Man From Nigeria Arrested For Suspected $10 Million Fraud In U.S. Unemployment Benefits

Man From Nigeria Arrested For Suspected $10 Million Fraud In U.S. Unemployment Benefits

A Nigerian man named 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 a statement from the United States Attorney’s Office for the District of Massachusetts, Olayeye was apprehended on August 13, 2024, upon his arrival at John F. Kennedy International Airport in New York City.

The charges against him stem from his alleged involvement in defrauding several pandemic assistance programs during the COVID-19 crisis.

Olayeye, also known by the alias “Sabbie,” is accused of conspiring with others to fraudulently obtain unemployment benefits by using stolen personal information.

These benefits were acquired through applications submitted to unemployment insurance agencies in multiple states, including Massachusetts, Hawaii, and Indiana.

The indictment reveals 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).

The group allegedly applied for at least $10 million in fraudulent benefits across several states, receiving over $1.5 million in funds to which they were not entitled.

The suspects reportedly purchased personal information through criminal online forums, which they then used to falsely represent themselves as eligible 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. 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.

The task force aims to coordinate resources across government agencies to address and prevent fraudulent activities linked to the pandemic.