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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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Also read: Canada returnee jailed for assaulting Lagos sanitation officer

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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EFCC Uncovers Illegal Industrial Complex in Ogun, Arrests Foreigners

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The Economic and Financial Crimes Commission (EFCC) has uncovered a sprawling illegal industrial complex in Ogere, Ogun State, allegedly involved in petroleum refining, lithium processing, illegal mining and other unauthorised industrial activities.

The operation, led by the EFCC Chairman, Ola Olukoyede, reportedly resulted in the arrest of foreign nationals, police officers and other Nigerians suspected of involvement in activities at the facility.

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The discovery was disclosed on Saturday, November 7, following an inspection of the complex by the commission’s chairman and other officials.

According to the findings, the facility, allegedly operated by foreign nationals believed to be Chinese, contained several industrial installations, including a petroleum processing plant, a lithium processing factory, a specialised wood-processing facility and a power generation plant.

Investigators also reportedly discovered warehouses stocked with motorcycles, satellite communication equipment and thousands of power banks.

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The commission said the complex was allegedly being used for large-scale illegal mining of precious stones and the processing of petroleum products without the required authorisations.

It also uncovered suspected production of unwholesome alcoholic beverages at the site.

The latest findings came days after the EFCC announced the discovery of an illegal oil refinery in Ogere, where operatives found underground tanks believed to have been used for heating and processing sludge oil.

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The earlier operation was conducted on October 31 by operatives of the commission’s Lagos Zonal Directorate 2 following intelligence gathering and surveillance of suspected illegal refining activities.

According to the EFCC, preliminary investigations indicated that the operators sourced sludge oil, also known as black sludge, from Warri in Delta State and Port Harcourt in Rivers State before transporting it to Ogere for processing.

The commission said the operators subjected the material to intense heat, allowing lighter petroleum components to pass through chambers and filters in a process believed to produce Automotive Gas Oil (AGO), commonly known as diesel, for sale in the Nigerian market.

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Two underground tanks inspected during the operation contained substances suspected to be AGO.

The refinery was deserted when operatives initially arrived, while security personnel at the premises reportedly told investigators that the alleged Chinese operators had never disclosed their identities or the name of the company behind the operation.

However, the subsequent inspection led by Olukoyede revealed that the location housed a much wider range of industrial activities than the petroleum processing operation initially uncovered.

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The EFCC has described the activities as a serious threat to the country’s economy, particularly because of their alleged implications for legitimate businesses, government revenue and regulatory compliance.

The discovery has also raised concerns about the activities of foreign operators allegedly engaging in unauthorised industrial and extractive operations in Nigeria.

The commission is expected to establish the identities of the operators, determine the ownership structure of the complex and investigate the extent of the alleged economic and environmental violations.

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The arrests of foreign nationals, police officers and other Nigerians also suggest that investigators are examining possible local involvement and support for the operations.

The EFCC has yet to disclose the full identities of those arrested or the exact financial value of the industrial installations and materials recovered.

The investigation is expected to determine those responsible for the alleged activities and establish the extent of losses arising from the operations.

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