Bakersfield man sentenced to one year in prison for transferring $5M abroad through illegal money transmitting operation

FRESNO, Calif. - Ifeanyi Emmanuel Ugwu, 50, of Bakersfield, was sentenced today by U.S. District Judge Jennifer L. Thurston to one year in prison for illegally transmitting $5 million overseas to China and elsewhere while operating an unlicensed money transmitting business, U.S. Attorney Eric Grant announced.

According to court documents, between December 2020 and August 2023, Ugwu owned, operated, and served as chief executive officer of Franklin Finance Inc. Through this business, he opened and controlled 20 bank accounts across nine financial institutions, receiving approximately $5 million from more than 100 individuals in the United States. He then transferred the funds to individuals in China, Nigeria, and other countries. At no point did the company have the required licenses to operate a money-transmitting business.

Ugwu marketed his services as "money transfers … at black market rates," misrepresenting the nature of his business to banks in order to open accounts, and provided bogus reasons for the transactions. His operation attracted fraudsters and enabled the theft of hundreds of thousands of dollars from American citizens.

Several of the individuals who sent Ugwu funds were victims of cybercrimes and fraud. Ugwu received and transferred approximately $580,000 in fraud proceeds from these victims, continuing to operate his unlicensed business by making various misrepresentations to individuals, banks, and other financial institutions to conceal his fraudulent activity.

The IRS Criminal Investigation and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Cody S. Chapple prosecuted the case.