Nigerian Man Faces 20 Years in U.S. Prison for Allegedly Stealing $10M in COVID Relief Funds

A Nigerian man, Yomi Olaleye, hailing from Lagos State, is currently facing a potential 20-year prison sentence in the United States following his arrest for allegedly embezzling $10 million from COVID-19 employment relief funds. The arrest occurred at John F. Kennedy International Airport in New York on August 13, 2024. U.S. authorities, including acting Attorney Joshua Levy and Special Agents from various federal departments, confirmed the charges, which are part of broader efforts to combat pandemic-related fraud.

Olaleye is accused of participating in a scheme that defrauded three COVID-19 relief programs: Unemployment Insurance, Pandemic Unemployment Assistance, and Federal Pandemic Unemployment Compensation. These programs, managed by the Massachusetts Department of Unemployment Assistance and other state agencies, were targeted by Olaleye and his accomplices across multiple states, including Massachusetts, Hawaii, and Indiana. The group allegedly filed for at least $10 million in fraudulent claims, with over $1.5 million successfully received.

The charges against Olaleye include conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. He allegedly used stolen personal information purchased from criminal forums to falsely apply for relief funds, posing as eligible state residents affected by the pandemic. These funds were then funneled into U.S. bank accounts, often through U.S.-based account holders who were recruited to transfer the fraudulent proceeds.

According to court documents, the illicit gains were converted into bitcoin through online marketplaces, with efforts made to obscure the scheme’s connections to Nigeria by leasing U.S.-based Internet Protocol addresses. Olaleye’s first court appearance took place on August 14, 2024, in the Eastern District of New York. If convicted, he faces significant penalties, including up to 20 years in prison, hefty fines, and restitution.