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A pair of Indianapolis men and a Nigerian national were sentenced to federal prison for their roles in a COVID-19 fraud scheme that resulted in the theft of more than $520,000 in unemployment benefits from various state and federal unemployment programs.
The U.S. Attorney’s Office in Indianapolis announced the sentences, which were imposed by U.S. District Judge James Hanlon.
The men sentenced were:
-Kamaldeen Karaole, 24, Indianapolis. Karaole was convicted of aggravated identity theft, conspiracy to commit access device fraud and access device fraud. He was sentenced to four years, three months in prison and two years of supervised release.
-Stephen Olamigoke, 23, Nigeria. Olamigoke was convicted of conspiracy to commit access device fraud and access device fraud. He was sentenced to two-and-a-half years in prison and two years of supervised release.
-Johnson Omodusonu, 24, Indianapolis. Omodusonu was convicted of conspiracy to commit access device fraud and access device fraud. He was sentenced to two years in prison and two years of supervised release.
The defendant were also ordered to pay a combined $520,910 in restitution.
At the time Olamigoke entered his guilty plea, he acknowledged that upon completion of his sentence he will be subject to removal from the United States
According to court documents, between August and October 2020, the defendants stole 168 Unemployment Insurance debit cards and associated PIN numbers.
These cards, issued by the states of California, Arizona, and Nevada, were being periodically loaded with benefits. None of the cards belonged to the convicted men—they were all in the names of other real individuals.
To obtain the cards, other members of the conspiracy located outside the United States had used stolen personally identifiable information to file numerous false unemployment claims with various state workforce agencies.
Unemployment insurance is a joint state and federal program that provides temporary financial assistance to workers who are unemployed through no fault of their own.
Authorities said 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.
These funds were intended to support individuals unemployed during the COVID-19 pandemic.
During this time, several federal programs expanded UI eligibility and benefits, including the Pandemic Unemployment Assistance Program, Federal Pandemic Unemployment Compensation, and the Lost Wages Assistance Program.
“Stealing unemployment benefits meant to help people survive during one of the worst crises in modern history is both heartless and criminal,” Tom Wheeler, interim U.S. Attorney for the Southern District of Indiana, said in a news release. “These defendants exploited a system designed to support those in genuine need, and now they are being held accountable for their greed thanks to the diligent work of our federal partners and prosecutor.”
The Federal Bureau of Investigation, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Inspection Service investigated this case.
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