Maryland Man Sentenced to 7 Years and 6 Months in Prison for Mail and Wire Fraud Scheme

Strategic Insights -

A Maryland man, Osakwe Ismael Osagbue, was sentenced to 90 months (seven years and six months) in prison for a scheme to defraud federal bankruptcy courts, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The scheme, which spanned from 2022 to April 2024, involved Osagbue submitting false documents to obtain money from unsuspecting individuals, using their names, social security numbers, and signatures to request withdrawal of unclaimed funds.

Key Takeaways:

  • Osagbue was sentenced to 90 months (seven years and six months) in prison for mail and wire fraud, falsification of bankruptcy records, and aggravated identity theft.
  • The scheme involved Osagbue submitting false documents to obtain money from unsuspecting individuals, using their names, social security numbers, and signatures to request withdrawal of unclaimed funds.
  • Over $1.8 million in unclaimed funds were involved in the scheme, with Osagbue submitting applications for payment to 28 federal bankruptcy courts across the United States and Puerto Rico.
  • The United States Secret Service investigated the case, in furtherance of its mission to combat cutting-edge and complex financial crimes that pose a threat to the federal government and the nation's economic security.
  • The United States Bankruptcy Court for the District of Puerto Rico reported the fraudulent scheme to federal authorities.
  • The sentence reflects the US Attorney's Office commitment to prosecuting sophisticated fraudsters who abuse the system.
  • Filing fraudulent unclaimed funds requests strikes at the integrity of the bankruptcy system, and the sentence will help protect it, according to Monsita Lecaroz-Arribas, Assistant U.S. Trustee for the District of Puerto Rico.

Statistics:

  • 90 months (or 7 years and 6 months) is the prison sentence for mail and wire fraud, falsification of bankruptcy records, and aggravated identity theft.
  • $1,800,000 is the amount of unclaimed funds involved in the scheme.
  • 28 federal bankruptcy courts were involved in the scheme, across the United States and Puerto Rico.
  • 2022 to April 2024 is the time period when the scheme was carried out.

Sources:

  • [United States Department of Justice, Office of Public Affairs. (2025, July 14). Maryland Man Sentenced to 7 Years and 6 Months in Prison for Mail and Wire Fraud Scheme.]
  • [W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. (2025, July 14). Statement regarding the sentencing of Osakwe Ismael Osagbue.]