Seattle City Wire

Tacoma – The second of two Nigerian men residing in Canada pleaded guilty on Thursday, September 12, 2024, in U.S. District Court in Tacoma to wire fraud and aggravated identity theft for his role in a scheme that stole more than $1.3 million in federal funds, announced U.S. Attorney Tessa M. Gorman. Fatiu Ismaila Lawal, 45, was extradited from Canada in mid-July. U.S. District Judge Robert J. Bryan scheduled his sentencing for December 12, 2024.

According to records filed in the case, Lawal and codefendant Sakiru Olanrewaju Ambali, 45, used stolen identities of thousands of workers to submit over 1,700 claims for pandemic unemployment benefits to more than 25 different states, including Washington State. In total, the claims sought approximately $25 million but obtained about $2.7 million primarily from pandemic unemployment benefits. As part of his plea agreement, Lawal agreed to make restitution of $1,345,472.

Lawal admitted in his plea agreement that he personally submitted at least 790 unemployment claims using the stolen identities of 790 workers. The co-conspirators allegedly submitted claims for pandemic unemployment benefits to New York, Maryland, Michigan, Nevada, California, Washington and some 19 other states. Lawal also established four internet domain names that were subsequently used for fraud—creating around 800 different email addresses used in this scheme.

Additionally, between 2018 and November 2022, Lawal used stolen personal information to submit 3,000 income tax returns seeking $7.5 million in refunds. The IRS detected the fraud and paid just $30,000.

Lawal and Ambali also attempted to use stolen American identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration (SBA). They submitted about 38 applications; however most were caught by SBA which paid only $2,500.

The proceeds of their fraud were sent to cash cards or “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts where money was deposited directly for their use.

Lawal and Ambali also utilized a Telegram channel to teach others how to commit similar frauds and misuse personally identifying information by purchasing such information on the dark web and using it fraudulently apply for benefits from various COVID-19 programs.

Prosecutors have agreed to recommend a total sentence of no more than 65 months in prison for Lawal; however Judge Bryan is not bound by this recommendation and can impose any sentence allowed by law.

Co-defendant Ambali was sentenced to 42 months in prison in March 2024.

The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S Postal Inspection Service (USPIS) and Department of Labor Office of Inspector General (DOL-OIG). Also contributing were Internal Revenue Service Criminal Investigation (IRS-CI), Washington State Employment Security Division (ESD), and Small Business Administration (SBA).

The case is being prosecuted by Assistant United States Attorney Cindy Chang of the Western District of Washington with DOJ’s Office of International Affairs assisting with extradition matters.

On May 17th ,2021,the Attorney General established COVID-19 Fraud Enforcement Task Force marshalling resources across government agencies enhancing efforts combating preventing pandemic-related fraud bolstering investigation prosecution culpable domestic international criminal actors assisting agencies administering relief programs preventing fraud augmenting incorporating existing coordination mechanisms identifying resources techniques uncover fraudulent actors schemes sharing harnessing information insights gained prior enforcement efforts For more information department’s response pandemic visit https://www.justice.gov/coronavirus

Anyone with information about allegations attempted fraud related COVID-19 report calling Department Justice’s National Center Disaster Fraud NCDF Hotline via NCDF Web Complaint Form https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form