing as "Prince
Mohamed Camara," the son of the fictitious "King Octopus Mohamed Camara II" of
Sierra Leone (Sierra Leone does not have kings), were arrested in Banjul amid a flurry
of publicity. The Gambian authorities quietly released them a few days later, citing lack
of evidence. This time around, Blyden promised, the scam artists would face an iron-
clad case.
With the backing of Sierra Leone’s Criminal Investigations Division (CID) and
cooperation from the Office of the President, Blyden was given 24-hour access to Sierra
Leone’s internet "backbone." This allowed her to trace the scam artists to their base at a
home in the Freetown suburb of Aberdeen. She also set up a new email account in the
name of their intended Dominican victim and took over his correspondence with the
scam artists, forwarding to them phony scanned documents and leading them on with
the promise of $700 to be sent through Western Union, supposedly so that their lawyer
could incorporate the business. Then the police set their trap.
Last Wednesday a member of the group, identified as a student at St. Joseph’s
Secondary School in Freetown, showed up at the Union Trust Bank to collect the
money. When the clerk called her name to inform her that, apparently, she had given
them the wrong Transfer Number, plainclothes police closed in. The officers trailed her
outside to where Ajukwara was waiting for her in a chartered taxi. The two were taken
into custody.
A search of Ajukwara’s home on Kinkadie Street in Aberdeen turned up computer
equipment and files of email correspondence which showed the suspects were, under a
variety of aliases, attempting to defraud many more victims around the world. Other
materials retrieved from Ajukwara’s computer suggested the gang hand links to 419
operatives in Guinea, the Gambia, Ivory Coast and Nigeria. Two more Nigerians, Frank
Uche and Uche Okafor, were arrested at the scene, while another man escaped.
Not all of the intended victims were overseas. Among the seized materials,
investigators found letters to a former Sierra Leonean bank official written by Charles
Doe. In the letters, Doe claimed to be "Kwame Boatway," the son of former Ghanaian
Finance Minister Akwesi Boatway. The banker was notified, and when Doe showed up
with a typed "Mutual Agreement" for a $1.5 million transaction, he was taken into
custody. Doe implicated two more men: Richard Ekechukwu, who was later taken into
custody at Howe Street, and "Alex," whom he told police was living in barracks
occupied by Nigerian peacekeepers.
On Saturday a team of CID police detectives went to the 7th Battalion Goderich Street
military barracks with orders to apprehend "Alex," who supposedly lived with a Nigerian
officer. At the barracks, the detectives enlisted the help of Captain Kennedy Okoro, a
Nigerian military police officer. What happened next is in dispute.
According to one of the detectives, Okoro left them for several minutes, then returned
and led two of the detectives to the residence, which they found locked. Police say
Okoro told them the base was Nigerian territory, subject only to Nigerian law, and that he
would not allow the Sierra Leone Police to execute a warrant to search the room. "The
officer said that location is under their auspices, and we cannot execute any warrant at
that premises," one detective told the Sierra Leone Web. Okoro, however, insisted this
was not the case. Rather, he said, the police had failed to show him their warrant. "They
said they wanted to break (into) the house, and I told them that is just outside my
powers," he said Sunday. "In my country, before you can break a house you must have
a warrant, and they produced no warrant yesterday. They produced no warrant at all."
Okoro assured the Sierra Leone Web that if police returned with the proper
documentation, he would cooperate. "I will just take them to the commanding officer and
explain everything to him and so he’ll give the go-ahead for them to do it," he said. In
fact, however, a warrant had been issued, although police agree that Okoro did not see
it. "I did not show it to him because I left it with my men at the post," the detective said.
"But actually we have an authority to empower us to enter this premises. But he said that
particular premises, as long as they are living within that environ, that entire premises
belongs to them, and according to their own law, they will not allow us (to search it)."
The CID’s Director, Superintendent of Police Fodie Umaru Karefa Daboh, downplayed
the incident, and he said his officers would try again on Monday. "Nobody will stop us
from effecting an arrest," he said. "If we are prevented, I’ll write a letter to the (United
Nations) secretary-general directly."
Daboh, who spoke to the Sierra Leone Web by telephone, acknowledged that Sierra
Leone’s police force "does not have the expertise, the technical know-how to have
investigated that case." Without Blyden’s assistance, he said, the authorities would
have been unable to track down the suspects. But technical expertise is not the only
problem facing investigators. Daboh said the five suspects had been interrogated but
not yet charged, because police didn’t know what to charge them with. Sierra Leone’s
legal code has not yet caught up to the internet age.
"Unfortunately we don’t have specific legislation allowing us to charge them to court,"
Daboh said. "This is the first time we have investigated a case like this, and our
legislation probably doesn’t permit that. We don’t have any section in our law, which
offence are we going to charge them." But Superintendent Daboh vowed the suspects
would not get off the hook. "They will not walk away," he said. "I want to discuss that with
the attorney-general. They will not walk away."
The case is being followed carefully at the Presidential Lodge, where officials are
concerned that if Freetown were to [Al Shek Kamara] become a base for con men, it
could scare away the capital needed to rebuild the country after ten years of civil war.
The president’s Aide de Camp, Chief Superintendent of Police Al Shek Kamara worried
aloud that attempts by criminals to defraud businessmen could harm the country’s
chances to attract investment. "The 419 situation that is beginning to rear its ugly head in
this community, in this society we can’t afford it at this time," he said. Kamara added that
President Kabbah had been briefed on the investigation, and that he was supportive of
efforts to take the scam artists off the streets of Freetown. "He’s fighting corruption and
would also want to see these things put behind us," Kamara said. "He would not like a
situation like this." Kamara agreed that prosecuting the fraud under Sierra Leone’s
current laws would be difficult, but he said it was vital that it be done.
"It’s going to be a little problem, although we would try charging them under fraudulent
acts and that kind of stuff," he said. "Really, we don’t have an identity theft act. Even in
the United States, these things are only recently legislated, and we are still operating
under very, very outdated legislation here. But all the same, we will see how best we will
be able to bring them under the old acts that we still have here, and we’ll also try to
ensure that the legislative arm of government does something about this act as quickly
as possible."
Said Kamara: "This is becoming now like a cancer in the society in the whole world, not
only for Sierra Leone, not only for Africa, but in the whole world. This thing is just coming
up everywhere."
The URL of this piece, for as long as it is good, is:
http://www.sierra-leone.org/feature122302.html
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21 DEC 2002
From The Guardian, a Nigerian newspaper:
Rich Nations Fault Nigeria's Financial Crime Law
ALTHOUGH Nigeria has signed new laws against money laundering, it is yet to fully
warm itself into the hearts of the world's rich nations.
The industrialised nations have had to suspend their planned sanctions on the country
after the National Assembly passed the Economic and Financial Crimes Establishment
Bill 2002. President Olusegun Obasanjo, on December 14, signed the bill into law.
The British Broadcasting Corporation (BBC) reported yesterday that the rich nations,
through a body named Organisation for Economic Corporation and Development
(OECD), noted that the law signed by President Obasanjo "significantly enhanced the
scope of Nigeria's 1995 anti-money laundering law."
It added, however, that there were some "deficiencies" in the law, which called for
"special attention."
Nigeria remains on the OECD's list of non-co-operative countries and territories and will
continue to be monitored.
The OECD represents the interests of the 30 most industrialised countries in the world.
The Financial Action Task Force (FATF), an investigative arm of OECD, had threatened
to impose financial sanctions if a December 15 deadline was not met.
The U.S Ambassador to Nigeria, Mr. Howard Jeter told Radio Nigeria earlier this week
that if the law had not met the required standard, his country would have pushed for the
sanctions.
The U.S launched a clampdown on the funding of terrorist groups after September 11
last year.
The OECD also announced it would impose sanctions against Ukraine for failing to
enact effective anti-money laundering legislation.
Sanctions against Ukraine are likely to involve greater surveillance, tougher controls on
financial dealings by outside agencies with Ukraine and its banks, and warnings to
companies seeking to do business in Ukraine.
The status of Nigeria and Ukraine will be reviewed at the next FATF meeting in Paris on
February 12, 2003.
***********************************************************
19 DEC 2002
From The Guardian, a Nigerian newspaper:
U.S. to back Nigeria's fight against financial crimes
THE United States (U.S.) yesterday pledged its readiness to assist Nigeria in its efforts
to stem economic and financial crimes.
The U.S. Ambassador to Nigeria, Mr. Howard Jeter, disclosed his country's position in
Abuja while commenting on the Economic and Financial Crimes (Establishment) Bill
2002, recently signed into law by President Olusegun Obasanjo.
"I am delighted that the law is now in place and from what I heard, it met international
standards" he said, adding that by passing the, Nigeria had now conformed with the rest
of the world on the issue.
Jeter said if the law had not met the required standard, the Financial Action Task Force
(FATF), an arm of the Organisation for Economic Co-operation and Development would
have imposed sanctions on Nigeria that would make it unable to transact business
internationally.
"If Nigeria had passed a substandard legislation, it would have hurt its financial sector
as well as its ability to transact financial business with the rest of the world," Jeter stated.
He noted that contrary to media reports, his country was only interested in Nigeria,
having place in law that conformed to international standards and denied any attempt
by the U.S. to impose its views on Nigeria.
"We noted that the Senate had tried to dilute the bill submitted to the National Assembly
by Obasanjo, while the House of Representatives passed the bill with minor
amendments.
The ambassador said the conditions agreed upon by the FATF and Nigeria were how
to identify transactions, those to carry out the transactions and exemption of the naira in
the transactions.
"The Senate certainly saw that there was a standard that had to be met and decided to
change its mind and I commend them for making sure that those standards were
ultimately met," he said.
419 Coalition note: 419 Coalition hopes all this results in a sustained,
tangible, quantifiable effort on the part of Nigeria to arrest 419ers
operating from within its borders in anything like the numbers which
the magnitude of 419 operations warrant; to convict them, to seize
their assets; and to repatriate the funds in something approaching
the massive amounts that have been stolen. After all, US Government
has already been assisting the Nigerian Government to "control"
its domestic 419ers for several years with little sucess in that
regard. Hopefully things will now improve, we shall see.
****************************************************************
17 DEC 2002
From This Day (Lagos):
Gana, Akaya Take Fight Against 419 Abroad
by Yemi Akinsuyi
To mobilise Nigerian diplomatic missions in Europe for the renewed fight against
financial crimes, Minster of Information and National Orientation, Professor Jerry Gana,
and the Chairman of the National Committee on Financial Crimes (NCFC) Mr. Charles
Akaya, left for the United Kingdom yesterday.
While in Europe, the team is expected to brief the heads of Nigerian missions and all
staff of Nigeria Information Service Centres in the United Kingdom, France, Belgium and
Germany on the main thrust of the committee's strategy for combating the crime of
advance fee fraud, which constitutes Nigeria's major image problem.
The team will also brief the Nigeria Consular and trade officers in Europe on the New
Partnership for African Development (NEPAD), and launch a new programme of Rapid
Response Information Dissemination, aimed at countering erroneous reports about
Nigeria abroad.
Meanwhile, the National Committee on Financial Crimes had alerted all stakeholders in
the Nigerian oil sector worldwide on the existence of an illegal websites on the internet
bearing the Nigerian coat of arms along with the logo of the Nigerian National Petroleum
Corporation (NNPC)
The fake website is http://www.nigeriannationalpetroleumcorporation.com/contact.htm.Stakeholders were
warned against transacting any business on the website NCFC the committee said, was
making efforts towards securing the assistance of relevant authorities in the United
States to knock off the illegal website. It advised all prospective investors, who have
genuine interest in a honest business venture in Nigeria to always direct their enquiries
to Nigerian trade or diplomatic missions nearest to them. It also warned against
unbridled greed and criminal inclination, which actually attract victims to the advance fee
fraud schemes of the fraudsters.
419 Coalition note: 419 Coalition hopes all this results in a sustained,
tangible, quantifiable effort on the part of Nigeria to arrest 419ers
operating from within its borders in anything like the numbers which
the magnitude of 419 operations warrant; to convict them, to seize
their assets; and to repatriate the funds in something approaching
the massive amounts that have been stolen. Otherwise, this trip
aboad by Gana etc. could be termed a PR junket.
