Three Nigerians Sentenced to Prison in U.S. for $520,000 COVID-19 Unemployment Benefits Fraud

Three Nigerian men have been sentenced to federal prison in Indianapolis for their involvement in a COVID-19 fraud scheme that stole $520,910 in unemployment benefits. The U.S. Department of Justice announced the sentencing on Monday, August 18, 2025.

Kamaldeen Karaole, 24, of Indianapolis, was sentenced to 4 years and 3 months in prison followed by 2 years of supervised release. Stephen Olamigoke, 23, of Nigeria, received a 2.5-year prison sentence and 2 years of supervised release, while Johnson Omodusonu, 24, of Indianapolis, was sentenced to 2 years in prison with 2 years of supervised release. Each defendant was also ordered to pay \$520,910 in restitution. Olamigoke, who entered a guilty plea, acknowledged he will face removal from the United States upon completing his sentence.

Court documents revealed that between August and October 2020, the defendants stole 168 Unemployment Insurance debit cards and associated PIN numbers issued by California, Arizona, and Nevada. These cards, which belonged to real individuals, were loaded with benefits intended to support unemployed workers during the COVID-19 pandemic. The trio used 98 of the cards to withdraw cash at ATMs around Indianapolis, completing 529 withdrawals totaling \$520,910.

The fraud exploited expanded federal programs such as the Pandemic Unemployment Assistance Program, Federal Pandemic Unemployment Compensation, and the Lost Wages Assistance Program, which were designed to help workers affected by the pandemic.

“Stealing unemployment benefits meant to help people survive during one of the worst crises in modern history is both heartless and criminal,” said Tom Wheeler, U.S. Attorney for the Southern District of Indiana. Officials from the Department of Labor, U.S. Postal Inspection Service, and FBI emphasized the collaborative effort in investigating the case and holding the defendants accountable.

The investigation was led by the FBI, the Department of Labor’s Office of Inspector General, and the U.S. Postal Inspection Service. The sentences were imposed by U.S. District Judge James Patrick Hanlon, and the case was prosecuted by Assistant U.S. Attorney Matthew B. Miller.