Apetu of Ipetumodu Sentenced to Over Four Years in U.S. for COVID-19 Relief Fraud

Apetu of Ipetumodu Sentenced to Over Four Years in U.S. for COVID-19 Relief Fraud

By Joseph Iyaji | Akahi News

The Apetu of Ipetumodu, Oba Joseph Oloyede, 62, has been sentenced to 56 months in prison in the United States for defrauding federal COVID-19 relief programmes. The ruling was handed down on August 26 by U.S. District Judge Christopher A. Boyko.

Oloyede, who holds dual U.S. and Nigerian citizenship and resides in Medina, Ohio, was also ordered to serve three years of supervised release after imprisonment, pay $4,408,543.38 in restitution, and forfeit his Medina home and additional assets obtained through the scheme.

According to the U.S. Attorney’s Office for the Northern District of Ohio, Oloyede led a conspiracy with Edward Oluwasanmi to exploit COVID-19 emergency loan programmes under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Between April 2020 and February 2022, the duo submitted fraudulent applications to the U.S. Small Business Administration (SBA), siphoning over $4.2 million in federal stimulus funds.

Oloyede, who also worked as a tax preparer, operated five businesses and a nonprofit, while Oluwasanmi owned three business entities. They obtained $1.7 million in SBA funds for Oloyede’s entities and $1.2 million for Oluwasanmi’s entities, submitting loan applications using false information. Investigators said Oloyede took 15–20% of loan proceeds as kickbacks without reporting the income to the IRS.

The misappropriated funds were reportedly used to acquire land, build a home, and purchase a luxury vehicle. In total, Oloyede facilitated 38 fraudulent applications, amounting to $4,213,378 in disbursed loans and advances.

Oluwasanmi, 62, of Willoughby, had earlier been sentenced in July to 27 months in prison, ordered to pay over $1.2 million in restitution, forfeit a commercial property purchased with fraud proceeds, and surrender more than $600,000 in financial accounts.

The case was jointly investigated by the Department of Transportation Office of the Inspector General, FBI Cleveland Division, and IRS-Criminal Investigations as part of the Pandemic Response Accountability Committee Fraud Task Force.

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