A United States-based Nigerian, Ifeanyi Ugwu, is set to face up to five years in prison after pleading guilty to operating an unlicensed money-transmitting business that involved over $5 million in illegally obtained funds.
According to a statement by the U.S. Attorney for the Eastern District of California, Eric Grant, Ugwu, 49, of Bakersfield, admitted to running the illegal operation between December 2020 and August 2023.
Grant said, “Ifeanyi Emmanuel Ugwu, 49, of Bakersfield, pleaded guilty today to operating an unlicensed money-transmitting business involving more than $5 million in illegally obtained funds.”
Court documents revealed that Ugwu opened and operated at least 20 bank accounts, through which he received the funds.
“Between December 2020 and August 2023, Ugwu owned, operated, and served as chief executive officer of Franklin Finance Inc. Through this business, Ugwu opened and controlled 20 bank accounts across nine banks and financial institutions, where he received approximately $5 million from more than 100 individuals in the United States,” Grant stated.
The funds were reportedly transferred to individuals in China, Nigeria, and other countries, and the company never held the required licenses to operate a money-transmitting business.
Several of the funds handled by Ugwu were proceeds of cybercrime and fraud, with approximately $580,000 traced to fraudulent activities.
“Ugwu sustained the illegal operation by making various misrepresentations to individuals, banks, and other financial institutions to conceal his fraudulent activity,” the statement added.
Investigations into the case were conducted by the Internal Revenue Service Criminal Investigation and Homeland Security Investigations, while Assistant U.S. Attorney Cody S. Chapple is prosecuting the matter.
Ugwu is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 27, 2026, and faces a maximum penalty of five years’ imprisonment and a fine of $250,000. The final sentence will be determined after consideration of statutory factors and the Federal Sentencing Guidelines.
