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Allen Onyema: Air Peace CEO indicted for bank fraud in US

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Allen Onyema: Air Peace CEO indicted for bank fraud in US kikiotolu news

Allen Onyema, the CEO of top Nigerian airline, Air Peace has just been indicted for bank fraud in the United States. This has come as a big shock to many Nigerians.

The United States Attorney’s Office earlier today released a statement stating  Allen Ifechukwu Athan Onyema has been indicted for bank fraud and money laundering.

He was not charged alone, Air Peace, Chief of Administration and Finance, Ejiroghene Eghagha, was also charged with Mr Allen.

The charges against Allen Onyema, 56, of Lagos, Nigeria are:

  • one count of conspiracy to commit bank fraud,
  • three counts of bank fraud,
  • one count of conspiracy to commit credit application fraud,
  • three counts of credit application fraud
  • 27 counts of money laundering

The charges against Ejiroghene Eghagha, 37, of Lagos, Nigeria are:

  • one count of conspiracy to commit bank fraud,
  • three counts of bank fraud,
  • one count of conspiracy to commit credit application fraud,
  • three counts of credit application fraud
  • one count of aggravated identity theft.

Allen Onyema Fraud Case Full Details – How he was discovered

According to the shocking reports, Allen Onyema was charged with bank fraud and money laundering for moving more than $20 million from Nigeria through United States bank accounts in a scheme involving false documents based on the purchase of airplanes.

The international airline’s Chief of Administration and Finance, Ejiroghene Eghagha, has also been charged with bank fraud and committing aggravated identity theft in connection with the scheme.

U.S. Attorney Byung J. “BJay” Pak said:

“Onyema allegedly leveraged his status as a prominent business leader and airline executive while using falsified documents to commit fraud.

“We will diligently protect the integrity our banking system from being corrupted by criminals, even when they disguise themselves in a cloak of international business.”

Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented on the indictment:

“Allen Onyema’s status as a wealthy businessman turned out to be a fraud.

He corrupted the U.S. banking system, but his trail of deceit and trickery came to a skidding halt. DEA would like to thank the many law enforcement partners and the subsequent prosecution by the U.S. Attorney’s Office who aided in making this investigation a success.”

Airpeace CEO Allen Onyema bank fraud and money laundering

Thomas J. Holloman, IRS-Criminal Investigation Special Agent in Charge of the Atlanta Field Office said:

“This case is a prime example of why IRS-CI seeks to partner and leverage its expertise in an effort to thwart those seeking to exploit our nation’s financial system.

“With the importance of our banking system to the movement of money around the world, those attempting to use intricate schemes to commit bank fraud through the use of falsified documents and other means should know that the odds are now heavily stacked against them as law enforcement is combining its talents to protect the sanctity and integrity of the nation’s financial system.”

Acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama sad:

“Onyema setup various innocent sounding multi-million dollar asset purchases which were nothing more than alleged fronts for his scam.

“I’m proud to be part of a team of law enforcement agencies that come together to identify and attack criminals that attempt to profit from the exploitation of our nation’s financial systems.”

According to U.S. Attorney Pak, the indictment, and other information presented in court:

Onyema, a Nigerian citizen and businessman, is the founder and Chairman of several organizations that purport to promote peace across Nigeria, including the Foundation for Ethnic Harmony, International Center for Non-Violence and Peace Development, and All-Time Peace Media Communications Limited.

Beginning in 2010, Onyema began travelling frequently to Atlanta, where he opened several personal and business bank accounts. Between 2010 and 2018, over $44.9 million was allegedly transferred into his Atlanta-based accounts from foreign sources.

Onyema is also the CEO and Chairman of Nigerian airline Air Peace, which he founded in 2013.

In years following the founding of Air Peace, he traveled to the United States and purchased multiple airplanes for the airline. However, over $3 million of the funds used to purchase the aircraft allegedly came from bank accounts for Foundation for Ethnic Harmony, International Center for Non-Violence and Peace Development, All-Time Peace Media Communications Limited, and Every Child Limited.

