Reports reveal that another $400k fraud case has been opened against the Nigerian Dubai-based Instagram Socialite, HushPuppi, who is currently jailed in the United States.
An agent with the Federal Bureau of Investigation (FBI) of the United States has alleged that the popular Nigerian Instagram celebrity, Ramon Olorunwa Abbas, popularly known as Hushpuppi has received new charges in the U.S.
According to the agent, U.S. prosecutors have submitted court documents showing that Hushpuppi committed another fraud and laundered over $400k while in prison.
Investors King gathered that the documents were presented before the United States District Court of California on Wednesday, 16th March, with evidence indicting HushPuppi of committing fraud and money laundering in a U.S federal correctional facility.
Hushpuppi was said to have committed these crimes while incarcerated as the reports suggest that he ‘participated’ in the purchase and laundering of an Economic Impact Payment debit card that was fraudulently obtained from stolen data of U.S citizens and residents. The documents also revealed that the hackers use data of U.S residents to file and obtain Economic Impact Payments debit cards and proceed to sell the cards in underground marketplaces to other cybercriminals.
Economic Impact Payments are monetary support offered by the US government to residents according to the CARES Act. And only eligible residents can receive one via debit cards.
The use of the internet is quite regulated in many U.S. correctional facilities and many inmates have access to the internet. However, between January 28 and March 4, 2022, some security authorities at the federal prison where Hushpuppi is incarcerated, revealed that he was using the internet more often than usual.
Taking note of his activities on the internet, the authorities revealed that the Instagram socialite was actively buying EIP debit cards from an underground cybercriminal marketplace called StimulusCard while being recorded. Hushpuppi was said to have bought a total of 58 EIP debit cards valued at $429,800 on the site and laundered the money through one AJ.
The Instagram socialite was arrested in June 2020 in connection to the cases involving fraudulent schemes which he had pleaded guilty to at the U.S. District Court of Central District of California.