*********************************************************
17 DEC 2002
There is an excellent article on 419 in Portuguese that is up
on the Quatrocantos.com site, here is the URL:
http://www.quatrocantos.com/lendas/58_419_scam_nigeria.htm
********************************************************
17 DEC 2002
INFORMATION REQUEST
Bayhall Associates (UK) asks for victims who have had losses to,
dealings with, or knowledge of any of the below listed banks, companies,
or individuals to contact Bayhall Associates (UK)
Transfers to accounts at the following Lagos banks (check your
money transfer forms, they normally go via a US bank):
Fortune International Bank
Eko International Bank
Oceanic Bank International
United Bank for Africa
Peak Marchant Bank
IMB Securities
Referral to the following spoof internet banks:
UFH Bank
Continental Trust Bank
Transfers to accounts with the following names:
Prest Square Ltd
Global Goods and Supply Services Ltd
Multiple Yield Investments Ltd
Clark Investment Ltd
First National Security
Euroland Ventures
Claricop Green Ltd
MMB/CCD Ltd
SBNL Trading
General Metals Ltd
Dealings with the following individuals and companies
(assumed names and fictitious companies):
United Assets
Utinity Trust & Security Service Organisation
Utility Trust and Service
Edward Johnson
Gerald Madu Onuwa
Joe Lawrence
John Umeh
Michael Brown
Sam Beki
Dr Alibux
John Abu Baka
Milagro Fernandez
Greg Williams
John Sticken
Dr Roger Philips
Henry Anderson
John Nels
Lee Kwanghi
Alaji Mohammed
Yus Champollion
Kwang Myung Park
Christopher Davenport
David Stephens
Dr Koffi Steve
Ibrahim Camara
Offi Moses
Steven Richards
Veronique de la Vallase
Dr James Jones
Dr San H. Beki
Edward Johnson
Bassinkom M. Gerry
Dai Nguyen
Elroy Stewart
Evelyn Smith
Everton Stewart
or variations on these themes
***************************************************
15 DEC 2002
From the BBC site:
Nigeria meets money laundering deadline
Nigeria has passed laws to crack down on money laundering one day
before a sanctions deadline set by the world's rich and industrialised
countries.
The Financial Action Task Force (FATF), the investigative arm of the
Organisation for Economic Cooperation and Development (OECD),
threatened to impose financial sanctions against Nigeria if the 15
December deadline was not met.
President Olusegun Obasanjo signed three bills on Saturday which will
also create a financial crimes commission and tightened the regulation
of Nigeria's banking sector.
"A copy of the money-laundering bill 2002 has been sent ... to the
chairman of the FATF," a statement from Mr Obasanjo's office said.
The OECD represents the interests of the 30 most industrialised
countries in the world.
Blacklisted
Nigeria is on the FATF's blacklist of money-laundering countries and is
rated as the second most corrupt country in the world by Transparency
International.
The US, which launched a clampdown on the funding of terrorist groups
after 11 September last year, in particular warned of action if the
deadline passed with new laws.
"The adoption of such sanctions would have had the effect of disrupting
financial flows into Nigeria, including letters of credit transactions," Mr
Obasanjo warned in a letter to the Nigerian senate in October.
The bill had been held up by changes made in the senate to the
threshold at which financial actions had to be reported.
Mr Obasanjo asked for them to be tightened to meet the OECD's
demands.
419 Coalition Note; Looks like Nigeria has gotten itself off the
Sanctions hook once again, but it is important to note that all
the laws and committees etc. in the world are useless so long
as the laws are not enforced. Nigeria has had plenty of counter
419 laws on the books, especially since the Advance Fee Fraud
and Other Fraud Related Offences Decree of 1995. But nothing
much in terms of sustained, tangible, quantifiable efforts against
the 419ers in terms of arrests, convictions, seizures of assets,
and repatriations of stolen funds has been done to date. 419
Coalition hopes these new measures will change all that. But
we doubt it, they are just more talk talk talk our view. However,
we'd be glad to be proven wrong!
******************************************************************
12 DEC 2002
From the Bamex Currency Exchange Inc. Newsletter for DEC 2002 - JAN 2003:
* Monthly Feature *
Nigerian Advance Fee Fraud (4-1-9)
written by:
Melissa Jones
Director of Marketing
Bamex Currency Exchange, Inc.
You probably have received a letter at some point. It arrived by mail, fax or e-mail, and it
was sent from Nigeria or other West African country. The individual writing the letter
requests your assistance in moving millions of dollars out of his country, for any one of a
multitude of reasons, and insists he will pay you a percentage of the funds. Or he informs
you that you are about to receive an inheritance from a long lost relative you never knew
you had. All you need to do is provide some basic information, like your banking details
for instance, and he will take care of transferring the funds into your personal account.
The letter looks official and purports to be completely legitimate. It seems like you hit the
lottery, but is it for real?
Advance Fee Fraud -- also called "4-1-9" fraud after the section of the Nigerian penal
code that address fraud schemes -- is a sophisticated, international scam operation.
The great majority of Advance Fee Fraud schemes originate from Nigeria, but some
operations do have origins in other West African countries. The perpetrators target
anyone from individuals to companies all over the world, and many of these scam
artists work within Nigeria's own government and banking institutions.
Nigerian Advance Fee Fraud began as a letter mailing ring. It first appeared in the mid-
1980's after the collapse in the price of oil. As Nigeria's main export, oil provided the
largest source of foreign income to its economy. With the economy's downturn, many
Nigerian professionals turned to crime. Advancements in technology have increased
the reach and scope of these illegal operations. The Internet and e-mail has allowed
these criminals to target more people at a faster rate than ever before, and victims are
still falling into their traps. These crimes have become so pervasive that special groups
and taskforces -- both government and independent -- have been established
specifically to combat this activity. "Operation 4-1-9," a U.S. Secret Service taskforce,
and The 419 Coalition, an independent group, are some examples.
Advance Fee Fraud is estimated to cost American citizens and businesses hundreds of
millions of dollars annually. The actual cost may be much more, since it is likely there
are victims who do not report their losses to authorities due to either fear or
embarrassment. The Financial Crimes Division of the Secret Service receives
approximately 100 telephone calls from victims/potential victims of 4-1-9 fraud and 300-
500 pieces of related correspondence per day. According to The 419 Coalition website,
"Monies stolen by 419 operations are almost Never Recovered from Nigeria."
According to the official website of the United States Treasury Department, 4-1-9
Schemes frequently use the following tactics:
An individual or company receives a letter, fax or e-mail from an alleged "Official"
representing a foreign government or agency. An offer is made to transfer millions of
dollars in "over invoiced contract" funds into the individual's or company's bank
account. Often, victims are requested to provide blank company letterhead and
purchase order forms. The perpetrators use these materials to forge letters of
recommendation to other victims and to seek out travel visas from the American
Embassy in Lagos. They will also request banking account information. The receipt of
this information acts as a signal to the culprits that they have hooked another victim.
During the course of interactions with the perpetrators, victims will receive numerous
documents with official looking stamps, seals and logos testifying to the authenticity of
the business deal. Eventually, "problems" will arise with the transfer or release of funds.
At this point, the victim is informed that he must provide up-front or advance fees for
various taxes, attorney fees, transaction fees or bribes in order to receive the funds. The
objective of this scam is to get victims to pay out as much money as possible through
these "fees" until the victim either gives up or runs out of money.
Sometimes, victims are encouraged to travel overseas to complete the transaction.
There have been reported deaths and kidnappings related to this type of fraud. In June
of 1995, an American was murdered in Lagos, Nigeria, while pursuing a 4-1-9 scam, and
over the years numerous other foreign nationals have been reported as missing.
The most common forms of 4-1-9 business proposals fall into seven main categories:
* Disbursement of money from wills
* Contract fraud (COD of goods or services)
* Purchase of real estate
* Conversion of hard currency
* Transfer of funds from over invoiced contracts
* Sale of crude oil at below market prices
Nigerian advance fee scams grow more sophisticated each year. Following is
abbreviated text from a warning on 4-1-9 scams that was issued from the Treasury
Department's website:
"FinCEN has recently become aware that the perpetrators are trying to provide
legitimacy to the scheme by sending a letter on imitation U.S. Government letterhead
with the forged signature of FinCEN's Director, James F. Sloan. In addition, this letter
indicates that pursuant to the USA PATRIOT Act and an Executive Order, any money
being wired into the country requires a fee to be paid, which would be applied to
rebuilding the World Trade Center. The information contained in this letter is false and
the letter is fraudulent. FinCEN has never issued such a letter, there is no such fee
required under federal law and Director Sloan's signature was falsified."
Every day, all over the world, people continue to fall victim to these financially
devastating scams. One recent high-profile case involves a Michigan woman who
embezzled $2.1 million from her employer, a law firm, to cover the increasing expenses
of helping a South African man "transfer $18 million to a U.S. bank account." She never
received her "multi-million dollar payment" from the man, and she is now facing a prison
term and thousands of dollars in fines.
How can you protect yourself and your money? Arm yourself with information and use
common sense! If something sounds too good to be true, then it probably is. No one
else will look after your interests or financial well-being. If you have received
correspondence you believe to be related to a 4-1-9 scam, or if you have been a victim
of advance fee fraud, The 419 Coalition website provides information on how to report
this activity.
The link to this piece is, for as long as it is good, http://www.bamex.com/newsletter.html
************************************************************
11 DEC 2002
From The Guardian, a Nigerian newspaper:
Govt wants U.S. to try Nigerians for financial crimes
From Emmanuel Onwubiko, Abuja
FIVE days before the expiration of an ultimatum for the country to tackle financial crimes,
the Federal Government yesterday urged the United States to prosecute Nigerians who
are guilty of those offences.
The deadline by a U.S.-based World Bank agency for Nigeria and some corporate
bodies in the country to check-financial fraud will expire on December 15.
At the second parley of the U.S./Nigeria Law Enforcement Commission in Abuja, the
Federal Attorney General Kanu Godwin Agabi (SAN) said: "Ambassador Howard Jetter
has made more sacrifices to ensure our good standing, more than many of us who held
high office can even dream of."
He told the U.S. government: "One way in which you can reward and complement his
effort is by arresting and prosecuting in Europe and the United States, those Nigerians
who continue to violate the money laundering laws of the world."
According to Agabi, many Nigerians are guilty of financial crimes right now, adding:
"arrest and prosecute and punish them in your country. Nothing will please us more and
nothing will sanitise our country more."
Agabi recalled that at the inaugural meeting of the U.S./Nigeria Joint Law Enforcement
Commission held in Washington, a number of far-reaching decisions were reached.
These decisions set the framework for future engagement and gave further justification
for "reappraisal of our respective commitments."
He said: "We agreed to co-operate on a wide range of law enforcement issues,
including drug trafficking, extradition, corruption, financial crimes and money laundering,
police reforms, human trafficking and immigration crimes. Nigeria has made substantial
progress in line with her obligations."
On what government has done to battle drug trafficking, the minister said: "In the area of
drug trafficking, Nigeria has strengthened the operational capacity of the NDLEA, which
translated into many successful investigations, dismantling of drug trafficking syndicates
and conviction of drug traffickers. In particular, the NDLEA has improved its joint
operations with the U.S.DEA. An important element in this co-operation is the success of
the West African Joint Operations (WAJO) initiative, which has received substantial
support from the US DEA.
Nigeria, he said, had already extradited one individual, and arrangements for the
extradition of two others had reached an advanced stage. He disclosed that to facilitate
the process of extradition, a judge had been designated at the Federal High Court to
handle extradition matters.
Agabi stated that he did not trust the credibility of the Europe-based Transparency
International, for what he called double standards while he criticised European
countries, which receive looted funds from developing countries in Africa.
Jetter, who was at the head of the delegation to the parley, said the U.S. government
would offer practical assistance to Nigeria to battle the scourge of transnational crimes.
Meanwhile, the Federal Government yesterday appointed a six-man National
Consultative Committee on Justice Sector Reform. The committee, headed by the
Attorney-General, is to work out modalities for reforming the judiciary in the country.
419 Coalition Note: We shall see shortly if this is sufficient for Nigeria to
avoid the 15 DEC deadline for the imposition of sanctions, the betting
here is that it will be. However, we shall also see if Nigeria actually
does put in place a sustained, tangible, quantifiable effort to arrest 419
criminals operating from within Nigerian borders, to convict them, and
to seize their assets and repatriate monies to victims of 419 in anything
like the huge amounts in which it has been stolen. The betting here
on that is that Nigeria won't at this time and that she won't until powerful
sustained sanctions give her no viable alternative to doing so, no matter
what the Nigerian Government says, talk being cheap and all. But one
can always Hope for the Best, of course, and we shall.
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10 DEC 2002
From news,com.au - Australia
Letter scam sparks arrest
A Melbourne financial planner allegedly transferred more than $700,000 from clients into
a Nigerian letter scam, Australia's corporate watchdog said today.
The planner has been temporarily restrained from receiving money connected to the
supply of financial products and services.
