A 46-year-old Nigerian man, Fatiu Ismaila Lawal, has been sentenced to 54 months in U.S. federal prison for orchestrating a massive fraud scheme that siphoned over $1.3 million from American pandemic relief programs. Lawal, along with his co-conspirator Sakiru Olanrewaju Ambali, exploited the chaos of the COVID-19 crisis, using stolen identities of more than 14,000 American workers to submit fraudulent unemployment claims across 25 states and Washington, D.C.
According to the U.S. Attorney’s Office for the Western District of Washington, the duo’s scam was designed to drain pandemic aid funds meant for struggling American citizens. While they sought to steal a staggering $25 million, they successfully obtained $2.7 million, primarily through pandemic unemployment benefits. Lawal personally pocketed $1,345,472, filing fraudulent claims on behalf of 790 individuals.
Their elaborate scheme extended beyond unemployment benefits. Between 2018 and 2022, Lawal fraudulently filed 3,000 income tax returns, seeking $7.5 million in refunds. However, the IRS flagged the scam, limiting his illegal gains to just $30,000.
In addition, Lawal and Ambali attempted to manipulate the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program, submitting 38 fraudulent applications. Despite their efforts, the SBA successfully blocked most of the transactions, paying out only $2,500 before the scheme was uncovered.
Lawal and Ambali used stolen identities to create fake bank accounts and email addresses, making it nearly impossible for authorities to trace the funds. Lawal personally set up four fraudulent websites and created over 800 email accounts to carry out the deception. The funds were then funneled through cash cards or “money mules,” ensuring they could launder the stolen money without raising immediate suspicion.
The scale of the fraud had devastating effects on real American citizens. Many who were legitimately in need of financial aid during the pandemic found their identities had already been used to claim benefits fraudulently. This forced thousands into bureaucratic nightmares, delaying or denying their access to critical relief funds.
U.S. District Judge Tiffany M. Cartwright, who presided over the case, condemned Lawal’s actions, stating:
> “This defendant made it his full-time job to defraud the U.S. for years before the pandemic, but he kicked it into high gear once critical aid was flowing.”
U.S. Attorney Gorman further stressed the consequences of the scam:
> “Lawal’s fraud contributed to the flood of fraudulent claims that forced Washington State to halt all unemployment payments, delaying relief for thousands who desperately needed help at the peak of the pandemic.”
Lawal, who had been hiding in Canada, was extradited to the U.S. in July 2024 and pleaded guilty to wire fraud and aggravated identity theft in September. His accomplice, Ambali, was sentenced to 42 months in prison in March 2024.
Lawal has now been ordered to pay $1,345,472 in restitution for his role in the scheme. Federal authorities continue to investigate similar cases, with estimates suggesting that over $100 billion in pandemic relief funds may have been stolen through fraudulent claims.
This case serves as a stark reminder of the rampant fraud that plagued the U.S. pandemic relief programs, and the relentless pursuit of justice by federal agencies determined to bring fraudsters to account.
PIONEER NEWS 