A United States court has sentenced the Apetu of Ipetumodu in Osun State, Oba Joseph Olugbenga Oloyede, to 56 months in prison over a $4.2 million COVID-19 relief fund fraud.
Judge Christopher Boyko of the U.S. District Court, Northern District of Ohio, delivered the ruling on Tuesday. The monarch was also ordered to pay $4.4 million in restitution and forfeit assets linked to the scheme.
According to the U.S. Attorney’s Office, Oba Oloyede pleaded guilty to six counts, including conspiracy to commit wire fraud, money laundering, and filing false tax returns.
Fraudulent COVID-19 Loan Applications
Investigations revealed that between April 2020 and February 2022, Oba Oloyede and his associate, Edward Oluwasanmi (62), exploited U.S. federal relief programmes meant to cushion the economic impact of the pandemic.
Using multiple businesses and even the identities of unsuspecting tax clients, they filed dozens of fraudulent applications under the Paycheck Protection Programme (PPP) and the Economic Injury Disaster Loan (EIDL) scheme.
The court found that Oloyede personally benefited from $1.7 million, while Oluwasanmi secured $1.2 million. The monarch also took kickbacks of up to 20% from fraudulent loans obtained in the names of his tax clients.
Assets Seized
Prosecutors disclosed that Oloyede used the proceeds to buy land, build a house, and acquire a luxury car. Authorities have since seized his home in Medina, Ohio, and nearly $100,000 in fraud proceeds.
Oluwasanmi was earlier sentenced in July 2024 to 27 months in prison, fined $15,000, and ordered to repay over $1.2 million.
The scheme, tied to at least 38 fake loan applications, was uncovered through investigations by the FBI, IRS-Criminal Investigations, and the U.S. Department of Transportation Office of Inspector General, under the Pandemic Response Accountability Committee Fraud Task Force.