The Corporate watchdog, the Australian Securities and Investments Commission
(ASIC), said an interlocutory order against Robert Andrew Street had been made in the
Federal Court.
ASIC alleges that between April and August 2002 Street borrowed more than $700,000
from clients by misrepresenting the purposes for which the money would be used.
ASIC alleges that Street and his company Tira Pty Ltd transferred the money to
overseas destinations after receiving a proposal from a person purporting to be the
Reverend Sam Kukah, chairman of the Presidential Payment Debt Reconciliation
Committee in Nigeria.
Here is the link for as long as it is good: news.com au 419 article
*******************************************
9 DEC 2002
From The Guardian, a Nigerian newspaper:
CIBN lists new measures to curb financial crimes
By Sylvester Ebhodaghe and Bukky Olajide
A NEW set of legal framework is among measures being listed by the
Chartered Institute of Bankers (CIBN) to checkmate rise in financial
crimes and cyber fraud in the country.
Already, the trap of Central Bank of Nigeria (CBN) has caught a 36 year
old man who was almost celebrating a new success, in his vice
activities.
At the recently held national workshop on financial crimes and cyber
fraud, CIBN President, Maize O.C.K. Unegbu noted that "to check cyber
frauds especially in a banking system where insider staff are potential
culprits, there should be segregation of the functions whereby high
information technology (IT) literate personnel should be restricted to the
role of system administrators.
According to Unegbu, they should not be allowed to operate because
they are so knowledgeable that if they have a criminal bent, they could
wreck havoc. Adding that others who are merely functional literate in IT
should be deployed as operators.
He also noted that efforts should be made by management staff to
update themselves and be at the cutting edge of the technology
always. This he said will make them to consistently stay ahead of the
cyber fraudsters.
Other measures listed by the CIBN president at the three-day workshop
organised by the office of the Auditor-General of the Federation in
conjunction with Lagos based Afro Consult Limited also include regular
update of systems.
According to him, both the hardware and the software should be at the
cutting edge of technology so that one does not rely on an obsolete
system and become easy prey to the crooks.
"Consistent and vigorous checks on the payment process, approved
and authorisation limits have stood the test of time as effective security
measures," he stated.
Speaking further, the CIBN boss said a new set of legal framework is
needed to cope with issues of electronic financial transactions, adding
that it will be difficult in the existing framework to successfully prosecute
e-banking crimes.
"The duty segregation should be re-enforced with the installation of log
protocols that track and record on daily basis all activities carried out
by each worker, using the PC. This record is printed out first thing the
following day for review. The point is that once everyone knows' that
whatever he does will be traced to him, he is unlikely to commit
illegality. In other words, the fear of being found out stays the hand of the
would be fraudulent staff," he stressed.
He also observed however that the anxiety over financial crimes is
indeed a genuine one due to its heinous origin and harmful effects.
"Because cyber fraud usually involve mind-bulging sums of money, it
can undermine the efficacy of monetary policy through arbitrary inflation
or deflation of money supply and distortion of resource allocation in the
economy.
"Also, the enormity of resources involved in cyber frauds and other
financial crimes bestow on the perpetrators superior economic power,
enabling them to penetrate perceived obstacles or hurdles in an effort
to hijack social and political powers."
Commenting on the adverse effect of the menace on the image of
Nigeria, the CIBN boss stressed that "as a matter of fact, financial crime
has become a pandemic disease whose scourge has no respect for
geo-political boundaries, race, ideology or the level of economic
development.
"It has indeed assumed an almost intractable dimension even at the
global level. The picture in Nigeria simulates that of fighting a losing
battle to salvage majority of Nigerians from being converted to what is
apparently becoming a national malaise." He added.
"Unfortunately, government's efforts at combating these abnormal
developments appear to be getting drowned as the practices, instead
of abetting, spreading and even degenerating into syndication, thereby
constraining economic development."
CBN recently through the mechanism facilitated the tracking of one
Emmanuel Ekocha for allegedly defrauding an Indian nationale, Dr.
Balriukund Bhat of $20 million (about N2.6 billion) and the man has
already been arraigned before a court in Lagos.
In a release signed by CBN's Acting Director, performance
improvement Department (PID), Mrs. O.O. Akanji the apex bank
disclosed recently it has devised a technique of tracking the 419
scammers through sophisticated means, after which the bank calls in
the Nigeria Police for arrest and prosecution of the fraudsters.
According to the release, the CBN also along with a parastatals and the
Federal Republic of Nigeria have recently won a case in the U.S. in
connection with spurious 419 scam claims by a gullible victim.
"The case has demonstrated the resolve of the Nigerian authorities in
letting the whole world know that financial crimes do not enjoy official
support contrary to the insinuation in some quarters. The bank had
previously placed adverts in major newspapers around the world and
at home, interacted with embassies and the international community
with a view to exposing various modus operandi of the 419 scammer,"
the release said.
The release further said that the apex bank also recently constituted a
committee to handle 419 scam inquiries and other related issues in
addition to a page on the same matter situated on the bank's website
(www.cenbank.org) which has been commended by Internet surface
who found the site very helpful.
The release added that the CBN has always sensitised the
international community on the danger inherent in conducting business
with people whose antecedents are unknown.
The release therefore advised that people should make enquiries
though the Central Bank authorities for offers involving the name of the
bank and its officials.
**************************************
419 Coalition comment: Yada, yada, yada, the usual and oft repeated
largely meaningless stuff. Where are the mass arrests? Where are the
mass convictions? Where are the 419ed monies? When will they be
repatriated? And what is the point of calling offices of CBN when
people just get put through to 419ers? Why does CBN fund advertorials
rather than funding sustained tangible quantifiable efforts against the
419ers that produce arrests, convictions, and asset seizures? And
why in hades does CBN continue to put out the kind of bull it does
in the above article and the self-righteous manure concerning 419 that
it puts on its website, where it is pretty clear that CBN's view of 419
is (erroneously) that it's Everybody Else's Problem, not theirs?
Sheesh... gets tiresome after awhile. And 419 rolls on and on....
Over the last year, 419 Coalition ALONE has sent in Thousands
of 419 letters with LIVE Nigerian phone numbers to the Nigerian
authorities, and since we don't even ask for targets to send their
419 letters to us, that's is the tip of the tip of the iceberg. Where
are the thousands of arrests which should have resulted? Where are
the (at least) hundreds of convictions which should have resulted?
It is patently absurd for the Nigerian authorities to currently claim
that sustained, tangible, quantifiable actions against the 419ers
have been taken or are being taken in anything like the magnitude
necessary to deal with the magnitude of the 419 problem emanating
from their country,
Last we heard, the latest stat from the Nigerian government was still
only 22 convictions for 419 in the whole 20 year or so history of 419,
and several of those were in absentia. Now, THAT is a relevant
stat when one considers the counter-419 efforts of successive
Nigerian governments. As is the dearth of seized 419er assets
and the miniscule return of 419ed funds.
********************************************************************
29 NOV 2002
Here is an article that recently appeared in the Budapest
Business Journal in Hungary:
The scam busters
An intrepid writer and a team of consultants have probed the murky world of the Nigerian
e-mail scheme - and offer some crystal-clear advice
Peter.Olah@bbj.hu
Your first instinct on receiving an unsolicited message from someone you have never
heard of, promising large amounts of money in exchange for a little assistance, might be
to immediately destroy it.
But American investigative writer Brian Wizard, while recognizing such messages for the
frauds that they are, decided to pursue the matter. The result is a book exposing the
devious schemes in detail, entitled Nigerian 419 Scam ‘Game Over’.
The 419 scam started out in the 1980s and primarily targeted the United States and
Western Europe. Nowadays, they are shifting their target to new, so far less affected
locations such as Central-Eastern Europe and Asia, Wizard said last week while
promoting his book in Hungary. The scamsters are abusing basic human
characteristics - greed and gullibility. It is easy to lose private and corporate funds as
well as have one’s human relationships damaged.
Wizard explained that the term 419 comes from the section of the Nigerian Criminal
Code outlawing fraudulent activities, though not all 419 scams originate in Nigeria. He
says that according to modest estimates, in excess of $5 billion has been stolen by 419
criminals worldwide so far.
And still, there are people getting scammed every single day, he said.
Charlie Patrick, partner responsible for KPMG Forensic in the Central-East European
region, concurred.
Despite several years of warnings, there are still regular victims, even in sophisticated
economies, he said. Numerous such messages have been received by KPMG offices
in the recent past and we see them becoming more common in Hungary. Most people
routinely receive e-mails from strangers and generally delete them without reading.
However, when they receive a message from the widow of a recently deceased African
dictator, they start to take notice.
KPMG recently prepared an information sheet about 419 fraud, outlining its typical
characteristics and the way to avoid it.
Trick or treat
According to Wizard, regardless of the amount offered and the reason provided, all
scam operators follow the same pattern for fooling the unsuspecting victims.
The white-collar criminals claim that they have supervision over large funds, which are
currently held for various reasons. In order to collect the sum, the recipient is expected to
pay a small and usually later a larger contribution, which, the scamsters explain, is
needed to put the transaction on track.
They claim that the money is needed to open an account to release the funds, or to
bribe local decision-makers, Wizard said, adding that the swindlers are also ready to
provide the victim with all kinds of real-looking fake documents about the existence of
the money.
In one of the existing scam scenarios, Wizard said, the scamming method is a
modernized version of a centuries-old West African con called the red mercury scam, in
which it is claimed that a special chemical is needed to clean bank notes that have
been defaced in order to make them usable.
The trick is that the bad guys are in need of cash to get new supplies of the chemical so
that they can get the money transferred, he said.
In other scenarios, people are told that foreign entities willed them large amounts of
money, or that the scamsters have authority to transfer the exchange value of large
contracts or have government funds to take out of the country. In some cases they
specifically target religious organizations by claiming that they represent a church
whose funds are in danger, and that it needs help to get the money out of the
country,Wizard said.
According to KPMG’s fact sheet, the e-mails are normally sent from a free e-mail
account, and the message may claim that the recipient’s name was found through a
respected source, such as a local chamber of commerce directory. The message
typically claims that a large sum of money, normally over $10 million, is not accessible
for various reasons, and it also says that the recipient’s help is requested to unlock the
funds, for which a substantial commission, typically 25%, is promised, the fact sheet
says.
The fact sheet also notes that it is frequently stated that 5% of the funds will be used to
pay transaction costs and that the sender will retain the remaining 70%. It adds that the
sender usually guarantees that the transaction is “risk free” and asked to treat the matter
as strictly confidential.
Meet Joe Black
KPMG’s Patrick said that many victims recognize the scam for what it is at this stage and
stop their involvement, although their initial moneys will be lost. However, the really
gullible even go as far as traveling to Africa, meet with the fraudsters and end up paying
more fees, he said.
So did Wizard, but for a different reason.
Wizard first received such an e-mail in the fall of 1999 and he decided to thoroughly
investigate the issue by pretending that he was game for the scam. “I was even ready to
sacrifice some money to get as much information as I could, he said.
Driven by his investigative instincts, Wizard soon got in touch with four different Nigerian
scamster groups, which operated independently from each other.
After communicating by e-mail, fax and telephone with various people in Nigeria, Spain
and London, Wizard traveled overseas to meet the swindlers in early 2000. He met two
different groups in London and in Amsterdam, both of which demanded hefty amounts of
money from him. The London group needed money for ‘special chemicals,’ while the
Amsterdam one requested him to join the exclusive ‘Secret Bank’ at a cost of $75,000,
before the millions would be transferred. At the Amsterdam meeting, Wizard overheard
a phone conversation between one of the criminals and a previous victim, who, having
paid the bank admission, did not understand why the bank transfer was ‘delayed.’
Wizard, who finally left Amsterdam with no financial losses and a full picture about the
scam, said the entire investigation, including phone bills and the trip to Western Europe,
cost him about $4,000. In exchange, I had them write one-third of my book, he joked.
Later on, however, he received three death threats from scam groups.
In order to spread information about the scams, Wizards posted his experiences on his
own website (www.brianwizard.com), which he regularly updates with the latest
information about the scams.
Don’t do it
Both Wizard and KPMG agree that victims of any 419 scam should not count on much
assistance from the authorities, either locally or in Africa. Even if a complaint is made,
there is very little chance that any funds will be recovered.
‘I was helping foreign entities carry out an international money laundering scheme, when
I found out that it was a scam and they fooled me,’ does not sound like a promising way
to file a claim to the police, Wizard said.
Citing unofficial statistics that claim 419 crimes to be the third to fifth largest revenue-
generating activity in Nigeria, he said it is suspected that banks and top public
administration officials are involved in the scam.
