Allen Ifechukwu Athan Onyema, founder, Chairman, and CEO of Air Peace, one of Nigeria’s leading airlines, has been hit with new charges, including obstruction of justice, by the U.S. Department of Justice, following an indictment by U.S. authorities. The superseding indictment accuses Onyema of submitting false documents in an effort to hinder an ongoing investigation into previous charges of bank fraud and money laundering.
Alongside Onyema, Ejiroghene Eghagha, the airline’s Chief of Administration and Finance, has been charged with involvement in both the alleged obstruction and the earlier fraudulent activities.
According to the Department of Justice, Onyema and Eghagha orchestrated a scheme involving the misuse of export letters of credit. The letters, which ostensibly funded the purchase of five Boeing 737 aircraft for Air Peace, allegedly allowed the transfer of over $20 million into U.S. accounts. However, the supporting documents, including purchase agreements, bills of sale, and appraisals, were found to be fraudulent.
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Background of The Fraud Allegations and Obstruction Charges
Onyema and Eghagha’s legal troubles began with the November 2019 indictment, which accused them of a wide-ranging scheme involving bank fraud, credit application fraud, identity theft, and money laundering. These allegations span back to financial transactions from 2010 to 2018, with the fraudulent activity peaking between 2016 and 2018. U.S. authorities allege that Onyema used Air Peace as a cover for illegal financial activities, including transferring over $44.9 million into bank accounts in Atlanta, Georgia, from foreign sources.
The superseding indictment filed on October 8, 2024, adds to the charges by accusing Onyema of attempting to obstruct justice by submitting fraudulent documents to U.S. authorities to mislead the investigation.
“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 of his conduct,” U.S. Attorney Ryan K. Buchanan said.
This latest indictment, Buchanan added, showcases the diligence of federal investigative partners in uncovering the defendants’ obstruction scheme, thus allowing for greater accountability.
The authorities allege that Springfield Aviation Company LLC, the entity purportedly selling the aircraft to Air Peace, was owned by Onyema himself, and never actually possessed the planes. Additionally, the appraisal company referenced in the documents did not exist.
Eghagha is accused of playing a key role in the execution of the scheme, including directing the manager of Springfield Aviation to sign false documents and even using the manager’s identity to facilitate fraud. After receiving the funds, Onyema allegedly laundered over $16 million by transferring it between various accounts in the United States.
Obstruction of Justice Allegations
The obstruction of justice charges are linked to actions taken by Onyema and Eghagha following the discovery of the investigation in 2019. It is alleged that the two instructed the Springfield Aviation manager to sign a key business contract but deliberately left the document undated. In October 2019, the contract was then falsely dated to May 5, 2016, predating the alleged fraudulent activities, and was presented to the U.S. government in an attempt to unfreeze bank accounts and halt the investigation.
According to the authorities, these actions were a calculated effort to mislead investigators and obstruct the course of justice.
“The charges announced today demonstrate the criticality of diligence and truth in criminal justice proceedings. HSI and our partners are committed to pursuing those who seek to exploit our nation’s financial system and any efforts to cover up illegal activity,” Steven N. Schrank, Acting Special Agent in Charge, of Homeland Security Investigations (HSI) Atlanta, stated.
The investigation into Onyema’s activities is being led by multiple federal agencies, including the Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), and others. These agencies have been part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation, aimed at dismantling high-level criminal organizations.
Potential Extradition to the United States
With the new charges added to the already significant list, Onyema faces the likelihood of extradition to the United States. This development is based on the extradition treaty between Nigeria and the U.S., which allows for the transfer of suspects facing serious criminal charges.
Given the gravity of the accusations, including multiple counts of bank fraud, money laundering, identity theft, and obstruction of justice, U.S. authorities are expected to formally request Onyema’s extradition to stand trial in Georgia.
Implications for Air Peace
The legal battle surrounding Onyema is likely to have a significant impact on Air Peace, the airline he founded in 2013, according to analysts. Over the past decade, Air Peace has risen to become a major player in Nigeria’s aviation sector, offering both domestic and international flights. However, Onyema’s legal troubles could jeopardize the airline’s reputation and operational stability, especially, given its recent faceoff with some international airlines. The company has been engaged in ongoing disputes with foreign airlines as it seeks to expand its international routes, aiming to challenge established carriers in markets such as Dubai, Johannesburg, and London.
Analysts believe that the possibility of extradition could also raise questions about the airline’s corporate governance, particularly concerning the potential impact on leadership stability and strategic planning. The potential legal battle abroad is also expected to result in setbacks for the Nigerian aviation industry, with Air Peace’s growth ambitions stalling. Moreover, the current circumstances may lead to increased scrutiny from regulatory bodies and creditors, potentially affecting the airline’s access to financing and international partnerships.
As it stands, the criminal action number 1:19-CR-464 now encompasses various charges against Onyema and Eghagha, ranging from conspiracy to commit bank fraud and credit application fraud to money laundering and obstruction of justice. Under U.S. law, all defendants are considered innocent until proven guilty, and it remains the responsibility of the prosecution to establish guilt beyond a reasonable doubt.