France-based Nigerian jailed by US court for 41 months for $8m fraud

A France-based Nigerian, Newton Ofioritse Jemide, has been sentenced to three years and five months in prison by a United States court for his role in an $8 million disaster fraud scheme.

Jemide, 47, was sentenced on Tuesday, July 1, by Judge Deborah K. Chasanow of a U.S. District Court following his extradition from France. He was found guilty of conspiring to defraud the U.S. government by fraudulently obtaining federal relief funds meant for victims of natural disasters.

According to the U.S. Department of Justice (DoJ), Jemide and his accomplices stole the identities of American citizens and used them to open Green Dot debit card accounts. These accounts were then used to apply for federal benefits from the Federal Emergency Management Agency (FEMA), primarily related to wildfires that occurred between 2016 and 2017.

The DoJ detailed how Jemide and others residing in Nigeria directed co-conspirators in the United States to purchase hundreds of Green Dot debit cards. The cards were then registered using the stolen personal information of identity theft victims across the country.

“As a result of fraudulent submissions, FEMA and other federal agencies deposited benefits onto the Green Dot debit cards,” the DoJ stated.

Jemide was responsible for coordinating the scheme, informing his co-conspirators when the fraudulent funds were available and instructing them on how to withdraw or cash out the money.

He and others took steps to cover their tracks by using intermediaries to make purchases and withdrawals, conducting transactions across various stores and banks, and issuing money orders to third parties or shell companies.

The DoJ revealed that FEMA disbursed $500 per claim onto the compromised debit cards, resulting in fraudulent payouts of at least $8 million.

Following his guilty plea, Jemide was sentenced to 41 months in federal prison and three years of supervised release. In addition, he was ordered to pay $520,431 in restitution and forfeit $311,036 to the U.S. 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 DoJ 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,” it added.

Source: LIB