Nigerian National Arrested in $10 Million COVID-19 Unemployment Fraud Scheme

In a crackdown on international fraud schemes targeting U.S. unemployment benefits, 40-year-old Nigerian national Yomi Jones Olayeye, also known as “Sabbie,” was arrested at John F. Kennedy International Airport on August 13, 2024.

Olayeye faces charges of conspiracy, wire fraud, and identity theft in connection with a sophisticated scam that allegedly defrauded the U.S. of at least $10 million in COVID-19 unemployment assistance.

This arrest is part of the U.S. Department of Justice’s broader efforts, led by the COVID-19 Fraud Enforcement Task Force, to combat the surge in fraudulent activities during the pandemic. Olayeye‘s scheme involved defrauding unemployment insurance programs across several states, including Massachusetts, where the case has been primarily filed.

Olayeye and his co-conspirators allegedly targeted three key unemployment assistance programs: traditional Unemployment Insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC). They reportedly purchased personally identifiable information (PII) from criminal forums, which they used to file fraudulent claims. The stolen data enabled them to open bank accounts and prepaid debit cards to receive the benefits. The fraudsters leased U.S.-based IP addresses to conceal their operations, disguising their Nigerian origins. While the scheme aimed for $10 million, over $1.5 million was successfully siphoned off through these fraudulent claims.

If convicted, Olayeye could face up to 20 years in prison for wire fraud and additional penalties for identity theft, including a mandatory two-year sentence. The case also involves potential fines, forfeiture, and restitution, reflecting the serious nature of the charges and their impact on the U.S. economy.