Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun State, has been sentenced by a U.S. federal court to 56 months in prison for his role in a multimillion-dollar COVID-19 relief fraud.
Oba Oloyede, 62, who holds dual Nigerian and U.S. citizenship and resides in Medina, Ohio, received the sentence on Tuesday, August 26, by U.S. District Judge Christopher A. Boyko.
He was ordered to serve three years of supervised release after imprisonment and pay $4,408,543.38 in restitution. In addition, he forfeited his Medina home on Foote Road, which he had acquired with proceeds of the scheme, as well as $96,006.89 in fraud proceeds seized by investigators.
According to prosecutors, between April 2020 and February 2022, Oloyede and his associate, Edward Oluwasanmi, conspired to exploit emergency loan programmes provided by the Small Business Administration (SBA) under the CARES Act.
“From about April 2020 to February 2022, Oloyede and his co-conspirator, Edward Oluwasanmi, conspired to submit fraudulent applications for loans that were made available through the U.S. Small Business Association (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” prosecutors stated.
In April, the duo pleaded guilty to wire fraud and tax fraud charges. Investigators revealed that Oloyede, a tax preparer, operated five businesses and one nonprofit, while Oluwasanmi owned three business entities.
Using these entities, they submitted falsified applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
Investigators said Oloyede was responsible for 38 fraudulent applications, resulting in $4,213,378 in disbursed loans. He also filed false applications for clients, taking 15–20% kickbacks from their loans, which he failed to declare to the IRS.
“In total, Oloyede caused the SBA to approve 38 fraudulent applications, amounting to $4,213,378 in disbursed loans and advances,” Prosecutors said.
The funds were used to acquire land, build a home, and purchase a luxury vehicle.
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 purchased with fraud proceeds, and surrender more than $600,000 held in financial accounts.
The U.S. Attorney’s Office noted that the case was jointly investigated by the Department of Transportation Office of the Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations as part of the Pandemic Response Accountability Committee Fraud Task Force.
“This case was prosecuted by Assistant United States Attorneys Edward D. Brydle and James L. Morford for the Northern District of Ohio,” the statement added.
