A Philadelphia resident has been sentenced to 78 months in federal prison for his role in a scheme that stole millions from COVID-19 relief programs and laundered the money overseas.
Adepoju Babtunde Salako, 34, pleaded guilty to conspiracy charges involving wire fraud and money laundering. He also admitted to seven counts of wire fraud in Alaska and was ordered to pay more than $2.5 million in restitution to the victims.
Authorities said Salako and his co-conspirators took part in schemes that exploited the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program, and 30 state unemployment programs in 2021, stealing over $5 million.
The schemes included using stolen identities and enlisting victims of romance scams to fraudulently collect government funds. Salako’s role was to receive the money and launder it, mainly to China and Nigeria, earning about 25% for himself.
“This sentence shows that those who steal from taxpayers during a national crisis will face serious consequences,” said U.S. Attorney Peter McNeilly.
The investigation involved the IRS Criminal Investigation unit, the U.S. Postal Service Office of Inspector General, and the Colorado Department of Labor and Employment. The case was prosecuted by Assistant U.S. Attorney Craig Fansler and overseen by U.S. District Judge Charlotte N. Sweeney.
Authorities encourage anyone aware of COVID-19 relief fraud to report it to the DOJ’s National Center for Disaster Fraud hotline at 866-720-5721 or through the online complaint form.
