A U.S. federal court has sentenced three Nigerian men to prison for orchestrating a COVID-19 unemployment fraud scheme that stole over half a million dollars meant for struggling American workers during the pandemic.
The convicts are Kamaldeen Karaole, 24, of Indianapolis; Stephen Olamigoke, 23, of Nigeria; and Johnson Omodusonu, 24, also of Indianapolis. According to court documents, they conspired with partners outside the United States between August and October 2020 to exploit unemployment programs in California, Arizona, and Nevada.
The scheme involved stealing 168 unemployment debit cards and PINs, filing fake claims using stolen identities, and loading the benefits onto the cards. The trio then used 98 cards to make 529 ATM withdrawals across Indianapolis, often within minutes of one another, ultimately stealing $520,910.
At sentencing, Karaole received four years and three months in prison plus two years of supervised release. Olamigoke was handed two and a half years in prison and will be deported after serving his time, while Omodusonu was sentenced to two years. All three were also ordered to repay $520,910 in restitution.
U.S. Attorney for the Southern District of Indiana, Tom Wheeler, criticized the defendants, 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.”
Federal agencies involved in the investigation also condemned the fraud. Megan Howell, Special Agent-in-Charge of the Department of Labor’s Office of Inspector General, stressed the agency’s commitment to protecting the unemployment system. Felicia George, Acting Inspector in Charge of the U.S. Postal Inspection Service, warned that such crimes not only deny aid to real beneficiaries but also undermine trust in the U.S. Mail. FBI Indianapolis Special Agent in Charge Timothy J. O’Malley added that the men “shamelessly exploited a national crisis for personal gain,” pledging continued protection of public funds.
The case was prosecuted by Assistant U.S. Attorney Matthew B. Miller, with sentencing carried out by Judge James Patrick Hanlon. The FBI, the Department of Labor’s OIG, and the Postal Inspection Service jointly investigated the matter.
Source: U.S. Department of Justice