A 40-year-old Nigerian man, Yomi Jones Olayeye, also known as “Sabbie,” was apprehended on August 13, 2024, at John F. Kennedy International Airport in New York City. His arrest marks a significant step in the federal investigation into an alleged scheme that fraudulently obtained at least $10 million in COVID-19 unemployment benefits....READ THE FULL ARTICLE HERE ▶▶
Olayeye faces serious charges, including one count of wire fraud conspiracy, one count of wire fraud, and one count of aggravated identity theft. Federal authorities allege that Olayeye, along with his co-conspirators, exploited the emergency benefits programs intended to provide financial relief to those impacted by the COVID-19 pandemic. By using stolen identities, they are accused of filing false unemployment claims and siphoning millions from government funds.
Acting United States Attorney Joshua S. Levy provided details on the case, noting that Olayeye made his initial appearance in the Eastern District of New York on August 14, 2024. He is scheduled to appear in federal court in Boston to face these charges.
The charging document outlines that between March and July 2020, Olayeye and his associates defrauded three pandemic assistance programs administered by the Massachusetts Department of Unemployment Assistance, as well as other states’ unemployment insurance agencies. These programs included traditional unemployment insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC).
The conspiracy allegedly involved purchasing personally identifiable information (PII) from criminal internet forums. Olayeye and his co-conspirators used this information to file fraudulent applications for UI, PUA, and FPUC, falsely representing themselves as eligible state residents affected by the pandemic. They then allegedly opened U.S. bank and prepaid debit card accounts to receive the illicit assistance payments.
Levy further explained that the group also recruited U.S.-based account holders to receive and transfer the fraud proceeds via cash transfer apps. The fraudulent proceeds were reportedly used to purchase Bitcoin through online marketplaces, and efforts were made to conceal the conspiracy’s ties to Nigeria by leasing U.S.-based Internet Protocol addresses for use in these transactions.
In total, Olayeye and his co-conspirators allegedly applied for at least $10 million in fraudulent unemployment benefits from several states, including Massachusetts, Hawaii, Indiana, Michigan, Pennsylvania, and others. Of this, they received more than $1.5 million in benefits to which they were not entitled.
The potential penalties Olayeye faces are severe. The charges of wire fraud and wire fraud conspiracy carry a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Additionally, the aggravated identity theft charge includes a mandatory minimum sentence of two years in prison, to be served consecutively to any sentence for wire fraud.
This case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of the Securities, Financial & Cyber Fraud Unit. The investigation and prosecution are part of a broader effort by the Department of Justice’s COVID-19 Fraud Enforcement Task Force, which was established on May 17, 2021, to combat pandemic-related fraud.
Levy emphasized that while the charges are serious, the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
