Abidemi Rufai, the suspended aide of Governor Dapo Abiodun of Ogun state, has pleaded guilty to wire fraud and aggravated identity theft, in a U.S. District Court in Tacoma.
45-year-old Rufai who admitted to using stolen identities to claim hundreds of thousands of dollars in pandemic-related unemployment benefits, has been in custody since his arrest at New York’s JFK airport in May 2021.
A plea agreement revealed that since 2017, Abidemi Rufai unlawfully obtained the personal identifying information of more than 20,000 Americans to submit more than $2 million in claims for federally funded benefits under a variety of relief programs. The various agencies involved paid out more than $600,000.
The peak of his fraud was committed against the Washington State Employment Security Department, which paid out $350,763 in fraudulent pandemic unemployment claims to accounts controlled by Abidemi Rufai.
The Nigerian also submitted fraudulent pandemic unemployment claims in at least 17 other states.
Rufai also defrauded the Small Business Administration (SBA) by attempting to obtain Economic Injury Disaster loans (EIDL) tied to the COVID-19 pandemic. Between April 8, 2020, and June 26, 2020, he submitted 19 fraudulent EIDL applications. SBA paid out $10,000 based on the applications.
Between 2017 and 2020, Rufai attempted to obtain more than $1.7 million in IRS tax refunds by submitting 675 false claims. The IRS paid out $90,877 on these claims.
Rufai’s efforts to enrich himself with false disaster claims did not start with COVID-19. In September and October 2017, he submitted 49 disaster relief claims connected to Hurricane Harvey and Hurricane Irma. He filed $24,500 in false claims and was paid on 13 claims totaling $6,500.
Rufai has agreed to pay full restitution to the defrauded agencies.
Wire fraud in relation to a presidential declared major disaster or emergency is punishable by up to 30 years in prison. Aggravated identity theft is punishable two years in prison to follow any prison term imposed on another charge. Prosecutors have agreed to recommend no more than 71 months in prison. The recommendation is not binding on U.S. District Judge Benjamin H. Settle, who will determine the appropriate sentence on August 15, 2022, after considering the sentencing guidelines and other statutory factors.
Rufai’s case was investigated by the FBI, with assistance from the Department of Labor Office of Inspector General, Internal Revenue Service Criminal Investigations, Department of Homeland Security Office of Inspector General, and the United States Small Business Administration Office of the Inspector General. The Washington Employment Security Department is cooperating in the investigation.
The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Cindy Chang of the Western District of Washington.