US Court jails Osun monarch over $4.2m COVID-19 loan fraud
By Jeffrey Agbo
A United States federal court has sentenced the Apetu of Ipetumodu, Osun State, Oba Joseph Oloyede, to 56 months in prison for participating in a multimillion-dollar COVID-19 relief fraud scheme.
Oloyede, 62, who holds dual Nigerian and US citizenship and resides in Medina, Ohio, was sentenced on August 26 by US District Judge Christopher A. Boyko, according to a statement released Tuesday by the US Attorney’s Office for the Northern District of Ohio.
The Osun monarch was also ordered to serve three years of supervised release, repay $4,408,543.38 in restitution, and forfeit his Medina residence purchased with fraud proceeds alongside $96,006.89 recovered during investigations.
Prosecutors said Oloyede conspired with Edward Oluwasanmi to exploit emergency loan programs designed to help businesses impacted by the pandemic.
“From about April 2020 to February 2022, Oloyede and his co-conspirator, Edward Oluwasanmi, conspired to submit fraudulent applications for loans made available through the U.S. Small Business Association (SBA) under the CARES Act,” the U.S. Attorney’s Office said.
Both men pleaded guilty in April to wire fraud and tax fraud. Investigators disclosed that Oloyede, a tax preparer, operated five businesses and a nonprofit, while Oluwasanmi ran three entities, all used to file falsified applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
“Oloyede caused the SBA to approve 38 fraudulent applications, amounting to $4,213,378 in disbursed loans and advances,” prosecutors said.
They further revealed that Oloyede submitted applications on behalf of some clients, collecting 15–20% of their loans as kickbacks and failing to report the income to the IRS. The fraud proceeds were spent on land acquisition, home construction, and the purchase of a luxury vehicle.
Oluwasanmi, 62, of Willoughby, Ohio, had earlier been sentenced in July to 27 months in prison and ordered to repay more than $1.2 million.
The case was investigated by the Department of Transportation Office of Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations, and prosecuted by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.
