Athens Recovers Over Half of $700,000 Cyber Scam Funds; Federal Charges Filed
ATHENS, Ohio – The city of Athens has successfully recovered more than half of the over $700,000 stolen in a sophisticated cyber fraud operation that occurred in late 2024. This significant recovery comes as federal authorities have filed criminal charges against two Air Force members, alleging their involvement in similar cyber fraud schemes.
Details of the Cyber Fraud Incident
In November 2024, the city of Athens made a scheduled payment of $721,976 for the construction of the new fire station on Stimson Avenue. The payment was intended for Pepper Construction, the project contractor. However, the funds were instead deposited into a bank account controlled by fraudsters. Investigations revealed that the perpetrators had gained unauthorized access to email communications between the city and Pepper Construction. They then used a fake email address, closely resembling a legitimate Pepper address, to intercept the conversation and redirect the payment to their own account.
Swift Action Leads to Partial Recovery
Upon discovering the scam, the city promptly filed a lawsuit, which led to the freezing of the remaining funds in the fraudulent bank account. During this process, it was found that the same account had also received stolen funds from another cyber fraud victim. Through mediation, Athens managed to retrieve $205,000 from the $349,522 still present in the account. Additionally, the city secured an insurance claim of $200,000, bringing the total recovered amount to $405,000.
Further financial mitigation came from the city treasurer’s investment of the bond money allocated for the fire station construction. This investment generated $270,708, which has been added back to the project fund, offsetting a significant portion of the loss.
Federal Indictment and Potential for Further Recovery
In a related development, Chijioke Timothy Odimegwu and Harafat Mogaji were indicted in November by the U.S. Attorney for the Southern District of Iowa. The indictment accuses the two men, stationed at Dover Air Force Base in Delaware, of engaging in
