US Court Jails Osun Monarch for 56 Months Over COVID-19 Relief Fraud

A U.S. court has sentenced Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun State, Nigeria, to 56 months in prison for his involvement in a multimillion-dollar COVID-19 relief fraud scheme.

The 62-year-old monarch, who holds dual citizenship of Nigeria and the United States and resides in Medina, Ohio, was sentenced on August 26 by U.S. District Judge Christopher A. Boyko, according to a statement released Tuesday by the U.S. Attorney’s Office for the Northern District of Ohio.

In addition to the prison term, Oloyede was ordered to serve three years of supervised release and pay $4,408,543.38 in restitution. He also forfeited his Medina residence—purchased with fraud proceeds—and an additional $96,006.89 recovered during the investigation.

Prosecutors said Oloyede orchestrated a conspiracy to defraud emergency loan programs meant to support businesses impacted 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.

Oloyede, a tax preparer, ran five businesses and one nonprofit, while Oluwasanmi operated three business entities. Using these, the duo filed falsified applications for 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 revealed.

He also prepared fake applications on behalf of clients, taking 15–20% kickbacks from their loan funds—none of which was reported to the IRS. The stolen funds were used for personal expenses, including land purchases, home construction, and the acquisition of a luxury vehicle.

Both Oloyede and Oluwasanmi pleaded guilty in April to wire fraud and tax fraud charges.

Oluwasanmi, also 62, from Willoughby, Ohio, was sentenced in July to 27 months in prison and ordered to pay over $1.2 million in restitution.

The case was investigated by the Department of Transportation Office of Inspector General, FBI Cleveland Division, and IRS–Criminal Investigations, and prosecuted by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.