Three men have been sentenced to federal prison for their involvement in a scheme that defrauded state and federal unemployment programs of $520,910 during the COVID-19 pandemic. The defendants—Kamaldeen Karaole, 24, of Indianapolis; Stephen Olamigoke, 23, of Nigeria; and Johnson Omodusonu, 24, of Indianapolis—were convicted on charges including aggravated identity theft and conspiracy to commit access device fraud.
Karaole received a sentence of four years and three months in prison followed by two years of supervised release. Olamigoke was sentenced to two and a half years in prison with two years of supervised release. Omudosonu received a two-year prison term and two years of supervised release. Each defendant must also pay $520,910 in restitution. According to court records, Olamigoke will be subject to removal from the United States after completing his sentence.
Court documents indicate that between August and October 2020, the group stole 168 Unemployment Insurance (UI) debit cards issued by California, Arizona, and Nevada using stolen personal information provided by other conspirators outside the United States. These cards were loaded with benefits meant for individuals who lost jobs due to the pandemic. The trio used 98 cards at ATMs around Indianapolis to make 529 withdrawals totaling $520,910.
The stolen funds came from expanded federal programs such as the Pandemic Unemployment Assistance Program, Federal Pandemic Unemployment Compensation, and Lost Wages Assistance Program designed to help those affected by job loss during 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, United States Attorney for the Southern District of Indiana. “These defendants exploited a system designed to support those in genuine need, and now they are being held accountable for their greed thanks to the diligent work of our federal partners and prosecutor.”
Megan Howell, Special Agent-in-Charge at the U.S. Department of Labor Office of Inspector General for the Great Lakes Region stated: “As the primary federal law enforcement agency charged with investigating fraud against the unemployment insurance program, the U.S. Department of Labor, Office of Inspector General is committed to relentlessly protecting the integrity of this vital benefit program from those seeking to unlawfully enrich themselves at the expense of American workers. We are grateful to the U.S. Attorney’s Office for the Southern District of Indiana for their strong partnership and collaboration. We will continue to work with our law enforcement partners to aggressively investigate these types of allegations.”
Acting Inspector in Charge Felicia George from the United States Postal Inspection Service – Detroit Division commented: “Investigating and bringing to justice those who commit fraud against essential government programs is one of the many things we do as postal inspectors. Crimes like this not only deprive real people of critical aid, but also threaten the integrity of the U.S. Mail, which so many Americans rely on for secure and timely delivery of vital benefits. This case is an outstanding example of collaborative efforts between federal agencies and the U.S. Attorney’s Office, working side by side to protect public resources and ensure assistance reaches the individuals and families who truly need it.”
“These defendants shamelessly exploited a national crisis for personal gain, stealing money intended to keep struggling families afloat – families counting on those funds to keep a roof over their heads and food on the table during desperate times,” said FBI Indianapolis Special Agent in Charge Timothy J. O’Malley. “The FBI and our law enforcement partners remain unwavering in our commitment to hold accountable anyone who exploits government relief programs and to safeguard public funds from fraud.”
The investigation was conducted by agents from multiple agencies including the Federal Bureau of Investigation, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Inspection Service. Sentencing was handed down by U.S. District Judge James Patrick Hanlon.
Assistant U.S. Attorney Matthew B. Miller prosecuted this case.
