By Amofokhai Williams
A Nigerian traditional ruler who also holds U.S. citizenship has been jailed in the United States after leading a multimillion-dollar fraud scheme that exploited federal pandemic stimulus funds.
U.S. District Judge Christopher A. Boyko, sitting in Cleveland, sentenced 62-year-old Joseph Oloyede-the monarch of Ipetumodu, Osun State, Nigeria, and a naturalised American, to 56 months in prison for his role in a conspiracy that defrauded the Small Business Administration (SBA) of more than $4.2 million.
The Alarmee reports that Oloyede, who resided in Medina, Ohio, pleaded guilty in April to conspiracy to commit wire fraud, engaging in unlawful monetary transactions, and filing false tax returns.
Beyond his prison term, he was ordered to pay over $4.4 million in restitution, forfeit his Medina residence and nearly $100,000 in seized funds, and remain under supervised release for three years after serving his sentence.
Court filings revealed that between April 2020 and February 2022, Oloyede, operating as a tax preparer and owner of multiple businesses and a nonprofit, partnered with co-conspirator Edward Oluwasanmi, 62, of Willoughby, Ohio, to submit 38 fraudulent loan applications under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) initiatives.
The two men used fake business records to secure loans for themselves and others. Oloyede alone collected about $1.7 million, while Oluwasanmi’s businesses received around $1.2 million.
In some cases, Oloyede applied on behalf of his tax clients, demanding 15–20% kickbacks from the approved loans, money he failed to declare in his tax filings.
Prosecutors said the monarch spent his share of the illicit proceeds on land, a luxury car, and construction of a new home.
The case drew heightened attention because of Oloyede’s status as a traditional ruler in Nigeria. Court submissions confirmed that he holds the throne of Ipetumodu, a community in Osun State, where monarchs are regarded as custodians of culture and community leadership.
His conviction and sentence, however, centred not on his royal duties but on his orchestration of a scheme that prosecutors said diverted funds intended to keep struggling small businesses afloat during the COVID-19 crisis.
In July 2024, Oluwasanmi, Oloyede’s co-defendant, was sentenced to 27 months in prison, fined $15,000, and ordered to pay more than $1.2 million in restitution. He forfeited a commercial property purchased with the fraud proceeds and over $600,000 in financial assets.
The case was investigated by the FBI Cleveland Division, IRS Criminal Investigations, and the U.S. Department of Transportation’s Office of Inspector General, under the Pandemic Response Accountability Committee’s Fraud Task Force.
