Former Business Owner Sentenced to 56 Months for PPP Loan Fraud Scheme

Joseph Oloyede, a former business owner, was sentenced to 56 months of incarceration for his role in a Paycheck Protection Program (PPP) loan fraud scheme. Oloyede, along with co-defendant Edward Oluwasanmi, submitted falsified loan applications and fake tax documents to secure millions of dollars in Small Business Administration funds. The scheme, which took place from April 2020 through February 2022, resulted in Oloyede and Oluwasanmi receiving $1.7 million and $1.2 million, respectively. The investigation, conducted by the Department of Transportation's Office of Inspector General (DOT-OIG) and the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, revealed that Oloyede also submitted other falsified loan applications in the names of co-conspirators and their businesses, obtaining an additional $1.3 million. Oloyede's total take from the scheme was at least $4.2 million.

Key Takeaways:

• Oloyede was sentenced to 56 months of incarceration for conspiracy to commit wire fraud, money laundering, and two counts of making and subscribing a false tax return.
• The investigation revealed Oloyede and Oluwasanmi submitted falsified Payroll Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications as well as fake tax and wage documents.
• The scheme resulted in Oloyede and Oluwasanmi receiving $1.7 million and $1.2 million, respectively, in Small Business Administration funds.
• Oloyede submitted other falsified PPP and EIDL loan applications in the names of co-conspirators and their businesses, obtaining an additional $1.3 million.
• Oloyede's total take from the scheme was at least $4.2 million.
• The investigation also revealed falsified U.S. Corporation Income Tax Returns filed by Oloyede for 2020 and 2021.
• The case was conducted by the Department of Transportation's Office of Inspector General (DOT-OIG), the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigation as part of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force.

Statistics:

• $4,408,543: Total restitution ordered, including $1,207,470 in joint and several restitution with co-defendant Edward Oluwasanmi
• $96,006: Forfeited amount
• $400: Special assessment
• $1.7 million: Amount received by Oloyede from Small Business Administration funds
• $1.2 million: Amount received by Oluwasanmi from Small Business Administration funds
• $1.3 million: Additional amount obtained by Oloyede through other falsified loan applications
• $4.2 million: Total take from the scheme

Sources:

• U.S. Department of Transportation
• Office of Inspector General
• U.S. District Court for the Northern District of Ohio