Osun Traditional Ruler Jailed 56 Months In US Over $4.2m Fraud
A court in the United States has jailed the Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, for 56 months following his involvement in a multimillion-dollar COVID-19 relief fraud scheme.
A court in the United States has jailed the Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, for 56 months following his involvement in a multimillion-dollar COVID-19 relief fraud scheme.
The case was investigated by the Department of Transportation Office of Inspector General, the FBI Cleveland Division and IRS-Criminal Investigations, and prosecuted by Assistant U.S. Attorneys Edward D. Brydle and James L. Morford.
Oloyede, 62, holds dual US and Nigerian citizenship and resides in Medina, Ohio. He was sentenced on August 26 by US District Judge Christopher A. Boyko, according to a statement on Tuesday by the US Attorney’s Office for the Northern District of Ohio.
Oloyede was furthermore ordered to serve three years of supervised release after his prison term and pay $4,408,543.38 in restitution, forfeit his Medina home, purchased with the proceeds of fraud and an additional $96,006.89 seized by investigators.
Prosecutors said the convict led a conspiracy to exploit emergency loan programmes created to assist businesses impacted by the COVID-19 pandemic.
According to the US Attorney's office, "From about April 2020 to February 2022, Oloyede and his co-conspirator, Edward Oluwasanmi, conspired to submit fraudulent applications for loans made available through the U.S. Small Business Association (SBA) under the CARES Act.”
Oloyede and Oluwasanmi, had in April this year, pleaded guilty to wire fraud and tax fraud charges.
Investigators noted that Oloyede, a tax preparer, operated five businesses and one nonprofit, while Oluwasanmi owned three business entities.
Oloyede was furthermore ordered to serve three years of supervised release after his prison term and pay $4,408,543.38 in restitution, forfeit his Medina home, purchased with the proceeds of fraud and an additional $96,006.89 seized by investigators.
Prosecutors said the convict led a conspiracy to exploit emergency loan programmes created to assist businesses impacted by the COVID-19 pandemic.
According to the US Attorney's office, "From about April 2020 to February 2022, Oloyede and his co-conspirator, Edward Oluwasanmi, conspired to submit fraudulent applications for loans made available through the U.S. Small Business Association (SBA) under the CARES Act.”
Oloyede and Oluwasanmi, had in April this year, pleaded guilty to wire fraud and tax fraud charges.
Investigators noted that Oloyede, a tax preparer, operated five businesses and one nonprofit, while Oluwasanmi owned three business entities.
“Oloyede caused the SBA to approve 38 fraudulent applications, amounting to $4,213,378 in disbursed loans and advances,” prosecutors added.
They added that Oloyede also filed fraudulent applications on behalf of some clients, taking 15–20% of their loans as kickbacks without reporting the income to the IRS.
The funds were used for personal gain, including land acquisition, home construction and the purchase of a luxury vehicle.
Oluwasanmi, 62, of Willoughby, Ohio, was sentenced in July to 27 months in prison and ordered to pay over $1.2 million in restitution.
They added that Oloyede also filed fraudulent applications on behalf of some clients, taking 15–20% of their loans as kickbacks without reporting the income to the IRS.
The funds were used for personal gain, including land acquisition, home construction and the purchase of a luxury vehicle.
Oluwasanmi, 62, of Willoughby, Ohio, was sentenced in July to 27 months in prison and ordered to pay over $1.2 million in restitution.
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