A Nigerian man residing in Canada, who defrauded pandemic aid programs of millions, has been sentenced to 54 months in prison for wire fraud and aggravated identity theft in the United States.
Fatiu Ismaila Lawal, 46, was sentenced on Tuesday, January 28, 2025, in U.S. District Court in Tacoma, Washington. U.S. Attorney Tessa M. Gorman announced the sentence, revealing that Lawal was extradited from Canada in July 2024 and pled guilty in September 2024.
During the sentencing, U.S. District Judge Tiffany M. Cartwright noted that the crime involved significant planning and took advantage of aid programs meant to help people during an international emergency. “This defendant made it his full-time job to defraud the U.S. for years before the pandemic, but he intensified his efforts once critical aid to American workers was being distributed,” said U.S. Attorney Gorman. “His fraud harmed all Washingtonians who desperately needed assistance at the onset of the pandemic.”
Lawal, along with co-defendant Sakiru Olanrewaju Ambali, 46, used stolen identities to file over 1,700 fraudulent claims for pandemic unemployment benefits across 25 states, including Washington. The total value of the claims was around $25 million, but the conspirators successfully obtained approximately $2.7 million, mainly from unemployment benefits. Lawal personally submitted claims totaling $1,345,472.
Between 2018 and November 2022, Lawal also filed 3,000 fraudulent tax returns seeking $7.5 million in refunds. The IRS detected the fraud and paid only $30,000.
Lawal and Ambali also attempted to use stolen identities for Economic Injury Disaster Loans (EIDL) through the Small Business Administration (SBA), submitting 38 applications, but most were caught by the SBA, which paid only $2,500.
The criminal proceeds were funneled through cash cards or “money mules” and deposited into bank accounts opened using stolen identities. Lawal was ordered to pay restitution of $1,345,472.
Co-defendant Ambali was sentenced to 42 months in prison in March 2024.
In requesting a 65-month sentence, the government emphasized that during national emergencies, quick and accurate aid distribution is crucial to assist real victims. The fraudulent claims, which contributed to a wider $100 billion loss in pandemic unemployment aid, disrupted the system and delayed assistance for legitimate applicants.
The investigation, led by the National Unemployment Fraud Task Force and the FBI, involved multiple agencies, including the U.S. Postal Inspection Service (USPIS), the Department of Labor Office of Inspector General (DOL-OIG), the Internal Revenue Service (IRS-CI), the Washington State Employment Security Division (ESD), and the Small Business Administration (SBA).
The case was prosecuted by Assistant U.S. Attorney Cindy Chang, with assistance from the DOJ’s Office of International Affairs for the extradition.
