A United States District Court has sentenced a Nigerian national, Adepoju Babatunde Salako, to six and a half years in prison for his involvement in a $5m fraud scheme linked to COVID-19 relief programmes.
According to a statement released on Thursday by the United States Department of Justice, Salako, 34, who lives in Philadelphia, Pennsylvania, was handed a 78-month federal prison sentence after pleading guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering.
The statement added that, under the terms of his plea agreement, the defendant also agreed to plead guilty to seven additional counts of wire fraud filed in the District of Alaska.
The court further directed him to pay $2,581,002.50 as restitution to victims affected by the fraud.
The United States Attorney’s Office for the District of Colorado said Salako admitted participating in the fraudulent scheme for most of 2021, during which several economic relief initiatives were introduced to cushion the impact of the COVID-19 pandemic.
Court records showed that the conspiracy siphoned more than $5m from programmes such as the Paycheck Protection Program, the Economic Injury Disaster Loan program, and about 30 state unemployment benefit schemes through multiple coordinated fraud operations.
Investigators disclosed that Salako worked with two accomplices who used stolen personal information to fraudulently apply for loans and unemployment benefits.
The conspirators reportedly used the identities of victims of identity theft to secure fraudulent PPP loans and unemployment payments, while also submitting fake applications for EIDL loans.
Authorities said Salako’s role involved receiving funds obtained from romance scam victims and government agencies before laundering the proceeds, mainly transferring the money to China and Nigeria for a commission estimated at about 25 per cent.
Reacting to the conviction, the United States Attorney for the District of Colorado, Peter McNeilly, condemned the actions of the defendant and vowed that authorities would continue to pursue individuals who defraud the system.
He stated that Salako and his accomplices exploited unsuspecting victims and diverted millions of dollars meant for economic relief, stressing that law enforcement agencies remain determined to ensure offenders face justice.
Also speaking, the Special Agent in Charge of the United States Postal Service Office of Inspector General Northeast Area Field Office, Matthew Modafferi, said the prison sentence should serve as a warning to individuals who abuse public resources for criminal purposes.