Nigerian National Sentenced to Federal Prison for Role in $8-Million Federal Emergency Assistance Benefits Fraud Scheme

Greenbelt, Maryland – Today, U.S. District Judge Deborah K. Chasanow sentenced Newton Ofioritse Jemide, 47, a Nigerian national extradited from France, to 41 months in federal prison for his role in a scheme to fraudulently obtain federal benefits. Jemide will also serve three years of supervised release, pay $520,431.83 of restitution, and a forfeiture money judgment was entered against him in the amount of $311,036.64. Jemide executed his part of the criminal scheme from Nigeria where he resided when he committed the offense.

Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the plea with Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS); Acting Special Agent in Charge Colleen Lawlor, Social Security Administration (SSA) Office of Inspector General – Philadelphia Field Division; and Special Agent in Charge Matt McCool, U.S. Secret Service – Washington Field Office.

As a result of the conspiracy, the Federal Emergency Management Agency (FEMA) provided emergency benefits and compensation for damages to victims affected by declared national emergency disasters, such as hurricanes and wildfires. Among other benefits, an individual in an affected area was immediately eligible for Critical Needs Assistance (CNA) to purchase life-saving or life-sustaining materials.  Victims could decide how to receive assistance payments, including deposits on pre-paid debit cards.

According to his guilty plea, in 2016 and 2017, Jemide and others from Nigeria directed co-conspirators living in the United States to purchase hundreds of Green Dot Debit Cards. Co-conspirators living in Nigeria then registered the cards with Green Dot using stolen personal information from identity theft victims around the United States.  Jemide and his co-conspirators used an encrypted messaging application and other means to communicate.

In 2017, following Hurricanes Harvey, Irma, and Maria — and the California wildfires — Jemide and other co-conspirators from Nigeria used stolen personal information to apply online for FEMA and CNA benefits.  FEMA dispersed $500 per claim on the Green Dot Debit Cards that the co-conspirators purchased for a total of at least $8 million.

In addition to filing false disaster-assistance claims with FEMA, Jemide and co-conspirators also submitted false online claims for Social Security benefits, IRS tax refunds, and other government benefits using stolen identities of multiple individuals, including names, addresses, Social Security Numbers (SSN), and other personal identifiers.

As a result of fraudulent submissions, FEMA and other federal agencies deposited benefits onto the Green Dot Debit Cards.  The funds were deposited on the debit cards using multiple stolen identities, including identities different from the identities used to register the cards. Jemide and select co-conspirators informed other co-conspirators when the fraudulent funds became available on the debit cards and gave them information to cash out the funds from the cards in exchange for a commission.  Additionally, the co-conspirators took steps to conceal their identities by enlisting others to make purchases and withdrawals; utilizing multiple store and bank locations and methods of withdrawal; and making money orders payable to other individuals and/or corporate entities.

U.S. Attorney Hayes commended DHS OIG, SSA OIG, and the USSS for their work in the investigation and thanked the Justice Department’s Office of International Affairs and the U.S. Marshals Service for their valuable assistance in securing the extradition of Jemide to the United States.  Ms. Hayes also thanked Assistant U.S. Attorneys Elizabeth Wright and Darren Gardner who are prosecuting the federal case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit justice.gov/usao-md and justice.gov/usao-md/report-fraud.

 

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