6 held in suspected fraud ring / Group took 570 mil. yen in alleged criminal profits sent from U.S.

The Yomiuri Shimbun

Six people have been arrested on suspicion of receiving 570 million yen in alleged criminal profits sent from a U.S. bank, police said Thursday.

The suspects--Japanese, Nigerian and Ghanaian nationals--are believed to have known the funds were profits from criminal activity, according to the Metropolitan Police Department. The six--including Nyeche Obeneme, a Nigerian businessman based in Okegawa, Saitama Prefecture--were apprehended Wednesday for allegedly violating laws aimed at cracking down on organized crime and criminal profits.

In 2008, about 2.8 billion yen in cash gained through fraud was wired from an account at the Citibank head office in New York to bank accounts in Japan and six other countries. The money allegedly received by the six suspects was part of this amount. The MPD believes the remittance from Citibank was an attempt by a Nigerian criminal ring to launder proceeds from fraud.

Around October 2008, according to the MPD, Nyeche and the other suspects received 570 million yen from the U.S. Citibank accounts at five bank accounts in Japan. The suspects allegedly lied to bank employees in Japan about the nature of the money, saying the transfer was payment for construction machinery that had been exported, the MPD said.

In September and October 2008, about 2.8 billion yen was taken from an account at the Citibank headquarters belonging to the National Bank of Ethiopia using forged money transfer forms. The U.S. Federal Bureau of Investigation has arrested a Nigerian man in connection with the case.

It is unknown for what purpose the money sent to Nyeche and the other suspects was used. Police suspect the money could have been sent to Nigeria after being received from the United States.

The MPD is cooperating with the FBI in the investigation.