Labor Department Watchdog Highlights Major Fraud Convictions, Tens of Millions in Pandemic UI Schemes

Summary

This is a press release dated February 24, 2026 from the U.S. Department of Labor, Office of Inspector General (DOL OIG), led by Inspector General Anthony P. D'Esposito, announcing its latest Investigations Newsletter detailing significant enforcement actions and major fraud convictions. Among the highlights, a California man pleaded guilty for his role in a conspiracy to launder more than $46 million in unemployment insurance funds. In a separate case, a Nigerian national was sentenced to 70 months in federal prison for his role in a $10 million pandemic unemployment fraud scheme. The release quotes Inspector General D'Esposito: "Fraud is not a technical violation — it is a crime against taxpayers."

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Press Releases

Labor Department Watchdog Highlights Major Fraud
Convictions, Tens of Millions in Pandemic UI Schemes

February 24, 2026 FOR IMMEDIATE RELEASE U.S. Department of Labor, Office of Inspector General

WASHINGTON — The U.S. Department of Labor, Office of Inspector General
(DOL OIG), led by Inspector General Anthony P. D’Esposito , today released its latest Investigations Newsletter detailing significant enforcement actions and major fraud
 convictions across the Nation.

The report underscores the OIG’s aggressive efforts to combat unemployment insurance
fraud — including cases involving tens of millions of dollars in stolen pandemic-era
 benefits .

Among the highlights:

A California man pleaded guilty for his role in a conspiracy to launder more than $46 million in unemployment insurance funds. In a separate case, a Nigerian national was
sentenced to 70 months in federal prison for his role in a $10 million pandemic
unemployment fraud scheme.

“These cases represent real accountability,” said Inspector General D’Esposito. “During a national crisis, criminals attempted to exploit programs designed to help
Americans in need. We investigated, we built strong cases, and we delivered results.
 Fraud is not a technical violation — it is a crime against taxpayers.”

The DOL OIG remains unwavering in its commitment to root out fraud, waste, and abuse
wherever it exists. Through data-driven investigations, strike force collaboration, and close
coordination with federal, state, and local law enforcement partners, the OIG continues to
dismantle fraud networks and protect the integrity of critical worker benefit programs. Safeguarding taxpayer dollars and ensuring benefits reach eligible individuals is not
 optional — it is fundamental to maintaining public trust.

The Office of Investigations conducts criminal, civil, and administrative investigations into
alleged violations of federal laws relating to Department of Labor programs, operations, and
personnel. The OIG also combats labor racketeering and organized crime affecting
employee benefit plans, labor-management relations, and internal union affairs.

For additional information on DOL OIG, please visit oig.dol.gov . If you suspect wrongdoing
involving DOL programs or operations, contact the DOL-OIG Hotline at (800) 347-3756 or oig.dol.gov/hotlinecontact.htm .

Download Press Release .

For Media Inquiries:

LaborOIGinfo@oig.dol.gov

(202) 693-7100

Follow Us:

X: @DOLOIG

Instagram: @usdoloig

Facebook: @usdoloig

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