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Fraud

Defendant Sentenced to Prison for $4.2M SBA Loan and Grant Program Scheme

Strategic Insights

— 2 min read

A dual American and Nigerian citizen has been sentenced to prison for creating and leading a scheme that bilked over $4.2 million from federal loan and grant programs intended to assist small businesses during the COVID-19 pandemic. Joseph Oloyede, 62, was sentenced to 56 months in prison and ordered to serve three years of supervised release after imprisonment. He also forfeited his home and $96,006.89 in fraud proceeds and was ordered to pay $4,408,543.38 in restitution.

Oloyede and his co-conspirator, Edward Oluwasanmi, 62, submitted fraudulent loan applications using false information, obtaining approximately $1.2 million in SBA funds for Oluwasanmi's entities and $1.7 million for Oloyede's entities. Oloyede used the funds to acquire land, build a home, and purchase a luxury vehicle. The scheme caused the SBA to approve 38 fraudulent applications, amounting to $4,213,378 in disbursed loans and advances.

Key Takeaways:

  • Defendant Joseph Oloyede, a dual American and Nigerian citizen, was sentenced to 56 months in prison for leading a scheme that bilked over $4.2 million from federal loan and grant programs.
  • Oloyede and his co-conspirator, Edward Oluwasanmi, submitted 38 fraudulent loan applications, obtaining approximately $2.9 million in SBA funds.
  • Oloyede used the funds to acquire land, build a home, and purchase a luxury vehicle.
  • Oloyede was ordered to pay $4,408,543.38 in restitution and forfeited his home and $96,006.89 in fraud proceeds.
  • Oluwasanmi was sentenced to 27 months in prison and ordered to forfeit a commercial property and $600,000 he had transferred to financial accounts.
  • The scheme targeted the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, which provided loans and grants to small businesses during the COVID-19 pandemic.

Statistics:

  • $4,213,378: Total amount of disbursed loans and advances obtained through fraudulent applications.
  • $4,408,543.38: Amount of restitution Oloyede was ordered to pay.
  • 56 months: Length of prison sentence imposed on Oloyede.
  • 38: Number of fraudulent loan applications submitted by Oloyede and Oluwasanmi.
  • $2.9 million: Total amount of SBA funds obtained through fraudulent applications.
  • $1.7 million: Amount of SBA funds obtained for Oloyede's entities.
  • $1.2 million: Amount of SBA funds obtained for Oluwasanmi's entities.

Sources:

  • United States Attorney's Office for the Northern District of Ohio
  • U.S. Department of Transportation-Office of the Inspector General
  • FBI Cleveland Division
  • IRS-Criminal Investigations
  • Pandemic Response Accountability Committee Fraud Task Force

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