U.S. Court Jails Osun Monarch Four Years Over $4.2m COVID-19 Fraud

The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to 56 months in prison in the United States for his role in a multi-million-dollar COVID-19 relief fund fraud.

Oloyede, 62, who holds both Nigerian and U.S. citizenship and resides in Medina, Ohio, was convicted on August 26 by U.S. District Judge Christopher A. Boyko. Alongside the jail term, he was ordered to serve three years of supervised release, pay restitution of $4,408,543.38, and forfeit assets, including his Medina home and nearly $100,000 seized during the investigation.

According to the U.S. Attorney’s Office for the Northern District of Ohio, Oloyede spearheaded a conspiracy with Edward Oluwasanmi to exploit federal loan programmes designed to support struggling businesses during the pandemic.

Between April 2020 and February 2022, the duo submitted numerous fraudulent applications under the Coronavirus Aid, Relief, and Economic Security (CARES) Act through the U.S. Small Business Association (SBA). In April this year, both men pleaded guilty to wire fraud and tax fraud.

Court filings revealed that Oloyede, who also worked as a tax preparer, used multiple business entities—including five companies and a nonprofit—to secure fraudulent loans worth about $1.7 million. His partner, Oluwasanmi, used three business entities to obtain approximately $1.2 million.

The fraud extended beyond their own companies. Prosecutors said Oloyede also submitted fake applications on behalf of some of his tax clients, collecting between 15 and 20 percent of the loans as kickbacks, which he failed to report to the Internal Revenue Service.

Investigators found that the monarch spent some of the illicit funds on land acquisition, building a residence, and purchasing a luxury vehicle. In total, Oloyede was linked to 38 fraudulent loan applications amounting to over $4.2 million.

Oluwasanmi, 62, of Willoughby, was earlier sentenced in July to 27 months in prison. He was also ordered to pay more than $1.2 million in restitution, forfeit a commercial property bought with fraud proceeds, and relinquish over $600,000 held in bank accounts.

The case was jointly investigated by the Department of Transportation Office of the Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations, under the Pandemic Response Accountability Committee Fraud Task Force.

Prosecution was handled by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford for the Northern District of Ohio.