The traditional ruler of Ipetumodu in Osun State, Oba Joseph Olugbenga Oloyede, has been sentenced to more than 4 years in a United States prison.
He was jailed for masterminding a multi-million-dollar COVID-19 fraud scheme, and Nigerians have been reacting.
62-year-old Oba Joseph Oloyede, who holds dual Nigerian and U.S. citizenship, was found guilty of wire and tax fraud after exploiting emergency loan initiatives meant for struggling American businesses amid the coronavirus pandemic.
On the 26th of August, the monarch was handed a 56-month prison term, three years of supervised release, and a restitution order of $4,408,543.38 by U.S. District Judge Christopher A. Boyko.
He also forfeited his Medina, Ohio, mansion and almost $100,000 in illicit funds seized by investigators.
According to prosecutors, Oba Joseph and his partner-in-crime, Edward Oluwasanmi, also 62, committed the crime by filing several fraudulent loan applications under the U.S. government’s CARES Act, a scam that stole over $4.2 million in pandemic relief funds.
“Oloyede exploited the desperation of the pandemic, submitting fraudulent PPP and EIDL applications — even in the names of unsuspecting clients. He pocketed kickbacks of up to 20% on loans he illegally secured, while failing to report this dirty money on his tax returns,” the U.S. Attorney’s Office said.
Edward Oluwasanmi was, in July, sentenced to 27 months in prison, ordered to pay $1.2 million, and forced to let go of properties and accounts tied to the fraudulent proceeds.
Investigators confirmed that Oba Joseph Oloyede personally caused the approval of 38 fraudulent applications worth over $4.2 million.
“This was not just fraud, it was theft from the American people at their most vulnerable time,” prosecutors said.
The U.S. Attorney’s Office added that the case was thoroughly investigated by the FBI, IRS-Criminal Investigations, and other agencies under the Pandemic Response Accountability Committee Fraud Task Force.
