In a recent crackdown on financial fraud, six individuals have been indicted for their roles in an extensive check fraud scheme attempting to pilfer roughly $80 million, with successful claims amounting to about $50 million from the U.S. government. Acting U.S. Attorney for the Southern District of New York Matthew Podolsky, along with officials from the FBI and IRS-CI, unsealed the indictment revealing the elaborate plot that exploited COVID-19 relief programs and other government funds, as per U.S. Attorney's Office.
The charged group, including Shan Anand, Nosakhare Nobore, Nicholas Pappas, Leonard Ujkic, Solomon Aluko, also known as "D1 ReallyRich," and Jorge Gonzalez, allegedly deployed stolen and fake identities to facilitate their fraud, primarily targeting COVID-19 relief efforts. Their methods involved creating sham businesses to open bank accounts and file fraudulent claims for the Employee Retention Credit and Qualified Sick Leave Wages credit – both initiatives established in response to the pandemic. According to the indictment, they also fished for tax refunds and benefits intended for veterans and the elderly from various government agencies.
This network is accused of using a major bank teller amongst themselves to oversee opening and altering bank accounts, and depositing checks obtained illegitimately or forged entirely. In a display of audacity, the suspects openly discussed their illegal activities and even referenced materials such as a "✅ 2021 Fraud Bible ✅," which included instructions for committing various forms of monetary deceit. Acting U.S. Attorney Matthew Podolsky condemned the exploitation, stating, "We allege that the defendants stole tens of millions of dollars in COVID-19 relief and other checks, and even used a ‘Fraud Bible’ containing instructions for committing fraud. This Office will not tolerate the exploitation of programs designed to support the public in times of crisis, and we and our law enforcement partners will hold those responsible to full account,” as obtained by the U.S. Attorney's Office.
Each defendant faces numerous charges, carrying sentences of up to 30 years for conspiracy to commit wire fraud and bank fraud, 20 years for engaging in money laundering and transactions with criminally derived property, and 10 years for government fraud conspiracy. Moreover, they face a mandatory two-year sentence for aggravated identity theft. Podolsky commended the coordinated effort between the FBI and IRS-CI and acknowledged additional support from the U.S. Postal Inspection Service and the NYPD. Assistant U.S. Attorneys Maggie Lynaugh, Steven J. Kochevar, and Qais Ghafary are leading the prosecution, with the indictment emphasizing that the defendants remain presumed innocent until proven guilty.
Details of the indictment can be found on the Southern District of New York's website.
