A Nigerian traditional ruler, Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun State and a dual citizen of the United States and Nigeria, has been sentenced to 56 months (over 4 years) in prison for leading a multi-million-dollar COVID-19 relief fraud scheme.
U.S. District Judge Christopher A. Boyko delivered the sentence on August 26, 2025, in Cleveland, Ohio, after Oloyede, 62, pleaded guilty in April to:
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Conspiracy to Commit Wire Fraud
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Three counts of Engaging in Monetary Transactions in Criminally Derived Property
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Two counts of Making and Subscribing a False Tax Return
In addition to his prison sentence, Oloyede was ordered to pay $4,408,543.38 in restitution, forfeit his Medina, Ohio home, and surrender $96,006.89 in fraud proceeds seized by investigators. He will also serve three years of supervised release after completing his jail term.
Fraudulent Scheme During the Pandemic
Court records revealed that between April 2020 and February 2022, Oloyede and his co-conspirator, Edward Oluwasanmi, also 62, fraudulently obtained funds from federal relief programs administered by the U.S. Small Business Administration (SBA). These programs, including the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL), were designed to support small businesses struggling during the COVID-19 pandemic.
Oloyede, a tax preparer and business owner, operated five businesses and one nonprofit, while Oluwasanmi owned three entities. Investigators found that the pair used these businesses — and, in some cases, the names of Oloyede’s clients — to file 38 fraudulent loan applications, securing $4.2 million in disbursed loans and grants.
Authorities reported that Oloyede typically kept 15–20% of the loan amounts as kickbacks when filing on behalf of others and failed to report this income on his tax returns. Fraud proceeds were used to purchase land, build a home, and acquire a luxury vehicle.
Co-Conspirator’s Sentence
In July 2024, Oluwasanmi was sentenced to 27 months in prison, three years of supervised release, and a $15,000 fine, in addition to paying over $1.2 million in restitution. He also forfeited a commercial property and more than $600,000 linked to the fraud.
Federal Investigation and Prosecution
The case was investigated by the U.S. Department of Transportation – Office of the Inspector General, the FBI Cleveland Division, and IRS Criminal Investigations, under the Pandemic Response Accountability Committee Fraud Task Force.
Prosecution was handled by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford for the Northern District of Ohio.
Authorities described the sentencing as part of ongoing efforts to crack down on fraud targeting pandemic relief programs, which saw billions of dollars exploited by fraudulent applicants during the COVID-19 crisis.
