Email scammer who cost the University nearly half a million dollars detained until further notice

Anna Chen, Audience Editor 

Katrina Lee, News Editor 

The individual charged with defrauding VCU of nearly half a million dollars in a 2018 email scam is being detained in custody until the start of his trial.

The Department of Justice announced on Aug. 10 the scam, run by three individuals who hold dual citizenship in Nigeria and the United Kingdom, defrauded the university and attempted the same with other universities around the U.S. 

Olabanji Egbinola and his co-conspirators were extradited from the U.K. after his extradition appeal was rejected on July 12, according to a press release from the Department of Justice. Olabanji is the main focus in the case of VCU and is now facing charges in the United States. 

“The scams allegedly perpetrated by the defendants and their co-conspirators targeted unsuspecting victims including universities in North Carolina, Texas and Virginia, and attempted to cause more than $5 million in losses,” the DOJ press release stated. 

Egbinola first reached out to VCU on Sept. 26, 2018, according to the DOJ press release. He used the name “Rachel Moore” and pretended to be an employee from Kjellstrom and Lee, Inc., a Richmond-based construction company with an ongoing contract with the university.

The scammer then requested an Automated Clearing House wire transfer for payment on a construction project, according to an affidavit issued in support of extraditing Egbinola. The scammer conspired to launder the money and transfer it overseas.

The university traded emails back and forth from October through December of 2021 with “Rachel Moore,” who eventually convinced a university employee to wire the money to a Bank of Hope account, according to the DOJ press release. 

VCU was contacted in January by their bank, informing the university of the wire transfer being fraudulent. The university found there was no Rachel Moore at Kjellstrom and Lee, Inc., and the company never received the wire payment, according to the press release from the DOJ.

VCU recovered a “significant amount of funds” through insurance, university spokesperson Mary Kate Brogan stated in an email.

Brogan also stated there are now “additional safeguards put into place” to help protect the university from these types of fraud in the future. Brogan declined to comment any further and refused to connect The Commonwealth Times to another spokesperson.

Egbinola was charged with four counts of wire fraud, conspiracy to commit wire fraud, money laundering and conspiracy to commit money laundering for his attempt at defrauding VCU.

A preliminary and detention hearing was held on Friday at 11:00 a.m. for Egbinola in the United States District Court for the Eastern District of Virginia, where evidence was presented prior to the upcoming trial.  

A U.S District Judge said there are no conditions which would ensure Egbinola’s presence in the United States and maintain the “safety of the community.” He stated his decision may be appealed later.

“There’s no dispute he has minimal ties to the United States and has ties to two other countries. I have to go on the information I have here today,” said Judge Mark Colombell. “Due to the nature of the offense and lack of verifiable information, the court finds you need to be held in custody.”

Benjamin Beliles, trial attorney for Egbinola, said the case is mostly “guilt by association,” as there’s no direct evidence that shows his client defrauded VCU.

“The evidence is circumstantial … There is no smoking gun,” Beliles said. “Someone committed a fraud against VCU. The question is who was it?”