A Nigerian monarch, Joseph Oloyede, has been sentenced to over four years in a U.S. prison after admitting he spearheaded a scheme that drained millions of dollars from Covid-19 emergency loan programmes.
The 62-year-old, who holds both Nigerian and American citizenship, was handed a 56-month jail term by a U.S. District Judge in Ohio on Tuesday, according to the U.S. Attorney’s Office for the Northern District of Ohio.
How the fraud played out
Prosecutors said Oloyede teamed up with others between April 2020 and February 2022 to submit fraudulent applications for government-backed loans meant to support small businesses battling the impact of the pandemic. Instead of reaching struggling entrepreneurs, the scheme raked in millions which he and his partners laundered through property deals and luxury purchases.
By April this year, Oloyede pleaded guilty to conspiracy to commit wire fraud and illegal money transactions, admitting his role in the racket.
A monarch with a double life
Though he resides in Medina, Ohio, Oloyede is also recognised as a traditional ruler in Ipetumodu, Osun State. Investigators revealed that part of the stolen funds was used to acquire land, build a home, and buy a luxury car. His U.S. home in Medina, bought with illicit funds, has now been forfeited to the government.
The price tag of fraud
Beyond prison time, the court has ordered him to repay $4.4 million in restitution. Authorities stressed that his actions deprived genuine small businesses of badly needed pandemic support, undermining federal relief programmes at a time when many families and entrepreneurs were struggling to survive.
U.S. officials say the case is a reminder of their determination to clamp down on pandemic relief fraud, no matter where the perpetrators come from.
