Nigerian Man Arrested in New York for Involvement in $10 Million Pandemic Unemployment Fraud Scheme
A 40-year-old Nigerian national, Yomi Jones Olayeye, also known as “Sabbie,” was arrested on August 13, 2024, at John F. Kennedy International Airport in New York City. Olayeye, hailing from Lagos, Nigeria, is accused of conspiring with others to fraudulently secure at least $10 million in COVID-19 unemployment benefits.
The arrest was announced on August 19 by Acting United States Attorney Joshua S. Levy, alongside key figures from the U.S. Secret Service Boston Field Office, the Department of Labor’s Office of Inspector General, and the Federal Bureau of Investigation’s Boston Division. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of the Securities, Financial & Cyber Fraud Unit, is leading the prosecution.
Olayeye faces charges including one count of wire fraud conspiracy, one count of wire fraud, and one count of aggravated identity theft. He made an initial court appearance in the Eastern District of New York on August 14, 2024, and is scheduled to appear in federal court in Boston on August 20.
The charges allege that between March and July 2020, Olayeye and his associates exploited three pandemic assistance programs administered by the Massachusetts Department of Unemployment Assistance and other state unemployment insurance agencies. These programs included traditional Unemployment Insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC).
The criminal complaint claims that Olayeye and his co-conspirators purchased personally identifiable information (PII) from illegal online forums and used it to apply for unemployment benefits, falsely claiming to be eligible residents affected by the COVID-19 pandemic. They allegedly opened U.S. bank and prepaid debit card accounts to receive these fraudulent payments.
Moreover, Olayeye and his co-conspirators are accused of recruiting U.S.-based individuals to receive and transfer the fraudulently obtained funds via cash transfer apps. The proceeds were then allegedly used to purchase Bitcoin through online marketplaces. The group is also alleged to have concealed their Nigerian connection by using U.S.-based Internet Protocol addresses for their fraudulent transactions.
In total, Olayeye and his co-conspirators allegedly sought at least $10 million in fraudulent unemployment benefits from Massachusetts, Hawaii, Indiana, Michigan, Pennsylvania, Montana, Maine, Ohio, and Washington, successfully securing over $1.5 million.
The wire fraud and wire fraud conspiracy charges each carry a potential sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. The aggravated identity theft charge carries a mandatory minimum of two years in prison, to be served consecutively with any other sentence.
These charges are part of the broader efforts of the COVID-19 Fraud Enforcement Task Force, established by the Attorney General on May 17, 2021. The Task Force is dedicated to investigating and prosecuting the most culpable domestic and international criminals involved in pandemic-related fraud and assisting agencies in preventing such fraud.
