COVID-19 Fraud: US Court Jails Nigerian Pastor As Osun Monarch Forfeits Property 

A United States District Court has sentenced a Nigerian pastor, Edward Oluwasanmi, to 27 months in prison for his involvement in a multi-million-dollar COVID-19 relief fund fraud scheme.

Oluwasanmi was convicted alongside his associate and friend, Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun State, who has forfeited property to the US government and is awaiting sentencing on August 1.

The duo was arrested in early 2024 over fraudulent claims amounting to $4.2 million in COVID-19 relief funds, obtained through falsified applications submitted under the Paycheck Protection Programme (PPP) and Economic Injury Disaster Loans (EIDL), which were enacted under the US Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to The Punch, Court records reviewed indicated that Justice Christopher Boyko of the US District Court for the Northern District of Ohio sentenced Oluwasanmi on Wednesday, July 2. The pastor received 27 months in prison on counts one, 11, and 12 of the indictment, to be served concurrently. He was also ordered to pay a $15,000 fine and report to the US Marshal Service.

The judgement includes a three-year supervised release period for each count, to also run concurrently.

As part of the sentencing, Oluwasanmi will forfeit a commercial property located at 422 South Green Road, South Euclid, Ohio.

The court, in its ruling, stated, “As a result of the foregoing offences, defendants Joseph Oloyede and Edward Oluwasanmi shall forfeit to the United States: all property, real and personal, which constitutes, or is derived from, proceeds traceable to the commission of the wire fraud, wire fraud conspiracy offenses… and any property traceable to such property.”

Oba Oloyede, who was also a US-based accountant and information systems expert, pleaded guilty to counts one and 13 on April 21, and is scheduled to be sentenced on Friday, August 1. His guilty plea followed months of legal proceedings and a plea agreement with the US government.

The monarch, who ascended the Apetu stool in July 2019, was accused of using several companies, including Available Tax Services Incorporated, Available Financial Corporation, and Available Transportation Company, to perpetrate the fraud. The court documents revealed that fake tax and wage documents were submitted to secure relief funds intended to assist struggling businesses during the pandemic.

Meanwhile, the Osun State Government said it was closely monitoring the situation but will await the final outcome of the monarch’s trial before taking action.

Commissioner for Information and Public Enlightenment, Kolapo Alimi, stated this on Friday saying, “A person is innocent until a court convicts them. So, we don’t want to jump the gun; let us wait for the court’s pronouncement on the matter.”

The government had earlier launched a preliminary inquiry into Oba Oloyede’s prolonged absence from the palace and public engagements.

The CARES Act was introduced in 2020 to mitigate the economic fallout of the COVID-19 pandemic by providing loans and grants to small businesses and nonprofits affected by the crisis. The fraudulent activities committed by Oluwasanmi and Oloyede reportedly took place between April 2020 and February 2022.