Unemployment Benefits: US-based Nigerians Jailed Over $520,910 Fraud

Three Nigerians living in the United States, Kamaldeen Karaole, Stephen Olamigoke, and Johnson Omodusonu, have been sentenced to over eight years in prison for stealing more than $520,000 from the U.S. government through a scheme that fraudulently claimed COVID-19 unemployment benefits.

One of the convicted individuals has also agreed to be deported back to Nigeria after serving his time. According to the U.S. Department of Justice, these three men were involved in stealing at least 168 unemployment debit cards that belonged to other people in 2020. 

The court documents revealed that between August and October 2020, they worked with others outside the U.S. to use these stolen cards and the victims’ personal information to file false claims for unemployment benefits.

The scheme involved using 98 of the stolen cards to withdraw cash from various ATMs across the United States. Many of these cards were issued by the states of California, Arizona, and Nevada and were loaded with benefits, but none of them were owned by the criminals. Instead, they were all in the names of real individuals.

To obtain these cards, the suspects outside the U.S. used stolen personal information to make fraudulent claims with state agencies. The three men used the cards mainly in and around Indianapolis, often making several withdrawals in just a few minutes. In total, they made 529 ATM withdrawals, stealing $520,910 in benefits.

After their arrest, they faced several charges, including conspiracy and identity theft. Karaole, who is 24 years old, was sentenced to four years and three months in prison, followed by two years of supervised release. Olamigoke, 23 years old, received a two-and-a-half-year sentence, also followed by two years of supervised release. Omodusonu, also 24, was sentenced to two years in prison and two years of supervised release.

All three were ordered to pay back the full amount they stole, totaling $520,910. Additionally, when Olamigoke pleaded guilty, he confirmed that he would be deported from the United States after serving his sentence.