Three Men Sentenced to Federal Prison for COVID-19 Unemployment Benefits Fraud Scheme

Strategic Insights -

Three individuals, Kamaldeen Karaole, Stephen Olamigoke, and Johnson Omodusonu, have been sentenced to federal prison for their roles in a COVID-19 unemployment benefits fraud scheme, resulting in the theft of $520,910 from various state and federal programs. The defendants, who used stolen personally identifiable information to file false unemployment claims, stole 168 UI debit cards and made 529 withdrawals, exploiting a system designed to support individuals in need during the pandemic.

Key Takeaways:

  • The defendants, Kamaldeen Karaole, Stephen Olamigoke, and Johnson Omodusonu, were sentenced to 4 years, 3 months, 2.5 years, and 2 years in federal prison, respectively, for their roles in the COVID-19 unemployment benefits fraud scheme.
  • The scheme resulted in the theft of $520,910 in unemployment benefits from various state and federal programs, including the Pandemic Unemployment Assistance Program, Federal Pandemic Unemployment Compensation, and the Lost Wages Assistance Program.
  • The defendants used stolen personally identifiable information to file false unemployment claims and obtain 168 UI debit cards, which they used to make 529 cash withdrawals at various ATMs in and around Indianapolis.
  • The stolen funds were intended to support individuals who were unemployed during the COVID-19 pandemic.
  • The scheme was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Inspection Service, with the U.S. Attorney's Office for the Southern District of Indiana prosecuting the case.
  • The sentence was imposed by U.S. District Judge James Patrick Hanlon, with U.S. Attorney Tom Wheeler thanking Assistant U.S. Attorney Matthew B. Miller for his work on the case.

Statistics:

  • $520,910: stolen unemployment benefits from various state and federal programs
  • 168: UI debit cards stolen by the defendants
  • 529: cash withdrawals made by the defendants using the stolen debit cards
  • 4 years, 3 months: sentence imposed on Kamaldeen Karaole
  • 2.5 years: sentence imposed on Stephen Olamigoke
  • 2 years: sentence imposed on Johnson Omodusonu
  • 98: number of debit cards used to withdraw cash

Sources:

  • "Three men sentenced to federal prison for scheme to steal COVID-19 unemployment benefits"

United States Department of Justice (National Center for Disaster Fraud)

  • "U.S. Department of Labor, Office of Inspector General investigation into unemployment benefits fraud"

U.S. Department of Labor-Office of Inspector General

  • "FBI Indianapolis Special Agent in Charge Timothy J. O'Malley statement on the case"

Federal Bureau of Investigation