Texas men convicted in phishing scam that cost city of Memphis $773K
by: David Royer
MEMPHIS, Tenn. — Two Texas men have been convicted on federal fraud charges in a phishing scam that cost the city of Memphis more than $773,000.
Stanley Anyanwu, 41, and Vitalis Anyanwu, 42, were found guilty in a four-day trial of one count of conspiracy to commit wire fraud and bank fraud and one count of conspiracy to commit money laundering.
Interim United States Attorney Joseph C. Murphy Jr. announced the verdict Tuesday.
The scam took place in February 2022, when the city of Memphis tried to send a payment to a legitimate vendor, Zellner Construction. But, a city spokesperson said at the time, someone changed the details of the account, and the money was instead wired to another person.
The city tried to recover the funds, but was not able to because the money had already been swept into a large money laundering network.
The U.S. Attorney’s office said the city was the victim of a business email compromise scam controlled by a sophisticated fraud conspiracy.
“The defendants’ primary role in the conspiracy was to act as knowing ‘money mules’ for internet-based fraud scams,” the office said in a release.
The FBI investigated the case.
“These defendants defrauded multiple individuals and entities resulting in a significant loss to the City of Memphis,” said Special Agent in Charge Joseph E. Carrico of the FBI Nashville Field Office.
Sentencing is set to be held on July 18 before Chief United States District Judge Sheryl H. Lipman.
The financial loss apparently was never acknowledged during former Mayor Jim Strickland’s administration. It first came to light when City Councilman Chase Carlisle mentioned it in a council meeting last June.
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