A Nigerian national, Adepoju Babatunde Salako, has been sentenced to six and a half years in prison by a United States District Court for his role in a $5m fraud scheme linked to COVID-19 relief programmes.
Salako, 34, who lives in Philadelphia, Pennsylvania, received a 78-month federal prison sentence after pleading guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering.
The development was disclosed in a statement issued by the United States Department of Justice and obtained on Thursday.
According to the statement, Salako also accepted responsibility for seven additional wire fraud charges filed against him in the District of Alaska as part of his plea arrangement with prosecutors.
The court further ordered him to pay $2,581,002.50 as restitution to victims affected by the fraudulent operation.
The statement read, “The United States Attorney’s Office for the District of Colorado announces that Adepoju Babatunde Salako, 34, of Philadelphia, Pennsylvania, was sentenced to 78 months in federal prison after pleading guilty to one count of wire fraud conspiracy and one count of money laundering conspiracy.
“As part of the plea agreement, Salako also agreed to plead guilty to seven counts of wire fraud in the District of Alaska. The defendant was ordered to pay $2,581,002.50 in restitution to the victims of his crimes.”
Court filings revealed that Salako was actively involved in the criminal scheme for much of 2021, taking advantage of economic support initiatives introduced during the COVID-19.
Investigators said the fraud ring illegally obtained funds from the Paycheck Protection Program, the Economic Injury Disaster Loan programme and about 30 state unemployment insurance programmes through a series of sophisticated schemes.
Authorities disclosed that Salako and two accomplices relied on stolen personal information belonging to unsuspecting individuals to secure fraudulent loans and unemployment benefits.
“In one scheme, Salako and two co-conspirators used information belonging to identity theft victims to fraudulently obtain PPP loans and unemployment benefits, and submitted fraudulent applications for EIDL loans,” the statement said.
Officials added that Salako’s role involved receiving money from victims of romance scams and government agencies before laundering the funds, mostly to China and Nigeria, while charging about 25 per cent commission for the transactions.
Reacting to the conviction, the United States Attorney for the District of Colorado, Peter McNeilly, condemned the crime and reiterated the government’s determination to bring fraud perpetrators to justice.
“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,” he said.
Also commenting, the Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Field Office, Matthew Modafferi, warned that those who misuse public funds for criminal gain would face severe penalties.
He said the judgment should serve as a deterrent to individuals seeking to exploit government programmes for fraudulent activities.
