Nigerian National Admits Guilt in Nationwide Unemployment Fraud Scheme

A Nigerian national has pleaded guilty in federal court for his role in a widespread scheme to defraud state unemployment insurance programs. Akinpelumi Olawale Oyewusi, 60, of Hyattsville, Maryland, faces charges of wire fraud conspiracy and aggravated identity theft as part of this white-collar crime, according to the U.S. Attorney’s Office for the District of Maryland. This prosecution is connected to a larger federal initiative aimed at combating fraud.

The scheme, which ran from September 2020 through at least March 2021, involved Oyewusi and co-conspirators targeting state workforce agencies, including the Maryland Department of Labor. Their objective was to obtain fraudulent unemployment funds by using the identities of real individuals. Once these funds were secured, Oyewusi was responsible for transferring and withdrawing the illicitly obtained money through electronic transactions and ATM withdrawals. This criminal enterprise victimized individuals whose identities were stolen, state workforce authorities through the misappropriation of funds, and financial institutions that processed the fraudulent transactions. The investigation revealed that Oyewusi was directly linked to at least 415,874.63 in actual financial losses and personally benefited by at least 25,000.

Oyewusi and his associates submitted fraudulent unemployment claims to various state agencies, including the Maryland Department of Labor and the California Employment Development Department, by using the personally identifiable information of unsuspecting victims. These false claims falsely stated that the individuals were unemployed and provided their real names and social security numbers, while fabricating employment and unemployment histories to qualify for benefits. The conspirators arranged for unemployment funds to be issued via debit cards linked to bank accounts. These debit cards were then mailed to addresses in Maryland and other locations controlled by Oyewusi and his accomplices. Oyewusi accessed the fraudulently obtained funds, first taking his share before transferring the remaining proceeds to other members of the conspiracy.

Further details of the operation indicate that Oyewusi utilized U.S. Postal Service mail alerts to monitor the arrival of the fraudulent unemployment debit cards. He personally withdrew substantial sums from these cards, often taking the maximum allowable amount from each. Bank records and ATM surveillance footage confirmed Oyewusi making numerous withdrawals, totaling approximately $69,000 from UI debit cards associated with at least six different fraudulent claims between December 2020 and March 2021. Oyewusi’s sentencing is scheduled for December 3. The U.S. Department of Justice has established a National Fraud Enforcement Division to investigate and prosecute fraud against the public, supporting broader efforts to eliminate waste and abuse in federal benefit programs.

Article by Mel Anara, based upon information from U.S. Attorney’s Office, District of Maryland

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