Do not be scammed, be informed Wizard said, explaining that education about the 419
scam is the ultimate weapon against the fraudsters. He has been taking his information
to people around the world: His stay in Hungary is part of a tour that also includes visits
to Ukraine and the Czech Republic.
According to KPMG’s sheet, the best tactic is never to reply to such a message,
because besides the possibility of being fooled, any response could be used to steal
your personal or company details.
Wizard also suggests that recipients should use their common sense on acting upon
such ‘business proposals.’
The first question should be: ‘Why me?’ And then you should remember that if
something seems too good to be true, it probably is, he said.
419 Coalition Note: This article also appeared in the Prague Business Journal
of 9 DEC 2002, here is the link for as long as it is good:
http://www.pbj.cz/user/article.asp?ArticleID=166435
*****************************************************************
26 NOV 2002
From ThisDay, a Nigerian newspaper:
How to Curb 419, By Utomi
Professor Pat Utomi of the Lagos Business School (LBS) has suggested major sting
operation by the Federal Government to arrest perpetrators of the Advance Fee Fraud
(419) to redeem the image of the country dented by the scams.
Utomi, who was speaking with newsmen in his office at the weekend, said that urgent
action was needed to put an end to the advance fee fraud, noting that there were not
more than 5,000 Nigerians involved in advance fee fraud.
He said that a sting operation will lead to the arrest of the culprits who should be brought
before a high court judge.
"A small fraction of people are engaged in this business in a country of about 100 million
and it is possible to get at them,'' Utomi said.
"A well planned sting operation will lead to their arrest. Set up a court to try them and
impose jail term," he said.
The LBS director said it was not enough for the Central Bank of Nigeria (CBN) and other
federal agencies to run adverts in international media on the phenomenon and called
for a more severe action.
He said advance fee fraud and other financial crimes had enormous adverse effect on
the country's economy, scaring away investors and denting the image of Nigeria
businessmen.
A federal agency set up to curb financial crimes, said at the weekend that it had
received 62 reports of advance fee fraud and related crimes since its inauguration last
year.
The National Committee on Financial Crimes Chairman, Charles Akaya, told newsmen
at the weekend that it had concluded action on nine cases and taken one other to court.
Akaya, a commissioner of police, advised local and foreign businessmen to be wary of
responding to business proposals from unknown persons and to cross-check the
promoters of the deals with national business bureau and agencies, including
chambers of commerce.
419 Coalition Note: Sustained sting operations would be excellent and
are long overdue. On the figure given of 5,000 Nigerians involved in 419,
that's awfully low for the third to fifth largest industry in the nation
and there really is no basis for that figure that we know of. Finally,
if this Nigerian Government Agency set up to curb financial crimes only
received 62 reports of 419 and other financial crimes in the last year,
something is terribly wrong with its operations, as 419 Coalition ALONE
has sent thousands of reports of 419 to the Nigerian authorities over the
last year, and we don't even try to Collect such reports in the first place!
62 reports of 419 total over the last year...... ROFL :) :) If it was
not so sad the Government of Nigeria continues to give out absurd
stats like this it would be Funny :) :)
**********************************************************************************
25 NOV 2002
From The Guardian, a Nigerian newspaper:
Anti-scam body trails on fraudsters, arrests 62
By Alex Olise, Police Affairs Reporter
AS the National Committee on Financial Crimes clamps down on fraudsters in the
country, all business centres and other service providers engaged in scams may have
been ordered to shut down just as 62 suspected dupes have been arrested for
international fraud.
Also, cyber cafes and other illegal operators nation-wide are expected to close down
their businesses or face the wrath of law enforcement agents who may begin an
intensive surveillance aimed at ridding the nation of scams.
The committee's chairman, Mr Charles Akaya, a Commissioner of Police (CP),
disclosed this to reporters in Lagos at the weekend, while alerting the nation, to the new
wave of financial scams.
Members of the committee, which was inaugurated by the then Inspector-General of
Police, Mr. Musiliu Smith, on December 4, 2001 are drawn from some federal ministries,
agencies and parastatals.
The committee is charged with the responsibilities of facilitating the process of
information and intelligence gathering, as well as investigation and prosecution of
criminals.
According to Akaya, the committee is probing many advance fee fraud cases having
international linkages as well as cases within the country involving huge amounts of
money.
He said that the 62 persons arrested were now facing interrogation in his office.
He noted that most of the cases were reported to his office by victims, while the others
were referred there from government agencies and departments as well as members of
the public.
According to him, the latest in modus operandi of international scam is the connivance
of some Nigerians businessmen with foreign counterparts to dupe victims who are
eager to import goods to the country.
A recent incident occurred in Dubai, where some Nigerian businessmen lured some
persons to transfer money abroad for the purpose of receiving goods, which were not
seen many months after, the police chief said.
The Nigerian fraudsters often later go abroad to take their share from their foreign
collaborators, he added.
He warned foreigners and Nigerians to be wary of huge business proposals and
suspected phone calls, as they were likely to be fraudulent.
419 Coalition note: As always, we welcome any quantifiable and tangible
sustained efforts by the Government of Nigeria to control 419. Controlling
the Internet Cafes etc. would indeed be helpful.
However, we must also note that the above stress on "foreign collaborators"
being a big part of goods and services 419 is simply not accurate, nor is
the statement that Nigerian fruadsters go abroad to take their share from
foreign collaborators. 419ers often do go abroad, but it is generally to enjoy
life etc. The latest press on Goods and Services 419 actually seems to be
the "buying" of goods or services, paying for them with a bogus cashier's
check for greater than the amount required, then asking for the change etc.
There has indeed been an upsurge of that type of 419 over the last year.
419 Coalition would also like to have the names of the 62 arrested, the date
of their arrest, info on whether they are incarcerated or are out on bail etc. and recommends that the Government of Nigeria publish these names etc. in the
local media as soon as possible to include the major Nigerian newspapers
as it has said repeatedly in the past that it would.
**********************************************************************
22 NOV 2002
This in The Press, a New Zealand newspaper. It was sent
to 419 Coalition in a mail in which the subject line was "Death
by 419":
Key man in $4m hunt dies
By MARTIN VAN BEYNEN
One of the key people behind the Cuttle and Isaacs collapse has died in London while
trying to recover the $4 million lost to an African scam.
Sources confirmed yesterday that Peter Bell, a director of the Ashburton stock firm that
collapsed in January owing millions to farmers, had died in his London hotel room,
probably of a heart attack.
Mr Bell, believed to be in his late 40s, had been in London for several months trying to
regain the $4m he siphoned from company funds for the scam.
He gave the money to former farming friend Brian Banks, a Christchurch businessman,
who had convinced Mr Bell they would net about $8m from the scheme. Mr Bell wanted
to buy several meat works in the North Island.
The two men were duped by a well-known scam which was based on the fiction the
family of former President Mobutu, of Zaire, needed help to bank a shady $US40m
fortune in banknotes.
Millions of dollars of Cuttle and Isaacs funds were used to pay fees associated with a
supposed cleaning process to remove a chemical from the money.
Mr Bell and Mr Banks were confident as late as August this year, when both had been
bankrupted, that the deal would come to fruition. They raised a further $50,000 which was
ploughed into unsuccessful attempts to recoup the money.
Last month Mr Banks told a Christchurch court he had been in touch with Mr Bell in
London, and he was confident of a good result within weeks.
Close connections of the Bell family were reluctant to talk last night out of respect for Mr
Bell's wife, Karen, and their children.
Gerald Dolan, a Rakaia farmer who lost about $20,000 in the collapse, said he had
known Mr Bell for many years and had been "staggered" by his part in the debacle. Mr
Bell had been his drafter (selector of stock for market) for the last 10 years and had
been extremely good at his job.
"But he was always ahead of himself. He tried to push the envelope a little further.
"He always had a scheme going, but he knew his job," Mr Dolan said.
"We got some marvellous deals out of him. It all came crashing down. All the good he
did was ruined overnight ... "
Mr Bell, a very private man, had not got on so well with his fellow drafters, Mr Dolan said.
"You saw it in the sheepyards and the stockyards. He was a bit of loner.
"He set up all these deals but he kept them to himself, and as a result he went from one
stock firm to another over the years until he came into his own set-up."
Mr Bell would often talk about his schemes and was heavily involved in the export of live
sheep.
"He was one of those busy little guys who always had something big going. He was
always after the big dollar," he said.
He could imagine Mr Bell being taken in by someone with a better scheme than he had.
Those who had lost big amounts in the collapse would be annoyed by Mr Bell's death,
he said.
"They would know now they are not going to get anything. You always hope something
will turn up but now they know they'll get nothing. It's the end of the road."
Mr Bell was supposed to have returned to Christchurch this month to answers questions
put by company liquidator Warwick Ainger under a statutory examination process. He
missed several court dates.
*********************************************************************************
16 NOV 2002
From the Nigeriaworld website:
US Warns Nigeria on Financial Crime Bill
From Chuks Okocha in Abuja
The United States Ambassador to Nigeria, Mr. Howard Jeter yesterday carried the
campaign for a legislation to combat financial crimes to the National Assembly, war-
ning that Nigeria will be sanctioned if the bill is not passed by December 15, 2002.
The US envoy who visited the Deputy Speaker, Hon. Chibudom Nwuche in his office in
company of the United States Law Enforcement Coordinator in Nigeria, Mr. Mac Taylor
said it is worrisome that anti-financial crime laws in Nigeria are below the international
standard, and called on the Deputy Speaker to ensure that the bill receives prompt
attention.
He explained that he was at the National Assembly to express the US concern that
Nigeria pass the anti-financial crime bill so as to meet the Financial Action Task Force
(FATF) standard and curb the effects of financial crimes.
Howard said that it is the position of the FATF that "if the legislation is not passed to
bring Nigeria into international compliance with minimum standards, then there would be
counter measures."
According to the US envoy "Counter measures will come with some sanctions and
imposition of financial sanctions and this will have dire consequences for the financial
sector and also on the economy as a whole and therefore for the people of Nigeria. It is
a very very important issue," he stressed.
In this regard, he said "I came to see the Deputy Speaker to register our concern to urge
him to use his good office to try to get this legislation passed quickly."
In response, Nwuche told the US Envoys that the National Assembly was concerned
about the quick passage of the legislation.
It would be recalled that FATF; a group of 49 European and American nations had in
October called on the Federal Government to ensure the passage of the financial crime
bills before December 15 or face financial sanctions to the extent of not honouring letters
of credits from Nigeria.
It was in this regard that President Olusegun Obasanjo wrote to the National Assembly
asking for a prompt passage of the bill to avoid the sanctions from FATF.
Meanwhile, the three bills on financial crimes have passed their first reading at the
House.
**********************************************************************
5 NOV 2002
From the Vanguard (Lagos):
International Financial Crimes: Nigeria Receives Wake-Up Call
United States of America and the European Union (EU),have given Nigeria up to
December 15, 2002 to act on international financial crimes which are giving this country a
bad image at home and abroad.
The scams which have remaTnd unchecked have been undermining President
Obasanjo's efforts at obtaining direct foreign investment as well as debt relief for the
country. Should they carry out their threat, December 15 is mere six weeks away before
the international community spear-headed by the two most powerful economic blocks
impose painful sanctions on this nation. Even without such penalties, the country has
been gripped by intractable economic depression since the early 1980s.
It will not do to hang the current imbroglio on an international conspiracy against Nigeria
in this matter. It is glaring that some unscrupulous Nigerians have disgraced the nation
by their criminal records. We are said to lead the world in financial scams (known locally
as 419) that are committed across national boundaries. At home, N61 billion is known to
have been fraudulently siphoned from the banking industry alone in the last three years;
this is apart from the fact that many banks have been involved in money-laundering
which they know too well is an offence, all in the bid to fatten their bottomlines. Such
unscrupulous banks care little if the nation's economy goes down the drain in the
process.
For a long time the world had taken a wait and look attitude to criminal financial activities
in Nigeria and by Nigerians and we have stubbornly refused to mend our ways. As a
nation we cannot but take firm and decisive actions to stem a malaise that is so
economically and socially disruptive.
Now, the world is no longer waiting because they have seen enough of our
procrastination on these matters. They have decided to kick us where it hurts the most.
True, the President has presented a Bill to the National Assembly designed to arrest
this scourge. Yet it is not clear if the two houses considered it worth their time to act on it
now. It is our sincere hope, however, that the leadership of the two Houses, which are
currently engaged in self-inflicted distractions, would understand that local politics ends
at the border. Financial crimes otherwise known as 419 affect our relationship with the
rest of the world which cannot be kept waiting until we settle our domestic differences.
