A Medina, Ohio man who is also a Nigerian monarch was sentenced to 56 months in prison for leading a fraud scheme that obtained over $4.2 million from federal COVID-19 relief programs meant for small businesses.
Joseph Oloyede, 62, who holds dual citizenship in the United States and Nigeria, received his sentence on August 26 from U.S. District Judge Christopher A. Boyko after pleading guilty earlier this year to conspiracy to commit wire fraud, engaging in monetary transactions with criminally derived property, and making false tax returns.
In addition to the prison term, Oloyede must serve three years of supervised release and pay more than $4.4 million in restitution. He forfeited his home in Medina and nearly $100,000 investigators had seized as part of the case.
According to court records, Oloyede and co-conspirator Edward Oluwasanmi submitted fraudulent loan applications through programs created by the CARES Act during the COVID-19 pandemic. The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program were designed to help small businesses facing financial hardship due to the pandemic.
Authorities found that Oloyede operated as a tax preparer and owned several businesses and a nonprofit organization. Oluwasanmi owned additional business entities; all were incorporated in Ohio. Both men used their companies to submit loan applications containing false information, resulting in approximately $1.2 million being approved for Oluwasanmi’s entities and $1.7 million for Oloyede’s.
Oloyede also filed fraudulent PPP and EIDL applications on behalf of clients’ businesses in exchange for kickbacks ranging from 15% to 20% of the loan amounts—a sum he did not report as income on his taxes. Investigators determined that he used some proceeds from these loans to buy land, build a house, and purchase a luxury vehicle. In total, Oloyede caused approval of 38 fraudulent SBA loan applications amounting to over $4.2 million.
“According to information presented to Judge Boyko, Oloyede is a naturalized U.S. citizen who also holds a position as the monarch, or traditional ruler, of the Nigerian city of Ipetumodu.”
Oluwasanmi was sentenced last month to 27 months in prison for his involvement in the conspiracy; he was ordered to pay more than $1.2 million in restitution and surrender property acquired with fraud proceeds.
The investigation was conducted by agencies including the U.S. Department of Transportation Office of Inspector General—working with the Pandemic Response Accountability Committee Fraud Task Force—the FBI Cleveland Division, and IRS Criminal Investigations.
Assistant United States Attorneys Edward D. Brydle and James L. Morford prosecuted the case for the Northern District of Ohio.
