Nigerian Man Arrested in New York for Alleged $10 Million COVID-19 Unemployment Fraud Scheme

A 40-year-old Nigerian man was taken into custody in New York on suspicion of organizing a scheme to illegally acquire at least $10 million in COVID-19 unemployment payments.

Yomi Jones Olayeye, also known as "Sabbie," of Lagos, Nigeria, was arrested upon his arrival at John F. Kennedy International Airport in New York City on August 13, 2024.

The announcement was made on Monday, August 19, by Acting United States Attorney Joshua S. Levy, Special Agent in Charge Andrew Murphy of the U.S. Secret Service Boston Field Office, Special Agent in Charge Jonathan Mellone of the Department of Labour, Office of Inspector General, and Special Agent in Charge Jodi Cohen of the Federal Bureau of Investigation, Boston Division. The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of the Securities, Financial & Cyber Fraud Unit.

Olayeye faces charges of wire fraud conspiracy, wire fraud, and aggravated identity theft. He made his initial appearance in the Eastern District of New York on August 14, 2024. His federal court appearance in Boston is scheduled for Tuesday, August 20.

According to the charging documents, between March and July 2020, Olayeye and his associates defrauded three pandemic assistance programs: traditional unemployment insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC). These programs were administered by the Massachusetts Department of Unemployment Assistance and other state unemployment insurance agencies.

Olayeye and his accomplices allegedly used personally identifiable information (PII) obtained from illegal online forums to apply for UI, PUA, and FPUC, posing as eligible state citizens affected by the COVID-19 pandemic. To obtain assistance payments, they allegedly opened U.S. bank and prepaid debit card accounts using the fraudulently obtained PII.

Furthermore, Olayeye and his accomplices allegedly enlisted account holders with U.S. addresses to receive and transfer the fraud proceeds through cash transfer applications. They then reportedly used the fraudulent funds to purchase Bitcoin on online exchanges. Olayeye and his associates are also accused of leasing Internet Protocol addresses assigned to U.S.-based computers to disguise the connection to Nigeria in their fraudulent activities.

The group is accused of submitting at least $10 million in fraudulent claims for UI, PUA, and FPUC from Massachusetts, Hawaii, Indiana, Michigan, Pennsylvania, Montana, Maine, Ohio, and Washington. They allegedly collected more than $1.5 million in illegitimate aid.

If convicted, Olayeye faces up to 20 years in prison, three years of supervised release, a fine of $250,000 or double the gross gain or loss, forfeiture, and restitution for the charges of wire fraud and wire fraud conspiracy. Additionally, a mandatory minimum sentence of two years in prison for the aggravated identity theft charge must be imposed. A federal district court judge will determine the final sentence based on statutes and the U.S. Sentencing Guidelines, which govern sentencing in criminal cases.

The COVID-19 Fraud Enforcement Task Force was established by the Attorney General on May 17, 2021. Its purpose is to combine the Department of Justice's resources with those of other government agencies to strengthen efforts to stop and prevent fraud related to the pandemic.

The Task Force enhances existing coordination mechanisms, identifies resources and techniques to uncover fraudulent actors and their schemes, and shares insights gained from previous enforcement efforts to support investigations and prosecutions of the most culpable domestic and international criminal actors. It also aids agencies tasked with administering relief programs to prevent fraud.