Osun Monarch Jailed in US for COVID-19 Relief Fraud

Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun State, has been sentenced to over four years in a U.S. prison for his role in a $4.2 million COVID-19 relief fraud scheme. 

The 62-year-old, a dual U.S.-Nigerian citizen residing in Medina, Ohio, received a 56-month sentence on August 26 from U.S. District Judge Christopher A. Boyko.

Oloyede was also ordered to serve three years of supervised release, pay $4,408,543.38 in restitution, and forfeit his Medina home and $96,006.89 in seized funds. 

He pleaded guilty in April 2024 to charges including wire fraud and tax fraud, having orchestrated a scheme that exploited U.S. emergency loan programs through 38 fraudulent applications.

The U.S. Attorney’s Office for the Northern District of Ohio announced Tuesday that Oloyede has also been directed to “serve three years of supervised release after imprisonment and pay $4,408,543.38 in restitution.” 

Additionally, he forfeited his home on Foote Road in Medina, which was purchased with proceeds from the fraudulent scheme, along with another $96,006.89 in fraud proceeds seized by investigators.

According to the U.S. Attorney’s Office, Oloyede led a conspiracy to exploit COVID-19 emergency loan programs aimed at helping struggling businesses. “From about April 2020 to February 2022, Oloyede and his co-conspirator, Edward Oluwasanmi, conspired to submit fraudulent applications for loans that were made available through the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” the statement indicated.

In April, both men pleaded guilty to charges of wire fraud and tax fraud related to a pandemic relief scam that diverted over $4.2 million in federal stimulus funds. The court heard that Oloyede, who also worked as a tax preparer, “operated five businesses and one nonprofit, while Oluwasanmi owned an additional three business entities.” 

The defendants utilized their businesses to submit loan applications with false information, obtaining approximately $1.2 million in SBA funds for Oluwasanmi’s entities and $1.7 million for Oloyede’s.

The investigation was carried out by the Department of Transportation’s Office of Inspector General, the FBI’s Cleveland Division, and IRS Criminal Investigations, with Assistant U.S. Attorneys Edward D. Brydle and James L. Morford leading the prosecution.