DENVER, Colo. — A 34-year-old Philadelphia man was sentenced to 78 months in federal prison Tuesday after pleading guilty to leading a massive conspiracy that defrauded U.S. pandemic relief programs of more than $5 million.

The big picture: Adepoju Babatunde Salako participated in a sophisticated international network throughout 2021 that exploited the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and dozens of state unemployment systems. The scheme utilized stolen identities and romance scam victims to siphon taxpayer funds intended for economic relief during the COVID-19 pandemic.

• The charges: Salako pleaded guilty to one count of wire fraud conspiracy and one count of money laundering conspiracy in Colorado, along with seven counts of wire fraud in the District of Alaska.
• Financial impact: The court ordered Salako to pay $2,581,002.50 in restitution to victims following a conspiracy that successfully stole over $5 million from government programs.
• The mechanism: One arm of the operation used identity theft to submit fraudulent loan applications, while another branch in Nigeria manipulated romance scam victims into receiving and transferring government funds.
• Laundering role: Salako served as a domestic “point man,” collecting a 25% fee for laundering the fraud proceeds to associates located primarily in China and Nigeria.

The details: Federal authorities emphasized that the prosecution was a collaborative effort between the IRS, the U.S. Postal Service, and state labor departments to protect the integrity of the national economy. Officials noted that the complexity of the international laundering aspect of the case posed a significant threat to financial security.

• Prosecutorial stance: “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.”
• Investigative impact: “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.
• Systemic integrity: “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.

What’s next: Following his 78-month prison term, Salako will be required to begin payments toward the $2.5 million restitution as part of the judgment rendered by United States District Judge Charlotte N. Sweeney.