US COURT JAILS OSUN MONARCH, OBA JOSEPH OLOYEDE OVER $4.2M COVID-19 FRAUD
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By: Sefiu Ajape
The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to over four years in prison in the United States.
Oloyede, 62, who holds both U.S. and Nigerian citizenship and resides in Medina, Ohio, was on August 26 given 56 months in prison by U.S. District Judge Christopher A. Boyko.
A statement issued on Tuesday by the U.S. Attorney’s Office for the Northern District of Ohio said the monarch was also directed to “serve three years of supervised release after imprisonment and pay $4,408,543.38 in restitution.
“He also forfeited his Medina home on Foote Road, which he had acquired with proceeds of the scheme, and an additional $96,006.89 in fraud proceeds investigators had seized,” the statement added.
The U.S. Attorney’s Office revealed that Oloyede spearheaded a conspiracy to take advantage of COVID-19 emergency loan programs designed to support struggling businesses.
“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,” the statement said.
In April, both men admitted guilt to wire fraud and tax fraud charges tied to a pandemic relief scheme that siphoned more than $4.2 million in federal stimulus funds.
According to the court, Oloyede, who also worked as a tax preparer, “operated five businesses and one nonprofit, while Oluwasanmi owned an additional three business entities.
“Both defendants used their businesses to submit loan applications using false information.
“They obtained approximately $1.2 million in SBA funds for Oluwasanmi’s entities and $1.7 million for Oloyede’s entities,” the statement noted.
Investigators explained that the fraud was extensive.
“Oloyede submitted fraudulent PPP and EIDL applications in the names of some of his clients and their businesses.
“In exchange, Oloyede would receive 15-20% of their loans as the fee, or kickback, for obtaining the loans for them, without reporting this income to the IRS on his own tax returns.”
Prosecutors said the stolen funds were diverted for personal benefit.
“Investigators learned that the defendant used funds obtained from these loans to acquire land and build a home and purchase a luxury vehicle,” the U.S. Attorney’s Office disclosed.
Overall, Oloyede “caused the SBA to approve 38 fraudulent applications, amounting to $4,213,378 in disbursed loans and advances.”
His partner, Oluwasanmi, 62, from Willoughby, had earlier in July received a 27-month prison sentence.
He was also ordered to pay more than $1.2 million in restitution, give up a commercial property acquired with fraud proceeds, and surrender over $600,000 from his financial accounts.
The U.S. Attorney’s Office underscored the importance of the conviction, pointing out that the investigation was conducted jointly 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.
“This case was prosecuted by Assistant United States Attorneys Edward D. Brydle and James L. Morford for the Northern District of Ohio,” the release stated.
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