Vanguard suggests that the Bill submitted by the President should be given accelerated
hearing to ensure that we beat the December 15, 2002, deadline. It will be the first step in
our journey towards becoming a respected member of the international financial
community.
***********************************************************************************
5 NOV 2002
We received this interesting account of a Goods and Services
419 case today, which raises many excellent questions concerning
forms of Goods and Services 419.... CBS Evening News also covered
this case, the Mosch case. Here it is:
There are really two issues that I am trying to get assistance on with this letter and the
information in it.
1) Fighting the War on Terrorism and cutting off their money supply
2) Holding Banks accountable for the information that they give their customers
Any direction or assistance that you can give us would be appreciated.
Here is our story . . .
We are selling my husband's old car (1961 Buick) and a man contacted us off of an ad
we placed on the internet. He said that he was a car dealer and wanted to purchase it.
Here is the info we have on who he was claiming to be:
Adebisi Julius
Magrove Transport LTD
17 Fani Kayode Street
Gra Ikeja, Lagos, Nigeria
phone: 2348037143721
magrovetrans@yahoo.com
He said that someone in the states owed him $8,800 and would just have them send us
a cashiers check to expedite the purchase. We would then deduct the price of the
vehicle ($1,600) and send him the remaining balance via Western Union so that he
could arrange transportation, once the check cleared.
We thought this sounded fishy, so we told him to send the check, and that once it
cleared the bank we would contact him to set up the transportation of the car. We
thought that we would never really see a check, or that when we brought it to the bank it
would not clear, so then we just would not set up for transportation and that would be the
end of it.
We received a cashiers check from Adebisi Julius's American friend Victor Tom on 10-
7-2002. Here is the info we have on the person claiming to be Victor Tom:
Victor Tom
512 Easton Rd Unit B
Warrington, PA 18976
The cashiers check was sent via Fed Ex for the amount of $8,800 made out to my
husband. The cashier's check number was 03202324 with the Bank of America logo.
Account number 03202324114000019001641002500.
The check was deposited into our savings account at Twin Cities Federal in
Bloomington, MN (Southtown Center/Penn Ave Branch) on 10-08-2002.
While at the bank depositing the check, I asked when would the check clear and I would
know that the funds were GOOD, they said 24 hours. I said to the teller, "Really, I thought
that it took like 10 days for a check to clear?" and he said "Not with a cashier's check".
Since I wanted to be sure that I was being clear to him, I said "I need to know not just
when the funds would show up in our account, but I need to know when we can be sure
that it is a good check, that it has cleared, and that it is real money that we can touch and
use. I don't want to get a charge or have this come back and bite us in the butt" The
teller laughed, and said "Tomorrow afternoon ma'am. No problems", I thanked him and
left.
Then, 2 days later, twice the time that I was told that I needed to wait to be sure that this
was a good check and that it had cleared, I went back to our bank. So, since we had
waited the amount of time that the bank had told us to wait to make sure that the check
was clear and good, I took out $7200 that was supposed to be used for the
transportation of the car and we wired it via Western Union to Adebisi Julius's
Accountant Ben Olawale at Magrove Transport. Here is the info we have on the man
claiming to be the accountant:
Ben Olawale
Magrove Transportation
17 Fani Kayode Street
Gra Ikeja, Lagos, Nigeria
The funds were wired via Western Union on 10-10-2002 and picked up on 10-11-2002.
Now, on 10-16-2002, our bank (TCF) called us and told us that the check was counterfeit
and that they were deducting $8,800 from our saving account, even though they told us
that the check would be cleared in 24 hours. We now have a negative account balance
of over $5000 that TCF says we are responsible for.
But their clerk told me that it would be clear after 24 hours. If I had known that it might
come back at me I would have waited longer. I even asked the clerk, "I need to know
when the check will be totally cleared and the money is really there, because we don't
want this check to bounce or something and have it come back at us. I wouldn't want to
find out our account went negative because of this" And the clerk said, it would be good
in 24 hours. Why are WE responsible because THEIR employee gave me incorrect
information?
We have contacted the police and they took a report, and said that the info would be
sent on to the Secret Service. And my husband did go to the FBI website for reporting
internet fraud and filled out an online form. He also, contacted the local FBI branch and
reported this. We have also contacted the Attorney General and are waiting for the
paperwork to arrive from them.
I know that the whole deal sounded weird from the get go, but we said if the check clears
then what the heck, who cares how this guy wants to pay for it. And that is why I made
sure I said that I needed to know when the check would be cleared and we would be
sure that the check was good. If the clerk had said that it would show up in my account in
24 hours, but we would not be totally sure that the check was good for 12 - 14 days we
would have told the guy in Africa that we would not be going forward with anything for 14
to 15 days. But they told me 24 hours, and I trusted that they knew what they were talking
about. Isn't that their job, to inform their customers and to help ensure our financial
safety?
The TCF bank manager, Amber, basically told me too bad, and that if I was worried
about the check and the funds clearing I should have been more careful. I thought I was
by asking the bank how long it would take for the check to clear, and then waiting twice
that amount of time. Amber said that I should have called the Bank of America that the
check was issued from to verify the account number and that the funds were in the
account to cover the check . . . I guess I thought that is what a bank is supposed to do,
during the time that they tell you that you have to wait to be sure a check clears. And the
regional TCF director, Todd Olson, said that he would have to talk with everyone
involved before he could answer any questions.
Then, on 10-17-02, we got a call from Renee with TCF Headquarters. She was calling to
tell us that she was handling the return of counterfeit check, and that it was going to be
returned to us once she received it, if our account was not negative. My husband said to
her, "I know that you know nothing about what we have been going through in the last
day with TCF, you are just the person that will be returning the counterfeit check, but can I
ask you something . . . if I were to bring a cashier's check into a TCF Bank and deposit it,
how long would it be until I would know it had cleared? Not just the funds have been
transferred, but that the check is good, and there is real money that I can pull out of my
account and use and not have to worry about the check bouncing?" Renee said that
she thought it was 24 hours, but she was going to go verify this with someone else.
When she came back to the phone she said that yes, it was 24 hours until we would
know it was a good check.
So, now we have had two TCF employees tell us that when depositing a cashiers check
we need to wait 24 hours to make sure that the check is "good" and clears. We did that,
we waited 48 hours, so what did we do wrong? And why are we being held accountable
for TCF's not giving us the correct information? If they would have said that we needed
to wait 10 days, then I would not even be writing this letter because we would have
waited 10 days, and the check would have come back counterfeit and our account
would be right back where it was on the 10-7-02, before we deposited the cashier's
check. We would just have to tell the buyer that the sale did not go through. And that
would be the end of it.
I called Todd Olson of TCF Bank and tried to talk with him again, and he said that he
was standing behind what Amber has told us. I then told him about the conversation with
Renee and that I have contacted our lawyer, the police, the FBI and the Attorney
General. I restated to him that I have now been told by TWO employees of TCF that I
would have to wait 24 hours for a cashier's check to clear, and we did that, so what did
we do wrong? He could not answer that question. He said that he had to make some
more phone calls and he would get back to me by the end of the day. When he did call
back, all he could tell us is that they are still looking into things, and that they have
released the hold that was put on our checking account because of all of this, so at least
we will still have access to those funds and not have to worry about checks that we wrote
last week bouncing.
Well, on Saturday 10-19-02 I got in the mail a notice from TCF banks that checks from
our account had bounced! And Todd had just assured me on Thursday evening,
around 6pm, that this would not happen!
I called TCF Bank, Southtown Branch at 2:45pm on Saturday 10-19-02 and asked them
about this. I spoke with Hani, who is the first TCF employee to apologize and say that
this is not my fault, and he looked through everything with me. It turns out that on 10-17-02
ALL of the money from our checking account was transferred to our savings account to cover the negative balance, even though that same day Todd assured me that this
would not happen. We now have negative amounts in BOTH our savings and our
checking accounts, and service charges of over $90 being charged to us!
By the way, just to see if this would be the way that things would be handled at other
banks, I called several local banks on (Friday morning) and asked them all this
question . . .
"If a customer of yours came into your bank and deposited a $8800 check from the
Bank of America in Pennsylvania and asked you to tell them when they could be sure
that it is a good check, that it has cleared, and that it is real money that we can touch and
use, and that it is not going to come back and bite them in the butt?"
Here are the answers I received . . .
Mandy with Bremer Bank in Richfield, MN
"With out of state cashiers checks we recommend 5 - 7 business days"
Kathy with Western Bank in Edina, MN
"In a situation like that I would wait 11 business days"
Erin with Highland Banks
"That could take anywhere from 2 - 11 business days ma'am"
Teller (did not get name) at US Bank in Mpls, MN
"That would be 5 - 10 business days"
Since my husband and I had agreed that we were going to wait twice the amount of time
that the bank recommended, if we would have been customers with any of the above
banks, I would not be writing this letter right now. There would have been no problem.
So, when cashing or depositing cashier's checks, especially at a TCF Bank, do not rely
on the information that the bank teller or the bank manager gives you about how long it
will take for the check to clear. It was on Thursday 10-17-02 that Amber finally admitted
to us that a cashiers check could come back and the amount would be deducted from
your account in 6 days, 6 weeks, or even 12 months after you deposit it. According to
Amber, they have no way of telling!
I had to call Todd Olson, the regional manager, several times last week to find out if
things were being resolved and what would happen next. He said that they were
reviewing the information, including the bank lobby video tape and the police report and
that they will know more in a few days. After a few days past, I called again. I was told
by Todd that if I would have shown this much concern over the check at the time of
deposit that TCF would have handled this different and could have checked the account
to make sure it was safe. He said that from viewing the tape it seemed like I was paying
more attention to my daughter than I was to the transaction with the check. By the way,
my daughter is two years old.
It has been over two weeks now. TCF has fixed the problem with our checking account,
but they are still holding us responsible for the over $5000 that our savings account is
negative.
If you find all of this wrong, and would like to let TCF know here are some numbers to call . . .
Penn Ave Branch - Cindy is the manager (952)888-8375
Todd Olson regional manager (952)920-5744
Jim Stalhman (Todd's boss) (612)661-8802
or you can write to the CEO at
Bill Cooper - CEO TCF Bank
200 East Lake Street
Wayzata, Mn 55391
We know other people that bank with TCF who are going to close their accounts
because of this and they plan on making sure that TCF knows that the reason they are
closing the account is because of this situation.
We have also been working on trying to find the real bad guys in this whole situation . . .
the counterfeiters. On November 1, 2002 our story was aired on the Evening News with
Dan Rather, and since then we have gotten calls from others who have also been
scammed. One of the other men had his car for sale on the same website as we did
and the mailing address that the cashier's check had as a return address was also in
Warrington, PA, just like ours.
We have also used the FedEx tracking number from the package the cashier's check
was sent in, and it tracks back to a drop box in Polye, Great Britain. Two of the other
people who contacted us since the show also have FedEx tracking numbers that track
back to that same drop box.
When speaking to the Secret Service I said that part of me worries that this money may
be going to fund the terrorist groups, and he said that is very likely. Then I did more
searching on Polye, and I found that there is a Flight Training School just outside of
Polye that was under suspect after the September 11th attacks.
Wouldn't this be a terrorist ultimate revenge . . . paying for the attacks on America with
money scammed off of American's? If we want to stop them we need to cut off their
money supply, but if the banking system is not going to take any measures to safe
guard it's customers and their money then they are in a way helping the terrorist to easily
get the money they need.
Once again, I am asking for any assistance that you can give us on how we can stop
these scammers, maybe by improving the security measures in all banks, or with
security watermarks on cashier's checks, or requiring holding periods on all cashier's
checks over a certain amount. If we do nothing we are letting them win!
Thank you for your time and any help you can give us,
Shawn and Jeff Mosch
Bloomington, MN
(952) 832-9937
http://groups.yahoo.com/group/ScamSupportGroup/
********************************************************************
28 OCT 2002
Sent in by a Concerned Nigerian:
From The Oregonian:
E-mail to launder money lures many
John Snell
Jane was a world-class chump, and she knows it.
The Salem-area woman lost nearly everything in an international e-mail scam: her well-
paying state job, her retirement savings and 17 years of hard-earned house payments.
All to scrape together more than $70,000 she would give to African strangers who
promised to make her wickedly rich.
When the swindle began in March 2000, Jane figured her lucky day had arrived. In a
way, it had.
She's lucky she wasn't killed.
The Oregonian is withholding Jane's real name because she is afraid the scammers
will track her down and hurt her -- a concern confirmed by the U.S. Secret Service and
the Oregon Justice Department.
