Three Nigerian men have been sentenced to federal prison in Indianapolis for their roles in a COVID-19 unemployment fraud scheme that siphoned more than $520,000 from U.S. relief programs.
The U.S. Department of Justice announced the sentences on Monday.
Kamaldeen Karaole, 24, of Indianapolis, was convicted of aggravated identity theft, conspiracy to commit access device fraud, and access device fraud. He received 4 years, 3 months in prison, plus two years of supervised release.
Stephen Olamigoke, 23, of Nigeria, was sentenced to 2.5 years in prison and two years of supervised release for conspiracy and access device fraud. He also faces deportation upon completing his sentence.
Johnson Omodusonu, 24, of Indianapolis, was handed 2 years in prison and two years of supervised release for the same charges.
All three were ordered to pay $520,910 in restitution.
How the Scheme Worked
Court documents revealed that between August and October 2020, the men stole 168 unemployment insurance debit cards loaded with benefits from California, Arizona, and Nevada. Using stolen identities, co-conspirators outside the U.S. filed false claims, after which the trio used 98 cards to make 529 ATM withdrawals in and around Indianapolis, stealing $520,910 meant for unemployed workers.
The stolen funds were part of federal programs rolled out during the pandemic, including the Pandemic Unemployment Assistance Program and the Lost Wages Assistance Program.
Authorities Condemn the Fraud
U.S. Attorney for the Southern District of Indiana, Tom Wheeler, described the crime as “heartless and criminal,” saying the men exploited a system designed to support struggling families.
Federal investigators, including the FBI, U.S. Department of Labor Office of Inspector General, and the U.S. Postal Inspection Service, condemned the fraud and praised the inter-agency collaboration that led to the convictions.
The case was presided over by U.S. District Judge James Patrick Hanlon, with prosecution led by Assistant U.S. Attorney Matthew B. Miller.
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