A US court jails Nigerian Adepoju Salako for $5m COVID relief fraud, ordering over $2.5m restitution after guilty plea to wire fraud and money laundering

A United States District Court has sentenced Adepoju Babatunde Salako, a 34-year-old Nigerian resident of Philadelphia, Pennsylvania, to 78 months in federal prison for his role in a $5m fraud scheme linked to pandemic relief programmes.

Also read: Nigerian man jailed 20 years for romance and email fraud

The sentence followed Salako’s guilty plea to wire fraud conspiracy and money laundering conspiracy, according to a statement published by the United States Department of Justice.

The court also ordered Salako to pay $2,581,002.50 in restitution to victims affected by the scheme.

As part of the plea agreement, Salako agreed to plead guilty to seven additional counts of wire fraud in the District of Alaska.

The Department of Justice said the Salako COVID fraud sentence stems from activities carried out largely in 2021, when he and his accomplices exploited emergency economic support programmes introduced during the COVID-19 pandemic.

Court documents showed that the conspiracy fraudulently obtained more than $5m from multiple government relief initiatives, including the Paycheck Protection Program, the Economic Injury Disaster Loan programme, and unemployment benefit schemes operated by about 30 US states.

Investigators said Salako and two co-conspirators used stolen identities belonging to unsuspecting victims to submit fraudulent applications for loans and unemployment benefits.

“In one scheme, Salako and two co-conspirators used information belonging to identity theft victims to fraudulently obtain PPP loans and unemployment benefits, and submitted fraudulent applications for EIDL loans,” the statement said.

Authorities said Salako’s primary role involved receiving money from romance scam victims and government agencies before laundering the proceeds through international channels.

According to investigators, the funds were transferred mainly to China and Nigeria, with Salako receiving a commission of about 25 per cent for facilitating the transactions.

Reacting to the case, Peter McNeilly, the United States Attorney for the District of Colorado, condemned the fraud and reaffirmed the government’s commitment to prosecuting offenders who exploit public programmes.

“Mr Salako and his criminal associates exploited innocent people and stole millions of dollars from American taxpayers.

We are committed to finding and prosecuting fraudsters and, as this sentence demonstrates, these criminals will pay a high price for their actions,” McNeilly said.

Also commenting on the outcome, Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Field Office, warned that authorities would continue to pursue individuals who abuse public resources.

“The sentence imposed on the defendant stands as a clear warning that serious consequences await anyone who exploits government resources to commit criminal acts,” Modafferi said.

Also read: Nigerian man sentenced to prison for sexual assaults on UK trains

Officials say the case highlights ongoing efforts by US law enforcement agencies to crack down on sophisticated fraud networks that targeted pandemic relief programmes designed to support businesses and workers during the COVID-19 crisis.