Three Nigerians Jailed in US for $520,910 COVID-19 Fraud Scheme

Three Nigerians based in the United States have been sentenced to prison terms totaling more than eight years for orchestrating a large-scale COVID-19 unemployment benefits fraud that siphoned over half a million dollars from government programs.

The convicts, identified as 24-year-old Kamaldeen Karaole, 23-year-old Stephen Olamigoke, and 24-year-old Johnson Omodusonu, were found guilty of conspiring to commit access device fraud and aggravated identity theft. According to a statement issued by the U.S. Department of Justice, the trio worked alongside accomplices outside the country to illegally obtain 168 unemployment insurance debit cards issued in 2020. These cards, registered under the identities of unsuspecting individuals, were used to file fraudulent claims in California, Arizona and Nevada.

Investigators revealed that between August and October 2020, the men exploited the benefits system by conducting 529 separate ATM withdrawals using 98 of the cards, stealing a total of $520,910. Court records showed that cash was withdrawn in quick succession at machines across Indianapolis, indicating a coordinated effort to deplete the accounts rapidly.

Karaole, who admitted to aggravated identity theft and access device fraud, received a sentence of four years and three months in federal prison, followed by two years of supervised release. Olamigoke was sentenced to two and a half years for conspiracy to commit access device fraud, with authorities confirming he will be deported to Nigeria upon completion of his jail term. Omodusonu was handed a two-year prison sentence with an additional two years of supervised release. The court also ordered all three to pay $520,910 in restitution.

The convictions come amid heightened U.S. efforts to combat pandemic-era benefits fraud. Earlier this month, another Nigerian national, Chukwuemeka Victor Amachukwu, was extradited from France to face separate charges of wire fraud, hacking and identity theft linked to a scheme that caused losses of $819,000.