Caught red-handed: US-based African man receives KSh 14.6m in email fraud
This story has significance for readers across Kenya and beyond.
- Nicolas Mondani Oleko, 32, appeared in federal court in North Dakota on Monday after a grand jury indicted him on wire fraud and bank fraud charges
- Prosecutors allege Oleko's business account received KSh 14.6 million (USD 113,050) stolen from a North Carolina auction house through an email impersonation scheme
- FBI agents found incriminating phone searches on Oleko's device on the day the funds arrived, and a WhatsApp message suggesting others may have been involved
Elijah Ntongai is an experienced editor at TUKO.co.ke, with more than four years in financial, business, labour and technology research and reporting. His work provides valuable insights into Kenyan, African, and global trends.
A 32-year-old man from the Democratic Republic of Congo, residing in North Dakota, was arraigned in federal court on Monday on charges of wire fraud and bank fraud linked to an email impersonation scheme that netted KSh 14.6 million (USD 113,050) stolen from an auction business in North Carolina.
Nicolas Mondani Oleko appeared before a judge in the District of North Dakota after an indictment returned by a grand jury on 3 June was unsealed on the same day as his arraignment.
Oleko remains in custody at the Stutsman County Corrections Centre, with each count carrying a maximum sentence of 20 years in federal prison.
How the Email Scheme Unfolded
According to the indictment, the fraud targeted an auction business based in Asheville, North Carolina, which had sold furniture, silver, and historical artefacts on behalf of an 80-year-old art dealer. After the sale concluded, the business sent a settlement statement to the dealer via email.
An unknown party then impersonated the dealer using a near-identical email address, substituting the letter "o" with the numeral "0," and redirected wire payment instructions to a Wells Fargo account held by Oleko's company, Mondani LLC.
On 21 December 2023, the auction business transferred USD 113,050 to what it believed was the dealer's legitimate account. The money instead landed in Mondani LLC's account, and within hours, USD 112,240.80 was withdrawn, including transfers of USD 40,000, USD 15,000, and USD 10,000 moved into a personal account belonging to Oleko and his wife.
Oleko's Admission and Phone Evidence
When FBI agents visited Oleko's Fargo apartment in April 2024, he acknowledged owning Mondani LLC and claimed the large transfer came as a surprise.
He told investigators he had been struggling with debt and used the funds to settle outstanding obligations, adding that he did not believe he had acted wrongly.
Investigators examining Oleko's phone found that on the day the money arrived, he had searched for the auction business's net worth and "15% of 100k." The following day, searches on the same device included the auction business's name alongside "what happened when they blocked your bank account."
The indictment further references a WhatsApp message received on Oleko's phone in January 2024 reading "Take your 20% and send the rest," accompanied by a screenshot of the USD 113,050 deposit and an audio message containing what prosecutors describe as apparent threats, indicating that additional individuals may have participated in the scheme.
Following the arraignment, the U.S. Attorney's Office called on businesses to put strict protocols in place for large financial transactions, urging firms to verify any changes to vendor banking details through trusted channels entirely separate from email communication.
Source: TUKO.co.ke
Reporting originally appeared via TUKO. Read the full source for additional context.