In a shocking case of multi-generational cybercrime, the University of Nairobi bore witness to the transformation of a seemingly quiet and studious student, Jeffrey Ndungi Sila, into a flamboyant fraudster who purchased two planes and lived a lavish lifestyle. The story of this family’s criminal enterprise is one that unravels the depths of cybercrime intricacies.
Ndungi, once an unassuming engineering student at the University of Nairobi, made a startling transformation shortly after his cousins, Loretta Wavinya and Lillian Nzongi, were convicted for defrauding the American government of Sh975 million. Their imprisonment did not deter Ndungi; instead, it served as an opportunity for him to embark on a life of crime.
Graduating in 2012, just two years after beginning his studies, Ndungi had already purchased two Cessna planes, bearing registration numbers 5Y-CCN and 5Y-CCO. With no known source of income, his lavish lifestyle raised eyebrows among his peers.
It is believed that Ndungi’s journey into cybercrime may have been influenced by his uncle, Paul Kilungya Nyumu, who introduced the family to cybercrime before vanishing. Nyumu played a significant role in laundering funds stolen by his nieces, Wavinya and Nzongi.
Ndungi soon joined the world of cybercrime, engaging in fraudulent activities across Kenya, Nigeria, North Africa, and the United States. He began by hacking into Multichoice systems, profiting from the illegal distribution of DSTV signals. Subsequently, he participated in a scheme that involved stealing the identities of American citizens to claim fake tax refunds.
However, his uncle Robert Mutua Muli, based in Virginia, USA, explored a different avenue known as Business Email Compromise (BEC). The BEC scheme involved hacking into company emails to identify clients and convince them to redirect payments to fraudulent accounts.
While Ndungi was the head of a DSTV hacking cartel in Kenya, his uncle Muli, an integral figure in the BEC scheme, took instructions from individuals in Kenya, including a key architect of the scam known as “Frank MA,” who was based in Nairobi. Frank had connections in the banking system to facilitate the flow of stolen funds from the US to Kenya.
The family’s criminal enterprise relied on laundering funds through various accounts and individuals, including Muli’s wife, Beth Nyambura Gitau, and other accomplices like Francis Asanyo Mobisa, Anthony Mureithi, and Rachel Mathenge. The investigations revealed the utilization of a Malindi-based IP address for the fraud, suggesting that Frank may have been in Malindi during the operation.
Ndungi’s downfall came in 2014 when he attempted to claim a fraudulent tax refund using the identity of an American citizen. The US Internal Revenue Service uncovered the scheme, leading to an undercover operation that led to Ndungi’s arrest in 2016. He was caught trying to board a plane to Nairobi from Los Angeles, serving a 10-year jail term.
Muli was also arrested while attempting to escape to Kenya after stealing over Sh200 million in a scheme that tricked American government institutions into wiring payments meant for Dell. He received a five-year sentence.
The family’s cybercrime activities are believed to have stolen over Sh2 billion in a tax fraud scheme, making it one of the largest cybercrime heists in the industry. The shocking tale of Ndungi and his family’s criminal activities highlights the complex and intricate nature of modern cybercrime.
Story was compiled from various online sources and from Jack Zollo