Oba Joseph Oloyede COVID fraud case ends in 56-month US prison sentence, \$4.4m restitution, and forfeiture of home and assets

Oba Joseph Oloyede COVID fraud case has drawn global attention as the 62-year-old monarch of Ipetumodu in Osun State, Nigeria, was sentenced to 56 months imprisonment in the United States.

Also read: Nigerian man charged in U.S. over shocking $25M healthcare fraud scheme

The ruling came after the traditional ruler, who holds dual Nigerian and U.S. citizenship, pleaded guilty to wire fraud conspiracy, money laundering, and tax fraud charges.

The judgment, delivered by U.S. District Judge Christopher A. Boyko, also ordered Oloyede to pay \$4,408,543.38 in restitution, forfeit his Medina, Ohio home, and surrender \$96,006.89 in seized fraud proceeds. He will additionally serve three years of supervised release after prison.

Court documents revealed that between April 2020 and February 2022, Oba Joseph Oloyede and his co-conspirator, Edward Oluwasanmi, submitted 38 fraudulent applications under the U.S.

Small Business Administration’s COVID relief programs, including the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) scheme. The fraud netted more than \$4.2 million in disbursed loans and advances.

Investigators found that Oloyede, a tax preparer and business owner, exploited both his own companies and those of his clients, taking a 15–20% “fee” for fraudulent applications. Proceeds from the fraud were used to buy property, build a home, and purchase luxury items.

Oluwasanmi, his co-defendant, had been sentenced earlier in July 2024 to 27 months in prison, three years of supervised release, a \$15,000 fine, and over \$1.2 million in restitution.

He also forfeited real estate and over \$600,000 in illicitly gained funds.

The U.S. Attorney’s Office described the fraud as a deliberate exploitation of federal programs intended to support struggling small businesses during the pandemic.

Agencies including the FBI, IRS-Criminal Investigations, and the Department of Transportation led the probe under the Pandemic Response Accountability Committee Fraud Task Force.

The sentencing of Oba Joseph Oloyede COVID fraud case is particularly significant given his dual role as both a U.S. citizen and a traditional ruler in Nigeria.