Three individuals have been handed federal prison sentences after being convicted of defrauding pandemic unemployment assistance funds to the tune of over half a million dollars. According to a press release by the U.S. Attorney’s Office for the Southern District of Indiana, the men, identified as Kamaldeen Karaole, Stephen Olamigoke, and Johnson Omodusonu, were found to have illicitly withdrawn cash using stolen Unemployment Insurance debit cards.
The sentence for Karaole, a 24-year-old from Indianapolis, includes 4 years and 3 months in prison followed by two years of supervised release on charges of aggravated identity theft, conspiracy to commit access device fraud, and access device fraud. Olamigoke, a 23-year-old from Nigeria, received a 2.5-year term and is facing removal from the United States after serving his sentence. Omodusonu, also 24 and from Indianapolis, was sentenced to 2 years’ imprisonment. Each of the defendants will also have to pay $520,910 in restitution. These sentences comes after authorities uncovered the trio's activities between August and October 2020, involving the theft of 168 UI cards linked to unemployment benefits from California, Arizona, and Nevada.
Employing 98 of those fraudulently obtained cards, the group managed to perform 529 ATM withdrawals around Indianapolis, quickly siphoning away funds intended to support unemployed workers during the ongoing COVID-19 pandemic. The lost funds come as a part of expanded federal efforts to provide financial relief during this public health crisis, including the Pandemic Unemployment Assistance Program and other similar initiatives. "Stealing unemployment benefits meant to help people survive during one of the worst crises in modern history is both heartless and criminal," U.S. Attorney Tom Wheeler stated, as the fraud scheme was dismantled by federal authorities.
The investigation into these crimes was a collaborative effort between the Federal Bureau of Investigation, the U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Inspection Service. U.S. District Judge James Patrick Hanlon imposed the sentences on the defendants, who had taken advantage of a system designed for those in dire need. In response to the investigation and subsequent sentencing, Megan Howell, Special Agent-in-Charge of the Great Lakes Region for the U.S. Department of Labor Office of Inspector General, reinforced the commitment to protecting the integrity of the unemployment insurance program and conveyed gratitude for the strong partnership with the U.S. Attorney’s Office.
FBI Indianapolis Special Agent in Charge Timothy J. O’Malley praised the unwavering commitment of law enforcement partners in holding accountable those who exploit government relief programs and safeguard public funds from fraud.
