During the course of the scheme, the individuals involved acquired personally identifiable information (PII) of individuals who were not eligible for unemployment insurance (UI) or pandemic unemployment assistance (PUA) benefits, and they did so without the consent of these individuals. This sensitive data included names, dates of birth, and Social Security numbers.
Using this unlawfully obtained PII, the conspirators proceeded to submit numerous fraudulent UI and PUA claims to the Employment Development Department (EDD) and the Maryland Department of Labor (MDOL) under the names of the victims, but without their knowledge or authorization.
The fabricated benefit applications contained false information, including claims that the victims had been employed by specific companies and supervisors, had certain annual incomes, worked during specific time periods, were self-employed in various professions, were laid off and unemployed, or were newly jobless due to events like the COVID-19 pandemic. In reality, most, if not all, of these claims were completely untrue as the victims were not previously employed, laid off, or seeking new employment.
The conspirators were well aware that the information provided in these claims was false, or they lacked the authority and knowledge to make such claims. As a result, EDD and MDOL approved at least 142 fraudulent claims for UI and PUA benefits.
Once each claim was approved, the benefit funds were transferred to debit card accounts administered by Bank of America under the names of the victims. The defendants then received at least 142 unauthorized debit cards, which were sent to addresses under their control.
Bakare, one of the conspirators, used these illicitly obtained debit cards to withdraw cash from ATMs for his own benefit and that of his coconspirators.
Throughout the conspiracy, Bakare also possessed three additional UI debit cards issued by different state agencies: Maine’s Bureau of Unemployment Compensation, North Carolina’s Division of Employment Security, and Nevada’s Department of Employment Training and Rehabilitation. These cards were linked to accounts containing UI benefits, but Bakare was not the rightful beneficiary and possessed them with the intention to defraud the state agencies.
The total amount of fraudulent UI and PUA benefits deposited into the bank accounts linked to the debit cards that Bakare possessed was at least $2,265,844. He utilized a portion of this money to acquire a condominium in Lekki, Lagos State, Nigeria, which was subsequently ordered to be forfeited as part of the sentence.
Two other individuals, Adeyinka and Sangode, involved in the conspiracy, have pleaded guilty to their respective charges. Adeyinka pleaded guilty to mmit wire fraud, while Sangode pleaded guilty to access device fraud. They are scheduled for sentencing on August 22, 2023.
Adeyinka could face a maximum statutory penalty of 20 years in prison, while Sangode’s maximum statutory penalty is 15 years in prison.