She is one of thousands of Americans who have been taken in by the fraud, which offers
to pay people millions for their help in moving money out of Africa.
Authorities aren't sure how many of the victims are from Oregon because most are too
embarrassed to report it. But state officials say dozens of Oregon victims have come
forward and there certainly are more.
"Greed is, of course, by far their biggest motivation," said Jan Margosian of the Oregon
attorney general's office. "They want you to launder money for them. It's pretty hard for
you to not know that. It's just regular folks who are getting drawn into this."
Margosian said the scam claims "a wide range of victims, from folks in their 20s to folks
in their 80s. It's almost a cottage industry."
A plea, a trip, then trouble The fraud is called the "419" scheme. Anyone with an e-mail
address likely has seen it.
While there are minor variations among the pitches, at their core they are the same.
In broken, often sheepish English, the writer claims to be from Africa, most often from
Nigeria, Zimbabwe or South Africa.
The writer is desperate to move large amounts of money out of the country and into a
foreign bank. Targets of the shakedown are told they can keep a share of the money in
exchange for their help. The cut is usually around a fourth of the total, making for a
multimillion-dollar payoff.
"In most of these things, you're going to be encouraged to travel overseas to complete
the transaction," said Brian Marr, special agent with the U.S. Secret Service in
Washington, D.C. "That's when the trouble is going to start."
In July, according to the Times of London, a former mayor of Northampton fell for the
scheme and was held with a gun to his head in Johannesburg, South Africa. He was
rescued in an international police effort.
In 1999, Romanian businessman Danut Mircea Tetrescu fell for the pitch, flew to Africa
and was held for ransom. The same year, Norwegian millionaire Kjetil Moe was lured to
South Africa and killed.
Nearly everyone dismisses the 419 proposal as a sham. But not all have such insight.
Little more than a year ago, a Portland dentist lost as much as $100,000. The man, who
doesn't want his name published, received the e-mail appeal and sent the scammers
his debit card number. Days later, Margosian said, his bank account was drained.
Two years ago, elected officials of a small Southern Oregon community booked a flight
to Africa thinking the promised payoff would cure the town's financial ills.
"They were on their way to Nigeria," Margosian said. "Their travel agent was just
chitchatting with one of the people."
The official confided what they were about to do.
"The travel agent said, 'You guys are idiots. You could lose all the town's money and
get killed.' "
They never made the trip. Margosian said they didn't want their names made known,
either, or their town identified.
A new delivery vehicle The scheme gets its name from Article 419 of the Nigerian Penal
Code, which outlaws it. The scam is also known as the "Nigerian letter" or "the advance
fee fraud."
Call it what you will, the ruse is more than 20 years old, starting as a chain letter in the
1980s. In the 1990s, it was distributed by fax. It now crosses the globe as e-mail.
Cons such as this -- offering people a chance to dip into others' fortunes -- are nothing
new.
In the early 1900s, American swindler Oscar Hartzell talked more than 100,000
Midwesterners out of millions with a scheme to recover money that supposedly
belonged to Sir Francis Drake. If they contributed to a legal fund for Drake's heirs,
Hartzell told them, contributors would get a share of Drake's $100 billion estate. Hartzell
eventually went to prison, where people kept sending him money.
Get rich quick The 419 scam offers people a chance to get rich quick. But once lured in,
they are financially gutted.
"I lost my retirement," said Jane, referring to the Public Employees Retirement System
account she emptied. In her mid-40s and years from retirement, she could only access
her PERS account by quitting her government job.
She now works in private industry for one-third her former salary.
The original e-mail Jane received claimed to be from a man named Sani Aeu. He said
he was a Nigerian doctor who wanted help getting money out of his country so it could
be used to bring clean water to his village.
The plan was to transfer the money to Jane's bank, then back to a foreign account in
Aeu's control. Aeu was describing a money-laundering scheme and said Jane could
keep 25 percent of the multimillion-dollar transfer.
Jane said she was asked to meet in London with an official from a securities company
who would arrange the transfer. She flew to London twice.
"They showed me a whole trunk full of money and said there were five more trunks like
that," she said.
"They said we were going to go meet someone at the bank the next morning and take
care of all the legalities. They called me that night at my motel and said there was a
problem."
The "problem" was the need for 13,000 British pounds -- more than $20,000 -- to cover
transaction fees. Jane got part of the money by making cash withdrawals with her credit
cards. Six months later, she scraped together the rest.
Calls for more fees came in, and Jane paid them. Back in Oregon, she received a fax
claiming to be from an Arkansas bank that had $25 million on deposit for her. The fax
requested more fees before the bank could release the cash.
"I tried to look up the bank on the Internet, and I couldn't find it," Jane said. "I'm not a
detective or anything, but that didn't seem right. It sort of put up a red flag."
She said she called Aeu, and he vowed to get to the bottom of it if she would fly to
Nigeria or wire him $7,500.
Finally, she saw things for what they were and let the matter drop.
To cover the so-called fees, Jane refinanced her house at a higher interest rate and
used her equity to pay for the credit card withdrawals. Before the swindle, she had 13
years left on her original loan. She now has 30.
"It's been a mess," she said. "I've got it in a manageable place, I think. I'm not actually
going bankrupt."
Little expense, big payoff "This is basically a worldwide problem," said Marr of the
Secret Service. "We get about 600 faxes a month reporting the fraud.
"In 2001, we had over $950,000 in losses. That's probably just the tip of the iceberg. Most
people are not going to report it. They are embarrassed and feel foolish."
Marr's estimate may be understated. In 1998, when the Nigerian letter primarily moved
by snail mail and fax, the U.S. Postal Service estimated annual U.S. losses approached
$100 million.
Today, governments around the world are trying to fight it, Marr said, but it is like trying to
cure dandruff. There's no halting it; it just keeps coming back.
People running the swindle spend $1 an hour for Internet access at African cyber cafes.
From there, millions of appeals are mailed out on free e-mail services such as Hotmail,
Yahoo or Lycos.
"The expense of doing this is absolutely minimal," Marr said, "and the windfall profits
that are possible from one or two gullible people are tremendous."
John Snell: 503-294-5949
johnsnell@news.oregonian.com
********************************************************
25 OCT 2002
From The Guardian, a Nigerian newspaper:
President writes Reps on financial crimes
From John-Abba Ogbodo Abuja
THREATS by the international community to sanction Nigeria over its alleged poor
handling of financial crimes and money laundering may have again compelled
President Olusegun Obasanjo to remind the House of Representatives on the need to
pass bills on the offences without delay.
In the latest letter, the President informed the House of moves by the Paris-based
Financial Action Task Force (FATF) to take punitive measures against the country if it
failed to address the economic crimes by December 15, 2002.
An earlier letter by the President had put the date at October 31 this year.
The Speaker, Ghali Umar Na' Abba told members yesterday at the opening of the
plenary session that Obasanjo, in a letter, intimated them that the (FATF) comprising
about 40 European and American countries, had threatened to sanction Nigeria if it
failed to act decisively by December 15.
Obasanjo on August 31, 2002 alerted the National Assembly on the decision of the task
force to penalise the country if its existing laws on financial crimes and money
laundering were not strengthened.
Consequently, on September 13, 2002, the president sent three bills on the matter to the
National Assembly, urging them to give the bills expeditious treatment to forestall the
looming sanctions.
The bills were: Economic and Financial Crimes Bill 2002, Money Laundering
Amendment Bill 2002 and Banks and other Financial Institutions. (Amendment) Bill 2002.
Obasanjo also proposed the establishment of Economic and Financial Crimes
Commission.
"I therefore, urge you to give these bills priority attention, especially in view of the threat
of imposition of counter measures by the FATF with effect from October 31, 2002 if
substantive steps are not taken by us to address the deficiencies they have observed
in our legislations," he stated.
Na'Abba further informed members that the president in his letter to the House, pointed
out that the sanction would be to the effect that no letter of credit from Nigeria would be
honoured by the international community.
The Speaker also intimated the House with another letter from the Abia State, Governor
Orji Uzor Kalu, where he denied owing any member of the House of Assembly salary
arrears.
In the letter, Kalu said those yet to receive their salaries should contact the Speaker,
Stanley Ohajinuike for their salaries.
The House, following a motion moved by Iheanacho Obioma, had mandated a
committee to mediate in the crisis in the state legislature.
However, the lower House could not hold its usual plenary session yesterday for lack of
quorum.
After waiting for sometime and the members in the chamber were not up to 50, Na'Abba
adjourned the session to Tuesday next week.
********************************************************
19 OCT 2002
From The Guardian, a Nigerian newspaper:
$39m 419 Case Against Nigeria In US Dismissed
LAOLU AKANDE NEW YORK
IN a major 419 suit brought against the federal government in the United States by six
American citizens who contended that agents of the Nigerian government defrauded
them of a sum of $831,179, a US district court in Virginia has ruled in favour of Nigeria
dismissing the plaintiffs demand for relief and damages against the federal government
totaling $139,027,000.
The Americans, including a surgeon and businessmen claimed that they had a pipeline
supply contract, which they completed with the NNPC for which a payment of
$35,680,000 was due in 1993. Their company Kemax apparently unaware that they were
dealing paid almost a million dollars to the people who were posing to be NNPC
officials. But in the defense of the Federal Government and NNPC, their lawyer, , Mr.
Ignatius Chibututu argued before the US court that not only didn't the defendants supply
anything to NNPC, they at no time dealt with bona fide officials of the NNPC.
Before this case, similar ones had been brought against the FG in the United States,
England, Canada and Switzerland by Americans and Europeans defrauded by
fraudsters. Nigeria is said to have lost some of such cases in the past, even though
these are based on bogus claims of contract with the Federal Government or their
agents.
For instance, a similar case brought against Nigeria in Canada was lost last year, for
which Nigeria is currently appealing.
At a 419 seminar in New York attended in September by President Olusegun Obasanjo
and top officials of the NNPC, CBN, NIPC, FBI and the US Dept. of Justice, the NNPC
General Manager Chief legal Adviser Chief Sena Anthony stressed that it is important
that US courts stop paying attention to such frivolous cases. He added that they are a
brunt on Nigeria's resources, since the FG had to post a defense, which will include
bringing witnesses from Nigeria and other legal fees and charges. If the Federal
Government chose not to defend the cases, the plaintiffs can win by default and assets
and property of Nigeria abroad could be seized.
The six Americans who brought the case against Nigeria in Virginia are Ford Wright,
resident of the state of Virginia, Roger A. Flahive, from Illinois, Charles R. Hewitt,
Maryland, J. Kent Holden, Vermont, Douglas S. Marshall, Virginia and the surgeon
Bernard Stopak, MD, from Maryland. The plaintiffs brought the case in August 2001 and
the US district court Judge who is also the Chief Judge in the eastern district of Virginia,
Claude Hilton dismissed the case August 5 2002.
In their claims the Americans referred to having been exchanging correspondence from
several Federal Government officials at the NNPC, Finance Ministry, CBN, believing
they were dealing with genuine Federal Government officials. They claimed that at a
point as early as 11 Jan. 1999, the Finance Ministry asked them to open an account at
the First Bank which they did and proceeded to deposit what they called contract funds
of $8000 into the account.
All kinds of fees were charged the plaintiffs in the hope that they would eventually get the
close to $40 million contract payment. For instance in August 8, 2000, the plaintiffs said
the fraudsters posing as NNPC officials requested an amount of $10,200 from them in
travel expenses for three officials of the NNPC in order to deliver a bank draft in the
amount of $35 million, from which they-the plaintiffs were get a big chunk.
Even the office of President Obasanjo was not spared. According to the Plaintiffs, during
September, October and November 2000, the office of the president requested a total
amount of $12, 765 in charges and fees precedent to transfer of the contract fee of $35,
680,000 to Kemax, the company of the plaintiffs. Until May 2001, the plaintiffs were
sending all kinds of fees to the fraudsters believing they were dealing with bonafide
Federal Government officials. In august of the same year they chose to go to court now
convinced that they were being swindled.
All together the plaintiffs sent $831, 179 to the crooks, hoping to be paid a contract fee of
$35,680,000. They sued the Federal Government for $38,196,000 in material damages,
and $100,000,000 in punitive damages. They also asked the court to compel Nigeria to
pay them a relief sum of $831, 179, all totaling $139,027,000. Sued were the Government
of the Federal Republic of Nigeria, c/o President Olusegun Obasanjo, the Federal
Ministry of Finance and the NNPC.
After the Nigerian lawyer, Chibututu won a dismissal of the case, he then proceeded on
suing the plaintiffs for cost in a case that is now pending.
