In a stunning fall from grace, Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun State, Nigeria, has been sentenced to 56 months in a U.S. federal prison for orchestrating a multimillion-dollar COVID-19 relief fraud scheme.
The 62-year-old monarch, who holds dual citizenship and resides in Medina, Ohio, was convicted by U.S. District Judge Christopher A. Boyko on August 26.
In addition to his prison term, Oloyede will serve three years of supervised release and must pay $4.4 million in restitution. He also forfeited his Medina residence – purchased with illicit funds – and nearly $100,000 seized during the investigation.
Federal prosecutors revealed that Oloyede masterminded a conspiracy to exploit emergency loan programmes designed to support struggling businesses during the pandemic.
Between April 2020 and February 2022, he and his associate, Edward Oluwasanmi, submitted dozens of fraudulent applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) under the CARES Act.
“Oloyede caused the SBA to approve 38 fraudulent applications, amounting to $4,213,378 in disbursed loans and advances,” the U.S. Attorney’s Office stated.
The monarch, who also worked as a tax preparer, operated five businesses and a nonprofit, while Oluwasanmi ran three entities.
Investigators found that Oloyede not only filed fake applications for his own companies but also for clients – taking 15–20% of their loan amounts as kickbacks, which he failed to report to the IRS.
The stolen funds were used for personal luxuries, including land purchases, home construction, and a high-end vehicle.
Oluwasanmi, 62, of Willoughby, Ohio, was sentenced in July to 27 months in prison and ordered to repay over $1.2 million.
The case was jointly investigated by the FBI, IRS-Criminal Investigations, and the Department of Transportation Office of Inspector General, and prosecuted by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.
“This conviction sends a clear message,” prosecutors said,
“that pandemic relief fraud will be met with serious consequences – regardless of status or title.”
