Pennsylvania man faces dozens of charges in massive relief fund fraud
A Pennsylvania man is facing federal indictment after allegedly defrauding the government of $5.6 million through a sophisticated scheme involving over 1,000 stolen identities. Adepoju Babatunde Salako, 33, is accused of exploiting COVID-19 relief programs, including unemployment benefits and SBA loans, across 30 states.
Scheme exploited pandemic relief programs
The indictment, returned by a Denver federal grand jury in May, details how Salako collaborated with a Nigerian national to file fraudulent applications for funds like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) enacted under the CARES Act. The pair allegedly funnelled money to Salako’s personal accounts and overseas.
Salako reportedly submitted 15 fraudulent unemployment insurance applications in just two and a half months, using identities of residents from Colorado, Maryland, Minnesota, New Hampshire, and New York. His Nigerian co-conspirator submitted 54 applications in five months. They collectively sought over $700,000, securing just over $73,500.
However, the scheme escalated with EIDL and PPP loans. The indictment states the pair obtained $4.7 million in EIDL funding alone, with all payments originating from a Denver SBA finance center and flowing through Colorado bank accounts. The duo further laundered funds through romance scams, using fake online profiles to trick victims into sending money via cashier's checks and money orders to Salako’s personal cell phone.
The FBI, IRS Criminal Investigation, and the Colorado Department of Labor and Employment are investigating the case, alongside the United States Postal Service Office of Inspector General. The U.S. Attorney's Office is prosecuting the case.
The scale of the alleged fraud highlights the vulnerabilities exposed during the pandemic and the lengths some individuals will go to exploit crises. The money trail ultimately led to accounts in China, Nigeria, and the United Arab Emirates.
The indictment reveals a calculated operation, a digital labyrinth built on stolen identities and deception. The victims, unknowingly lured by false promises of connection, became unwitting accomplices in a massive financial theft.
The sheer volume of applications and the geographic scope of the fraud underscore a disturbing trend in pandemic-era crime. The investigation serves as a stark reminder that financial exploitation can thrive even during times of national crisis.
This case isn’t just about money; it’s about the erosion of trust in systems designed to protect those in need. And the real cost? Beyond the $5.6 million lost, it's the damage inflicted on the very fabric of community support.
The swift action by investigators signals a clear message: those who attempt to profit from national emergencies will be held accountable.