Three US-based Nigerians have been sentenced to more than eight years in prison for their role in a $520,910 COVID-19 unemployment benefits fraud scheme.
The convicts Kamaldeen Karaole (24), Stephen Olamigoke (23), and Johnson Omodusonu (24) admitted to stealing unemployment benefits during the pandemic.
According to the US Department of Justice, the trio conspired with others abroad to file false claims using stolen personal information.
Between August and October 2020, the Nigerians stole 168 unemployment insurance debit cards belonging to real individuals.
Using these cards, they withdrew cash repeatedly at ATMs across Indianapolis.
Court documents revealed that 98 cards were used in 529 withdrawals, totaling $520,910. The cards came from California, Arizona, and Nevada.
“These benefits were intended for unemployed Americans during the COVID-19 crisis,” the US DoJ said. “Instead, the defendants exploited the system for personal gain.”
Each defendant faced charges of conspiracy, aggravated identity theft, and access device fraud.
Kamaldeen Karaole pleaded guilty to aggravated identity theft and conspiracy.
He was sentenced to four years and three months in prison plus two years of supervised release.
Stephen Olamigoke was sentenced to two and a half years plus two years of supervised release.
He also agreed to be deported to Nigeria after completing his term.
Johnson Omodusonu received two years in prison and two years of supervised release.
The court also ordered the three men to pay back $520,910 in restitution.
This case highlights a growing trend of international fraud schemes involving Nigerians abroad.
Just earlier this month, authorities charged Chukwuemeka Victor Amachukwu, a France-based Nigerian, with wire fraud and identity theft in the US. He allegedly caused losses of over $819,000 by hacking tax preparation firms.
The US Justice Department continues to warn against fraud networks exploiting unemployment and relief funds.
The sentencing of these three Nigerians sends a strong signal that the US will continue to pursue fraud cases aggressively.
While one will face deportation, all three will live with criminal records that mark them as part of a pandemic-era fraud scandal that shook public trust in unemployment aid systems.