The Federal Bureau of Investigation (FBI) of the United States has apprehended the Apetu of Ipetumodu, in Osun State, Oba Joseph Oloyede, on charges of defrauding the U.S. government of $4.2 million in a COVID-19-related fraud scheme.
The accusation against Oba Oloyede involves the alleged falsification of documents to acquire government loans intended for businesses adversely affected by the COVID-19 pandemic.
The monarch, who is also a citizen of the United States, is currently facing a 13-count fraud indictment in the U.S. District Court for the Northern District of Ohio.
He was arrested on May 4, 2024, following the issuance of a warrant for his apprehension.
The FBI alleges that he secured loans through his six registered companies. The applicants for these loans were mandated to submit tax records, wage statements, and various other financial documents to establish their eligibility.
Investigations indicate that Oba Oloyede allegedly falsified these crucial documents and misappropriated the funds for personal expenditures, constituting a violation of federal law.
According to FBI records, in June 2020 alone, Mr. Oloyede obtained over $100,000 in loans across four of his six companies, including Available Tax Services, Available Tutors, Available Financial, and Available Transportation. Subsequently, on October 7, 2021, he procured a $500,000 loan for JO&A, followed by another $500,000 loan two days later for Available Transportation.
Further inquiries suggest that the monarch aided co-conspirators in executing parallel fraudulent schemes, charging them a percentage of the loan amounts upon disbursement.
The investigation revealed that Oloyede assisted co-conspirators and confederate borrowers in submitting PPP and EIDL loan applications containing false information.
Additionally, the report states that on April 3, 2024, a grand jury in the U.S. District Court for the Northern District of Ohio indicted Oba Oloyede and Edward Oluwasanmi for conspiracy, wire fraud, and money laundering. Prosecutors contend that from April 2020 to February 2022, the pair fraudulently obtained over $4.2 million in SBA-guaranteed relief funds.
It is alleged that the Oba personally appropriated $1.7 million for his businesses and an additional $1.3 million by submitting fraudulent applications on behalf of co-conspirators.
The investigation is being conducted by the FBI, the Internal Revenue Service Criminal Investigation Division, and the Office of Inspector General of the U.S. Department of Transportation under the auspices of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, according to Sahara Reporters.