A Nigerian traditional ruler, the Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to four years and eight months in prison in the United States for orchestrating a massive fraud scheme that siphoned millions of dollars from emergency COVID-19 loan programmes.
Oloyede, 62, who holds dual Nigerian and U.S. citizenship and resides in Medina, Ohio, was on Monday, August 26, sentenced to 56 months in federal prison by U.S. District Judge Christopher A. Boyko. The conviction follows his guilty plea to wire fraud and tax fraud earlier this year.
According to a statement released Tuesday by the U.S. Attorney’s Office for the Northern District of Ohio, the monarch will also serve three years of supervised release upon completing his prison term, pay $4.4 million in restitution, and forfeit assets, including his Medina residence and nearly $100,000 in illicit cash proceeds seized by investigators.
Federal prosecutors revealed that Oloyede masterminded a conspiracy that targeted loan programmes rolled out during the COVID-19 pandemic to help small businesses survive economic shocks.
Working with his accomplice, Edward Oluwasanmi, 62, of Willoughby, Ohio, the duo submitted dozens of fraudulent applications under the U.S.
Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).
Between April 2020 and February 2022, the men exploited at least 38 fraudulent loan applications, defrauding the government of more than $4.2 million. Court documents showed that Oloyede personally controlled five businesses and a nonprofit organisation, while Oluwasanmi operated three.
They used these entities to file bogus claims, fabricating employee numbers, revenues, and operational costs.
Prosecutors further revealed that Oloyede, a tax preparer, expanded the fraud by submitting fake applications on behalf of some of his clients in exchange for a 15–20 percent kickback. Crucially, he never reported the kickbacks to U.S. tax authorities.
Rather than supporting struggling businesses, investigators said the monarch and his accomplice diverted the stolen money for personal luxury.
Oloyede used the funds to purchase land, build a house, and acquire a luxury vehicle.
The U.S. Attorney’s Office noted that these assets were directly tied to the fraud and have now been seized.
His partner in crime, Oluwasanmi, was sentenced in July to 27 months in prison.
He was also ordered to pay over $1.2 million in restitution and to forfeit a commercial property and more than $600,000 held in bank accounts.
Federal authorities underscored that the case is part of a nationwide crackdown on abuse of COVID-19 relief funds under the Pandemic Response Accountability Committee Fraud Task Force.
“The defendants saw a global crisis as an opportunity to enrich themselves at the expense of honest taxpayers and struggling small businesses,” prosecutors said, stressing that the convictions serve as a strong warning.
The investigation was jointly handled by the Department of Transportation Office of the Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations. Prosecution was led by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.
