A Nigerian Man Extradited Over $8 Million FEMA Fraud Scheme
A man from Nigeria has been extradited to the United States from France due to charges connected to a fraudulent scheme that illegally obtained over $8 million in federal disaster relief funds meant for victims of hurricanes and wildfires, as announced by the Justice Department.
In 2019, a grand jury indicted Newton Ofioritse Jemide for conspiracy to commit wire fraud and money laundering as part of a large-scale operation that defrauded disaster aid meant for victims of Hurricanes Harvey, Irma, Maria, and the wildfires in California. Court documents reveal that Jemide and his associates stole personal identities to create pre-paid Green Dot debit cards and to seek assistance fraudulently.
Fraud concerning disaster relief is a growing concern in the United States, prompting FEMA and various relief organizations to alert the public to remain cautious of such scams. Often, fraud attempts occur shortly after disaster declarations. Recently, similar warnings were issued for residents in Louisiana affected by Hurricane Francine.
“The indictment states that FEMA disbursed at least $8 million, typically in $500 amounts per claim, to the Green Dot debit cards purchased by the co-defendants,” the Justice Department detailed.
If found guilty, Jemide might be sentenced to 20 years in prison for conspiracy to engage in money laundering and up to 30 years for conspiracy to commit wire fraud.
Prosecutors Claim Jemide and Associates Used Stolen Identities for Federal Aid
According to federal prosecutors, Jemide’s fraudulent activities extended beyond FEMA. He and his accomplices used stolen identities to claim Social Security benefits and tax refunds from the IRS, among other fraudulent activities. They possessed names, addresses, Social Security Numbers, and further personal details of the victims.
The fraudulent operation reportedly persisted for nearly two years. The group cashing in on claims utilized bank accounts, direct ATM withdrawals, and money orders. Court documents did not specify the names of Jemide’s alleged co-conspirators.
Federal prosecutors indicated that the group took extensive measures to conceal their identities and operations. They recruited others to make purchases and withdrawals at various banks and stores, converted funds into cash, and created money orders payable to other individuals or businesses controlled by themselves or other associates.
FEMA Issues Warnings Regarding Fraudulent Activities After Disasters
Jemide is not the only person facing scrutiny from the Justice Department for disaster-related fraud. Investigations are ongoing against hundreds of individuals accused of misappropriating funds intended for disaster relief, as per department records.
On Thursday, FEMA cautioned residents of Louisiana about con artists who present themselves as government officials to collect personal information and utilize the stolen identities to apply for aid.
“If a FEMA inspector visits your residence and you haven’t applied for FEMA assistance, your personal information may have been utilized without your consent to fabricate an application,” the agency stated. “In such cases, please inform the inspector that you did not submit a FEMA application so they can halt any further processing of that application.”
Fraudsters quickly included governmental pandemic relief programs in their schemes, with a federal watchdog group reporting in June 2023 that over $200 billion was stolen from the government.
The National Center for Disaster Fraud reported that over 220,000 fraud complaints have been filed. The Justice Department established this online resource in 2005 following Hurricane Katrina’s severe impact on the Gulf Coast. Eight additional federal agencies also accept disaster-related complaints, which cover issues like price gouging, COVID-19 relief, disaster food aid, and unemployment benefits.
For more information, contact the reporter Krystal Nurse on X, previously known as Twitter, @KrystalRNurse.