Osun Monarch Joseph Oloyede Jailed 4 Years In U.S. For $4.2m COVID-19 Loan Fraud

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

Oloyede, 62, who holds both U.S. and Nigerian citizenship and resides in Medina, Ohio, was sentenced on August 26 by U.S. District Judge Christopher A. Boyko. He will also serve three years of supervised release and must pay $4,408,543.38 in restitution. In addition, he forfeited his Medina home and $96,006.89 in seized fraud proceeds.

According to the U.S. Attorney’s Office for the Northern District of Ohio, Oloyede led a scheme to exploit federal pandemic relief programs from April 2020 to February 2022. Working with co-conspirator Edward Oluwasanmi, they submitted fraudulent applications for loans offered by the U.S. Small Business Administration under the CARES Act.

The duo pleaded guilty in April to wire fraud and tax fraud charges after admitting they siphoned more than $4.2 million in federal stimulus funds. Prosecutors said Oloyede ran five businesses and one nonprofit, while Oluwasanmi owned three businesses. Together, they used these entities to secure $1.7 million and $1.2 million in SBA funds respectively through false applications.

Investigators revealed that Oloyede also filed fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications on behalf of clients in exchange for a 15–20% cut of the loans, which he failed to report to the IRS. The stolen funds were used for personal purchases, including real estate, a luxury vehicle, and home construction.

In total, Oloyede was linked to 38 fraudulent loan applications amounting to $4,213,378. His partner, Oluwasanmi, 62, of Willoughby, Ohio, was sentenced in July to 27 months in prison and ordered to pay over $1.2 million in restitution, forfeit a commercial property, and surrender more than $600,000.

The case was jointly investigated by the Department of Transportation Office of Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations under the Pandemic Response Accountability Committee Fraud Task Force. It was prosecuted by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.