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Fraud

Defendant Sentenced to Prison for $4.2M Stimulus Scheme

Strategic Insights

— 1 min read

A dual American and Nigerian citizen, Joseph Oloyede, has been sentenced to 56 months in prison for leading a conspiracy that fraudulently obtained over $4.2 million in pandemic stimulus from the Small Business Administration (SBA). The scheme, which operated from April 2020 to February 2022, involved Oloyede and his co-conspirator, Edward Oluwasanmi, submitting fraudulent loan applications under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The defendants used their businesses to submit 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.

Key Takeaways:

  • Oloyede, a 62-year-old dual citizen, was sentenced to 56 months in prison for leading a conspiracy that bilked over $4.2 million from federal loan and grant programs.
  • The scheme involved submitting fraudulent loan applications under the CARES Act, using false information to obtain loans for Oloyede's and Oluwasanmi's entities.
  • The defendants used their businesses to submit loan applications, obtaining approximately $1.2 million in SBA funds for Oluwasanmi's entities and $1.7 million for Oloyede's entities.
  • Oloyede was also ordered to serve three years of supervised release after imprisonment and pay $4,408,543.38 in restitution.
  • He also forfeited his Medina home on Foote Road, which he had acquired with proceeds of the scheme, and an additional $96,006.89 in fraud proceeds investigators had seized.
  • Oluwasanmi, Oloyede's co-defendant, was sentenced to 27 months in prison for his role in the conspiracy, and ordered to serve three years of supervised release, pay a $15,000 fine, and pay more than $1.2 million in restitution.

Statistics:

  • $4,213,378: The total amount of disbursed loans and advances approved by the SBA as a result of Oloyede's scheme.
  • 38: The number of fraudulent loan applications submitted by Oloyede.
  • $4,408,543.38: The amount of restitution Oloyede was ordered to pay.
  • 56 months: The prison sentence Oloyede was handed for leading the conspiracy.
  • 3 years: The length of supervised release Oloyede was ordered to serve after his imprisonment.

Sources:

  • "U.S. Attorney Announces Sentencing in Pandemic Relief Scheme." U.S. Department of Justice.
  • "FBI: Defendant Sentenced to Prison for $4.2M Stimulus Scheme." Contify.com.

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