Metro Atlanta man gets 7 years in prison for COVID fraud, money laundering, officials say
The U.S. Attorney’s Office for the Northern District of Georgia says a metro Atlanta man was sentenced for a money laundering conspiracy using COVID-19 funds.
Oluwagbemiga Otufale was sentenced for a conspiracy using the proceeds of multiple fraud schemes, according to USAO.
He was accused of fraudulently filing unemployment claims in multiple states, including Washington, Illinois, and Massachusetts.
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Otufale reportedly used fraudulent passports and other identifying documents to open bank accounts for various shell companies, according to officials, then used the accounts to launder more than $2.6 million in illicit funds.
USAO said most of the funds were proceeds from fraudulent unemployment claims, filed using stolen information from more than 50 unwitting individuals.
Otufale also laundered money form a business email compromise scheme which targeted two Georgia businesses, according to the Department of Justice.
“Oluwagbemiga Otufale used fraudulent passports and other identity documents to open numerous bank accounts in the names of various shell companies. Otufale used the accounts to launder more than $2.6 million in illicit funds. Most of the laundered funds were the proceeds of fraudulent unemployment claims that were filed in multiple states, including Illinois, Massachusetts, and Washington. These fraudulent claims were filed using the personal identifiable information of unwitting individuals. We will continue to work with our law enforcement partners to safeguard the unemployment insurance system from those who seek to exploit the system,” Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General said, explaining the conspiracy by Otufale.
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“Otufale created multiple aliases and sham business entities to open financial accounts in which he deposited the fraudulent proceeds and withdrew cash,” USAO said.
Those aliases include the names Joseph Perrone, Kelvin Benjamin, and Abraham Young.
He pled guilty to money laundering conspiracy on Dec. 7, 2022.
Otufale was sentenced to seven years in prison, followed by three years of supervised release and was ordered to pay $498,450 in restitution.
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