A Pennsylvania man has recently been indicted on multiple federal charges after using stolen and fake identities to illegally file for unemployment benefits and COVID-19 relief funds in more than 30 states, including Colorado.
The total amount of money involved in the fraudulent claims is a staggering $5.6 million.
The Fraud Scheme Uncovered
Adepoju Babatunde Salako, a 33-year-old from Elkins Park, Pennsylvania, was indicted in May by a federal grand jury in Denver. He appeared in federal court on June 13.
Salako faces numerous serious charges, including six counts of wire fraud, one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and four counts of aggravated identity theft. Two of these identity theft charges involve victims from Colorado.
Salako’s alleged crimes began in March 2020, the same month the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by President Donald Trump.
This act provided expanded unemployment insurance benefits and emergency relief through programs like the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). Federal investigators claim that Salako used more than 1,000 stolen identities to apply for these federal funds.
The Scale of the Operation
According to the indictment, Salako collaborated with an unnamed Nigerian resident to file fraudulent claims for unemployment benefits, as well as for the EIDL and PPP programs.
The pair used personal information from websites like TruthFinder to obtain identities from individuals across several states, including Colorado, Maryland, Minnesota, New Hampshire, and New York.
In just two and a half months, Salako himself filed 15 fraudulent unemployment applications, requesting more than $700,000. Although the pair was able to obtain only $73,500 in unemployment funds, their efforts in the EIDL and PPP loan programs proved much more profitable.
Together, they filed fraudulent COVID-19 relief claims in 30 states and obtained over $4.7 million in EIDL loans. These payments originated from an SBA finance center in Denver and were funneled through Colorado-based bank accounts.
Hiding the Money Through Romance Scams
To further conceal the ill-gotten funds, Salako and his co-conspirator allegedly used romance scams to manipulate victims into transferring money. They created fake profiles on dating or friendship websites and lured unsuspecting individuals into sending funds.
In one case, Salako deposited nearly half a million dollars into a victim’s bank account, then directed the victim to withdraw the cash, purchase money orders, and send it through cashier’s checks to Salako’s business.
The money was then funneled through accounts in countries such as China, Nigeria, and the United Arab Emirates. This complex scheme helped the perpetrators evade detection and continue their fraudulent activities.
Investigation and Legal Action
The investigation into Salako’s actions is ongoing and is being handled by several federal agencies, including the United States Postal Service Office of Inspector General, the Internal Revenue Service Criminal Investigation division, and the Colorado Department of Labor and Employment.
The case is being prosecuted by the Economic Crime Section of the United States Attorney’s Office.
Salako’s actions highlight the vulnerabilities in the system during the pandemic and how criminals exploited the relief programs designed to help those in need.
As the investigation continues, the authorities are working to ensure that those involved in this fraudulent scheme are held accountable.
The case against Adepoju Babatunde Salako serves as a reminder of the scale of fraud that occurred during the pandemic, particularly in relation to COVID-19 relief programs.
It also highlights the need for better security measures to prevent such fraudulent activities from taking advantage of vulnerable citizens. As the investigation continues, authorities are uncovering more details about the full extent of the crime and the methods used to launder the stolen funds.