Three Nigerians residing in the United States, Kamaldeen Karaole, Stephen Olamigoke, and Johnson Omoduson, have been sentenced to a combined term of over eight years in federal prison after being found guilty of defrauding the U.S. government of over half a million dollars in COVID-19 unemployment benefits.
One of the convicts, Stephen Olamigoke, has also agreed to be deported to Nigeria upon completion of his jail term.
A statement released by the U.S. Department of Justice on Thursday revealed that in 2020, the trio was involved in a scheme that involved stealing at least 168 unemployment insurance debit cards issued to other individuals.
According to court records, the fraudulent activity occurred between August and October 2020. The group, working in collaboration with accomplices based outside the U.S., used the stolen cards and associated credentials to file fake unemployment claims.
“These cards, issued by the states of California, Arizona, and Nevada, were being periodically loaded with benefits. None of the cards belonged to the members of the conspiracy — they were all in the names of real individuals,” the statement noted.
“To obtain the cards, other members of the conspiracy located outside the United States used stolen personally identifiable information to file numerous false unemployment claims with various state workforce agencies.”
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Investigators found that 98 of the cards were used by the defendants to withdraw funds from ATMs across the United States, particularly in Indianapolis.
“The trio used 98 of the cards to withdraw cash from various ATMs in and around Indianapolis, often making multiple withdrawals within the span of just a few minutes. In total, they completed 529 withdrawals, stealing $520,910 in benefits,” the statement added.
The three were charged with conspiracy to commit access device fraud, aggravated identity theft, and related offenses.
Kamaldeen Karaole, 24, pleaded guilty to aggravated identity theft, conspiracy to commit access device fraud, and access device fraud. He was sentenced to four years and three months in prison, along with two years of supervised release.
Stephen Olamigoke, 23, was found guilty of conspiracy to commit access device fraud and access device fraud. He received a two-and-a-half-year prison sentence and two years of supervised release.
Johnson Omodusonu, 24, based in Indianapolis, was convicted of the same charges as Olamigoke and received a two-year prison sentence with two years of supervised release.
Each of the three convicts was ordered to pay back the full amount—$520,910—in restitution.
“At the time Stephen Olamigoke entered his guilty plea, he acknowledged that upon completion of his sentence, he will be subject to removal from the United States,” the statement added.
This development comes on the heels of earlier reports on August 6 regarding Chukwuemeka Victor Amachukwu, a France-based Nigerian extradited to the U.S. and facing up to 47 years in prison for alleged wire fraud, hacking, and identity theft that reportedly led to losses of $819,000.