A United States federal court has sentenced three Nigerian men to prison for orchestrating a COVID-19 unemployment fraud scheme that siphoned $520,910 from state and federal programs.
The convicts are 24-year-old Kamaldeen Karaole of Indianapolis, 23-year-old Stephen Olamigoke of Nigeria, and 24-year-old Johnson Omodusonu of Indianapolis. Karaole received 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 was handed a twoand-a-half-year prison term with two years of supervised release. He also admitted that he will be removed from the United States upon completion of his sentence. Omodusonu was sentenced to two years in prison and two years of supervised release for his role in the scheme. Each of the men was ordered to pay $520,910 in restitution.
Court records revealed that between August and October 2020, the trio worked with accomplices outside the United States to steal 168 unemployment insurance debit cards and PINs issued by California, Arizona, and Nevada. Using stolen identities, they filed fraudulent unemployment claims and had benefits loaded onto the cards.
They used 98 of the cards to make 529 ATM withdrawals in and around Indianapolis, often within minutes of each other, siphoning funds meant to support workers who lost jobs during the pandemic. U.S. Attorney for the Southern District of Indiana, Tom Wheeler, condemned the fraud, calling it heartless and criminal, while praising the work of federal investigators.
Megan Howell, Special Agent-in-Charge of the Department of Labor’s Office of Inspector General, stressed the agency’s commitment to protecting unemployment benefits from fraud. Felicia George, Acting Inspector in Charge of the U.S. Postal Inspection Service, highlighted the broader threat posed to the integrity of the U.S. Mail.
FBI Indianapolis Special Agent in Charge Timothy J. O’Malley said the men shamelessly exploited a national crisis for personal gain and pledged continued vigilance against fraud.
