Federal Charges and Guilty Plea in $10M COVID-19 Unemployment Benefits Fraud Scheme
In a significant federal case in Boston, Yomi Jones Olayeye, a Nigerian national, pleaded guilty to conspiracy and wire fraud charges related to the fraudulent acquisition of at least $10 million in COVID-19 unemployment benefits. Between March and July 2020, Olayeye and alleged co-conspirators exploited state pandemic assistance programs including the Massachusetts Department of Unemployment Assistance and others across multiple states to unlawfully claim benefits.
The fraudulent claims targeted programs such as traditional unemployment insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC).\n\nThe scheme involved purchasing and using stolen personally identifiable information (PII) from criminal internet forums to apply for benefits in the names of ineligible claimants. Proceeds from the fraud were funneled through U.S. bank and prepaid debit card accounts, opened using the stolen PII.
The group recruited U.S.-based account holders to receive fraud proceeds, which were then converted into Bitcoin, further masking origins and leveraging cryptocurrency for money laundering. Additionally, the perpetrators concealed foreign involvement by using leased U.S.-based IP addresses to disguise the operation’s Nigerian links.\n\nBeyond Massachusetts, the fraud impacted multiple states, including Hawaii, Indiana, Michigan, Pennsylvania, Montana, Maine, Ohio, and Washington. Investigations estimate over $1.5 million in fraudulent payments were distributed through these schemes.
Olayeye was apprehended upon arrival at JFK International Airport in August 2024 and remains in custody pending sentencing scheduled for August 2025.\n\nThe charges hold potential penalties of up to 20 years imprisonment for wire fraud, alongside fines, restitution, and forfeiture. Aggravated identity theft charges carry mandatory consecutive sentences. The Department of Justice's COVID-19 Fraud Enforcement Task Force spearheads efforts to identify and prosecute such pandemic-related frauds, collaborating across agencies to enhance investigative effectiveness and fraud prevention in relief programs.
This case underscores the challenges pandemic relief programs face from sophisticated fraud networks exploiting identity theft, cyber methods, and cryptocurrency to divert government funds. It illustrates the regulatory and enforcement focus on safeguarding program integrity and enforcing compliance to protect critical public resources.