The US Department of Justice (DOJ) says it has formally charged the Chairman, CEO, and founder of Air Peace (P4, Lagos), Allen Onyema, along with the Nigerian carrier's Chief of Administration and Finance, Ejiroghene Eghagha, with bank fraud and money laundering.
In a statement, the DOJ accused the two of having moved more than USD20 million from Nigeria through US bank accounts using false documents based on the purchase of aircraft. Eghagha has also been charged with bank fraud and committing aggravated identity theft in connection with the scheme.
“Onyema setup various innocent-sounding multi-million dollar asset purchases which were nothing more than alleged fronts for his scam,” acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama said. “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 the DOJ, beginning in 2010, Onyema began travelling frequently to Atlanta, where he opened several personal and business bank accounts. Between 2010 and 2018, over USD44.9 million was allegedly transferred into his Atlanta-based accounts from foreign sources.
In years following the founding of Air Peace in 2013, he travelled to the United States and purchased multiple aircraft for the airline. However, over USD3 million of the funds used to purchase the aircraft allegedly came from bank accounts controlled by several pro-peace institutions for which Onyema was also founder and chairman, namely the Foundation for Ethnic Harmony, the International Center for Non-Violence and Peace Development, All-Time Peace Media Communications Limited, and Every Child Limited.
The DOJ further alleged that beginning in approximately May 2016, Onyema, together with Eghagha, allegedly used a series of export letters of credit to secure the transfer of more than USD20 million into Atlanta-based bank accounts controlled by Onyema. The letters of credit were purportedly to fund Air Peace's purchase of several aircraft - namely B737-500 msn 28721 and B737-300s msn 27910, 28560, 28561, 28562, and 28660 - and 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 DOJ said the supporting documents were fake as 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 USD16 million of the proceeds of the fraud by transferring it to other accounts.
As it stands, Onyema and Eghagha, both of whom are resident in Nigeria, were indicted on November 19 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.
The US Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Aviation Administration (FAA), the Department of Commerce, and the 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.
For their part, both Onyema and Eghagha have denied the DOJ's allegations in separate statements.
“We hereby state that he (Onyema) strongly denies and will vigorously defend himself against the allegations made against him by the US Attorney in Atlanta, Georgia, in relation to the purchase of aircraft, aircraft spares and aircraft maintenance," Onyema's lawyers said. “None of the allegations involve any third party funds but relate to his funds utilised in the airline business. There is no allegation that any Bank (in the United States, Nigeria or elsewhere), Company or individual suffered any financial or any loss whatsoever.”
However, according to US court documents, the DOJ, in parallel to the filing of charges against Onyema, has also frozen USD14+ million worth of funds linked to Springfield Aviation Company and other affiliated firms.
So far, USD4,017,852.51 has been seized from Springfield's JP Morgan Chase Bank account alongside another USD4,593,842.05 held with the Bank of Montreal, Canada. Similarly, USD5,634,842.04 in Bank of Montreal held by Bluestream Aero Services, Inc. has also been frozen.
Neither Embraer nor Boeing, from which Air Peace has thirteen E195-E2s and ten B737-8s on order respectively, chose to comment on the impact the charges may have, if any, on Air Peace's purchase agreements.
According to the ch-aviation fleets module, Air Peace's fleet inventory currently consists of eight B737-300s, five B737-500s, one B777-200(ER), two B777-300s, one Do328-300, and eight E145s.
