The United States Federal Bureau of Investigation (FBI) has arrested the Apetu of Ipetumodu, in Ife North Council Area of Osun State, Oba Joseph Oloyede, for allegedly defrauding the US government of $4.2 million in COVID-19 fraud.
The Apetu of Ipetumodu allegedly falsified documents to secure the US government’s loans for businesses affected by COVID-19.
According to Sahara Reporters, the monarch, also a U.S. citizen, is currently battling a 13-count fraud indictment in the U.S. District Court for the Northern District of Ohio.
According to US court documents cited by the platform, Oba Oloyede was arrested on May 4, 2024, after a warrant was issued for his apprehension.
The FBI accused him of obtaining the loan through his six registered companies. The loan applicants were required to submit tax records, wage statements, and other financial documents proving their eligibility.
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According to the report, investigations reportedly disclosed that Oba Oloyede allegedly falsified these documents and misused the funds for personal expenses, in violation of federal law.
“FBI records show that in June 2020 alone, Mr. Oloyede secured over $100,000 in loans for four of his six companies, including Available Tax Services, Available Tutors, Available Financial, and Available Transportation. On October 7, 2021, he received a $500,000 loan for JO&A, followed by another $500,000 loan two days later for Available Transportation,” it read.
Further investigations reportedly suggested that the monarch assisted co-conspirators in executing similar fraud schemes, charging them a percentage of the loan amount upon disbursement.
“Oloyede assisted co-conspirators and confederate borrowers who submitted and caused to be submitted PPP and EIDL loan applications containing false information,” it stated.
The report added that on April 3, 2024, a grand jury in the U.S. District Court for the Northern District of Ohio indicted Oba Oloyede alongside Edward Oluwasanmi for conspiracy, wire fraud, and money laundering.
Prosecutors alleged that from April 2020 to February 2022, the duo fraudulently obtained over $4.2 million in SBA-guaranteed relief funds.
The Oba allegedly pocketed $1.7 million for his own businesses and another $1.3 million by submitting falsified applications for co-conspirators.
“The investigation is being conducted by the FBI, Internal Revenue Service Criminal Investigation, and the U.S. Department of Transportation’s Office of Inspector General (DOT-OIG), under the Pandemic Response Accountability Committee (PRAC) Fraud Task Force,” Sahara Reporters added.
