The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to over four years in prison in the United States for his role in a multimillion-dollar COVID-19 relief fraud scheme.
Oloyede, 62, who holds dual U.S. and Nigerian citizenship and lives in Medina, Ohio, was sentenced on August 26 to 56 months imprisonment by U.S. District Judge Christopher A. Boyko. He will also serve three years of supervised release and must pay $4,408,543.38 in restitution. In addition, he forfeited his Medina home and $96,006.89 in fraud proceeds seized by investigators.
According to the U.S. Attorney’s Office for the Northern District of Ohio, Oloyede led a conspiracy exploiting emergency loan programs created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. From April 2020 to February 2022, he and his co-conspirator, Edward Oluwasanmi, submitted dozens of fraudulent loan applications through the U.S. Small Business Administration (SBA), siphoning more than $4.2 million in federal funds.
Prosecutors said Oloyede, who worked as a tax preparer, used five businesses and one nonprofit to secure $1.7 million in loans, while Oluwasanmi obtained $1.2 million for his entities. Oloyede also submitted fraudulent applications on behalf of clients, taking 15–20% kickbacks from their loan proceeds and failing to report this income to the IRS.
Investigators revealed that Oloyede used the illicit funds to purchase land, build a home, and acquire a luxury vehicle. In total, he was linked to 38 fraudulent applications approved by the SBA, amounting to $4,213,378.
Oluwasanmi, also 62, of Willoughby, Ohio, was sentenced in July to 27 months in prison, ordered to pay over $1.2 million in restitution, forfeit a commercial property bought with fraud proceeds, and surrender more than $600,000 from his accounts.
The case was investigated by the Department of Transportation Office of the Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations under the Pandemic Response Accountability Committee Fraud Task Force. It was prosecuted by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.
