The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to more than four years in prison in the United States after being found guilty of defrauding the U.S. government of over $4.4 million in COVID-19 relief funds.
Oloyede, 62, who holds dual Nigerian and United States citizenship and resides in Medina, Ohio, was on Monday, August 26, sentenced to 56 months in prison by U.S. District Judge Christopher Boyko.
A statement issued by the U.S. Attorney’s Office for the Northern District of Ohio, said the traditional ruler will also serve three years of supervised release after completing his jail term.
He was further ordered to pay $4,408,543.38 million in restitution to the U.S. government.
“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 said.
The U.S. Attorney’s Office said the Nigerian monarch led a conspiracy to exploit emergency loan programmes created to support struggling businesses during the COVID-19 pandemic.
“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 read.
Court documents show that Oloyede faced a 13-count fraud indictment in the U.S. District Court for the Northern District of Ohio.
He was arrested on May 4, 2024, following the issuance of a warrant.
The FBI accused him of orchestrating a fraudulent scheme through six companies he registered in Ohio.
These included Available Tax Services, Available Tutors, Available Financial, Available Transportation, JO&A, and other shell firms.
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Investigators revealed that Oloyede falsified tax records, wage statements, and other financial documents to secure loans.
The funds were then diverted for personal expenses, in violation of U.S. federal law.
The U.S. government had introduced financial relief measures such as the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) scheme in 2020 to cushion the economic impact of the pandemic. Businesses applying for these loans were required to present genuine financial records to demonstrate eligibility.
However, Oloyede and his co-conspirators submitted fraudulent applications.
FBI records show that in June 2020, Oloyede secured over $100,000 in loans for four of his companies.
On October 7, 2021, he received a $500,000 loan for JO&A, followed by another $500,000 loan two days later for Available Transportation.
The indictment also revealed that Oloyede assisted co-conspirators and other fraudulent borrowers by preparing false loan applications on their behalf, in exchange for a percentage of the disbursed funds.
“Oloyede assisted co-conspirators and confederate borrowers who submitted and caused to be submitted PPP and EIDL loan applications containing false information,” the court filing stated.
The conviction adds to a growing list of cases involving Nigerians convicted abroad for COVID-19 loan fraud, which has attracted global attention since 2020.
Beyond his prison sentence, supervised release, and restitution order, the monarch’s U.S. assets, including his Medina property, have been confiscated.
