Adepoju Babatunde Salako, a 32-year-old resident of Pennsylvania, faces multiple charges including wire fraud, money laundering, and identity theft. The United States Attorney’s Office for the District of Colorado announced these charges which include 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.
The indictment claims that from July 2020 to July 2021, Salako was involved in a scheme that defrauded government programs by submitting false applications for COVID-19 Economic Injury Disaster Loans and unemployment insurance benefits across more than 30 states. This scheme allegedly obtained over $5.6 million using more than 1,000 stolen or fake identities. The proceeds were reportedly laundered through various accounts before being spent or transferred overseas as currency or goods like cars and solar panels.
Further allegations state that between January 4 and March 20, 2021, Salako submitted around 15 fraudulent unemployment benefit applications to the Colorado Department of Labor and Employment (CDLE) using stolen identities from Colorado residents. He allegedly used personal information search websites such as TruthFinder to obtain this data. The CDLE reportedly paid $649 on one claim directly linked to Salako and an additional $15,431 based on claims from a co-conspirator.
Salako is also accused of filing fraudulent unemployment claims in other states including Maryland, Minnesota, New Hampshire, and New York. Additionally, he allegedly submitted at least ten fraudulent COVID-19 Economic Injury Disaster Loan applications to the SBA and a Paycheck Protection Program loan application under the name Turn-Turn-Turn Woodturning using a stolen Nevada resident’s identity.
The CARES Act was enacted in March 2020 to provide financial relief during the COVID-19 pandemic. It included provisions for PPP loans administered by the Small Business Administration aimed at helping small businesses retain employees and cover essential expenses.
Salako made his initial court appearance in Colorado on June 13 before Magistrate Judge Scott T. Varholak. All charges are currently allegations; Salako is presumed innocent until proven guilty.
The investigation involves the United States Postal Service Office of Inspector General, Internal Revenue Service Criminal Investigation, and CDLE. The case is being prosecuted by the Economic Crime Section of the United States Attorney’s Office.
For those with information about attempted COVID-19-related frauds can report it via the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through their online complaint form.
