Osun Monarch Jailed in U.S. for $4.2m COVID-19 Loan Fraud
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The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to more than four years in prison in the United States for his role in a multi-million-dollar COVID-19 loan fraud scheme.
Oloyede, 62, who holds dual U.S. and Nigerian citizenship and resides in Medina, Ohio, was on Monday, August 26, handed a 56-month prison term by U.S. District Judge Christopher A. Boyko. He will also serve three years of supervised release and pay $4,408,543.38 in restitution.
According to the U.S. Attorney’s Office for the Northern District of Ohio, the monarch forfeited his Medina home on Foote Road, purchased with proceeds of the fraud, as well as $96,006.89 in illicit gains seized during the investigation.
Prosecutors said Oloyede led a conspiracy to exploit federal COVID-19 emergency relief funds intended for struggling businesses. Between April 2020 and February 2022, he and his co-conspirator, 62-year-old Edward Oluwasanmi of Willoughby, submitted fraudulent loan applications under the U.S. Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
Investigators revealed that Oloyede, a tax preparer, operated five businesses and one nonprofit, while Oluwasanmi controlled three entities. They secured about $1.7 million for Oloyede’s firms and $1.2 million for Oluwasanmi’s. Oloyede also used the names of some of his clients and their businesses to file false loan applications, collecting 15–20% of the loan amounts as kickbacks, which he failed to report on his taxes.
The fraud netted approximately $4.2 million, with Oloyede alone responsible for 38 fraudulent applications. Authorities disclosed that he used the funds to acquire land, build a house, and purchase a luxury vehicle.
His accomplice, Oluwasanmi, was sentenced in July to 27 months in prison, restitution of more than $1.2 million, and forfeiture of a commercial property and over $600,000 in seized funds.
The case was investigated by the FBI, IRS Criminal Investigations, and the Department of Transportation’s Office of Inspector General as part of the Pandemic Response Accountability Committee Fraud Task Force. Assistant U.S. Attorneys Edward D. Brydle and James L. Morford prosecuted the case.