It is the first time the Federal Government decided to use a Nigerian lawyer to argue this
kind of case and according to NNPC's Chief Sena Anthony, who championed the use of
Nigerian lawyers were believed that Nigerian lawyers abroad were up to the task. She
hired Chibututu and explained at the 419 seminar in New York in September that they
were vindicated that a Nigerin lawyer abroad was up to the task. Sources said there has
been times when even foreign lawyers has handled 419 cases but were also confused
on seeing how real the documents presented by the 419 cons looked.
********************************************************************************
16 OCT 2002
Here are some additional recent news pieces about people
who have been prosecuted etc. for losing Other People's
Moneu to the 419ers. One is a followup on the Marie Poet case,
see 14 OCT News. These pieces were sent in by a concerned
Nigerian:
Nigerian Fraud Victims Arrested For Bank Fraud, Embezzlement, Check
Fraud and Forgery Involving Altered Cheques After Being Scammed
09/06/02 New Hampshire - Already serving a sentence of five to 10 years
for a 2001 conviction on embezzling funds from the Portsmouth Country
Club, Charles Brewster, 51, has more possible jail sentences hanging
over his head as a deterrent to any future crimes.
Senior Assistant Attorney General Will Delker said the message the state
wanted to send was that Brewster’s greed got him involved in Nigerian
oil scams and that "People have to realize these scams are illegal,
dangerous and not only we will investigate the scams, we will prosecute
anyone who gets involved." "Mr. Brewster participated and dug himself
deeper and deeper into debt."
He pleaded guilty to three Class A felony charges of embezzling while a
fourth charge, that he forged his name on a $120,000 check and deposited
it into his account, was dropped as part of the plea bargain..
Brewster pleaded guilty to charges that he embezzled $20,000 from the
Towle Office Park, and a total of $53,000 in two separate charges from
Batchelder’s Pond Development Co., firms with which Brewster had been
associated.
Judge Kenneth McHugh sentenced Brewster to 1½ to three years on each of
the three charges, the sentences to be served concurrently but
consecutive to the current time Brewster is serving in the New Hampshire
State Prison in Concord. The three new sentences were all suspended for
a period of 10 years, beginning after he is released from prison.
Brewster was ordered to pay restitution totaling $46,889 or face a
contempt charge from the court though he has already repaid about half
the funds taken from the three companies.
The fact that Brewster is currently in bankruptcy proceedings will have
no bearing on his order to pay restitution and should he not complete
payment by the time he is released from parole, the debt will remain
until it is paid in full.
McHugh also ordered Brewster to have no contact with his Nigerian
contact or with any other fraudulent investment scheme or face the
additional jail time.
Brewster’s testimony indicated he was convinced the Nigerian scheme was
legitimate.
According to testimony Brewster gave to the FBI about the check forgery,
he was approached by the Nigerians after his conviction for additional
money to make final payments so that the Nigerians could release to him
money previously promised. Brewster said he told them he had no money,
so the Nigerians promised to arrange a loan.
When a check from Connecticut General Life Insurance for $120,487.53
arrived, Brewster says he brought it to his attorney because he was
suspicious. It had been altered to make Brewster the payee.
-------------------
From Victim to Criminal in One Easy Payment
04/02 - California - Though most people usually delete e-mails that
promise vast riches through a Nigerian investment Shirley Elaine
Hannings responded, lost thousands, ultimately defrauded a Riverside
bank and will pay the price in state prison.
After she pleaded guilty to grand theft, she was sentenced to 16 months
in state prison for the $228,260 theft stemming from a bogus check
processed by Provident Bank in Riverside, which she deposited into their
personal account last September claiming it was an inheritance.
The 57-year-old Blythe woman and her husband, Danny, succumbed to the
widespread "Nigerian Advance Fee" fraud but then committed fraud of
their own when they deposited, perhaps unknowingly, a stolen and altered
check given to them by the scammers.
Danny Joe Hannings, 47, was granted probation because he played a lesser
role in the theft.
They had invested ( lost ) somewhere between $30,000 and $70,000 in
advance fees pertaining to Nigerian water wells that do not exist,
totally believing they would be getting $21 million back.
Safeway Stores in Arizona had sent the check to a vendor, Standard Fruit
and Vegetables in Texas, but somehow it was stolen along the way by
someone in the Nigerian syndicate and forged to make Danny Hannings'
contracting firm the payee.
The altered check cleared long enough for Shirley Hanning to wire
$200,000 to an account in Hong Kong opened by people claiming to
represent a Nigerian company.
As far back as 1999, they apparently had some information that the
investment might not be legitimate because authorities found in their
home a magazine clipping about the Nigerian advance-fee scam.
Ronald M. Weiss, who heads the U.S. Secret Service's Riverside office,
said the Nigerian perpetrators are seldom caught. Only about $8,000 of
the money has been recovered from the Hanningses' accounts, and
Provident Bank is out the rest.
--------------------
Nor The Last
I am a licensed private investigator in Arizona. Several months ago I
received an E-Mail message offering me a percentage of twenty million
dollars which had gone unclaimed in a bank account in Nigeria. The
sender of the message claimed to be a vice president of that bank. I
forwarded it to the Phoenix office of the FBI.
Amazingly, today I was contacted by one of the criminal defense lawyers
that I work for regularly, to assist him in representing a gentleman
(senior citizen) who has been charged here in Yavapai County Arizona
with forgery. This client had received the very same type of E-mail
message that I received and had responded.
The client, who is out about one hundred thousand, sent thousands of
dollars to these people and after much complaining to his Nigerian
contact he received several checks amounting to about $34,000, which he
deposited in his bank account. He withdrew most of that amount two days
later and sent it Western Union to Nigeria to cover fees.
The bank, which learned the checks were worthless, arranged for the
County to file criminal charges against him. I don't know why the bank
didn't have a three day hold on the checks.
I have suggested to the lawyer that our client certainly isn't the only
person in Arizona to have fallen for this scheme but not being familiar
with this fraud I am wondering if you have any information of other
victims being sent worthless checks.
The last names involved with this are: Robert Cole of Infinity Finance,
Aheed Mohamud of Nigeria, a company named AquaChem, and Steve Douglas of
Nortech Finance LTD.
Kenneth Hamilton
Prescott, Arizona 09/19/02
----------------------
09/02 - A bookkeeper has been charged with embezzling $2.1 million from
the Detroit-area law firm for which she worked and wiring the money to
offshore accounts.
The Detroit Free Press reported that Anne Marie Poet, Rochester Hills,
MI, fell for such a scam when, according to the FBI, she was offered
$4.5 million if she helped transfer $18 million from a bank account into
the United States.
Ann Marie Poet's new business partner called himself Dr. Mbuso Nelson,
and said he was an official with the Ministry of Mining in South Africa.
From February to August, Poet is alleged to have wired amounts ranging
from $9,400 to $360,000 from the law firm's account to offshore accounts
in South Africa and Taiwan. The alleged scam ended Sept. 4 when the
Olsman, Mueller and James law firm was informed that a $36,000
settlement check to a client had bounced. Poet quit coming to work after
Sept. 4 and was indicted last week by a federal grand jury in Detroit on
13 counts of wire fraud. Each count carries a maximum penalty of five
years in prison and a $250,000 fine.
Jules Olsman, president of Poet's law firm, said he plans to sue Bank
One for approving the wire transfers and allowing Poet to drain the
firm's accounts, according to the Free Press. A manager at Bank One
apparently approved all of the wire transfers even though Poet was not
authorized to conduct such transfers.
According to statistics presented at the International Conference on
Advance Fee (419) Frauds in New York on Sept. 17, roughly 1 percent of
the millions of people who receive 419 e-mails and faxes are
successfully scammed. The Secret Service receives 10,000 letters, faxes
and e-mails monthly from people reporting the scam.
********************************************************************
14 OCT 2002
Brought to our attention by a concerned Nigerian. From
CBS News website:
An Updated Scam: Black Money
BERKELY, Michigan, Oct. 14, 2002
(CBS) Sixty-year-old Ann Marie Poet, a grandmother and part-time bookmaker, must
have thought she'd hit the big time. A fax allegedly from the "The Ministry of Mining" in
South Africa said her help was urgently needed to transfer money to America. In
exchange, Poet would receive a commission of $4.5 million.
Poet was told of various fees that had to be paid up front, before the big payoff. Fees
such as $175,000 for "Ecological Damages," $72,000 for "Currency Fluctuation Marginal
Difference" costs and almost $28,000 for a "Drug, Terrorists and Money Laundering
Clearance Certificate": fees that were far beyond her ability to pay.
Each fee led to another charge, and, as CBS News Correspondent Mika Brzezinski
reports, Poet paid every one from the accounts of the small Michigan law firm where she
worked.
So she "borrowed" the money from her employer - $2.3 million -- and wiped the
company out.
"She took all of our money, all of our money," says Jules Olsman, president of Olsman
Mueller & James. "It's been horrible.
"I mean there are days you sit there and just think about it, and it's unbelievable."
The scam is constantly being updated. Another one claims to be from a Special Forces
commando in Afghanistan. The commando says he needs help moving terrorist money
out of the company. The stories may change, but a big cash reward is always promised.
"This scam is driven by greed, and if not for the greed, this scam would not exist," said
Tim Caddigan of the U.S. Secret Service.
He says people are taken for about $100 million a year.
"It comes from all walks of life: educated, uneducated, doctors, lawyers, accountants,"
says Caddigan. "People should know better."
Victims rarely recover their "fee" money. And as for the promise of a commission
payment?
They don't get that either. Instead what they get is "Black Money" - a box filed with
construction paper. For an additional fee of several thousand dollars, one gets to buy a
solution that "cleans" the money - an opportunity to get scammed one more time.
Back in Michigan, Olsman's firm is still trying to get out of this mess.
That's what happened to Poets. She now faces prison time for stealing from her
employer. And she is still hoping her "commission" is on the way.
419 Coalition Note: Yes, the authorities have always taken a dim view of
targets sending Other People's Money to the 419ers. They also take a
dim view of targets presenting a 419er check they Know is bad to a
bank. And finally, in Classic 419 type schemes even if there Were
any money (which there is not) and the target actually Did receive
any, the target would be charged with money laundering among
other things and not get to spend any of it anyway.
************************************************************
8 OCT 2002
From the AARP (American Association of Retired Persons)
Online Bulletin:
Foreign Flimflam
By Carole Fleck
October 2002
To Shahla and Ali-Reza Ghasemi of Tampa, Fla., it was a little bit like hearing that they'd
won a $27 million jackpot in the Florida Lotto.
An overseas telephone caller had just informed them that they were due the eight-figure
payout from the estate of a long-lost relative in Nigeria.
The scam, according to some reports, is the third-largest industry in Nigeria.
To transfer the inheritance to their bank account in the United States, the Ghasemis were
told, they needed to pay attorney's fees, taxes and other charges. They did so, but soon
came a raft of "complications" that necessitated additional payments to the Nigerian go-
betweens.
Two years and $400,000 later, the Ghasemis no longer wait for the $27 million
"inheritance." As it turns out, they fell for a new twist on the classic "Nigerian scam"—a get-
rich-quick con with endless variations and countries of origin.
"This has turned our lives upside down," Shahla Ghasemi, 42, told the AARP Bulletin.
Experts say that the Nigerian scam costs victims in the United States more than $100
million a year and is proliferating thanks to the easy access of e-mail.
The scam nearly always begins with an unsolicited offer by e-mail, telephone or fax from
someone claiming to be writing on behalf of a former government dignitary.
The typical story line revolves around tens of millions of dollars in ill-gotten gains, from
overbilling or other schemes. In exchange for helping move the money from Nigeria into
a U.S. bank, the victim is promised a hefty cut of the action and asked to pay various
fees in advance. The scam continues until the victim either wises up and quits or runs
out of money.
Marc Connelly of the U.S. Secret Service concedes there are "jurisdictional limitations"
in investigating and prosecuting such crimes because most of the perpetrators are
overseas.
The scam, according to some reports, is the third-largest industry in Nigeria. Because it
has become so famous in its original form, perpetrators are apparently dreaming up
scores of new variations and venues.
Shahla Ghasemi, for one, wishes that she'd never even listened to the pitch. "Now I have
to work even harder so many years," she says, "to recover this money."
**********************************************************************************
8 OCT 2002
Sent in by a Concerned Nigerian
From the BBC:
Fake Bank Website Cons Victims
Greed means lots of people fall for the con
West African criminals have used a fake version of a British bank's
online service to milk victims of cash, say police.
The fake site was used to squeeze more money out of people they had
already hooked.
