Florida Man Convicted In Business Email Compromise And Money Laundering Scheme Targeting Hedge Fund
Mustapha Raji, a 52-year-old Florida man, was convicted of participating in a $1.7 million business email compromise and money laundering scheme targeting a Manhattan hedge fund, receiving a $50,000 cut, and faces up to 20 years in prison on multiple counts including wire fraud and money laundering conspiracy.
Mustapha Raji was convicted on four counts—conspiracy to commit wire fraud, wire fraud, receipt of stolen property, and conspiracy to commit money laundering—for his role in a $1.7 million business email compromise targeting a Manhattan hedge fund in July 2018. As a registered officer of the company that received the stolen funds, Raji fabricated documents to conceal the fraud and directed co-conspirators to launder the money both domestically and overseas, keeping $50,000 for himself. He was found guilty after a week-long jury trial in the Southern District of New York and is scheduled to be sentenced on January 11, 2023, facing maximum penalties of up to 20 years on three counts and 10 years on the receipt of stolen property charge.
Mustapha Raji, a 52-year-old resident of Hollywood, Florida, was convicted by a jury of participating in an international fraud ring that compromised the email account of a Manhattan hedge fund founder in July 2018, leading to the fraudulent diversion of $1.7 million. Raji, who was a registered officer of the corporate account that received the stolen funds, fabricated documents to conceal the theft and directed co-conspirators to launder the money both within the U.S. and overseas. He personally received a $50,000 cut from the scheme and was charged with conspiracy to commit wire fraud, wire fraud, receipt of stolen property, and conspiracy to commit money laundering. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit, with investigative support from the FBI. Raji was arrested on December 20, 2019, and after a week-long trial before Judge Jesse M. Furman, he was found guilty on all four counts. The maximum potential sentences total up to 70 years, though actual sentencing will be determined by the judge. Raji is scheduled to be sentenced on January 11, 2023, at 3:15 p.m., as part of the Department of Justice’s ongoing efforts to combat business email compromise schemes targeting American businesses.
Extracted insights
- $1.70M $1.7 million $1M–$10M
- $50K $50,000 $10K–$100K
- person damian williams
- agency Federal Bureau of Investigation
- person fraud ring
- person fraudulent scheme
- person mustapha raji
- Mustapha Raji convicted of conspiracy to commit wire fraud, wire fraud, receipt of stolen property, and conspiracy to commit money laundering
- Mustapha Raji participated in $1.7 million business email compromise and money-laundering scheme targeting Manhattan hedge fund
- Mustapha Raji arrested on December 20, 2019
- Mustapha Raji received $50,000 cut for participation in scheme
- Mustapha Raji scheduled to be sentenced on January 11, 2023 at 3:15 p.m. before Judge Jesse M. Furman
- Fraud ring compromised business email account of hedge fund founder in New York in July 2018
- Fraudulent scheme diverted $1.7 million wire transfer from hedge fund to corporate bank account
- Damian Williams announced guilty verdict against Mustapha Raji
- U.S. District Judge Jesse M. Furman presided over jury trial of Mustapha Raji lasting approximately one week
- Federal Bureau of Investigation conducted investigative work on case
Press Release Florida Man Convicted In Business Email Compromise And Money Laundering Scheme Targeting Hedge Fund Wednesday, September 21, 2022 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict against MUSTAPHA RAJI for his participation in a $1.7 million business email compromise and money-laundering scheme that targeted a Manhattan hedge fund. RAJI was convicted on four counts of conspiracy to commit wire fraud, wire fraud, receipt of stolen property, and conspiracy to commit money laundering. RAJI was convicted after a jury trial before U.S. District Judge Jesse M. Furman which lasted approximately one week. RAJI was previously arrested on December 20, 2019. U.S. Attorney Damian Williams said: “Email scams that target businesses in this District will not be tolerated. Together with our law enforcement partners, we will continue to zealously prosecute online scammers abroad, and the U.S.-based money launderers they work with, to protect American businesses.” As reflected in the Indictment, public filings, and the evidence presented at trial: RAJI participated in an international fraud ring that conducted phishing and other email fraud campaigns. One of those campaigns involved the July 2018 compromise of the business email account of a hedge fund founder in New York. That compromise resulted in the fraudulent diversion of a $1.7 million wire transfer from the hedge fund to a corporate bank account used to facilitate the scheme. RAJI was a registered officer of the company that received the stolen funds, he fabricated documents to cover up the fraudulent transfer of funds from the hedge fund, and he directed a co-conspirator to launder the stolen funds to other co-conspirators domestically and overseas. RAJI took a $50,000 cut for his participation in the scheme. * * * RAJI, 52, of Hollywood, Florida, was convicted of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of receipt of stolen money, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. RAJI is scheduled to be sentenced before Judge Furman on January 11, 2023, at 3:15 p.m. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Catherine Ghosh, Jilan Kamal, Dina McLeod, and Robert B. Sobelman are in charge of the prosecution. Contact Nicholas Biase (212) 637-2600 Updated September 21, 2022 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 22-296
Press Release Florida Man Convicted In Business Email Compromise And Money Laundering Scheme Targeting Hedge Fund Wednesday, September 21, 2022 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict against MUSTAPHA RAJI for his participation in a $1.7 million business email compromise and money-laundering scheme that targeted a Manhattan hedge fund. RAJI was convicted on four counts of conspiracy to commit wire fraud, wire fraud, receipt of stolen property, and conspiracy to commit money laundering. RAJI was convicted after a jury trial before U.S. District Judge Jesse M. Furman which lasted approximately one week. RAJI was previously arrested on December 20, 2019. U.S. Attorney Damian Williams said: “Email scams that target businesses in this District will not be tolerated. Together with our law enforcement partners, we will continue to zealously prosecute online scammers abroad, and the U.S.-based money launderers they work with, to protect American businesses.” As reflected in the Indictment, public filings, and the evidence presented at trial: RAJI participated in an international fraud ring that conducted phishing and other email fraud campaigns. One of those campaigns involved the July 2018 compromise of the business email account of a hedge fund founder in New York. That compromise resulted in the fraudulent diversion of a $1.7 million wire transfer from the hedge fund to a corporate bank account used to facilitate the scheme. RAJI was a registered officer of the company that received the stolen funds, he fabricated documents to cover up the fraudulent transfer of funds from the hedge fund, and he directed a co-conspirator to launder the stolen funds to other co-conspirators domestically and overseas. RAJI took a $50,000 cut for his participation in the scheme. * * * RAJI, 52, of Hollywood, Florida, was convicted of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of receipt of stolen money, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. RAJI is scheduled to be sentenced before Judge Furman on January 11, 2023, at 3:15 p.m. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Catherine Ghosh, Jilan Kamal, Dina McLeod, and Robert B. Sobelman are in charge of the prosecution. Contact Nicholas Biase (212) 637-2600 Updated September 21, 2022 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 22-296