Air Peace CEO Allen Onyema faces new charges in $20 million scandal

The new charges arise in a high-stakes US fraud case involving the CEO of Nigeria’s largest airline, Allen Onyema.

Allen Onyema, the founder and CEO of Air Peace, is back in the international spotlight, facing a new round of charges brought by the US government. The latest legal tangle is linked to allegations of fraud and money laundering, which Onyema and Ejiroghene Eghagha, Air Peace’s head of administration and finance, have been battling since 2019. These new charges, including obstruction of justice , are part of a superseding indictment filed. in early October 2024.

The U.S. Attorney’s office for the Northern District of Georgia accuses Onyema of filing false documents to derail an ongoing federal investigation into an alleged multibillion-dollar scheme. This scheme involves more than $20 million, reportedly channeled through US banks, disguised as payments for aircraft purchases by Air Peace, Africa’s largest airline.

According to the indictment, Onyema and his co-defendant Eghagha orchestrated these transactions using fraudulent export letters of credit designed to trick US banks into transferring funds to Onyema’s accounts in Atlanta. The plane, purportedly purchased from Springfield Aviation LLC, turned out to be non-existent and the company was owned by Onyema himself.

The allegations first surfaced in 2019 when the US government accused Onyema of using Air Peace as a front for money laundering. In this latest development, US authorities argue that Onyema attempted to obstruct justice by providing forged documents in an effort to stall the investigation.

Prosecutors allege Onyema’s defense team presented contracts dating back years, with the intention of proving the transactions were legitimate. However, the documents were later found to be fabricated, leading to new charges against the businessman.

Ryan K. Buchanan, the U.S. attorney for the Northern District of Georgia, said Onyema’s actions not only violated U.S. banking laws but also represented an aggravated effort to obstruct justice. Federal agencies, including the IRS and the Drug Enforcement Administration (DEA), have become involved in the investigation of the alleged fraud, further intensifying the case against Air Peace’s CEO.

The implications of these charges are significant. If found guilty, Onyema could face severe penalties, including heavy fines and jail time. The case has attracted widespread attention, not only because of the magnitude of the allegations, but also because of Onyema’s high profile as one of Nigeria’s most successful businessmen. AirPeace, under Onyema’s leadership, has become a beacon of national pride, known for its expansive operations across Africa and beyond.

Onyema, however, continues to maintain his innocence. In a statement released shortly after the latest indictment, his legal team denounced the charges, calling them baseless and part of a long-running effort by US authorities to tarnish his reputation. “We will continue to fight these baseless allegations and demonstrate that Mr. Onyema has always conducted his business with the highest level of integrity,” their lawyers emphasized.

This legal battle comes at a time when AirPeace is expanding its operations, having recently announced plans to increase its fleet and enter new markets. Despite the legal problems, the airline has continued to grow, consolidating its position as a leader in Africa’s aviation sector. However, the ongoing US case threatens to cast a long shadow over these achievements.

Observers note that the case could have wider ramifications for Nigerian companies operating internationally, especially those involved in cross-border transactions. With US prosecutors determined to hold Onyema accountable, the trial is likely to drag on, keeping the Air Peace chief in the international spotlight.