A Nigerian man was arrested on Aug. 13, 2024, upon arriving at John F. Kennedy International Airport in New York City on charges that he, and others, conspired to fraudulently obtain at least $10 million in COVID-19 unemployment benefits.
Yomi Jones Olayeye, also known as “Sabbie,” 40, of Lagos, Nigeria, is charged with one count of wire fraud conspiracy, one count of wire fraud, and one count of aggravated identity theft.
Olayeye made his initial appearance in the Eastern District of New York on August 14, 2024, and is scheduled to appear in federal court in Boston on August 21, 2024.
According to the indictment, Olayeye and his accomplices engaged in fraudulent activities between March and July 2020, targeting three pandemic assistance programs administered by the Massachusetts Department of Unemployment Assistance and other state unemployment insurance agencies. These programs included traditional unemployment insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC).
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The indictment alleges that Olayeye and his co-conspirators used personally identifiable information (PII), which they acquired through criminal internet forums, to fraudulently apply for UI, PUA, and FPUC benefits. They purportedly misrepresented themselves as eligible state residents impacted by the COVID-19 pandemic.
To further their scheme, Olayeye and his associates allegedly used the stolen PII to open U.S. bank and prepaid debit card accounts, through which they received the fraudulent assistance payments.
Additionally, the indictment claims that Olayeye and his co-conspirators recruited U.S.-based account holders to receive and transfer the fraudulent proceeds via cash transfer applications. The proceeds were reportedly used to purchase Bitcoin through online marketplaces.
To conceal their operations, they are accused of using U.S.-based Internet Protocol addresses to conduct the fraudulent transactions, thereby obscuring their connection to Nigeria.
In total, Olayeye and his associates are alleged to have applied for at least $10 million in UI, PUA, and FPUC benefits from states including Massachusetts, Hawaii, Indiana, Michigan, Pennsylvania, Montana, Maine, Ohio, and Washington. They reportedly received over $1.5 million in assistance to which they were not entitled.
The charges of wire fraud and wire fraud conspiracy carry a potential sentence of up to 20 years in prison, along with three years of supervised release, a fine of $250,000 or twice the gross gain or loss, forfeiture, and restitution. The aggravated identity theft charge mandates a minimum additional sentence of two years in prison to be served consecutively with any sentence imposed for the wire fraud charges.
According to the U.S. Attorney’s Office, District of Massachusetts, sentencing will be determined by a federal district court judge based on the U.S. Sentencing Guidelines and applicable statutes.
Acting United States Attorney Joshua S. Levy, Special Agent in Charge Andrew Murphy of the U.S. Secret Service Boston Field Office, Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, announced the charges. The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of the Securities, Financial & Cyber Fraud Unit.
This case is part of ongoing efforts by the COVID-19 Fraud Enforcement Task Force, established by the Attorney General on May 17, 2021. The Task Force is dedicated to enhancing efforts to combat and prevent pandemic-related fraud by coordinating resources, investigating and prosecuting both domestic and international criminal actors, and assisting agencies in preventing fraud.
