A Philadelphia man, Adepoju Babtunde Salako, 34, has been sentenced to 78 months in federal prison for his role in a conspiracy involving COVID-19 relief fraud and international money laundering. Salako pleaded guilty to one count of wire fraud conspiracy and one count of money laundering conspiracy in Colorado. He also agreed to plead guilty to seven counts of wire fraud in the District of Alaska. In addition to his prison sentence, he was ordered to pay $2,581,002.50 in restitution.
According to court documents, Salako participated in schemes throughout most of 2021 that defrauded more than $5 million from the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and 30 state unemployment programs. The federal government had created these programs as economic relief measures during the COVID-19 pandemic.
Salako and his co-conspirators used stolen identities to obtain PPP loans and unemployment benefits fraudulently. They also submitted false applications for EIDL loans. In another scheme described by prosecutors, co-conspirators based mainly in Nigeria used stolen identities and recruited victims of romance scams to help acquire government funds. Salako received the illicit proceeds from these activities and laundered them primarily to China and Nigeria, taking about 25 percent as a fee.
“Mr. Salako and his criminal associates exploited innocent people and stole millions of dollars from American taxpayers,” said United States Attorney for the District of Colorado Peter McNeilly. “We are committed to finding and prosecuting fraudsters and, as this sentence demonstrates, these criminals will pay a serious price for their actions.”
“Salako was the point man in the U.S. for an international criminal organization that preyed on honest business owners and taxpayers, while also jeopardizing our national security,” said Amanda Prestegard, Special Agent in Charge at IRS-CI Denver Field Office. “Our special agents are experts at uncovering complex financial crimes and today’s sentence is an example of their great work, our relationships with the U.S. Attorney’s Office and our federal and state law enforcement partners.”
“The U.S. Postal Service Office of the Inspector General is committed to upholding the integrity of the Postal Service and its workforce. Our office will continue to investigate those who choose to breach the public’s trust and engage in fraudulent activity. The sentence imposed on the defendant stands as a clear warning that serious consequences await anyone who exploits government resources to commit criminal acts,” said Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Field Office. “USPS OIG is thankful for the great longstanding relationships we have developed with our law enforcement partners and the U.S. Attorney’s Office to combat fraud.”
United States District Judge Charlotte N. Sweeney presided over sentencing.
The investigation involved IRS Criminal Investigation, the Postal Service Office of Inspector General, and the Colorado Department of Labor and Employment.
Assistant United States Attorney Craig Fansler prosecuted the case.
Anyone with information about attempted COVID-19 related fraud can report it through the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Case Number: 25-cr-00162-CNS
