CLEVELAND – A dual American and Nigerian citizen with a crown and a criminal mind is headed to federal prison after a brazen scheme to steal over $4.2 million in COVID-19 relief funds. Joseph Oloyede, 62, of Medina, Ohio, was sentenced to 56 months (4 and ⅔ years) by U.S. District Judge Christopher A. Boyko on August 26th, after pleading guilty to a slew of charges including Conspiracy to Commit Wire Fraud, Engaging in Monetary Transactions in Criminally Derived Property, and Making and Subscribing a False Tax Return.
Oloyede, who also reigns as the monarch of the Nigerian city of Ipetumodu, didn’t just take a slice of the pandemic pie – he devoured it. From April 2020 to February 2022, he and his co-conspirator, Edward Oluwasanmi, 62, of Willoughby, systematically filed fraudulent applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. These programs were designed to keep small businesses afloat during the height of the pandemic; instead, Oloyede and Oluwasanmi treated them like personal slush funds.
The pair operated through a network of shell companies – five owned by Oloyede, three by Oluwasanmi, all incorporated in Ohio. They secured approximately $1.2 million for Oluwasanmi’s entities and a staggering $1.7 million for Oloyede’s. But the greed didn’t stop there. Oloyede extended the scheme to his tax clients, submitting fraudulent applications on their behalf and pocketing a hefty 15-20% cut of their approved loans as a “fee.” This income, naturally, went unreported to the IRS.
Investigators quickly pieced together how the stolen funds were spent. Oloyede didn’t just stash the cash; he flaunted it. The ill-gotten gains were used to acquire land, build a lavish home, and purchase a luxury vehicle. The total damage: $4,213,378 in fraudulently obtained loans and advances through 38 separate applications. Beyond the prison sentence, Oloyede was ordered to serve three years of supervised release and pay a whopping $4,408,543.38 in restitution. He also forfeited his Medina home on Foote Road and $96,006.89 in seized fraud proceeds.
Oluwasanmi, already sentenced in July 2024 to 27 months in prison, also faced significant penalties, including a $15,000 fine, over $1.2 million in restitution, and the forfeiture of a commercial property and over $600,000 in transferred funds. The investigation was a joint effort by the U.S. Department of Transportation-Office of the Inspector General, the FBI Cleveland Division, and IRS-Criminal Investigations, as part of the Pandemic Response Accountability Committee Fraud Task Force.
Assistant United States Attorneys Edward D. Brydle and James L. Morford of the Northern District of Ohio prosecuted the case. This case serves as a stark reminder that even those wearing crowns aren’t above the law, especially when they’re lining their pockets with funds meant to help struggling Americans. The Grimy Times will continue to follow this case and report on further developments.
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- Butler, Holt & Massey Nabbed in $1.1M COVID Fraud · North Carolina
Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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