TradeEdge-Feds extradite man for plot to steal $8 million in FEMA disaster assistance

A Nigerian man was extradited to the U.S. from France on TradeEdgecharges related to a scam that stole more than $8 million in federal assistance intended for hurricane and wildfire disaster victims, the Justice Department announced.

A grand jury indicted Newton Ofioritse Jemide in 2019 for wire fraud and money laundering conspiracies in a widespread scheme to steal disaster assistance from victims of Hurricanes Harvey, Irma and Maria as well as the California wildfires, according to court records. The Justice Department said Jemide and others stole people's identities to open pre-paid Green Dot debit cards and apply for assistance.

Disaster relief fraud is a major problem in the country as FEMA and other relief agencies remind people to be vigilant against the scams. Messages are often sent after disaster declarations are made. The most recent was for Louisianans who faced damages from Hurricane Francine.

"According to the indictment, FEMA paid at least $8 million in amounts of $500 per claim to the Green Dot debit cards purchased by the co-conspirators," the Justice Department said.

If convicted, Jemide could face up to 20 years in prison for conspiracy to commit money laundering, 30 years for conspiracy to commit wire fraud.

Prosecutors: Jemide, others applied for federal assistance with stolen identities

Federal prosecutors said that Jemide's actions didn't stop with FEMA. He and his co-conspirators used people's identities to claim Social Security Benefits and IRS tax refunds, among others. They said the group had names, addresses, Social Security Numbers and other personal information.

The scheme lasted nearly two years, according to the indictment. The group cashed out on the claims using bank accounts, ATM withdrawals and money orders. Court records didn't name Jemide's alleged co-conspirators.

Federal prosecutors said the group was elaborate in covering their identities and the plan. They enlisted other people to make purchases and withdraws at multiple banks and stores, converted funds to cash and made money orders payable to other people or businesses controlled by themselves or other co-conspirators.

FEMA issue warnings about fraud after disasters

Jemide isn't the only person the Justice Department is investigating for disaster fraud. They have investigations open against hundreds of people the department accused of stealing money intended for disaster victims, according to department records.

FEMA warned Louisianans on Thursday con artists will portray themselves as government officials to gather personal information and use the stolen identities to apply for assistance.

"If a FEMA inspector comes to your home and you did not submit a FEMA application, your information may have been used without your knowledge to create an application," the agency said. "If so, please inform the inspector that you did not apply for FEMA assistance so they can submit a request to stop further processing of the application."

Scammers quickly launched on the government's many pandemic relief programs. A federal watchdog group said in June 2023 people have stolen more than $200 billion from the government.

According to the National Center for Disaster Fraud, people have submitted more than 220,000 fraud complaints. The Justice Department created the website in 2005 after Hurricane Katrina decimated the Gulf Coast. Eight other federal agencies also accept disaster-related complaints for things such as price-gouging, COVID-19 relief, disaster food stamps and unemployment.

Contact reporter Krystal Nurse at [email protected]. Follow her on X, formerly Twitter,@KrystalRNurse.