A France-based Nigerian, Newton Ofioritse Jemide, has been sentenced to three years and five months in a United States federal prison for his role in a large-scale disaster relief fraud scheme that defrauded the US government of over $8 million.
According to information obtained on Thursday, July 3, via the US Justice Department website, Judge Deborah K. Chasanow of a US District Court handed down the sentence on Tuesday, June 30 following Jemide’s guilty plea.
He was also ordered to pay $520,431 in restitution and forfeit $311,036 to the US government.
“US 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,” the US Department of Justice said in a statement.
“Jemide will also serve three years of supervised release, and pay $520,431.83 of restitution, and a forfeiture money judgment was entered against him in the amount of $311,036.64,” the statement added.
According to US investigators, Jemide and his conspirators exploited emergency funds meant for wildfire victims between 2016 and 2017 by using stolen identities of US citizens to apply for disaster assistance.
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The Justice Department explained that “co-conspirators living in Nigeria then registered the cards with Green Dot using stolen personal information from identity theft victims around the United States.
As a result of fraudulent submissions, FEMA and the other federal agencies deposited benefits onto the Green Dot debit cards.”
Jemide reportedly coordinated with co-conspirators in the US to cash out the fraudulent funds, directing them when money became available on the cards and receiving a share of the proceeds.
They used various tactics to hide their identities, including making withdrawals at different banks and stores, using third parties to handle money, and converting the stolen funds into money orders payable to others or corporate accounts.
The DOJ stated that the Federal Emergency Management Agency (FEMA) dispersed $500 per claim, totalling at least $8 million in fraudulent claims.