One of two Nigerian citizens residing in Canada, who allegedly defrauded the pandemic unemployment benefit programs in multiple states, made his initial appearance in U.S. District Court in Tacoma on Friday.
Sakiru Olanrewaju Ambali, 45, was arrested in February 2023, in Frankfurt, Germany, as he traveled back to Canada from Nigeria.
Ambali had been detained in Germany pending extradition. He arrived in the Western District of Washington Friday afternoon, according to the U.S. Attorney's Office, Western District of Washington
Ambali and co-defendant Fatiu Ismaila Lawal, 45, are accused of using the stolen identities of thousands of Americans to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State.
According to the indictment, Lawal and Ambali used the stolen personal information of thousands of U.S. taxpayers and residents to file fraudulent claims for COVID-19 pandemic assistance and false tax returns seeking refunds. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.4 million, primarily from pandemic unemployment benefits.
The co-conspirators allegedly submitted claims for pandemic unemployment benefits to more than 25 states including New York, Maryland, Michigan, Nevada, California, and Washington.
Using 13 Google accounts, they filed some 900 claims. The co-conspirators also allegedly established four internet domain names that they then used for fraud – creating some 800 different email addresses that were used for fraud.
Lawal and Ambali allegedly filed over 2,300 fraudulent income tax returns seeking over $7.1 million in tax refunds.
The IRS caught most of the fraud and paid only about $30,000 in fraudulent refunds.
The co-conspirators also attempted to use the stolen American identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration.
According to the indictment, the co-conspirators had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.
Lawal and Ambali are charged with conspiracy to commit wire fraud, ten counts of wire fraud and six counts of aggravated identity theft.
Lawal remains in Canada, pending extradition.
The conspiracy and wire fraud counts are punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to run consecutive to any other prison time imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.