BAKERSFIELD, Calif.(KBAK/KBFX) — A 49-year-old Bakersfield man pleaded guilty on Monday to operating an illegal money-transmitting business that involved more than $5 million in illegally obtained funds, according to the U.S. Department of Justice.
Ifeanyi Emmanuel Ugwu pleaded guilty on April 6, 2026, to operating an unlicensed money-transmitting business involving more than $5 million, the DOJ said.
According to the DOJ and court documents, Ugwu owned, operated, and served as chief executive officer of Franklin Finance Inc. between December 2020 and August 2023. Through the business, officials said, Ugwu opened and controlled 20 bank accounts across nine banks and financial institutions, receiving about $5 million from more than 100 U.S. residents. The funds were then transferred to individuals in China, Nigeria and elsewhere.
Officials said Franklin Finance Inc. did not have the required licenses to operate a money-transmitting business.
The DOJ said several people who sent Ugwu money were victims of cybercrimes and fraud, and that Ugwu received and transferred about $580,000 in fraud proceeds from those victims. Officials said Ugwu operated the unlicensed business by making various misrepresentations to people, banks, and other financial institutions to hide his fraudulent activity.
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Ugwu is scheduled to be sentenced on July 27, 2026. He faces a maximum penalty of five years in prison and a $250,000 fine, though the DOJ said the court will determine the actual sentence after considering applicable statutory factors and the federal Sentencing Guidelines.