The second of two Nigerian men residing in Canada pleaded guilty Thursday, September 12, 2024, in U.S. District Court in Tacoma to wire fraud and aggravated identity theft for his fraud 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 co-defendant Sakiru Olanrewaju Ambali, 45, used the stolen identities of thousands of workers to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State.
Co-defendant Ambali was sentenced to 42 months in prison in March 2024.
The claims sought approximately $25 million, but the conspirators obtained approximately $2.7 million, primarily from pandemic unemployment benefits. As part of his plea agreement, Lawal agreed to make restitution of $1,345,4720.
Lawal admits 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 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 for $7.5 million in refunds. The IRS detected the fraud and paid just $30,000.
Lawal and Ambali also attempted to use the stolen American identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration (SBA). The pair submitted some 38 applications, but SBA caught most of the fraud and paid only $2,500.
Lawal and Ambali 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 also used a Telegram channel to teach others how to commit similar frauds and how to misuse personally identifying information. They instructed others how to purchase such information on the dark web and use it to apply for benefits from various COVID-19 programs fraudulently.
Prosecutors have agreed to recommend no more than 65 months in prison for Lawal. The recommendation does not bind Judge Bryan and can impose any sentence allowed by law.
