The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been jailed in the United States for his role in a multi-million-dollar COVID-19 relief scam.
Oloyede, 62, a dual citizen of Nigeria and the U.S. who lived in Medina, Ohio, received a 56-month prison sentence on August 26 from U.S. District Judge Christopher A. Boyko. The traditional ruler will also undergo three years of supervised release after completing his term and must repay $4.4 million in restitution.
Authorities said Oloyede forfeited his Medina property on Foote Road, purchased with fraud proceeds, along with nearly $96,000 in cash previously seized.
According to the U.S. Attorney’s Office for the Northern District of Ohio, Oloyede masterminded a conspiracy to take advantage of emergency funding created to support businesses during the pandemic. Between April 2020 and February 2022, he and his partner, Edward Oluwasanmi, filed falsified loan requests under the U.S. Small Business Administration’s programs introduced through the CARES Act.
Both men admitted guilt in April to wire fraud and tax-related charges. Prosecutors revealed that Oloyede ran five businesses and a nonprofit organization, while Oluwasanmi managed three companies. Using these fronts, they secured about $1.7 million for Oloyede and $1.2 million for Oluwasanmi.
Investigations further showed that Oloyede also submitted fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications in the names of some of his tax clients, pocketing 15–20 percent of the loan amounts as kickbacks, which he failed to declare as income.
Prosecutors said the funds were diverted for personal use, including land acquisition, home construction, and the purchase of a luxury car. In total, Oloyede was tied to 38 bogus applications that resulted in more than $4.2 million being released.
His associate, Oluwasanmi, 62, of Willoughby, had earlier been sentenced in July to 27 months in prison. He was also ordered to return over $1.2 million, give up a commercial property obtained with illicit funds, and forfeit more than $600,000 in bank deposits.
The U.S. Attorney’s Office highlighted the conviction as a major win against pandemic-related fraud. The case was investigated by the FBI Cleveland Division, IRS Criminal Investigations, and the Department of Transportation’s Inspector General, under the Pandemic Response Accountability Committee Fraud Task Force. Prosecution was led by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.
