Nigerian National Pleads Guilty to $10M COVID-19 Unemployment Benefit Fraud Scheme

A Nigerian national, Yomi Jones Olayeye, has pleaded guilty to conspiracy and wire fraud charges related to a scheme defrauding COVID-19 unemployment benefits programs in the United States. From March to July 2020, Olayeye and his collaborators exploited three distinct state-administered pandemic relief programs by using stolen personal information to fraudulently claim unemployment assistance across multiple states, including Massachusetts.

To facilitate the scheme, the group purchased personal data from illicit online sources and created false identities posing as unemployed Americans. They then established bank and prepaid debit card accounts under these fabricated identities to receive benefit payments. The conspirators employed U.S.-based individuals to transfer the illicit funds via cash transfer apps, which were subsequently converted into Bitcoin.

The operation involved measures to obscure its Nigerian origins, including the use of U.S.-based IP addresses through leased computer networks. The fraudulent filings sought at least $10 million in benefits across eight states, with over $1.5 million ultimately disbursed fraudulently. Federal charges carry potential penalties of up to 20 years imprisonment, supervised release, fines, forfeiture, and restitution. Sentencing for Olayeye is scheduled for August 13, 2024. This case highlights ongoing vulnerabilities in state unemployment insurance systems to sophisticated fraud techniques involving identity theft, cross-border coordination, and cryptocurrency laundering, underscoring the need for enhanced regulatory compliance and fraud detection in pandemic-era relief programs.