Five Black Axe Leaders Extradited to the U.S. for Fraud and Money Laundering

Five alleged leaders of the Black Axe criminal organization have been extradited from South Africa to the United States to face charges related to romance scams, advance-fee fraud, and money laundering. The U.S. Department of Justice (DoJ) announced that the five Nigerian nationals were flown to the U.S. on September 11 and made their first court appearance in Trenton, New Jersey, on September 14.

Perry Osagiede, 57, is identified as the founder of the Cape Town zone of Black Axe, which is formally known as the Neo Black Movement of Africa. He was extradited alongside four others: Franklyn Edosa Osagiede, 42, Osariemen Eric Clement, 40, Collins Owhofasa Otughwor, 42, and Musa Mudashiru, 38.

According to the superseding indictment, this group operated from Cape Town between 2011 and 2021, utilizing social media, dating sites, and Voice over Internet Protocol (VoIP) numbers to reach victims in the U.S. They employed various aliases and crafted narratives that often involved someone traveling to South Africa for work who subsequently required financial assistance due to unforeseen circumstances, such as accidents at construction sites.

Victims, believing they were in genuine relationships, sent money and goods overseas. In instances where victims hesitated to comply, the conspirators allegedly resorted to coercive tactics, threatening to release sensitive personal photographs to compel payment.

The Flow of Illicit Funds

Funds were funneled through the bank accounts of victims and other U.S. account holders. In some cases, victims were persuaded to open U.S. bank accounts that the conspirators could then exploit, while business entities were used to obscure the money alongside proceeds from business email compromise (BEC) schemes.

The FBI described Black Axe as "a notoriously violent transnational criminal organization that also happens to dabble in romance scams to make money," according to Stefanie Roddy, the FBI Newark special agent in charge. All five individuals face charges of wire fraud conspiracy and money laundering conspiracy. Additionally, Perry Osagiede, Franklyn Osagiede, and Clement are charged with wire fraud counts, while Perry Osagiede, Franklyn Osagiede, and Otughwor are charged with aggravated identity theft.

How The Scheme Worked

The wire fraud and money laundering conspiracy charges each carry potential sentences of up to 20 years, while aggravated identity theft carries a mandatory two-year sentence that must be served consecutively to any other term. The five suspects were arrested in South Africa in 2021 at the request of U.S. authorities, marking a significant delay of five years before their extradition. The DoJ acknowledged the collaborative efforts of the FBI, the U.S. Secret Service, South Africa's Hawks, the South African Police Service, and Interpol in this case.

The charges against the individuals are allegations, and they are presumed innocent until proven guilty.