US Court sentences former aide of Nigeria’s state Governor to five years in prison over fraud

A US District Court on Monday sentenced a former aid of Nigeria’s Ogun State Governor to five years in prison for wire fraud and aggravated identity theft relative to pandemic-related unemployment benefits and disaster programmes. 

According to a US Department of Justice statement, Abidermi Rufai attempted to steal nearly $2.4 million from 12 US agencies, including about $500,000 in pandemic-related unemployment benefits.

“At the time of his arrest in May 2021, Abidermi Rufai was the Special Assistant to the Governor of Nigeria’s Ogun State.  He admitted a long history of using stolen identities to defraud U.S. disaster programs, including aid for Hurricanes Harvey and Irma, and file fraudulent U.S. tax returns,” the statement said. 

Citing court documents, the statement added that since 2017, Rufai stole the personal information of more than 20,000 Americans to submit more than $2 million in claims for federally funded disaster relief benefits and fraudulent tax returns.  “The various agencies involved paid out more than $600,000,” it said.

The largest amount of fraud is said to have been committed against the Washington State Employment Security Department, which paid out $350,763 in claims to accounts controlled by Rufai. 

He is also accused to have made attempts to obtain more than $1.7 million in IRS tax refunds by submitting 675 false claims between 2017 and 2020. “The IRS paid out $90,877 on these claims.”

Furthermore, he is said to have defrauded the US Small Business Administration (SBA) by attempting to obtain Economic Injury Disaster loans (EIDL) tied to the COVID-19 pandemic.  “Between April 8, 2020, and June 26, 2020, he submitted 19 fraudulent EIDL applications.  SBA paid out $10,000 based on the applications," it said.

“This sentence is a result of the culmination of choices he made funding his luxurious lifestyle. His fraud schemes began with filing fraudulent tax returns from stolen identities to pilfering economic aid designed to help disadvantaged workers and families suffering through the COVID-19 pandemic.

Rufai’s efforts to exploit disaster in the United States did not start with COVID-19.  In September and October 2017, he submitted 49 disaster relief claims connected to Hurricane Harvey and Hurricane Irma.  He filed $24,500 in false claims and was paid on 13 claims totaling $6,500," said Seattle Field Office Special Agent in Charge Bret Kressin. 

In addition to his prison sentence, Rufai is said to have agreed to pay full restitution of $604,260 to the defrauded agencies.