The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to 56 months in prison in the United States for his role in a $4.2 million COVID-19 relief fraud scheme. The 62-year-old traditional ruler, who holds both Nigerian and U.S. citizenship and resides in Medina, Ohio, was handed the sentence on August 26 by U.S. District Judge Christopher A. Boyko.....KINDLY READ THE FULL STORY HERE▶

The U.S. Attorney’s Office for the Northern District of Ohio stated that Oloyede is also required to serve three years of supervised release after his prison term and pay $4,408,543.38 in restitution. Additionally, he forfeited his Medina residence on Foote Road, which had been purchased with proceeds from the fraudulent scheme, as well as $96,006.89 in other fraud-related assets seized by investigators.

Authorities said Oloyede orchestrated a conspiracy to exploit COVID-19 emergency loan programs intended to support struggling businesses. Between April 2020 and February 2022, he and his co-conspirator, Edward Oluwasanmi, submitted fraudulent applications for loans under the U.S. Small Business Administration’s (SBA) programs established by the CARES Act. In April, both men pleaded guilty to wire fraud and tax fraud charges connected to the scheme.

Court documents revealed that Oloyede, who also worked as a tax preparer, operated five businesses and a nonprofit organization, while Oluwasanmi controlled three additional business entities. The two defendants used these entities to submit fraudulent loan applications, securing approximately $1.7 million in SBA funds for Oloyede’s companies and $1.2 million for Oluwasanmi’s.

Investigators indicated that Oloyede also submitted fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications in the names of some of his clients, receiving 15–20% of the loan amounts as kickbacks, which he did not report on his tax returns. The misappropriated funds were used for personal expenditures, including the purchase of land, construction of a home, and acquisition of a luxury vehicle.

In total, Oloyede was responsible for 38 fraudulent SBA loan applications, resulting in $4,213,378 in disbursed funds. Oluwasanmi, 62, of Willoughby, had previously been sentenced in July to 27 months in prison and was ordered to pay over $1.2 million in restitution, forfeit a commercial property purchased with fraud proceeds, and surrender more than $600,000 held in financial accounts.

The U.S. Attorney’s Office highlighted that the case was jointly investigated by the Department of Transportation Office of Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations, under the Pandemic Response Accountability Committee Fraud Task Force. Prosecution was led by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.