Nigerian monarch jailed four years in US over $4.2m COVID-19 fraud

A Nigerian traditional ruler, Oba Joseph Oloyede, who is the Apetu of Ipetumodu in Osun State, has been sentenced to over four years in prison in the United States after he was found guilty of a $4.2 million COVID-19 fraud

The 62-year-old Oloyede who holds dual citizenship of Nigeria and the U.S. and resides in Medina, Ohio, was sentenced on Tuesday, August 26th, and committed to 56 months in prison by U.S. District Judge Christopher A. Boyko.

The U.S. Attorney’s Office for the Northern District of Ohio which confirmed the verdict in a statement, said the monarch was also ordered to serve three years of supervised release after completing his jail term and will pay $4,408,543.38 in restitution.

“He also forfeited his Medina home on Foote Road, which he had acquired with proceeds of the scheme, and an additional $96,006.89 in fraud proceeds investigators had seized,” the statement said.

It added that the monarch, in connivance with a Nigerian pastor, led a conspiracy to exploit COVID-19 emergency loan programmes created for struggling businesses.

“From about April 2020 to February 2022, Oloyede and his co-conspirator, Pastor Edward Oluwasanmi, conspired to submit fraudulent applications for loans that were made available through the U.S. Small Business Association (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” the statement read.

Court documents reveal that Oloyede was indicted on a 13-count fraud indictment in the U.S. District Court following his arrest by the FBI on May 4, 2024, after a warrant was issued for his apprehension.

The FBI had accused him of orchestrating a fraudulent scheme through his six registered companies, obtaining loans meant for struggling businesses during the COVID-19 pandemic.

Investigations further revealed that Oloyede allegedly falsified documents and misused the funds for personal expenses in violation of federal law.

During the investigation, the FBI said that in June 2020 alone, Oloyede secured over $100,000 in loans for four of his six companies, including Available Tax Services, Available Tutors, Available Financial, and Available Transportation.

“On October 7, 2021, he received a $500,000 loan for JO&A, followed by another $500,000 loan two days later for Available Transportation,” the FBI said.

Further investigations suggest that the monarch, an accountant by profession, assisted co-conspirators in executing similar fraud schemes, charging them a percentage of the loan amount upon disbursement.

“Oloyede assisted co-conspirators and confederate borrowers who submitted and caused to be submitted PPP and EIDL loan applications containing false information,” the indictment stated.