A Nigerian man, Newton Ofioritse Jemide, has pleaded guilty in the United States to his involvement in a $6 million fraud scheme, placing him at risk of a 30-year prison sentence if convicted.
According to a statement released on Wednesday by the U.S. Department of Justice, the 47-year-old was extradited from France after being found complicit in a scheme that exploited federal grants meant for vulnerable U.S. citizens.
How the Fraud Was Executed
Between 2016 and 2017, Jemide and his associates stole the identities of U.S. citizens to set up Green Dot accounts and fraudulently apply for federal benefits intended for victims of natural disasters.
The DoJ statement detailed the operation, saying, “According to the guilty plea, in 2016 and 2017, Jemide and others from Nigeria directed co-conspirators living in the United States to purchase hundreds of Green Dot Debit Cards. Co-conspirators living in Nigeria then registered the cards with Green Dot using stolen personal information from identity theft victims around the United States.”
Following Hurricanes Harvey, Irma, Maria, and the California wildfires in 2017, the fraudsters used the stolen information to submit fraudulent claims to the Federal Emergency Management Agency and other relief agencies.
“FEMA dispersed $500 per claim on the Green Dot Debit Cards that co-conspirators purchased for a total of at least $8m,” the statement continued.
Additionally, the perpetrators used false identities to apply for social benefits, further expanding their fraudulent activities.
Money Laundering and Concealment
Once the fraudulent claims were processed, the funds were loaded onto the Green Dot Debit Cards, with the criminals taking elaborate steps to withdraw and launder the money.
“As a result of fraudulent submissions, FEMA and the other federal agencies deposited benefits onto the Green Dot Debit Cards. The funds were deposited on the debit cards using multiple stolen identities, including identities different from the identities used to register the cards.”
Jemide and his close associates coordinated with other conspirators, informing them when the funds became available and providing instructions on how to cash out while taking a cut of the proceeds.
“Jemide and select co-conspirators informed other co-conspirators when the fraudulent funds became available on the debit cards and gave them information to cash out the funds from the cards in exchange for a commission,” the statement stated.
To avoid detection, the fraudsters recruited others to conduct transactions on their behalf and used various financial institutions to withdraw and transfer funds.
“Additionally, the co-conspirators took steps to conceal their identities by enlisting others to make purchases and withdrawals; utilizing multiple store and bank locations and methods of withdrawal; and making money orders payable to other individuals and/or corporate entities,” it added
Sentencing and Possible Jail Term
Jemide is set to appear before U.S. District Court Judge Deborah K. Chasanow on July 1, 2025, at 9:30 AM, where he faces a maximum sentence of 30 years for conspiracy to commit wire fraud.
However, actual sentences for federal crimes are often less than the maximum penalty.
“Jemide faces a maximum sentence of 30 years in federal prison for conspiracy to commit wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties,” the statement noted.
His sentencing will be determined based on the U.S. Sentencing Guidelines and other statutory factors.
