Five alleged Black Axe leaders extradited from South Africa to face fraud, money laundering charges in New Jersey
TRENTON, N.J. — Five alleged leaders of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” have been extradited from South Africa to the United States to face charges related to internet fraud and money laundering schemes, federal prosecutors announced.
Perry Osagiede, 57; Franklyn Edosa Osagiede, 42; Osariemen Eric Clement, 40; Collins Owhofasa Otughwor, 42; and Musa Mudashiru, 38, all originally from Nigeria, are charged in a superseding indictment with conspiracy to commit wire fraud and conspiracy to commit money laundering for alleged conduct spanning from 2011 to 2021.
Perry Osagiede, Franklyn Osagiede and Clement are also charged with wire fraud. Perry Osagiede, Franklyn Osagiede and Otughwor are also charged with aggravated identity theft.
The five defendants were scheduled to make their initial appearances and be arraigned Monday before U.S. District Judge Michael A. Shipp in Trenton federal court.
“The alleged members of Black Axe believed that operating behind electronic devices thousands of miles away would place them beyond the reach of American justice. They were wrong. This extradition demonstrates that our Office, together with our law enforcement partners in the United States and abroad, will relentlessly pursue transnational criminal organizations that victimize Americans, no matter where they operate and hide,” U.S. Attorney Robert Frazer said.
According to court documents and statements made in court, prosecutors allege the five defendants were leaders of Black Axe, an organization headquartered in Benin City, Nigeria, that operates in various countries. The defendants allegedly held leadership positions within the organization’s Cape Town Zone in South Africa, with Perry Osagiede accused of founding the zone and serving as its zonal head.
Federal prosecutors allege that from at least 2011 through 2021, the defendants and other conspirators operated widespread internet fraud schemes from Cape Town involving romance scams and advance fee schemes.
The conspirators allegedly used social media, online dating websites and internet-based phone numbers to communicate with victims in the United States while using aliases. Many of the alleged schemes involved claims that someone was traveling to South Africa for work and needed money or other items of value following unforeseen problems.
According to prosecutors, romance scam victims believed they were in relationships with people using the aliases and sent money and other items of value overseas, including to South Africa. In some cases, prosecutors allege conspirators threatened to distribute personally sensitive photographs when victims hesitated to send money.
“Black Axe is a notoriously violent transnational criminal organization that also happens to dabble in romance scams to make money,” said FBI Newark Special Agent in Charge Stefanie Roddy. “The ability of FBI Newark and our partner agencies to reach into South Africa illustrates our resolve to hold accountable any and every type of fraudster who preys on innocent victims here in the United States. We also want to use this investigation as a message to victims: please call us if you have been scammed and help us stop these predators from continuing their vicious criminal activity.”
Prosecutors allege the conspirators used victims’ bank accounts and other U.S.-based financial accounts to transfer money to South Africa. In some cases, victims were allegedly convinced to open financial accounts that the conspirators were then permitted to use.
The defendants are also accused of laundering proceeds from business email compromise schemes and using business entities to conceal and disguise the nature of the funds.
“This case reflects the result of a years-long effort by the U.S. Secret Service and our law enforcement partners to identify, investigate, and bring to justice those who allegedly preyed on victims through sophisticated online fraud and money laundering schemes,” said Special Agent in Charge Craig Marech of the U.S. Secret Service’s Newark Field Office. “This case demonstrates the power of cooperation and sends a clear message that the Secret Service and our partners will pursue those who target U.S. victims wherever they operate, anywhere in the world.”
The wire fraud conspiracy and individual wire fraud charges each carry a maximum sentence of 20 years in prison and a $250,000 fine. The money laundering conspiracy charge carries a maximum sentence of 20 years and a fine of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater. Aggravated identity theft carries a mandatory two-year prison term that must run consecutively to any other prison sentence imposed.
The five defendants were arrested in South Africa in 2021 at the request of the United States and extradited to the United States on Sept. 11.
Anyone who believes they may be a victim can find information about the case and a questionnaire for victims on the U.S. Attorney’s Office website.
