The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to more than four years imprisonment in Cleveland, Ohio, in the United States for creating and leading a scheme that bilked more than $4.2 million from federal loan and grant programs that were intended to assist small businesses with economic hardship they suffered as a result of the COVID-19 pandemic.
Oloyede, 62, who holds both U.S. and Nigerian citizenship and resides in Medina, Ohio, was sentenced to 56 months (4 and ⅔ years) in prison by U.S. District Judge Christopher A. Boyko on August 26, 2025 after he pleaded guilty in April to the following charges: one count of Conspiracy to Commit Wire Fraud, three counts of Engaging in Monetary Transactions in Criminally Derived Property, two counts of Making and Subscribing a False Tax Return.
The U.S. Attorney’s Office for the Northern District of Ohio in a statement on Tuesday said Oloyede was also ordered to serve three years of supervised release after imprisonment and 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.
Court documents show that from about April 2020 to February 2022, Oloyede and his co-conspirator, Edward Oluwasanmi, 62, of Willoughby, 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.
Among these were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, which aided small businesses that suffered financial hardship as a result of the pandemic with loans and grants.
During the investigation, agents found that Oloyede operated as a tax preparer and owned five businesses and one nonprofit. His co-defendant—and tax client—Oluwasanmi, owned an additional three business entities; all were incorporated in Ohio.
Both defendants used their businesses to submit loan applications using false information. They obtained approximately $1.2 million in SBA funds for Oluwasanmi’s entities and $1.7 million for Oloyede’s entities.
In addition, Oloyede submitted fraudulent PPP and EIDL applications in the names of some of his clients and their businesses. In exchange, Oloyede would receive 15-20% of their loans as the fee, or kickback, for obtaining the loans for them, without reporting this income to the IRS on his own tax returns.
Investigators learned that the defendant used funds obtained from these loans to acquire land and build a home and purchase a luxury vehicle. In total, Oloyede caused the SBA to approve 38 fraudulent applications, amounting to $4,213,378 in disbursed loans and advances.
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.
In July 2024, Oluwasanmi was sentenced to 27 months in prison for his role in the conspiracy. He was also ordered to serve three years of supervised release, pay a $15,000 fine, and pay more than $1.2 million in restitution.
Oluwasanmi also forfeited much of the proceeds he received from the scheme, including a commercial property on Green Road in South Euclid that he acquired with fraud proceeds, and more than $600,000 he had transferred to financial accounts.
The case was investigated by the U.S. Department of Transportation-Office of the Inspector General, as part of the Pandemic Response Accountability Committee Fraud Task Force; FBI Cleveland Division;Â and IRS-Criminal Investigations.
It was prosecuted by Assistant United States Attorneys Edward D. Brydle and James L. Morford for the Northern District of Ohio.
