THE Apetu of Ipetumodu, Oba Joseph Olugbenga Oloyede, has been sentenced to over four years in prison in the United States for his role in a multi-million-dollar COVID-19 relief fraud scheme.
Oloyede, 62, who holds dual citizenship in Nigeria and the U.S. and resides in Medina, Ohio, was handed a 56-month jail term on August 26 by U.S. District Judge Christopher A. Boyko.
According to a statement from the U.S. Attorney’s Office for the Northern District of Ohio, the monarch will also serve three years of supervised release and pay $4.4 million in restitution.
He forfeited his Medina residence and nearly $100,000 in seized fraud proceeds.
Prosecutors said Oloyede led a conspiracy with his associate, Edward Oluwasanmi, to exploit emergency loan programmes under the Coronavirus Aid, Relief, and Economic Security (CARES) Act between April 2020 and February 2022.
The duo submitted dozens of fraudulent applications to the U.S. Small Business Administration (SBA), siphoning more than $4.2 million.
Court documents revealed that Oloyede, who also worked as a tax preparer, used five businesses and one nonprofit organisation to secure fake loans, while Oluwasanmi operated three entities.
The SBA disbursed $1.7 million to Oloyede’s operations and $1.2 million to Oluwasanmi’s.
Investigators further disclosed that Oloyede filed fraudulent applications on behalf of some clients in exchange for 15–20 per cent kickbacks, which he failed to declare as income.
The illicit funds were used to buy land, build a house, and purchase a luxury vehicle.
In all, Oloyede was linked to 38 fraudulent applications, with loans totalling over $4.2 million.
His co-conspirator, Oluwasanmi, was sentenced in July to 27 months in prison and ordered to repay $1.2 million, forfeit property, and surrender over $600,000.
The case was jointly investigated by the FBI, IRS Criminal Investigations, and the Department of Transportation’s Office of Inspector General under the Pandemic Response Accountability Committee Fraud Task Force.
It was prosecuted by U.S. Attorneys Edward D. Brydle and James L. Morford.