Olayeye and others has faced multiple charges related to a scheme in which they conspired to obtain at least $10 million in COVID-19 unemployment benefits.
The 40-year-old has been charged with one count of wire fraud conspiracy, one count of wire fraud, and one count of aggravated identity theft.
US authorities said Olayeye and his co-conspirators allegedly used stolen identities to file false unemployment claims during the pandemic, exploiting the emergency benefits program meant to provide financial relief to those affected by COVID-19.
In a statement by Acting United States Attorney Joshua S. Levy, it was noted that the defendant 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.
According to the charging document, between March and July 2020, Olayeye and others defrauded three pandemic assistance programs administrated by the Massachusetts Department of Unemployment Assistance and other states’ unemployment insurance agencies: traditional unemployment insurance (UI), Pandemic Unemployment Assistance (PUA) and Federal Pandemic Unemployment Compensation (FPUC).
Meanwhile, Olayeye and his co-conspirators allegedly used personally identifiable information (PII) they purchased over criminal internet forums to apply for UI, PUA and FPUC – falsely representing themselves to be eligible state residents affected by the COVID-19 pandemic.
Levy explained that Olayeye and his co-conspirators allegedly used the same fraudulently obtained PII to open U.S. bank and prepaid debit card accounts to receive the assistance payments.
“It is also alleged that Olayeye and his co-conspirators recruited U.S.-based account holders to receive and transfer the fraud proceeds via cash transfer applications. Olayeye and his co-conspirators then allegedly used the fraudulent proceeds to purchase Bitcoin via online marketplaces.
“It is further alleged that Olayeye and his co-conspirators concealed the conspiracy’s connection to Nigeria by leasing Internet Protocol addresses assigned to computers located in the United States for use in the fraudulent transactions.
“In total, Olayeye and his co-conspirators allegedly applied for at least $10 million in fraudulent UI, PUA and FPUC from Massachusetts, Hawaii, Indiana, Michigan, Pennsylvania, Montana, Maine, Ohio and Washington and received more than $1.5 million in assistance to which they were not entitled,” Levy stated.
According to the Acting United States Attorney, the charges of wire fraud and wire fraud conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, forfeiture and restitution.
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