U.S. Court Jails Apetu of Ipetumodu for 56 Months Over COVID-19 Loan Fraud

U.S. Court Jails Apetu of Ipetumodu for 56 Months Over COVID-19 Loan Fraud

The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to four years and eight months in prison in the United States for COVID-19 loan fraud.

Oloyede, 62, who holds dual Nigerian and U.S. citizenship, was sentenced on August 26 by U.S. District Judge Christopher A. Boyko in Ohio. According to the U.S. Attorney’s Office for the Northern District of Ohio, the monarch will also serve three years of supervised release and must pay $4.4 million in restitution.

In addition, he forfeited his Medina, Ohio, home on Foote Road, which prosecutors said was acquired with proceeds from the scheme, as well as $96,006.89 in fraud proceeds seized during the investigation.

Prosecutors revealed that Oloyede conspired with Edward Oluwasanmi to exploit emergency loan programmes intended for struggling businesses during the COVID-19 pandemic.

“From about April 2020 to February 2022, Oloyede and his co-conspirator conspired to submit fraudulent applications for loans that were made available through the U.S. Small Business Association (SBA) under the CARES Act,” the Attorney’s Office stated.

Court filings show that Oloyede was arrested on May 4, 2024, following a 13-count indictment. The FBI accused him of using six registered companies to fraudulently obtain loans, falsifying documents, and diverting the funds for personal use.

In June 2020 alone, he reportedly secured more than $100,000 in loans for four companies—Available Tax Services, Available Tutors, Available Financial, and Available Transportation. Later, in October 2021, he obtained two separate $500,000 loans for JO&A and Available Transportation.

Investigators further disclosed that Oloyede, an accountant by profession, also assisted others in filing fraudulent applications, taking a percentage of the disbursed loans as his share.

“Oloyede assisted co-conspirators and confederate borrowers who submitted and caused to be submitted PPP and EIDL loan applications containing false information,” prosecutors said.