A Nigerian national, Yomi Jones Olayeye, also known as “Sabbie,” has been arrested by U.S. authorities for allegedly orchestrating a scheme to fraudulently claim over $10 million in COVID-19 unemployment benefits. The U.S. Attorney’s Office for the District of Massachusetts disclosed this on Tuesday.
Olayeye, hailing from Lagos State, was apprehended on August 13 upon his arrival at John F. Kennedy International Airport in New York. Between March and July 2020, Olayeye, along with co-conspirators, reportedly exploited three pandemic-related unemployment programs managed by the Massachusetts Department of Unemployment Assistance: Traditional Unemployment Insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC).
The court revealed that Olayeye and his associates used stolen personal identifiable information (PII) obtained from criminal online forums to fraudulently apply for these benefits, posing as eligible residents affected by the pandemic. They allegedly opened U.S. bank and prepaid debit card accounts to receive the illicit payments.
Additionally, U.S.-based accomplices were recruited to facilitate the transfer of these funds through cash transfer apps. The fraudulently obtained funds were then used to purchase Bitcoin via online platforms. To conceal the operation’s links to Nigeria, Olayeye and his co-conspirators reportedly leased U.S.-based Internet Protocol addresses.
The fraudulent activities netted the group over $1.5 million in illicit payments.
Olayeye faces multiple charges, including wire fraud and aggravated identity theft. If convicted, he could face up to 20 years in prison, a $250,000 fine, and other penalties. The aggravated identity theft charge carries a mandatory minimum sentence of two years.
He made his first court appearance in New York on August 14 and is expected to appear before a federal court in Boston.
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