Karaole et al. Hit $520,910 in Unemployment Fraud Scheme

INDIANAPOLIS—In a shocking turn of events, three men have been handed down federal prison sentences for their roles in a brazen COVID-19 unemployment fraud scheme that siphoned off over half a million dollars. Kamaldeen Karaole, 24, Stephen Olamigoke, 23, and Johnson Omodusonu, 24, all face significant time behind bars for their part in the theft of $520,910 from various state and federal unemployment programs.

Karaole was hit with a sentence of four years and three months’ imprisonment, along with two years of supervised release. He also faces the daunting task of paying back every cent he stole. Olamigoke, originally from Nigeria, will serve 2.5 years before facing deportation upon his release, while Omodusonu has been sentenced to two years in prison followed by two years of supervision.

The trio’s scheme, which spanned from August to October 2020, involved the theft of 168 Unemployment Insurance (UI) debit cards and their corresponding PINs. These cards, issued by California, Arizona, and Nevada, were fraudulently obtained using stolen personal information to file fake unemployment claims with several state workforce agencies. The cards did not belong to any member of the conspiracy, all being in the names of real individuals.

The defendants used 98 of these cards to make a staggering 529 cash withdrawals from ATMs in and around Indianapolis, often conducting multiple transactions within minutes. Their greed ultimately cost the unemployment programs over half a million dollars, funds intended for those genuinely in need during the pandemic.

“Stealing unemployment benefits meant to help people survive during one of the worst crises in modern history is both heartless and criminal,” Tom Wheeler, United States Attorney for the Southern District of Indiana, said. “These defendants exploited a system designed to support those in genuine need, and now they are being held accountable for their greed.”

Megan Howell, Special Agent-in-Charge of the Great Lakes Region for the U.S. Department of Labor, Office of Inspector General, echoed this sentiment: “We are committed to protecting the integrity of this vital benefit program from those seeking to unlawfully enrich themselves at the expense of American workers.” The case stands as a testament to the collaborative efforts of federal agencies in combating unemployment fraud.