By Okafor Joseph Afam
October 13, 2024

Allen Onyema, the Chairman and CEO of Air Peace, a prominent Nigerian airline, is facing serious legal challenges after being indicted on new charges for allegedly obstructing justice in connection with a federal investigation into bank fraud and money laundering. According to a superseding indictment, Onyema is accused of submitting false documents to authorities in a bid to derail the ongoing investigation into earlier charges against him and his Chief of Administration and Finance, Ejiroghene Eghagha.

The U.S. Attorney’s Office for the Northern District of Georgia announced the new obstruction charges on Friday, stating that Onyema and Eghagha are implicated in a scheme to mislead the government and hinder the inquiry into their financial activities.

Previous Charges and Allegations

Onyema and Eghagha were initially indicted in 2019 on multiple counts, including conspiracy to commit bank fraud, bank fraud, and money laundering. The alleged fraud scheme involved using fraudulent documents to purchase aircraft and laundering over $16 million in proceeds. The recent charges indicate that Onyema attempted to submit additional false documents to obstruct the investigation further.

U.S. Attorney Ryan K. Buchanan commented, “After allegedly using his airline company as a cover to commit fraud on the United States’ banking system, Onyema, along with his co-defendant, allegedly committed additional crimes of fraud in a failed attempt to derail the government’s investigation.” He emphasized the importance of holding individuals accountable for such serious misconduct.

The investigation is part of a broader initiative to combat financial crimes and safeguard the integrity of the U.S. banking system, involving collaboration among multiple federal agencies, including the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS), and Homeland Security.

Details of the Allegations

The superseding indictment details Onyema’s involvement in a complex financial scheme that reportedly began when he opened several personal and business bank accounts in Atlanta from 2010 to 2018. Allegedly, more than $44.9 million was transferred into these accounts from various international sources, raising suspicions of money laundering and bank fraud.

The indictment claims that beginning in May 2016, Onyema and Eghagha utilized a series of export letters of credit to facilitate the transfer of over $20 million into bank accounts controlled by Onyema in Atlanta. These letters were purportedly intended to finance the purchase of five Boeing 737 passenger planes, with supporting documents that were later revealed to be fraudulent.

Notably, the company named in the documents, Springfield Aviation Company LLC, was allegedly owned by Onyema, who used a manager with no actual ties to the aviation industry to further the scheme. The documents purportedly showed that Air Peace was purchasing aircraft from this fictitious company, which never owned the planes.

As the investigation progressed, Onyema and Eghagha reportedly instructed the Springfield Aviation manager to sign a business contract without dating it. Later, Onyema allegedly submitted this contract to the government, falsely dated to suggest it was signed before the fraudulent activities began.

Ongoing Legal Proceedings

Both Onyema, 61, and Eghagha, 42, have been charged in a criminal case that includes previous counts of conspiracy, bank fraud, and money laundering. The recent indictment adds an additional count of obstruction of justice and a conspiracy charge related to those obstruction efforts.

While the indictments contain serious allegations, it is important to note that Onyema and Eghagha are presumed innocent until proven guilty in a court of law. The U.S. Attorney’s Office has underscored that it is the government’s responsibility to establish the defendants’ guilt beyond a reasonable doubt at trial.

As the case unfolds, the implications of these charges extend beyond Onyema and Eghagha, reflecting broader concerns about financial misconduct and its impact on the integrity of the U.S. banking system.

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Okafor Joseph Afam covers legal and financial issues in the United States and Nigeria, focusing on corporate accountability and compliance.