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Fraud

Trio Sentenced to Federal Prison for Stealing $520,910 in Pandemic Unemployment Assistance Funds

Strategic Insights

— 1 min read

Three individuals, Kamaldeen Karaole, Stephen Olamigoke, and Johnson Omodusonu, were sentenced to federal prison for their roles in a COVID-19 fraud scheme that resulted in the theft of $520,910 in unemployment benefits from various state and federal unemployment programs. The trio used stolen personally identifiable information to file false unemployment claims and then used 168 unemployment insurance debit cards to withdraw cash from ATMs in Indianapolis, completing 529 withdrawals in total. The stolen funds were intended to support individuals unemployed during the COVID-19 pandemic.

Key Takeaways:

  • The trio stole $520,910 in unemployment benefits from various state and federal unemployment programs by using stolen personally identifiable information to file false claims.
  • The defendants used 168 unemployment insurance debit cards to withdraw cash from ATMs in Indianapolis, completing 529 withdrawals in total.
  • Kamaldeen Karaole was sentenced to 4 years and 3 months' imprisonment, while Stephen Olamigoke received 2.5 years' imprisonment and Johnson Omodusonu was sentenced to 2 years' imprisonment.
  • Each defendant was ordered to pay $520,910 in restitution.
  • TheFederal Bureau of Investigation, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Inspection Service investigated the case.
  • The sentence was imposed by U.S. District Judge James Patrick Hanlon.

Statistics:

  • The trio completed 529 withdrawals using 168 unemployment insurance debit cards.
  • The stolen funds were intended to support individuals unemployed during the COVID-19 pandemic.
  • The defendants made multiple withdrawals within a few minutes, often from ATMs in and around Indianapolis.
  • The total amount stolen was $520,910.
  • The investigation involved collaboration between the FBI, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Inspection Service.

Sources:

  • "Trio Sentenced to Federal Prison for Stealing $520,910 in Pandemic Unemployment Assistance Funds" (August 19), Office of the U.S. Attorney for the Southern District of Indiana
  • https://www.justice.gov/usao-sdin/pr/trio-sentenced-federal-prison-stealing-520910-pandemic-unemployment-assistance-funds

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