The site has been shut down. But UK National Criminal Intelligence
Service, (NCIS), said at least two Canadians had lost more than $100,000
after being taken in by the fake website.
The scam behind the fake web domain was the familiar one that offers
people a share of the huge sums of money they need moved out of various
African nations.
NCIS said the use of the web was helping the conmen hook victims that
would otherwise spot the scam.
Convincing site
News of this latest scam was revealed by BBC Radio5Live. It found that
an unclaimed web domain of a UK bank had been used by conmen to get more
cash out their victims.
Web spoofing is going to be a big problem
NCIS spokesman
A NCIS spokesman said the domain looked legitimate because it had "the"
in front of the bank's name.
"I have seen the microsite myself and it's very sophisticated," said the
NCIS spokesman. "It's very convincing especially to people not very
experienced online."
Once the con was discovered it was quickly shut down. However, the
people behind it have not been caught.
NCIS does know that at least two people have lost more than $100,000.
The bank involved has bought up the domain used in the con as well as
many other permutations of its name to limit the chance it could happen
again.
"Web spoofing is going to be a big problem," said the NCIS spokesman.
Domain games
Usually people are first hooked in to what has become known as Advanced
Fee or 419 fraud by replying to an unsolicited fax or e-mail offering a
share of any cash successfully moved out of Africa.
The '419' refers to the part of the Nigerian penal code dealing with
such crimes.
Like any con, there is no money to be moved at all and instead anyone
taking the bait is asked to pay increasingly large sums to supposedly
bribe uncooperative officials and to smooth the passage of the cash.
Although this con has been practiced for years, people still fall victim
to it.
NCIS estimates that up to five Americans are sitting in hotel lobbies in
London everyday waiting to meet people connected with this con.
Cutting edge fraud
Often the conmen provide fake banking certificates to give the con an
air of legitimacy.
People tricked into clicking on fake sites
But a spokesman for NCIS said fake or spoof websites are now being used
in place of the certificates.
"To many people nowadays the cutting edge of banking technology is web
technology," said the spokesman.
One of the first groups of conmen to use this method set up a fake
website that supposedly gave victims access to accounts held at the
South African Reserve Bank, the country's national bank.
Typically, victims are given a login name and password and are
encouraged to visit the site so they can see that the cash they are
getting a share of has been deposited in their name.
But before they can get their hands on the cash, the victims are
typically asked to hand over more of their own money to help the
transfer go ahead.
Once the South African police discovered the ruse they declared it a
national priority crime and soon arrested the 18 people behind it.
Modern gloss
An briefing paper prepared by NCIS in August on organised crime noted
that criminals were increasingly turning to the web to lure new victims
and give old cons a modern gloss.
The NCIS spokesman urged people who have fallen victim to 419 fraud to
come forward and help it track down the perpetrators. He said in the
last two months it had arrested 24 people overseas involved with this
type of fraud.
He said any e-mail, fax or letter making an offer that looks to good too
be true, undoubtedly is.
One of the first companies to fall victim to website spoofing was net
payment service Paypal.
Conmen set up a fake site and asked people to visit and re-enter their
account and credit card details because Paypal had lost the information.
The website link included in the e-mail looked legitimate but in fact
directed people to a fake domain that gathered details for the conmen's
personal use.
**************************************************************
5 OCT 2002
From the Dispatch, a South African newspaper:
SAPS, Scotland Yard go after Nigerian conmen
JOHANNESBURG -- Four Nigerians have been arrested, three in South Africa and one
in London, after a joint operation between South African police and New Scotland Yard.
SA Police Service spokeswoman Senior Superintendent Mary Martins-Engelbrecht
said yesterday the arrests followed the kidnapping of a French national, Olivier Rame,
44, shortly after his arrival in South Africa on September 26.
He was lured to South Africa by a Nigerian criminal syndicate operating a 419 letter
scam.
The scam, named for the section of the Nigerian penal code outlawing the practice,
involves offering a potential victim a portion of a fictional amount of money a member of
the syndicate wants to move out of a country.
Typically, the fraudsters pretend to be the children, wives or relatives of deposed or
deceased African leaders, including any number of former Nigerian dictators, Mobutu
Sese Seko of Zaire and lately, Angolan rebel leader Jonas Savimbi.
Others claim to be bank officials who have access to vast fortunes that allegedly belong
to no-one.
Victims are confidentially asked to make their bank accounts available to launder the
money in exchange for a commission, usually itself a small fortune.
They are then asked to pay an administrative fee.
Most, in anticipation of riches to come, oblige.
The fraudsters then usually ask the potential victim to meet them. Many victims have
been held for ransom, robbed or even murdered once in the clutches of the scam artists.
Most 419 fraudsters were also tied to the human slave trade and international drug
smuggling.
In this case, Rame was induced to pay E60000 (about R600000) into a London bank
account.
When he arrived in Johannesburg he was kidnapped.
His captors then contacted his daughter in London and demanded a ransom.
She apparently called in the London Metropolitan Police's detectives based at New
Scotland Yard, who alerted the South African police through Interpol.
A joint operation was launched to rescue Rame and two London detectives arrived in
South Africa on Wednesday.
The two and commercial crime unit detectives simultaneously raided property in
Roodepoort, Randburg and Orange Grove at 4pm on Thursday. New Scotland Yard
officers raided London premises at the same time.
A slightly injured Rame was rescued.
More arrests are expected.
The three arrested in South Africa will appear in the Kempton Park Magistrate's Court on
Monday. -- Sapa
*********************************************
4 OCT 2002
From zdnet UK:
Spanish police smash £13m email scam
12:56 Thursday 3rd October 2002
Matt Loney
Eight people have been arrested in Spain, suspected of defrauding more than 300
victims in a well-known scam
Spanish police have arrested eight people involved in a Nigerian-led email scam
believed to have defrauded Internet users of up to 20m euros (£13m), according to
Spain's El Mundo newspaper.
Five Nigerians, a British man, a Spanish woman and a minor whose nationality was not
disclosed, were arrested in the operation code-named Global Trust, which was carried
out with the help of Interpol officials. Interpol could not immediately be reached for
comment.
The scam involves sending out mass emails that ostensibly come from a prominent
African who has tens of millions of dollars but needs help to access it, in return for a
share -- often millions of dollars -- of the proceeds. El Mundo reported that the group
arrested this week claimed to have money stored in safe deposit boxes in Spain, but
told their victims a debt had been incurred with the company holding the boxes, and this
had to be paid before the money could be released.
More than 300 people -- most of them from the US, France, Germany and Spain -- paid
up before the Civil Guard swooped.
The police investigation into the scam began several months ago after a US victim
reported the group to the authorities.
El Mundo said the group had collaborators in several countries. Web pages were
designed and managed in the US, and those making contact with potential victims were
based in countries as diverse as France, Great Britain, Germany and Pakistan.
This arrest marker the second such swoop this year. In May, South African police
arrested six people on suspicion of being involved in a similar scam. Police seized a
large amount of drugs, as well as computer equipment and false identification papers during the raid.
The Nigerian government has set up a unit in London to fight the fraud, but many people
are still being taken in.
The Metropolitan Police, in conjunction with the Specialist Crime Operational Command
Unit, has set up a Web page containing advice about the West African advanced fee
fraud.
If you have fallen victim to the fraud, you are encouraged to contact the Specialist Crime
OCU Fraud Squad by email at 419@spring39.demon.co.uk.
********************************************************************
1 OCT 2002
Sent in by a Concerned Nigerian:
From the Sacramento Bee:
Nigerian scheme evolves, still claiming new victims
By Edgar Sanchez -- Bee Staff Writer
Margie Ziereis thought she'd be rich by now.
The 45-year-old school bus driver expected to collect $50 million if she
allowed three times that amount to be transferred to her bank account
for "safekeeping."
At first skeptical, Ziereis embraced the proposal when she visited what
appeared to be the Web site for an African bank. The Web page
"confirmed" that an initial $26 million would be transferred to her.
"At first I didn't believe it," Ziereis said. "Then I received a fax
from the bank stating it was waiting to 'release' the money to me."
That fax, along with the Web site, looked authentic to Ziereis. But six
months after wiring $8,000 to a Canadian go-between to initiate the
supposed deal, Ziereis hasn't received a dime.
She and her husband were victims of the Nigerian scam, which offers
riches to assist in a bank transfer. The scam is often based on an
emergency facing African government "agents" who need to move
millions of dollars out of the country to an overseas bank account
holder before the money is forfeited.
Like many frauds, the scam exploits human behavior, said Lisa Harrison,
a professor of social psychology at California State University, Sacramento.
By claiming to be in a crisis, the scam artists "work on people's sense
of guilt" to set them up, she said.
"It's a cumulative effect," Harrison said. "The (crooks) gradually ask
for more and more, and it's really difficult to say 'No,' once we've said
'Yes.' "
A contributing factor is greed -- the victims' belief they will be paid
off, Harrison said.
"My husband and I were going to pay off our bills, pay off our house,
help our families and retire early," said Ziereis, of Wisconsin.
Now, the Ziereises are nearly broke. Most of the $8,000 they sent came
from their savings.
"We're losing our house because we're not able to pay the mortgage,"
Ziereis said. "We used to make the mortgage payments out of our savings
account.
"I'm very upset."
Experts are surprised people fall for the Nigerian scam even though it
has received extensive media coverage.
The warnings haven't reached everyone and "that's why we have victims,"
said Brian J. Korbs, a senior special agent with the U.S. Secret Service
in Sacramento who has traveled to Nigeria to investigate the scam.
At least 10 years old, the Nigerian scam began with postmarked letters
announcing that "businessmen" or "agents" of the Nigerian government
quickly needed to transfer millions of dollars to an overseas bank
account
holder.
Foreigners were promised part of the cash -- usually millions of dollars
-- if they provided their bank account number. Those who agreed
were later asked to pay money in advance to cover everything from
legal fees to purported bribes to get the money out of the country.
Some victims lost their entire savings before realizing no cash was
coming their way.
Today, the Nigerian scam has evolved into Internet e-mails that bombard
computer users.
"The Nigerian con artists are smart," having devised many ways to
extract cash, Korbs said. The creation of sham banking Web sites is a new
twist to help fool victims.
At least one Web site was allegedly commissioned by Roland Adams
of Elk Grove, who is in the Sacramento County jail awaiting trial on
charges that he was part of an international Nigerian scam ring.
The ring victimized more than 75 people, including Ziereis, who said
that despite her financial troubles she plans to attend Adams' trial.
And new victims turn up every day, Korbs said. They seldom get their
money back.
Two years ago, London police discovered that a Sacramento businessman
had wired $20,000 to a bank account controlled by Nigerian criminals in
Great Britain.
At the request of London police, Korbs interviewed the victim. The
man said he had sent $500,000 to the crooks, believing it was a
legitimate investment.
"I told him it was a scam," Korbs said.
Outwardly, the businessman took the news well. Internally, Korbs said,
the victim was probably coming apart.
Dealing with a scam
* If you receive an e-mail pitch promising money in exchange for your
bank account number or cash in advance, ignore it.
* Never send your bank account number or money to strangers.
* If you've been victimized by the scam, please send original e-mails
and other written documentation to the Secret Service, Financial
Crimes Division, 950 H St. NW, Washington, D.C., 20223.
* If you have received a Nigerian e-mail but haven't lost any money,
you may fax a copy to (202) 406-5031.
419 Coalition Note: Our email forward a copy to USSS 419 Task
Force at 419.fcd@usss.treas.gov and mark the 419 letter No
Financial Loss, For Your Database
**************************************************
1 OCT 2002
Sent in by a Concerned Nigerian:
From The Nation ( a Kenyan newspaper)
UK Firms Fall Prey to Swindlers
Paul Redfern
UK businesses are being swindled of millions of pounds by West African
con artists, British police say.
The fraud, which police said was not new in UK, is conducted through
e-mails containing promises of riches for recipients in return for bank
account details.
What is new however is that the gangs are more organised and
sophisticated in their operations. They had illegally obtained company
bank account details, enabling them to drain the firms' funds.
Media reports indicate several businesses in the UK had gone bankrupt
this year alone after their banks were persuaded to transfer large sums
of money out of their accounts by the swindlers, most of whom are said
to be Nigerians.
The gangs had got their members appointed to key jobs in the Royal
Mail, banks, tax offices and the Department of Works and Pensions to
assist in the complex fraud.
The con men are able to gain access to critical bank account details in
addition to stealing company mail.
A senior British detective said the gangs resorted to searching in dust
bins outside firms if other efforts to obtain bank account details failed.
"Their aim is to identify a company's account number, sort code and
signatures," another detective told th