Joseph Oloyede, COVID-19 Relief Scam, Ohio 2023

CLEVELAND – A self-proclaimed Nigerian monarch with a taste for luxury has traded his crown for prison stripes. Joseph Oloyede, 62, of Medina, Ohio, was sentenced to 56 months (4 and ⅔ years) in federal prison on August 26th after pleading guilty to charges stemming from a brazen scheme to steal over $4.2 million from COVID-19 relief programs. The funds were earmarked for struggling small businesses, but instead lined Oloyede’s pockets and funded a lavish lifestyle.

Oloyede, a naturalized U.S. citizen who also holds the title of traditional ruler of Ipetumodu in Nigeria, orchestrated the fraud alongside co-conspirator Edward Oluwasanmi, 62, of Willoughby, Ohio. From April 2020 to February 2022, the pair submitted bogus applications to the U.S. Small Business Association (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, specifically targeting the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs. They created a network of shell companies to funnel the stolen funds.

Court documents reveal Oloyede, operating as a tax preparer and owner of five businesses and one nonprofit, used his expertise to craft the fraudulent applications. Oluwasanmi, also a tax client and owner of three Ohio-based businesses, aided in the conspiracy. Together, they secured approximately $1.2 million in SBA funds for Oluwasanmi’s entities and a staggering $1.7 million for Oloyede’s. But the scheme didn’t stop there. Oloyede extended his fraud to his own clients, submitting applications on their behalf in exchange for a 15-20% kickback of the loan amount – income he conveniently failed to report to the IRS.

The fruits of Oloyede’s deceit were far from modest. He used the ill-gotten gains to purchase land, construct a new home, and acquire a luxury vehicle. In total, he managed to defraud the SBA out of $4,213,378 in disbursed loans and advances through 38 fraudulent applications. U.S. District Judge Christopher A. Boyko didn’t show leniency, ordering Oloyede to serve three years of supervised release following his prison sentence, pay $4,408,543.38 in restitution, and forfeit his Medina home on Foote Road, along with $96,006.89 in seized fraud proceeds.

Oluwasanmi, already sentenced in July 2024 to 27 months in prison, also faced a hefty penalty, including three years of supervised release, a $15,000 fine, and over $1.2 million in restitution. He too forfeited assets obtained through the scheme, including a commercial property in South Euclid and over $600,000 in transferred funds. This case, investigated by the U.S. Department of Transportation-Office of the Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations, serves as a stark reminder that even those with titles and influence will face justice for exploiting a national crisis for personal gain.

Assistant United States Attorneys Edward D. Brydle and James L. Morford of the Northern District of Ohio prosecuted the case, bringing to light the intricate web of deceit woven by Oloyede and Oluwasanmi. The Pandemic Response Accountability Committee Fraud Task Force played a crucial role in unraveling the scheme, ensuring that those who preyed on the pandemic-stricken are held accountable for their actions. This isn’t just about money; it’s about betraying the trust of a nation in its darkest hour.

RELATED: Royal Rip-Off: Nigerian Monarch Gets 4+ Years for COVID Fraud

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