A court in the United States has sentenced the Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, to 56 months in prison for his involvement in a multi-million-dollar COVID-19 relief fraud scheme.
Oloyede, aged 62, who possesses dual U.S. and Nigerian citizenship and lives in Medina, Ohio, received his sentence on August 26 from U.S. District Judge Christopher A. Boyko, as per a statement released on Tuesday by the U.S. Attorney’s Office for the Northern District of Ohio.
The monarch was also ordered to undergo three years of supervised release following his custodial sentence and to pay $5,500,000 in restitution. Furthermore, he forfeited his Medina home, which was bought with the proceeds of the fraud, along with an additional $120,000 that investigators had seized.
Prosecutors stated that Oloyede spearheaded a conspiracy to exploit emergency loan programmes that were established to aid businesses affected by 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 made available through the U.S. Small Business Association (SBA) under the CARES Act,” the U.S. Attorney’s Office said.
In April, Oloyede and Oluwasanmi entered guilty pleas to charges of wire fraud and tax fraud.
Investigators disclosed that Oloyede, who worked as a tax preparer, managed five commercial enterprises and a single non-profit organisation. Concurrently, Oluwasanmi was the proprietor of three business entities.
By means of these organisations, they lodged fraudulent applications for both the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
“Oloyede caused the SBA to approve 38 fraudulent applications, amounting to $4,213,378 in disbursed loans and advances,” prosecutors said.
Furthermore, it was stated that Oloyede also submitted fraudulent applications on behalf of certain clients, securing kickbacks amounting to 15–20% of their loans without declaring this income to HM Revenue and Customs (HMRC).
The misappropriated funds were subsequently utilised for personal enrichment, encompassing the acquisition of land, the construction of a residence, and the procurement of a high-end automobile.
Oluwasanmi, aged 62 and residing in Willoughby, Ohio, received a custodial sentence of 27 months in July and was mandated to provide over $1.2 million in restitution.
This investigation was conducted collaboratively by the Department of Transportation Office of Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations. The prosecution was handled by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.