Three Nigerian Men Sentenced to Prison for COVID-19 Unemployment Fraud Scheme
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, Kamaldeen Karaole, 24, of Indianapolis; Stephen Olamigoke, 23, of Nigeria; and Johnson Omodusonu, 24, of Indianapolis, were found guilty of various charges related to identity theft and access device fraud.
According to court documents, the men conspired with others outside the United States to steal 168 unemployment insurance debit cards and PINs issued by California, Arizona, and Nevada between August and October 2020. Using stolen identities, they filed fraudulent unemployment claims and loaded the benefits onto the cards. The trio then 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.
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.
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.” Megan Howell, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General, added that her agency is committed to protecting the integrity of the unemployment insurance program from those seeking to unlawfully enrich themselves at the expense of American workers.
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. The successful prosecution of this case highlights the collaborative efforts of law enforcement agencies to protect public funds from fraud and ensure that those who exploit the system are held accountable.
