A United States federal court has sentenced three Nigerian nationals to prison for orchestrating a COVID-19 unemployment fraud scheme that siphoned $520,910 from state and federal benefit programs meant to support displaced workers during the pandemic.
The convicts, identified as Kamaldeen Karaole, 24, of Indianapolis; Stephen Olamigoke, 23, of Nigeria; and Johnson Omodusonu, 24, also of Indianapolis, were found guilty of conspiring with others to steal unemployment funds between August and October 2020.
Sentencing Breakdown
- 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 sentenced to two and a half years in prison with two years of supervised release. He admitted he will be deported after serving his term.
- Omodusonu received two years in prison and two years of supervised release on similar fraud charges.
All three were ordered to pay $520,910 in restitution.
How the Fraud Worked
According to court documents, the trio, in collaboration with unidentified co-conspirators overseas, stole 168 unemployment insurance debit cards and PINs issued by California, Arizona, and Nevada.
Using stolen identities, fraudulent unemployment claims were filed during the pandemic. Benefits were loaded onto the cards, which the men used for 529 ATM withdrawals across Indianapolis, often within minutes of each other. They successfully drained $520,910 that was intended to support workers who lost their jobs due to COVID-19 restrictions.
U.S. Officials React
U.S. Attorney for the Southern District of Indiana, Tom Wheeler, described the crime as “both heartless and criminal,” condemning the defendants for exploiting a system designed to help struggling families.
Megan Howell, Special Agent-in-Charge of the Department of Labor’s Office of Inspector General, pledged continued vigilance, stating the agency remains committed to “relentlessly protecting the integrity of this vital benefit program.”
Felicia George, Acting Inspector in Charge of the U.S. Postal Inspection Service, highlighted that the fraud not only deprived real people of benefits but also threatened the integrity of the U.S. Mail, which many rely on for timely delivery of essential services.
The FBI’s Indianapolis Special Agent in Charge, Timothy J. O’Malley, condemned the scheme, saying the men “shamelessly exploited a national crisis for personal gain,” and vowed to intensify efforts against similar fraud.
Case Investigation
The investigation was led by the FBI, the Department of Labor’s OIG, 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 case.
