A Nigerian man, Yomi Jones Olayeye, also known as “Sabbie,” has been arrested by U.S. authorities for allegedly conspiring to defraud the U.S. government of at least $10 million in COVID-19 unemployment benefits.
The U.S. Attorney’s Office for the District of Massachusetts announced on Tuesday, August 20, 2024, that Olayeye, who hails from Lagos State, was apprehended at John F. Kennedy International Airport in New York on August 13.
According to court documents, Olayeye and his associates orchestrated the fraud between March and July 2020 by exploiting three pandemic assistance programs administered by the Massachusetts Department of Unemployment Assistance. These programs include the traditional Unemployment Insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC).
The U.S. Attorney’s Office stated, “Olayeye and his co-conspirators allegedly used personally identifiable information (PII) they purchased over criminal internet forums to apply for UI, PUA, and FPUC – falsely representing themselves as eligible state residents affected by the COVID-19 pandemic.”
The scheme involved using the fraudulently obtained PII to open U.S. bank and prepaid debit card accounts to receive the payments. Olayeye and his accomplices are also accused of recruiting U.S.-based account holders to transfer the fraud proceeds through cash transfer applications. Additionally, the fraudulent proceeds were allegedly used to purchase Bitcoin via online marketplaces, with efforts made to conceal the connection to Nigeria by leasing U.S.-based Internet Protocol (IP) addresses.
The authorities revealed that the fraudulent activities resulted in Olayeye and his co-conspirators unlawfully obtaining over $1.5 million. If convicted, Olayeye faces up to 20 years in prison for wire fraud and conspiracy, alongside three years of supervised release, a fine of up to $250,000, and restitution. The aggravated identity theft charge carries a mandatory minimum sentence of two additional years.
Olayeye made his first court appearance in New York on August 14 and was scheduled to appear before the federal court in Boston on Tuesday.
