US court jails three Nigerians over $520,910 COVID-19 fraud scheme
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A United States federal court has sentenced three Nigerian men to prison for their roles in a COVID-19 unemployment fraud scheme that led to the theft of $520,910 from state and federal unemployment programs.
The convicts are Kamaldeen Karaole, 24, of Indianapolis; Stephen Olamigoke, 23, of Nigeria; and Johnson Omodusonu, 24, of Indianapolis.
Karaole was sentenced to four years and three months in prison, followed by two years of supervised release, after being convicted of aggravated identity theft, conspiracy to commit access device fraud, and access device fraud.
Olamigoke received two and a half years in prison and two years of supervised release for conspiracy to commit access device fraud and access device fraud. He also admitted during his plea that he will be removed from the United States after serving his term.
Omodusonu was sentenced to two years in prison and two years of supervised release on similar charges.
Each defendant was ordered to pay $520,910 in restitution.
According to court documents, between August and October 2020, the men conspired with others outside the United States to steal 168 unemployment insurance debit cards and PINs issued by California, Arizona, and Nevada. Using stolen identities, fraudulent unemployment claims were filed, and the benefits were loaded onto the cards.
The trio used 98 of the cards to make 529 ATM withdrawals in and around Indianapolis, often within minutes of each other, stealing the $520,910 intended to support workers who lost jobs during the COVID-19 pandemic.
U.S. Attorney for the Southern District of Indiana, Tom Wheeler, condemned the fraud, saying, “Stealing unemployment benefits meant to help people survive during one of the worst crises in modern history is both heartless and criminal. These defendants exploited a system designed to support those in genuine need, and now they are being held accountable for their greed thanks to the diligent work of our federal partners and prosecutor.”
Megan Howell, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General, added, “As the primary federal law enforcement agency charged with investigating fraud against the unemployment insurance program, the U.S. Department of Labor, Office of Inspector General is committed to relentlessly protecting the integrity of this vital benefit program from those seeking to unlawfully enrich themselves at the expense of American workers.”
Acting Inspector in Charge Felicia George of the U.S. Postal Inspection Service emphasized the collaborative effort, noting, “Crimes like this not only deprive real people of critical aid, but also threaten the integrity of the U.S. Mail, which so many Americans rely on for secure and timely delivery of vital benefits.”
FBI Indianapolis Special Agent in Charge Timothy J. O’Malley said the men “shamelessly exploited a national crisis for personal gain”, pledging continued efforts to protect public funds from fraud.
The case was investigated by the FBI, the Department of Labor’s Office of Inspector General, and the U.S. Postal Inspection Service. Sentences were handed down by U.S. District Judge James Patrick Hanlon, while Assistant U.S. Attorney Matthew B. Miller prosecuted.
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