A Bakersfield man faces several years in prison for running an illegal money transmitting business.
U.S. Attorney Eric Grant announced Monday that Ifeanyi Emmanuel Ugwu, 49, pleaded guilty to opening an unlicensed money transmitting business involving more than $5 million in illegally obtained funds.
The big picture: Ugwu owned, operated and served as Chief Executive Officer of Franklin Finance Inc. from December 2020 to August 2023.
The business opened and controlled 20 bank accounts across nine banks and financial institutions. Ugqu received around $5 million from more than 100 people in the U.S. in those accounts. He transferred those funds to people in China, Nigeria and other countries.
Several of the recipients of the money sent by Ugwu were victims of cybercrimes and fraud.
He received and transferred around $580,000 in fraud proceeds from those victims.
Ugwu was able to operate his illegal business by making misrepresentations to people, banks and other financial institutions to conceal his fraudulent activity.
What we’re watching: Ugwu is scheduled to be sentenced by U.S. District Judge Jennifer Thurston on July 27.
He faces a maximum of five years in prison and a $250,000 fine.