Keypoints:
- Monarch sentenced to 56 months in US
- Ordered to pay $4.4m restitution
- Fraud tied to Covid-19 relief loans
A NIGERIAN monarch has been sentenced to more than four years in prison in the United States after pleading guilty to leading a scheme that siphoned millions of dollars from Covid-19 emergency loan programmes.
Joseph Oloyede, 62, who holds dual Nigerian and US citizenship, was handed a 56-month prison sentence on Tuesday by a US District Judge in Ohio, according to a statement from the US Attorney’s Office for the Northern District of Ohio.
Fraudulent pandemic loan claims
Prosecutors said Oloyede conspired with others to file fraudulent applications for government-backed loans meant to support small businesses struggling during the pandemic between April 2020 and February 2022. The scheme generated millions of dollars in illicit funds, which Oloyede and his associate then laundered through property and personal purchases.
In April, Oloyede admitted to three counts, including conspiracy to commit wire fraud and engaging in monetary transactions involving criminally derived property.
Traditional ruler in Nigeria
Although he resides in Medina, Ohio, Oloyede is also recognised as a traditional ruler in Ipetumodu, a community in Osun state, southwestern Nigeria.
Authorities revealed that he used proceeds from the fraudulent scheme to acquire land, build a house, and purchase a luxury vehicle. His Medina residence on Foote Road, which investigators said was bought with illicit funds, has been forfeited to the government.
Ordered to repay millions
As part of the sentence, Oloyede was ordered to pay $4.4 million in restitution. The court emphasised that funds diverted from Covid-19 relief programmes undermined efforts to provide legitimate support to small businesses grappling with financial hardship.
The case underscores US authorities’ ongoing efforts to clamp down on fraud linked to emergency relief packages rolled out at the height of the pandemic.
