Adepoju Babatunde Salako, a 33-year-old resident of Elkins Park (Cheltenham Township), was recently indicted on a dozen federal charges related to using more than 1,000 stolen or fake identities to file for unemployment benefits and COVID-19 relief funds in more than 30 states.
According to the U.S. Attorney’s Office, he led an effort that brought in $5.6 million and faces six counts of wire fraud, one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and four counts of aggravated identity theft.
He was indicted by a federal grand jury in Denver in May.
From the Attorney’s Office statement:
According to the indictment, between July 2020 and July 2021, Salako allegedly participated in a money laundering conspiracy involving fraudulent applications for COVID-19 Economic Injury Disaster Loans to the Small Business Administration (SBA) and for unemployment insurance benefits to more than 30 states that obtained more than $5.6 million in government benefits using over 1,000 stolen or fake identities. Salako and his co-conspirators allegedly moved fraud proceeds through several intermediate accounts using various methods, eventually spending the money or transferring it overseas as currency or in the form of goods such as cars or solar panels.
The indictment further alleges that between January 4, 2021, and March 20, 2021, Salako submitted approximately 15 fraudulent applications for unemployment insurance benefits to the Colorado Department of Labor and Employment (CDLE), using stolen or false identities. Salako allegedly used names and addresses of residents of Colorado, which he looked up on personal information search websites such as TruthFinder, to submit applications using the Colorado residents’ actual identifiers. The CDLE paid one unemployment insurance claim submitted by Salako, in the amount of $649, and paid an additional $15,431 to bank accounts controlled by Salako based on claims submitted by a co-conspirator.
The indictment further alleges that in addition to submitting fraudulent unemployment insurance claims to Colorado, Salako submitted and aided and abetted in the submission of fraudulent claims in other states using stolen or false identities, including Maryland, Minnesota, New Hampshire, and New York, at least 10 fraudulent applications for COVID-19 Economic Injury Disaster Loans to the SBA, using stolen or false identities, and a fraudulent Paycheck Protection Program loan application in the name of Turn-Turn-Turn Woodturning, using the stolen identity of a Nevada resident.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act created the PPP, a program administered by the Small Business Administration (SBA) that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules. Additionally, in response to the COVID-19 pandemic, several federal programs expanded eligibility for unemployment benefits.
The case is being investigated by the United States Postal Service Office of Inspector General, Internal Revenue Service Criminal Investigation, and Colorado Department of Labor and Employment. The Economic Crime Section of the United States Attorney’s Office is prosecuting it.
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Photo: Greene County (Missouri) Sheriff’s Office