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Fraud

$4.2 Million COVID-19 Relief Fund Fraud Case Unfolds in Cleveland

Strategic Insights

— 1 min read

The U.S. Attorney's Office for the Northern District of Ohio announced a federal grand jury in Cleveland returned a 13-count indictment against two individuals for allegedly defrauding the Small Business Administration (SBA) of approximately $4.2 million in COVID-19 relief funds. Joseph Oloyede, 61, and Edward Oluwasanmi, 61, are accused of participating in a scheme to obtain funds under false pretenses using the SBA's Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) from April 2020 to February 2022. The indictment alleges that Oloyede and Oluwasanmi submitted false loan applications, tax documents, and wage information to obtain funds for entities under their control.

Key Takeaways:

  • A federal grand jury in Cleveland returned a 13-count indictment against Joseph Oloyede and Edward Oluwasanmi for allegedly defrauding the SBA of approximately $4.2 million in COVID-19 relief funds.
  • The indictment alleges that Oloyede and Oluwasanmi participated in a scheme to obtain funds under false pretenses using the SBA's EIDL and PPP programs from April 2020 to February 2022.
  • Oloyede and Oluwasanmi allegedly submitted false loan applications, tax documents, and wage information to obtain funds for entities under their control.
  • The indictment states that Oloyede and Oluwasanmi obtained approximately $1.2 million in SBA funds for Oluwasanmi's entities and $1.7 million for Oloyede's entities.
  • Oloyede is also alleged to have submitted falsified PPP and EIDL loan applications in the names of other co-conspirators and confederate borrowers and their businesses, obtaining approximately $1.3 million through those applications.

Statistics:

  • $4.2 million: The approximate amount of COVID-19 relief funds allegedly defrauded by Oloyede and Oluwasanmi.
  • $1.2 million: The amount of SBA funds obtained by Oluwasanmi's entities.
  • $1.7 million: The amount of SBA funds obtained by Oloyede's entities.
  • $1.3 million: The amount obtained through falsified loan applications submitted by Oloyede.

Sources:

  • A US Department of Justice press release dated February 2023.
  • The U.S. Attorney's Office for the Northern District of Ohio website.
  • The Cleveland FBI's official press release on their website.

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