Yomi Olayeye, a Nigerian national, has been arrested and charged with conspiracy, wire fraud, and identity theft in a significant $10 million unemployment fraud scheme.
The arrest occurred on August 13, 2024, when Olayeye arrived at John F. Kennedy International Airport in New York City.
The charges against Olayeye, also known by the alias “Sabbie,” are linked to his alleged involvement in defrauding various pandemic assistance programs during the COVID-19 crisis. According to the United States Attorney’s Office for the District of Massachusetts, Olayeye conspired with others to illegally obtain unemployment benefits using stolen personal information.
The indictment details that between March and July 2020, Olayeye and his associates exploited three pandemic assistance programs: traditional unemployment insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC). They fraudulently applied for at least $10 million in benefits across states including Massachusetts, Hawaii, and Indiana, and secured over $1.5 million in unwarranted funds.
The suspects allegedly acquired personal data through illicit online channels, using it to falsely claim eligibility for pandemic-related benefits. They opened U.S. bank and prepaid debit card accounts with stolen identities to receive the fraudulent funds, some of which were converted into Bitcoin. In an attempt to obscure their Nigerian origins, they used U.S.-based IP addresses.
If convicted, Olayeye faces up to 20 years in prison for wire fraud and conspiracy, along with a mandatory two-year sentence for aggravated identity theft. Additional penalties may include fines, asset forfeiture, and restitution.
The U.S. Department of Justice has ramped up its efforts to combat pandemic-related fraud with the establishment of the COVID-19 Fraud Enforcement Task Force on May 17, 2021. This task force coordinates resources across government agencies to address and prevent fraudulent activities linked to the pandemic.
