The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to 56 months in prison in the United States for his role in a multimillion-dollar COVID-19 loan fraud scheme.
Oloyede, 62, who holds dual U.S. and Nigerian citizenship and resides in Medina, Ohio, was handed the sentence on Monday, August 26, by U.S. District Judge Christopher A. Boyko. He was also ordered to serve three years of supervised release, pay $4,408,543.38 in restitution, and forfeit his Medina home and an additional $96,006.89 traced to fraud proceeds.
According to the U.S. Attorney’s Office for the Northern District of Ohio, Oloyede and his co-conspirator, Edward Oluwasanmi, exploited federal emergency loan programmes created during the COVID-19 pandemic to assist struggling businesses.
From April 2020 to February 2022, the duo conspired to submit fraudulent loan applications under the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, both managed by the U.S. Small Business Administration.
Prosecutors told the court that Oloyede, who also worked as a tax preparer, operated five businesses and one nonprofit, while Oluwasanmi owned three businesses. Together, they obtained about $1.2 million in SBA funds for Oluwasanmi’s entities and $1.7 million for Oloyede’s entities.
The investigation further revealed that Oloyede submitted fraudulent loan applications on behalf of some clients, demanding 15–20% of the loan amounts as kickbacks, which he failed to report to the IRS. The proceeds were used to acquire land, build a home, and purchase a luxury vehicle.
In total, Oloyede caused the SBA to approve 38 fraudulent applications worth over $4.2 million.
His co-conspirator, Oluwasanmi, 62, of Willoughby, Ohio, was sentenced in July to 27 months in prison. He was also ordered to pay more than $1.2 million in restitution, forfeit a commercial property, and surrender more than $600,000 from financial accounts.
The U.S. Attorney’s Office said the conviction followed investigations 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 9am News report confirms that the case was prosecuted by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford for the Northern District of Ohio.
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