The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to more than four years in prison in the United States over his role in a multimillion-dollar COVID-19 relief fraud scheme.
Oloyede, 62, who holds dual Nigerian and American citizenship and resides in Medina, Ohio, was handed a 56-month jail term on August 26 by U.S. District Judge Christopher A. Boyko. He will also serve three years of supervised release and must repay $4.4 million in restitution, according to a statement by the U.S. Attorney’s Office for the Northern District of Ohio.
The monarch forfeited his Medina home, purchased with proceeds of the fraud, and nearly $100,000 seized by investigators.
Prosecutors said Oloyede led a conspiracy with his associate, Edward Oluwasanmi, to exploit emergency loan programmes created to assist struggling businesses during the pandemic.
Between April 2020 and February 2022, the duo submitted dozens of fraudulent applications for loans under the U.S. Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) scheme.
Investigations revealed that Oloyede, who also worked as a tax preparer, operated multiple businesses and a nonprofit, which he used to apply for bogus loans. He also submitted applications on behalf of his clients, taking 15–20% in kickbacks from the disbursed funds without declaring the income to U.S. tax authorities.
The court was told that Oloyede used the illicit funds to purchase land, build a home, and acquire a luxury vehicle, while the fraud ultimately led to the approval of 38 fake loan applications, totaling more than $4.2 million.
His co-conspirator, Oluwasanmi, 62, of Willoughby, Ohio, was sentenced in July to 27 months in prison and ordered to pay over $1.2 million in restitution, forfeit a commercial property, and surrender more than $600,000 from his accounts.
The case was jointly investigated by the FBI, IRS-Criminal Investigations, and the Department of Transportation Office of the Inspector General under the Pandemic Response Accountability Committee Fraud Task Force.
Assistant U.S. Attorneys Edward D. Brydle and James L. Morford prosecuted the case.
“This prosecution highlights our commitment to ensuring that those who exploit pandemic relief programs for personal gain are held accountable,” the U.S. Attorney’s Office said.
