The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to more than four years in prison in the United States for his role in a multi-million dollar COVID-19 relief fraud.
Oloyede, 62, who holds dual United States and Nigerian citizenship and resides in Medina, Ohio, was on 26 August handed a 56-month prison term by U.S. District Judge Christopher A. Boyko.
According to a statement issued on Tuesday by the U.S. Attorney’s Office for the Northern District of Ohio, the monarch will also serve three years of supervised release following his imprisonment and must pay $4,408,543.38 in restitution.
In addition, Oloyede forfeited his Medina home on Foote Road, which had been purchased with proceeds of the scheme, along with $96,006.89 in fraud proceeds seized during the investigation.
Prosecutors said Oloyede orchestrated a conspiracy to exploit emergency loan programmes created for struggling businesses during the COVID-19 pandemic.
“From about April 2020 to February 2022, Oloyede and his co-conspirator, Edward Oluwasanmi, conspired to submit fraudulent applications for loans that were made available through the U.S. Small Business Association (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” the statement read.
In April this year, both men pleaded guilty to wire fraud and tax fraud charges linked to the scheme, which siphoned more than $4.2 million in federal stimulus funds.
The court heard that Oloyede, who also worked as a tax preparer, operated five businesses and one non-profit organisation, while Oluwasanmi owned three additional entities. Together, they used their companies to submit fraudulent loan applications, securing approximately $1.7 million for Oloyede’s entities and $1.2 million for Oluwasanmi’s.
Investigators revealed that Oloyede went further by submitting fraudulent Paycheck Protection Programme (PPP) and Economic Injury Disaster Loan (EIDL) applications in the names of some of his clients. In return, he collected kickbacks of between 15 and 20 per cent of the loans obtained, without declaring this income on his tax returns.
The funds, prosecutors said, were spent on personal luxuries, including land, a luxury vehicle, and the construction of a home. In total, Oloyede caused the SBA to approve 38 fraudulent applications worth $4,213,378.
His co-conspirator, Oluwasanmi, 62, of Willoughby, Ohio, was sentenced in July to 27 months in prison. He was also ordered to pay more than $1.2 million in restitution, forfeit a commercial property purchased with fraud proceeds, and surrender over $600,000 held in financial accounts.
The U.S. Attorney’s Office emphasised the significance of the convictions, noting that the case was investigated jointly by the Department of Transportation Office of the Inspector General, the FBI’s Cleveland Division, and IRS-Criminal Investigations as part of the Pandemic Response Accountability Committee Fraud Task Force.
“This case was prosecuted by Assistant United States Attorneys Edward D. Brydle and James L. Morford for the Northern District of Ohio,” the statement concluded.
