The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to more than four years in prison in the United States over a multi-million-dollar COVID-19 loan fraud.
Oloyede, 62, who holds dual Nigerian and U.S. citizenship and resides in Medina, Ohio, was on Monday, August 26, handed a 56-month prison term by U.S. District Judge Christopher A. Boyko.
According to a statement by the U.S. Attorney’s Office for the Northern District of Ohio, the traditional ruler was also ordered to serve three years of supervised release after completing his jail term and to pay $4,408,543.38 in restitution.
In addition, he forfeited his Medina home on Foote Road, which investigators said was acquired with fraud proceeds, as well as an extra $96,006.89 recovered from the scheme.
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Prosecutors said Oloyede led a conspiracy to exploit COVID-19 emergency loan programmes set up by the U.S. government to support struggling businesses during the pandemic.
Between April 2020 and February 2022, Oloyede and his accomplice, Edward Oluwasanmi, submitted fraudulent applications for loans under the Small Business Administration (SBA) scheme funded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
In April, both men pleaded guilty to wire fraud and tax fraud in connection with the pandemic relief scam, which siphoned more than $4.2 million in federal stimulus funds.
Court records showed that Oloyede, who also worked as a tax preparer, operated five businesses and one nonprofit, while Oluwasanmi ran three entities. Together, they filed loan applications using falsified information and secured about $1.2 million for Oluwasanmi’s companies and $1.7 million for Oloyede’s businesses.
