Former USAID Official Pleads Guilty to $176,000 COVID-19 Relief Fraud

A former employee of the United States Agency for International Development (USAID) has pleaded guilty to fraud charges after admitting his role in a scheme that illegally secured more than $176,000 in COVID-19 relief funds during the height of the pandemic.

The U.S. Department of Justice announced that 55-year-old Simeon Bakare of Waldorf, Maryland, entered a guilty plea to wire fraud charges in a federal court on Wednesday.

Bakare, who previously worked in information technology for USAID, admitted to submitting multiple fraudulent applications under emergency financial assistance programmes established during the COVID-19 crisis.

The case forms part of broader efforts by U.S. authorities to recover funds lost to pandemic-related fraud schemes and hold perpetrators accountable.

According to prosecutors, Bakare exploited relief programmes created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was enacted in March 2020 to support businesses and individuals affected by the economic fallout of the pandemic.

Among the programmes targeted were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) scheme, both administered through the U.S. Small Business Administration.

Court documents revealed that between April 2020 and November 2021, Bakare knowingly submitted multiple false applications seeking loans and loan forgiveness under the federal programmes.

Investigators said he used fabricated documents, including falsified tax records and fraudulent business information, to support applications linked to businesses that either did not exist or had little to no legitimate operations.

Prosecutors further alleged that the businesses listed in the applications had no significant employees, revenue streams, office locations or genuine commercial activities.

The funds obtained through the scheme were subsequently deposited into accounts controlled by Bakare.

Rather than using the money for business-related purposes as required by law, he admitted spending substantial portions on personal expenses, including housing payments, vehicle costs and groceries.

U.S. Attorney Kelly O. Hayes described the case as another example of the government’s determination to protect taxpayer funds and prosecute individuals who abused emergency relief programmes established during a national crisis.

The investigation was conducted by the USAID Office of Inspector General, which retains authority to investigate criminal activities affecting U.S. foreign assistance programmes and federal funds.

Bakare now faces a maximum sentence of 20 years in federal prison for wire fraud.

His sentencing has been scheduled for September 3.

The conviction adds to a growing list of prosecutions linked to the misuse of pandemic relief funds, a problem that U.S. authorities estimate has cost taxpayers billions of dollars since the outbreak of COVID-19.