Nigerian Man Sentenced to 54 Months for Defrauding US Pandemic Aid Programs
A 46-year-old Nigerian man, Fatiu Ismaila Lawal, has been sentenced to 54 months in a US federal prison for his role in a sophisticated scheme to defraud pandemic aid programs of over $1.3 million. Lawal’s sentence is a result of his guilty plea to wire fraud and aggravated identity theft in September 2024. The sentencing was carried out by US District Judge Tiffany M Cartwright, who emphasized the severity of the crime and its impact on the victims.
Lawal, who had been residing in Canada, was extradited to the US in July 2024 to face charges related to the scam. His co-defendant, Sakiru Olanrewaju Ambali, was sentenced to 42 months in prison in March 2024. The investigation into the scam was conducted by the US Department of Justice, in collaboration with the US Department of Labor, the US Internal Revenue Service, and other law enforcement agencies.
The scam began in 2018, when Lawal and Ambali started using stolen identities to submit fraudulent tax returns and claim refunds. However, their scheme escalated during the COVID-19 pandemic, when they began targeting pandemic unemployment benefits. Using stolen identities of over 14,000 workers, Lawal and Ambali filed more than 1,700 fraudulent unemployment claims across 25 states, including Washington, DC. The claims sought approximately $25 million, with the conspirators successfully obtaining $2.7 million, primarily from pandemic unemployment benefits.
Lawal admitted to personally submitting claims totaling $1,345,472. He submitted these claims to various states, including New York, Maryland, Michigan, Nevada, California, and Washington. The pair used the stolen identities to open bank accounts and have the money deposited directly into those accounts for their use. They also established a network of “money mules” who transferred the funds according to instructions given by the co-conspirators.
The fraud was sophisticated, involving the creation of four internet domain names and 800 email addresses. These were used to facilitate the scam and make it harder to detect. Lawal also used encrypted communication platforms to communicate with his co-conspirators and money mules. The scam was carried out using various tactics, including phishing emails and text messages, to obtain the personal information of the victims.
The U.S. Attorney’s Office emphasized the severity of the crime, stating that it harmed not only the government but also real people who needed assistance during the pandemic. The estimated loss from these fraudulent pandemic unemployment claims is over $100 billion. The office also praised the efforts of the law enforcement agencies involved in the investigation, stating that their work had prevented further losses and brought the perpetrators to justice.
Lawal’s actions were described as making it his “full-time job to defraud the U.S.” He used the stolen identities of Washington residents to file dozens of unemployment claims in the first few weeks of the pandemic, contributing to the flood of fraudulent claims that caused the state to pause all unemployment payments. The state’s unemployment system was overwhelmed by the sheer volume of claims, causing delays and frustration for legitimate claimants.
The U.S. District Judge emphasized the scale and sophistication of the crime, stating that it took advantage of programs designed to help people struggling during an international emergency. The judge ordered Lawal to pay restitution of $1,345,472. The sentence and restitution order reflect the seriousness of the crime and the need to hold perpetrators accountable for their actions.
The case highlights the need for vigilance in protecting against fraud and identity theft, particularly during times of crisis. It also demonstrates the commitment of law enforcement agencies to tracking down and prosecuting those who engage in such fraudulent activities. The public is urged to remain vigilant and report any suspicious activity to the authorities.
