Bakersfield resident pleads guilty to operating an illegal money transmitting business

Date: April 6, 2026

Contact: [email protected]

Fresno, CA - Ifeanyi Emmanuel Ugwu of Bakersfield pleaded guilty today to operating an unlicensed money transmitting business involving more than $5 million in illegally obtained funds, U.S. Attorney Eric Grant announced.

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

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. Ugwu was able to operate his unlicensed business by making various misrepresentations to individuals, banks, and other financial institutions to conceal his fraudulent activity. Several of the individuals in the United States who sent funds to Ugwu were victims of fraud and cybercrimes.

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

Ugwu is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 27, 2026. Ugwu faces a maximum penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 18 field offices located across the U.S. and maintains an international presence through attaché posts abroad.