Skip to main content

Newark Resident Charged in Scheme to Collect $4M in PPP Money, Other Goverment Programs


By: Richard L. Smith 

A Newark resident was arrested this morning for his involvement in a scheme that obtained more than $4 million in government funds, U.S. Attorney Philip R. Sellinger announced.

Real estate

Federal officials said Mr. Gbenga Akinbode, 33, of Newark, is scheduled to appear today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $300,000 bail.

According to documents filed in this case and statements made in court:

Akinbode opened a bank account in December 2020.

Within a year, approximately 120 debit cards were used to purchase about $500,000 in money orders that were deposited into the account.

The investigation revealed that the debit cards had been funded with $4 million in fraudulently obtained unemployment insurance benefits, Paycheck Protection Program loans and payments from the IRS.

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered by the victims of his offense, whichever is greatest.