Nigerian National Arrested at JFK Airport for Alleged $10 Million COVID-19 Fraud Scheme

A 40-year-old Nigerian man, Yomi Jones Olayeye, also known as “Sabbie,” was apprehended on August 13, 2024, at John F. Kennedy International Airport in New York City. Olayeye is facing multiple federal charges related to an alleged conspiracy to fraudulently obtain over $10 million in COVID-19 unemployment benefits.

According to federal authorities, Olayeye, alongside other co-conspirators, is accused of using stolen identities to file false unemployment claims during the pandemic. The fraudulent scheme targeted emergency relief programs intended to support individuals financially impacted by COVID-19.

Olayeye has been charged with one count of wire fraud conspiracy, one count of wire fraud, and one count of aggravated identity theft. He made an initial appearance in the Eastern District of New York on August 14, 2024, and is scheduled to appear in federal court in Boston.

The indictment reveals that between March and July 2020, Olayeye and his associates allegedly defrauded three pandemic assistance programs administered by the Massachusetts Department of Unemployment Assistance and other states’ unemployment agencies. These programs include traditional Unemployment Insurance (UI), Pandemic Unemployment Assistance (PUA), and Federal Pandemic Unemployment Compensation (FPUC).

Prosecutors allege that the group used personally identifiable information (PII) obtained from criminal internet forums to fraudulently apply for benefits, claiming to be eligible residents affected by the pandemic. The fraudulent benefits were then funneled into U.S. bank and prepaid debit card accounts opened using the stolen identities.

Further allegations suggest that Olayeye and his co-conspirators enlisted U.S.-based account holders to receive and transfer the fraudulent funds, which were subsequently used to purchase Bitcoin via online marketplaces. The group allegedly went to great lengths to obscure their connection to Nigeria, including leasing U.S.-based Internet Protocol addresses to carry out the fraudulent activities.

The scheme is said to have spanned across multiple states, including Massachusetts, Hawaii, Indiana, Michigan, Pennsylvania, Montana, Maine, Ohio, and Washington. In total, the conspirators allegedly applied for over $10 million in benefits, successfully receiving more than $1.5 million.

If convicted, Olayeye faces significant penalties. The charges of wire fraud and conspiracy to commit wire fraud each carry a maximum sentence of 20 years in prison, in addition to fines, forfeiture, and restitution. The aggravated identity theft charge carries a mandatory minimum sentence of two years, which would be added to any sentence imposed for wire fraud.

The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of the Securities, Financial & Cyber Fraud Unit. The investigation was led by the U.S. Secret Service Boston Field Office, the Department of Labor’s Office of Inspector General, and the FBI’s Boston Division.

This arrest is part of a broader effort by the Department of Justice to combat pandemic-related fraud. The COVID-19 Fraud Enforcement Task Force, established in May 2021, has been instrumental in identifying and prosecuting domestic and international fraudsters attempting to exploit government relief programs.

Acting U.S. Attorney Joshua S. Levy emphasized that the charges are allegations and that Olayeye is presumed innocent until proven guilty in a court of law. The public is encouraged to report any suspected COVID-19-related fraud to the Department of Justice’s National Center for Disaster Fraud.