Metro-Atlanta Man Charged with Fraud and Money Laundering of COVID-19 Unemployment Funds and IRS Tax Refunds

Metro-Atlanta Man Charged with Fraud and Money Laundering of COVID-19 Unemployment Funds and IRS Tax Refunds

Nnamdi Iheanacho Indicted on Multiple Federal Charges

The United States Attorney’s Office in the Northern District of Georgia announced on Friday, February 16, 2024, that a metro-Atlanta man was indicted on federal charges of wire fraud, aggravated identity theft, money laundering conspiracy, and concealment money laundering. The subject, Nnamdi Iheanacho, is accused of stealing COVID-19 relief funds and federal tax refunds using means of fraud and identity theft.

The Alleged Acts

According to U.S. Attorney Ryan K. Buchanan, “Iheanacho allegedly defrauded government funds during the COVID-19 pandemic that were meant for state unemployment insurance funds and tax refunds from the Internal Revenue Service (IRS). The indictment alleges that Iheanacho compounded his fraudulent conduct by stealing the identities of others to perpetrate his schemes, including filing fraudulent tax returns with the IRS.”

Special Agent in Charge, Mathew Broadhurst of the U.S. Department of Labor, Office of Inspector General, Southeast Region, reinforced the commitment of his department to investigate such allegations vigorously alongside their law enforcement partners. He stressed that actions such as Iheanacho’s potentially cause financial instability for their victims while also greatly violating their privacy rights.

Details of The Scheme

Court documents reveal that the alleged convict exploited the temporary federal program initiated in response to the COVID-19 pandemic known as the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The Act granted up to 39 weeks of unemployment benefits, including a $600 weekly benefit for those crossing the eligibility threshold. Iheanacho, 38, from Dacula, Georgia, is said to have used stolen personal identifying information to apply online for these benefits for multiple individuals. Simultaneously, he was involved in filing federal income tax returns using the same stolen information and laundered the proceeds from these fraudulent schemes.

Continued Investigation

Iheanacho is presumed innocent until proven guilty as his indictment only contains charges. The case is currently being investigated by the Department of Labor, Office of Inspector General, the IRS Criminal Investigation division, and the Federal Bureau of Investigation. The burden lies on the government to prove Iheanacho’s guilt beyond a reasonable doubt at trial.

In response to such fraudulent attempts concerning COVID-19 relief programs, the Attorney General established the COVID-19 Fraud Enforcement Task Force on May 17, 2021. The task force aims to combat and prevent pandemic-related fraud by identifying resources and techniques to uncover fraudulent actors and their schemes, sharing information and insights gained from previous enforcement efforts, and assisting agencies administering relief programs to prevent fraud.

Encouraging Public Participation

Members of the public who have information regarding potential fraud involving COVID-19 relief funds are encouraged to report their concerns. They can do so by contacting the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form. For more information, please visit the Department of Justice’s official site.