Olalekan Jacob Ponle, also known as Mr Woodberry, who was a close associate of Ramon Abbas, aka Hushpuppi, during their criminal activities, has pleaded guilty to one count of wire fraud and agreed to surrender $8 million in proceeds of wire fraud, as well as luxury cars and watches, to the United States government. Both men were arrested in Dubai, the United Arab Emirates, in 2020 for their involvement in extensive international online scams and were subsequently flown to the US to face trial.
Initially, Woodberry had pleaded not guilty to the eight-count fraud charge against him, which accused him of participating in a scheme known as business email compromise (BEC), but he changed his plea to guilty during a recent hearing at the US District Court for Northern Illinois. As part of his plea agreement, Woodberry must pay back the $8 million he fraudulently received from seven companies that were caught in his scam.
In a document containing Woodberry’s signed plea declaration, it states that “Defendant understands that by pleading guilty, he will subject to forfeiture to the United States all right, title, and interest that he has in any property constituting or derived from proceeds obtained, directly or indirectly, as a result of the offence.”
Both Woodberry and Hushpuppi have been linked to high-profile scams involving millions of dollars, targeting individuals and companies across the globe. They allegedly used phishing emails to steal login credentials, thereby accessing bank accounts and diverting funds. They also created fake websites and documents to convince victims to transfer large sums of money to accounts controlled by the group.
Hushpuppi is currently awaiting trial in the US, having pleaded not guilty to charges of conspiracy to launder money, among other offences. He is accused of being involved in fraud totalling $1.2 billion.
As for Woodberry, his guilty plea means he could face up to 20 years in prison, although the final sentence has not yet been determined. The Nigerian national is due to be sentenced in November 2023, following a pre-sentence investigation by the court.
The successful prosecution of Woodberry and Hushpuppi is part of a wider crackdown on cybercrime, which has been on the rise in recent years, as more businesses and individuals shift online due to the pandemic. In addition to the forfeiture of assets, the authorities hope that these cases will serve as a warning to would-be scammers that there are serious consequences for such crimes.
The guilty plea entered by Woodberry marks a significant milestone in the ongoing investigation into international cybercrime, and highlights the importance of international cooperation in bringing perpetrators to justice. The US government has thanked the authorities in Dubai for their assistance in apprehending Woodberry and Hushpuppi and for their ongoing support throughout the investigation.
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