Nigerian man arrested at John F. Kennedy international airport in in connection with a $10m COVID-19 fraud scheme
Yomi Jones Olayeye, a 40-year-old Nigerian man also known as “Sabbie,” was arrested on August 13, 2024, upon arriving at John F. Kennedy International Airport in New York City. Olayeye faces multiple charges related to a scheme in which he and others allegedly conspired to fraudulently secure at least $10 million in COVID-19 unemployment benefits.
He has been charged with wire fraud conspiracy, wire fraud, and aggravated identity theft. Federal authorities allege that Olayeye and his co-conspirators used stolen identities to file false unemployment claims during the pandemic, exploiting the emergency benefits program intended to support those affected by COVID-19.
According to Acting U.S. Attorney Joshua S. Levy, Olayeye made an initial appearance in the Eastern District of New York on August 14, 2024, and is scheduled for a subsequent court appearance in Boston. The charges reveal that between March and July 2020, Olayeye and his associates defrauded three pandemic assistance programs administered by the Massachusetts Department of Unemployment Assistance and other states: traditional unemployment insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC).
The indictment alleges that Olayeye and his co-conspirators used personally identifiable information (PII) purchased from criminal internet forums to apply for UI, PUA, and FPUC, falsely claiming to be eligible state residents affected by the pandemic. They allegedly used the same fraudulent PII to open U.S. bank accounts and prepaid debit cards to receive the assistance payments.
The indictment further claims that the group recruited U.S.-based account holders to transfer the fraud proceeds through cash transfer apps, then used the funds to purchase Bitcoin via online marketplaces. To obscure their activities, they allegedly leased U.S.-based IP addresses for the fraudulent transactions.
In total, Olayeye and his co-conspirators are accused of applying for at least $10 million in fraudulent assistance from various states, including Massachusetts, Hawaii, Indiana, Michigan, Pennsylvania, Montana, Maine, Ohio, and Washington, and receiving over $1.5 million in unentitled funds.
The charges of wire fraud and wire fraud conspiracy carry a maximum sentence of 20 years in prison, along with three years of supervised release, a $250,000 fine or twice the gross gain or loss, forfeiture, and restitution. The charge of aggravated identity theft mandates a minimum of two additional years in prison to be served consecutively with any sentence for wire fraud.
Acting U.S. Attorney Joshua S. Levy, along with Andrew Murphy, Special Agent in Charge of the U.S. Secret Service Boston Field Office, Jonathan Mellone, Special Agent in Charge of the Department of Labor’s Office of Inspector General, and Jodi Cohen, Special Agent in Charge of the FBI’s Boston Division, announced the case. The prosecution is led by Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of the Securities, Financial & Cyber Fraud Unit.
Levy also highlighted the role of the COVID-19 Fraud Enforcement Task Force, established on May 17, 2021, to enhance efforts against pandemic-related fraud by coordinating with various government agencies and leveraging resources to combat and prevent fraud. He urged anyone with information about COVID-19 fraud to report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline or via the NCDF Web Complaint Form. The charges are allegations, and the defendant is presumed innocent until proven guilty in court.
