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Nigerian Man Arrested in $10 Million U.S. COVID-19 Fraud Scheme

Published

4 months ago

Aug 20, 2024.

A Nigerian man, Yomi Olayeye, has been arrested and charged with conspiracy, wire fraud, and identity theft in connection with a $10 million unemployment fraud scheme in the United States.

According to the U.S. Attorney’s Office for the District of Massachusetts, Olayeye was apprehended on August 13, 2024, at John F. Kennedy International Airport in New York City.

The charges stem from his alleged role in defrauding several pandemic assistance programs during the COVID-19 crisis. Olayeye, also known as “Sabbie,” is accused of conspiring with others to fraudulently obtain unemployment benefits using stolen personal information.

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EKO HOT BLOG reports that the indictment states that between March and July 2020, Olayeye and his co-conspirators exploited three pandemic assistance programs: traditional Unemployment Insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC).

They allegedly applied for at least $10 million in fraudulent benefits across several states, including Massachusetts, Hawaii, and Indiana, receiving over $1.5 million in funds.

The suspects reportedly purchased personal information through criminal online forums, using it to falsely claim benefits intended for residents affected by the pandemic.

They also opened U.S. bank accounts and prepaid debit card accounts using the stolen identities to receive the fraudulent benefits.

Nigerian Man Arrested $10 Million Fraud

Some of the ill-gotten gains were converted into Bitcoin, and the group attempted to mask their connection to Nigeria by using U.S.-based IP addresses.

If convicted, Olayeye could face up to 20 years in prison for the wire fraud and conspiracy charges, in addition to a mandatory two-year sentence for the aggravated identity theft charge. He also faces potential fines, forfeiture of assets, and restitution.

The U.S. Department of Justice has intensified efforts to combat pandemic-related fraud through the establishment of the COVID-19 Fraud Enforcement Task Force, created on May 17, 2021.