U.S. court hs jails Osun Monarch, Oba Joseph Oloyede for $4.2m COVID-19 Relief Fraud.
NewsOnline Nigeria reports that a United States federal court has sentenced the Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede to 56 months in prison for his role in a multimillion-dollar COVID-19 relief fraud scheme.
Oloyede, 62, who holds dual citizenship of Nigeria and the U.S. and resides in Medina, Ohio, was sentenced on August 26 by U.S. District Judge Christopher A. Boyko. The sentencing was disclosed in a statement on Tuesday by the U.S. Attorney’s Office for the Northern District of Ohio.
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In addition to his prison term, the traditional ruler will serve three years of supervised release, repay $4,408,543.38 in restitution, and forfeit his Medina residence acquired with illicit proceeds, along with $96,006.89 seized during the investigation.
According to prosecutors, Oloyede masterminded a conspiracy to exploit federal loan programmes designed to support businesses affected by the COVID-19 pandemic.
Between April 2020 and February 2022, Oloyede and his associate, Edward Oluwasanmi, submitted numerous fraudulent applications to the U.S. Small Business Administration (SBA) under the CARES Act’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
Investigators revealed that Oloyede, who operated five businesses and a nonprofit organisation, used these entities to file 38 falsified applications, resulting in over $4.2 million in disbursed loans and advances. He also prepared fraudulent applications for clients, taking 15 to 20 percent kickbacks without reporting the income to the Internal Revenue Service (IRS).
The funds were diverted for personal use, including land purchases, home construction, and the acquisition of a luxury vehicle.
Oluwasanmi, 62, from Willoughby, Ohio, was sentenced in July to 27 months in prison and ordered to pay more than $1.2 million in restitution.
The investigation was carried out by the Department of Transportation Office of Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations. The case was prosecuted by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.
