Trio Sentenced to Federal Prison for Stealing $520,910
Summary
Press release of the U.S. Attorney's Office, Southern District of Indiana, dated August 18, 2025. Three men were sentenced to federal prison for a COVID-19 fraud scheme that stole $520,910 in unemployment benefits; the sentences in a table range from 2 years to 4 years, 3 months of imprisonment, and each defendant was ordered to pay $520,910 in restitution; according to court documents, between August and October 2020 the defendants stole 168 unemployment insurance debit cards and PIN numbers issued by California, Arizona and Nevada, which other conspirators outside the United States had obtained using stolen personally identifiable information. They used 98 of the cards for 529 ATM withdrawals in and around Indianapolis.
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“Trio Sentenced to Federal Prison for Stealing $520,910.”
Original at www.oig.dol.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-08-20-trio-sentenced-to-federal-prison-for-stealing-520-910-in-pa-c494029016/
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PRESS RELEASE
Trio Sentenced to Federal Prison for Stealing $520,910 in
Pandemic Unemployment Assistance Funds
Monday, August 18, 2025
For Immediate Release
U.S. Attorney's Office, Southern District of Indiana
INDIANAPOLIS- Three men have been sentenced to federal prison for their roles in a
COVID-19 fraud scheme that resulted in the theft of $520,910 in unemployment benefits
from various state and federal unemployment programs.
Defendant Charges Sentence
Aggravated identity theft;
Kamaldeen 4 years, 3 months’
Conspiracy to commit
Karaole, 24, imprisonment; 2 years
access device fraud; Access
Indianapolis of supervised release
device fraud.
Stephen Conspiracy to commit 2.5 years’
Olamigoke, 23, access device fraud; Access imprisonment; 2 years
Nigeria. device fraud. of supervised release
Johnson Conspiracy to commit 2 years’ imprisonment;
Omodusonu, 24, access device fraud; Access 2 years of supervised
Indianapolis device fraud. release
Each defendant was also ordered to pay $520,910 in restitution. At the time Stephen
Olamigoke entered his guilty plea, he acknowledged that upon completion of his
sentence, he will be subject to removal from the United States
According to court documents, between August and October 2020, the defendants stole
168 Unemployment Insurance (UI) debit cards and associated PIN numbers. These cards,
issued by the states of California, Arizona, and Nevada, were being periodically loaded
with benefits. None of the cards belonged to the members of the conspiracy—they were
all in the names of other real individuals. To obtain the cards, other members of the
conspiracy located outside the United States had used stolen personally identifiable
information to file numerous false unemployment claims with various state workforce
agencies.
Unemployment Insurance is a joint state and federal program that provides temporary
financial assistance to workers who are unemployed through no fault of their own.
The trio used 98 of the cards to withdraw cash from various ATMs in and around
Indianapolis, often making multiple withdrawals within the span of just a few minutes. In
total, they completed 529 withdrawals, stealing $520,910 in benefits.
These funds were intended to support individuals unemployed during the COVID-19
pandemic. During this time, several federal programs expanded UI eligibility and
benefits, including the Pandemic Unemployment Assistance Program, Federal Pandemic
Unemployment Compensation, and the Lost Wages Assistance Program.
“Stealing unemployment benefits meant to help people survive during one of the worst
crises in modern history is both heartless and criminal,” said Tom Wheeler, United States
Attorney for the Southern District of Indiana. “These defendants exploited a system
designed to support those in genuine need, and now they are being held accountable
for their greed thanks to the diligent work of our federal partners and prosecutor.”
“As the primary federal law enforcement agency charged with investigating fraud
against the unemployment insurance program, the U.S. Department of Labor, Office of
Inspector General is committed to relentlessly protecting the integrity of this vital
benefit program from those seeking to unlawfully enrich themselves at the expense of
American workers. We are grateful to the U.S. Attorney’s Office for the Southern District
of Indiana for their strong partnership and collaboration. We will continue to work with
our law enforcement partners to aggressively investigate these types of allegations,”
said Megan Howell, Special Agent-in-Charge, Great Lakes Region, U.S. Department of
Labor, Office of Inspector General.
“Investigating and bringing to justice those who commit fraud against essential
government programs is one of the many things we do as postal inspectors,” said
Acting Inspector in Charge Felicia George, of the United States Postal Inspection Service
- Detroit Division. “Crimes like this not only deprive real people of critical aid, but also
threaten the integrity of the U.S. Mail, which so many Americans rely on for secure and
timely delivery of vital benefits. This case is an outstanding example of collaborative
efforts between federal agencies and the U.S. Attorney’s Office, working side by side to
protect public resources and ensure assistance reaches the individuals and families who
truly need it.”
“These defendants shamelessly exploited a national crisis for personal gain, stealing
money intended to keep struggling families afloat - families counting on those funds to
keep a roof over their heads and food on the table during desperate times,” said FBI
Indianapolis Special Agent in Charge Timothy J. O’Malley. “The FBI and our law
enforcement partners remain unwavering in our commitment to hold accountable
anyone who exploits government relief programs and to safeguard public funds from
fraud.”
The Federal Bureau of Investigation, U.S. Department of Labor-Office of Inspector
General, and the U.S. Postal Inspection Service investigated this case. The sentence was
imposed by U.S. District Judge James Patrick Hanlon.
U.S. Attorney Wheeler thanked Assistant U.S. Attorney Matthew B. Miller, who
prosecuted this case.
###
Updated August 18, 2025
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