Beginning in approximately May 2016, Onyema, together with Eghagha, allegedly used a series of export letters of credit to cause banks to transfer more than $20 million into Atlanta-based bank accounts controlled by Onyema.

The letters of credit were purportedly to fund the purchase of five separate Boeing 737 passenger planes by Air Peace. The letters were supported by documents such as purchase agreements, bills of sale, and appraisals proving that Air Peace was purchasing the aircraft from Springfield Aviation Company LLC, a business registered in Georgia.

However, the supporting documents were fake — Springfield Aviation Company LLC, which is owned by Onyema and managed by a person with no connection to the aviation business, never owned the aircraft, and the company that allegedly drafted the appraisals did not exist.

Eghagha allegedly participated in this scheme as well, directing the Springfield Aviation manager to sign and send false documents to banks and even using the manager’s identity to further the fraud.

After Onyema received the money in the United States, he allegedly laundered over $16 million of the proceeds of the fraud by transferring it to other accounts.

Allen Ifechukwu Athan Onyema, 56, of Lagos, Nigeria, and Ejiroghene Eghagha, 37, of Lagos, Nigeria, were indicted on November 19, 2019, on one count of conspiracy to commit bank fraud, three counts of bank fraud, one count of conspiracy to commit credit application fraud, and three counts of credit application fraud.

Additionally, Onyema was charged with 27 counts of money laundering, and Eghagha was charged with one count of aggravated identity theft.

Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

The Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Aviation Administration, Department of Commerce, and Department of Treasury are investigating this case.

Assistant U.S. Attorneys Garrett L. Bradford, Deputy Chief of the Narcotics and Dangerous Drugs Section and Lead Strike Force Attorney, Irina K. Dutcher, and Christopher J. Huber, Deputy Chief of the Complex Frauds Section, are prosecuting the case, with assistance from the Department of Justice’s Money Laundering and Asset Recovery Section and Office of International Affairs.

This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks.

These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.

The specific mission of the Atlanta Strike Force is to disrupt and dismantle the most significant drug trafficking and money laundering organizations designated as Consolidated Priority Organization Targets or Regional Priority Organization Targets and their affiliates impacting the Atlanta metropolitan area and the Northern District of Georgia.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

See some reactions to the report below (Gathered by LailasNews.com)

From Adebayo Akintunde:

This one loud o. Falsifying documents.  | CEO of Nigerian airline, Air Peace, Allen Onyema, has been indicted for bank fraud and money laundering.

From Ayo Bankole:

Just when we are still celebrating our darling Allen Onyema, after his heroic rescue of Nigerians from Xenophobic South Africa, US Dept of Justice releases a damning report on allegations of fraud & money laundering totalling $20m by Air Peace CEO. Urrgh!

From Gotti:

So Air Peace was built on fraud money!? Maaaadt! This Naija ehn both old n young dey do fraud. All those big offices n cars could just be a front for fraud.

From Akin Oyebode:

This reads like a pretty basic money laundering gig. DoJ is accusing him of setting up a phoney company (Springfield Aviation LLC) to receive money in the US and move it around, under the pretext of selling planes to Air Peace. Wild, but very basic.

Wonder where the alleged money came from. But that’s an easy scam to scatter. Buying planes from a company that has no history of dealing with airlines before you must raise some eyebrows. Anyway, gone with the wind. End.

From Toyin Fab:

Read again. Beginning in 2010. E don tey no be today. It’s very possible setting up Air peace was just to provide a front for the main business which is money laundering.

From Dr Kester Ozere:

Mehn!… I have read that write up from DOJ, Georgia against Allen Onyema, CEO AirPeace.

They’re deep!

The US DOJs don’t just write… Their write ups most times are product of detailed investigations.

I hope he survives this… 樂

About Ayeni Tolulope

Ayeni Tolulope is a fine-grained Journalist, Writer, Digital Media Strategist. He has been a member of the Fourth Estate for three years. He worked with LailasNews for over a year.