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3 men sentenced for stealing over $520K in COVID unemployment benefits

Three men in Indiana have been sentenced to federal prison for stealing $520,910 in COVID-19 unemployment benefits from California, Arizona and Nevada through identity theft

Scripps National

By: KTNV Staff

Posted

(KTNV) — Three men have been sentenced to federal prison for stealing more than half a million dollars in unemployment benefits during the COVID-19 pandemic.

The U.S. Attorney's Office for the Southern District of Indiana said the three men stole $520,910 in unemployment benefits from state and federal programs targeting victims in California, Arizona and Nevada.

Kamaldeen Karaole, 24, of Indianapolis; Johnson Omodusonu, 24, of Indianapolis; and Stephen Olamigoke, 23, of Nigeria, each received prison sentences ranging from two to four years followed by two years of supervised release. All three must pay $520,910 in restitution.

Court documents show that between August and October 2020, the men stole 168 unemployment insurance debit cards and PIN numbers issued by the states of California, Arizona and Nevada. They obtained the cards from parties outside the United States who had stolen personal information used to file unemployment claims.

"Stealing unemployment benefits meant to help people survive during one of the worst crises in modern history is both heartless and criminal," said Tom Wheeler, United States Attorney for the Southern District of Indiana.

"These defendants exploited a system designed to support those in genuine need, and now they are being held accountable for their greed thanks to the diligent work of our federal partners and prosecutor," Wheeler said.

Prosecutors said 98 of the cards were used to withdraw cash from ATMs in Indiana. In total, 529 withdrawals were completed, resulting in hundreds of thousands of stolen benefits.

Karaole received the longest sentence at four years and three months in prison for charges of aggravated identity theft, conspiracy to commit access device fraud, and access device fraud.

Olamigoke was sentenced to two and a half years in prison for conspiracy to commit access device fraud and access device fraud. Prosecutors said he will be deported from the United States once his sentence is complete.

Omodusonu received a two-year prison sentence for conspiracy to commit access device fraud and access device fraud.