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Nigerian Arrested in U.S. for Alleged $10 Million COVID-19 Relief Fraud

Nigerian Arrested in U.S. for Alleged $10 Million COVID-19 Relief Fraud

A Nigerian man, Yomi Olayeye, has been arrested in the United States for his alleged role in a $10 million COVID-19 unemployment fraud scheme. The U.S. Attorney’s Office for the District of Massachusetts announced that Olayeye, 40, was taken into custody on August 13 upon his arrival at John F. Kennedy International Airport in New York.

Olayeye, who also goes by the alias “Sabbie,” is accused of conspiring with others to defraud U.S. pandemic relief programs by using stolen personal information to apply for unemployment benefits. The scheme targeted relief funds from various states, including Massachusetts, Hawaii, and Indiana, during the height of the COVID-19 pandemic.

Prosecutors allege that Olayeye and his co-conspirators fraudulently applied for benefits from three different programs: traditional Unemployment Insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC). They reportedly used stolen identities to open bank accounts and prepaid debit cards in the U.S., through which they received more than $1.5 million in fraudulent payments. The funds were then converted into Bitcoin to obscure the origins of the transactions.

To conceal their operations, Olayeye and his associates allegedly leased U.S.-based internet protocol (IP) addresses, disguising their connections to Nigeria.

Olayeye faces charges of wire fraud conspiracy, wire fraud, and aggravated identity theft. If convicted, he could face up to 20 years in prison, fines, and restitution. This case highlights ongoing efforts by U.S. authorities to combat fraud related to COVID-19 relief funds, which have been exploited by criminal networks worldwide.

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