A Philadelphia man has been sentenced to more than six years in federal prison for his involvement in a conspiracy to commit COVID-19 relief fraud and international money laundering. Adepoju Babtunde Salako, 34, received a 78-month sentence after pleading guilty to wire fraud conspiracy and money laundering conspiracy. As part of the plea agreement, Salako also agreed to plead guilty to seven counts of wire fraud in the District of Alaska. He was ordered to pay $2,581,002.50 in restitution.
Court documents state that during most of 2021, Salako participated in schemes that stole over $5 million from the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and 30 state unemployment programs. The federal government created these programs to provide economic relief during the COVID-19 pandemic. In one scheme, Salako and others used stolen identities to obtain fraudulent PPP loans and unemployment benefits, as well as submit false applications for EIDL loans. Another scheme involved co-conspirators based mainly in Nigeria who used stolen identities and recruited romance scam victims to access government funds. Salako’s role was to receive money from these victims and agencies and launder the proceeds—primarily sending funds to China and Nigeria—for a fee of about 25 percent.
“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, 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 was conducted by 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.
People can report suspected COVID-19 related fraud by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submitting information online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Case Number: 25-cr-00162-CNS
