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Nigerians Jailed in US Fraud Scheme over COVID-19 Benefits

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Nigerians jailed in US fraud case after defrauding $520,910 in COVID-19 unemployment benefits. Sentences include prison, restitution, and deportation

Nigerians jailed in US fraud have been sentenced to over eight years combined after defrauding the government of \$520,910 in a COVID-19 unemployment benefits scheme.

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The three men  Kamaldeen Karaole, Stephen Olamigoke, and Johnson Omodusonu — were convicted for their roles in stealing and exploiting 168 Unemployment Insurance debit cards during the pandemic in 2020.

According to the US Department of Justice, between August and October 2020, the trio worked with conspirators outside the United States to file false claims using stolen identities.

A total of 98 cards were used to withdraw cash at ATMs across Indianapolis, resulting in 529 withdrawals worth more than half a million dollars.

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Court documents revealed that the cards, issued in California, Arizona, and Nevada, were fraudulently loaded with benefits belonging to real individuals. The defendants used them to withdraw cash rapidly, often within minutes.

Karaole, 24, pleaded guilty to aggravated identity theft and conspiracy charges. He was sentenced to four years and three months in prison plus two years of supervised release.

Olamigoke, 23, was sentenced to two and a half years, while Omodusonu, 24, received two years. Each will also serve supervised release terms and pay restitution of \$520,910.

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The DoJ added that Olamigoke acknowledged he would face deportation to Nigeria after completing his jail term.

The case underscores how international fraud rings exploited the COVID-19 unemployment benefits system, costing the US millions.

Also read: Nigerian cyberfraudsters jailed in India for teacher scam

Just weeks earlier, another Nigerian, Chukwuemeka Victor Amachukwu, faced extradition to the US over allegations of wire fraud and hacking, linked to \$819,000 in losses.

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