Why the US Is Pursuing Nigerians and Others Over Pandemic Aid Fraud
Years after the COVID-19 pandemic, US authorities are still investigating fraudulent claims for unemployment benefits and other emergency assistance. Several cases involving Nigerians show how stolen identities were allegedly used to obtain government funds.
The United States is continuing its crackdown on fraud involving COVID-19 relief programmes, with investigators pursuing cases involving stolen identities, fraudulent unemployment claims and money laundering.
The latest development includes Nigerian national Onoriode Ezewu, whom the US Department of Labour named on its Most Wanted List over an alleged $1 million fraud scheme, according to Legit.ng.
The case reflects a wider problem that emerged when the US government expanded financial assistance during the pandemic. Authorities had to distribute money quickly to millions of people who lost jobs or faced financial difficulties. However, criminals exploited weaknesses in the programmes to obtain benefits they were not entitled to receive.
How the pandemic created opportunities for fraud
In 2020, the US government expanded unemployment assistance to support workers affected by the COVID-19 crisis. The programmes included benefits for people who did not normally qualify for traditional unemployment insurance.
However, the urgent need to distribute funds created challenges for state agencies responsible for processing claims and checking applicants’ identities.
The US Government Accountability Office estimated that unemployment insurance fraud during the pandemic resulted in losses exceeding $100 billion.
Fraudsters exploited weaknesses in identity verification to submit claims using other people’s personal information. Some also filed multiple applications across different states.
According to the Federal Bureau of Investigation, criminals obtained personal information through data breaches, phishing schemes, online purchases of stolen information and other methods.
They then used the information to impersonate eligible applicants and collect unemployment payments.
Nigerians have featured in previous cases
Ezewu’s case is not the first involving a Nigerian accused of exploiting American pandemic relief programmes.
In August 2024, US authorities announced the arrest of Yomi Jones Olayeye, a Nigerian man accused of participating in a scheme to obtain at least $10 million in pandemic unemployment benefits.
According to the US Department of Labour’s Office of Inspector General, Olayeye and his alleged co-conspirators used personal information purchased through criminal online forums to submit fraudulent claims.
The investigators alleged that the group opened US bank accounts and prepaid debit card accounts to receive the money. They also allegedly recruited people in the US to receive and transfer the proceeds.
In another case, Nigerian nationals Fatiu Ismaila Lawal and Sakiru Olanrewaju Ambali were prosecuted over schemes involving stolen identities and pandemic assistance.
The US Department of Justice reported in January 2025 that Lawal was sentenced to 54 months in prison after pleading guilty to wire fraud and aggravated identity theft. Records showed that the two men submitted more than 1,700 claims seeking approximately $25 million across more than 25 states. They obtained approximately $2.7 million.
The case involved unemployment benefits as well as attempts to obtain other forms of government assistance.
Why investigations are continuing years later
The end of the pandemic did not end investigations into fraudulent claims made during the emergency.
Authorities are still working to identify suspects, trace funds, recover government money and prosecute cases that may involve multiple states or countries.
In May 2026, the US Department of Labour announced that it and its Office of Inspector General had asked financial institutions to preserve funds in accounts linked to suspected pandemic unemployment fraud while investigators worked to recover the money.
The action showed that the authorities’ efforts extend beyond prosecuting individuals to recovering funds that may still be held in financial accounts.
For investigators, the challenge is particularly significant when stolen identities, multiple bank accounts and people operating across national borders are involved.
However, the cases should be considered individually. The prosecution of particular Nigerians does not establish that Nigerians generally are responsible for pandemic-aid fraud.
In Ezewu’s case, the allegations against him must also be distinguished from convictions in separate cases. Being named on a wanted list does not, by itself, establish guilt.