The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to four years and eight months in prison by a United States court for his role in a multi-million-dollar COVID-19 relief fraud.
Oloyede, 62, who holds dual Nigerian and American citizenship and lives in Medina, Ohio, was convicted of conspiracy to commit wire fraud and tax fraud after exploiting emergency loan programmes created during the pandemic.
On Monday, August 26, U.S. District Judge Christopher A. Boyko sentenced him to 56 months imprisonment, three years of supervised release, restitution of $4.4 million, and forfeiture of his Medina residence and nearly $100,000 in illicit funds.
According to court documents, Oloyede and his partner, Edward Oluwasanmi, submitted dozens of fraudulent applications for loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). Investigators found that Oloyede used his businesses, nonprofit organisation, and even clients’ names to obtain funds illegally.
Prosecutors said the monarch collected kickbacks of up to 20% from loans he helped secure for clients and concealed the earnings from tax authorities. He later used the proceeds to acquire property, build a house, and purchase a luxury vehicle.
Between April 2020 and February 2022, the scheme generated more than $4.2 million in fraudulent payouts. Oloyede alone was linked to 38 bogus applications.
His accomplice, Oluwasanmi, was sentenced last month to 27 months in prison, restitution of over $1.2 million, and forfeiture of assets purchased with the fraudulent funds.
The U.S. Attorney’s Office for the Northern District of Ohio described the case as a significant blow against pandemic fraud, noting that it was investigated by the FBI, IRS-Criminal Investigations, and the Department of Transportation’s Office of Inspector General.
