Three US-Based Nigerians Jailed Eight Years For $520,910 COVID-19 Fraud

Washington, D.C., August 22, 2025 – The United States Department of Justice (DoJ) has confirmed the conviction and sentencing of three Nigerian nationals living in the United States for their roles in a large-scale unemployment insurance fraud scheme linked to the COVID-19 pandemic.

The convicts – 24-year-old Kamaldeen Karaole, 23-year-old Stephen Olamigoke, and 24-year-old Johnson Omodusonu – were handed prison sentences totaling more than eight years. In addition to imprisonment, they were ordered to jointly pay back $520,910 in restitution to the U.S. government. One of the men has also agreed to deportation to Nigeria upon completion of his sentence.

Details of the Case

According to the official US Department of Justice (DoJ) statement released on Thursday, the trio exploited America’s emergency unemployment relief program, which was designed to support workers during the peak of the COVID-19 pandemic in 2020.

Investigations revealed that between August and October 2020, the defendants obtained at least 168 stolen unemployment insurance debit cards issued by the states of California, Arizona, and Nevada. These cards had been fraudulently loaded with benefits using the personal details of unsuspecting Americans whose identities had been stolen.

The DoJ explained that conspirators based outside the United States provided stolen personal information, which was then used to file hundreds of false unemployment claims. Once the cards were loaded, Karaole, Olamigoke, and Omodusonu withdrew money from various ATMs in Indianapolis, often making several withdrawals in just minutes.

By the time authorities intervened, the group had conducted 529 withdrawals, stealing a total of $520,910 in public funds meant for struggling households during the pandemic.

Sentencing Breakdown

• Kamaldeen Karaole (24) – Pleaded guilty to aggravated identity theft, conspiracy to commit access device fraud, and access device fraud. He was sentenced to four years and three months in prison, followed by two years of supervised release.

• Stephen Olamigoke (23) – Found guilty of conspiracy to commit access device fraud and access device fraud. He received two years and six months in prison plus two years of supervised release. He also acknowledged he will be deported to Nigeria after completing his term.

• Johnson Omodusonu (24) – Convicted of conspiracy to commit access device fraud and access device fraud. He was sentenced to two years in prison followed by two years of supervised release.

In addition to prison terms, all three men were ordered to repay the stolen funds in restitution.

A Wider Pattern of Fraud

This case is part of a broader global crackdown on COVID-19 relief fraud, which saw billions of dollars stolen across multiple countries. The U.S. Government Accountability Office (GAO) estimated in 2022 that over $60 billion in unemployment benefits were likely paid improperly during the pandemic, much of it due to fraud.

Several Nigerians have been implicated in such schemes abroad. Earlier this month, France-based Nigerian national, Chukwuemeka Victor Amachukwu, faced extradition to the U.S. to stand trial for wire fraud, hacking, and identity theft valued at over $819,000. According to U.S. prosecutors, Amachukwu and his accomplices hacked into tax preparation companies in New York and Texas, stealing confidential financial information.

The Federal Bureau of Investigation (FBI) and other agencies have repeatedly flagged cybercrime rings with links to Nigeria, noting that some operate in collaboration with international fraud networks in Europe, the Middle East, and Asia.

Impact on Nigerians Abroad

The case has sparked renewed debate among members of the Nigerian diaspora in the U.S. and Europe. While millions of Nigerians overseas contribute positively to their host countries’ economies in fields like medicine, engineering, academia, and business, cases like these often reinforce negative stereotypes.

Nigerian community leaders in Indianapolis and Houston have expressed concern that such high-profile fraud cases could damage trust and increase scrutiny of Nigerians seeking visas, employment, or financial services abroad.

The U.S. Government’s Position

In its statement, the U.S. Department of Justice emphasized that fraudulently exploiting government relief funds during a global crisis was a serious crime. Prosecutors noted that while the unemployment benefits program was intended to assist citizens facing job losses, criminal groups across the world took advantage of weaknesses in the system.

Assistant Attorney General Kenneth A. Polite Jr. of the DoJ’s Criminal Division remarked in a related briefing:

“Pandemic relief funds were designed as a lifeline for families in distress. When fraudsters steal this money, they are stealing from taxpayers and from people who needed help the most.”

Nigeria’s Response

The Nigerian government has not yet issued an official response regarding the latest sentencing. However, Nigeria has in recent years increased cooperation with the U.S. Federal Bureau of Investigation (FBI) and Interpol in tackling cross-border financial crimes.

The Economic and Financial Crimes Commission (EFCC) has also been under pressure to improve its efforts in tracing illicit funds and preventing cybercrime at home, given how frequently Nigerian nationals are mentioned in international fraud cases.

Conclusion

The sentencing of Kamaldeen Karaole, Stephen Olamigoke, and Johnson Omodusonu highlights both the global scale of pandemic relief fraud and the growing scrutiny of Nigerian nationals involved in international financial crimes.

While these cases tarnish Nigeria’s image abroad, they also underscore the need for stronger international cooperation to prevent identity theft, cybercrime, and fraud. As the world increasingly relies on digital systems for finance and governance, both developed and developing nations must find ways to close loopholes exploited by cybercriminals.

For Nigerians in the diaspora, the case serves as a cautionary tale—reminding communities of the importance of safeguarding reputations, complying with laws, and contributing positively to their host societies.