A United States District Court has sentenced a Nigerian man, Adepoju Babtunde Salako, to 78 months in federal prison for his role in a multi-million-dollar COVID-19 relief fraud scheme.
This is according to a statement published on the website of the United States Department of Justice.
Salako, 34, of Philadelphia, Pennsylvania, pleaded guilty to one count of wire fraud conspiracy and one count of money laundering conspiracy.
What prosecutors said
According to the plea agreement, Salako participated in a scheme that fraudulently obtained more than $5 million from COVID-19 relief programs, including PPP, EIDL, and multiple state unemployment benefits.
- “Throughout most of the year 2021, Salako was part of a conspiracy that stole more than $5 million in funds from the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and 30 state unemployment programs through several complex schemes. In response to the COVID-19 pandemic, the federal government launched the PPP and EIDL economic relief programs and provided federal funds to state unemployment programs,” they said.
- In one scheme, Salako and two co-conspirators used information of identity theft victims to fraudulently obtain PPP Loans and unemployment benefits and submitted fraudulent applications for EIDL Loans. In another scheme, co-conspirators, who were primarily located in Nigeria, used stolen identities and enlisted romance scam victims to obtain government money.
- “Salako’s role was then to receive money from the romance scam victims and government agencies and to launder fraud proceeds, primarily to China and Nigeria, for a fee of approximately 25%,” they added
As part of the plea agreement, he also agreed to plead guilty to seven additional counts of wire fraud in the District of Alaska.
The court also ordered him to pay $2,581,002.50 in restitution to victims of the fraud.
More details
United States Attorney for the District of Colorado, Peter McNeilly, said the sentence demonstrates the government’s commitment to prosecuting financial crimes.
- “Mr. Salako and his criminal associates exploited innocent people and stole millions of dollars from American taxpayers. We are committed to finding and prosecuting fraudsters and, as this sentence demonstrates, these criminals will pay a high price for their actions,” McNeilly said.
Amanda Prestegard, Special Agent in Charge of the IRS Criminal Investigation Denver Field Office, described Salako as a key figure in the operation.
- “Salako was the point man in the U.S. for an international criminal organization that preyed on honest business owners and taxpayers, while also jeopardizing our national security,” she said.
United States District Judge Charlotte N. Sweeney presided over the sentencing, while Assistant United States Attorney Craig Fansler handled the prosecution.
What you should know
The Paycheck Protection Program and the Economic Injury Disaster Loan program were launched by the U.S. government during the COVID-19 pandemic to provide financial support to businesses and individuals affected by the economic shutdown.
- The U.S. Department of Justice has since intensified investigations and prosecutions related to pandemic-related fraud, recovering billions of dollars and securing multiple convictions from those who illegally obtained relief funds
- Nairametrics previously reported that a Nigerian national, Tochukwu Albert Nnebocha, was sentenced to more than eight years in prison in the United States for an inheritance fraud scheme that defrauded over 400 victims of more than $6 million.
In another case, three Nigerian nationals also pleaded guilty in a U.S. federal court for laundering over $4.5 million in fraud proceeds linked to romance scams and business email compromise schemes that targeted more than 125 victims.
