Nigerian Cleric Gets 27 Months in U.S. Prison After COVID-19 Relief Fraud Scheme Worth Millions Exposed

 

A Nigerian pastor, Edward Oluwasanmi, has been sentenced to 27 months in federal prison by a United States District Court for his role in a large-scale COVID-19 relief fraud scheme that siphoned millions of dollars meant for struggling businesses. The case, which also involves a Nigerian traditional ruler, Oba Joseph Oloyede, has drawn both international attention and scrutiny from government authorities in Nigeria.

The sentencing was delivered by Judge Christopher Boyko of the U.S. District Court for the Northern District of Ohio on Wednesday, July 2. Pastor Oluwasanmi was found guilty on three counts related to wire fraud, including counts one, eleven, and twelve of a federal indictment. The sentences for each count will run concurrently, making the total prison time 27 months. Additionally, he was fined $15,000 and will serve three years of supervised release following his imprisonment, also to run concurrently for each count.

Court records revealed that Oluwasanmi will forfeit a commercial property located at 422 South Green Road, South Euclid, Ohio. Authorities concluded that the building was linked to the proceeds of the fraudulent scheme and ordered it to be turned over to the U.S. government. The ruling emphasized that all real and personal property traced to the wire fraud offenses committed by both Oluwasanmi and his co-defendant, Oba Oloyede, should be surrendered.

Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun State, Nigeria, is still awaiting sentencing. He pleaded guilty on April 21 to counts one and thirteen of the indictment as part of a plea agreement with prosecutors. His sentencing has been scheduled for August 1, 2025.

Authorities disclosed that the fraudulent scheme involved the submission of fake applications to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL), both critical parts of the U.S. federal government’s CARES Act. These programs were introduced to support businesses affected by the COVID-19 pandemic between April 2020 and February 2022.

Investigators found that Oluwasanmi and Oloyede filed fraudulent wage and tax documents to claim over $4.2 million in pandemic relief funds. The funds were intended to provide essential financial lifelines to businesses impacted by lockdowns and economic disruptions during the height of the global health crisis. Instead, the defendants allegedly used fake companies and false employment records to deceive the federal government.

Oloyede, who maintained a professional background in accounting and information systems while living in the U.S., used several companies under his control to carry out the scheme. These included Available Tax Services Inc., Available Financial Corporation, and Available Transportation Company. The companies were reportedly instrumental in presenting forged documents to U.S. agencies.

Nigerian authorities are now closely monitoring the case, particularly due to the involvement of a sitting traditional ruler. Kolapo Alimi, Osun State’s Commissioner for Information and Public Enlightenment, stated that the government is aware of the situation but is choosing to remain cautious until all legal proceedings conclude.

“No official action will be taken until there is a final judicial determination,” Alimi said. “Our position remains that every individual is presumed innocent until found guilty by a competent court.”

While Oluwasanmi’s sentencing has already been handed down, attention has now shifted to the upcoming sentencing of Oba Oloyede. Questions are being raised about the potential implications for his traditional role in Ipetumodu. The community has reportedly been experiencing his prolonged absence, with initial investigations into his disengagement from royal responsibilities having begun before news of the legal proceedings became public.

The outcome of Oloyede’s sentencing in August could have significant repercussions for his position as a traditional leader, and possibly for the wider perception of leadership accountability both in Nigeria and abroad. The Osun State government is expected to make a formal decision based on the verdict.

As the U.S. justice system continues its pursuit of accountability in the misuse of pandemic relief funds, this case serves as a striking example of how global cooperation and rigorous enforcement can expose complex financial crimes, regardless of the perpetrator’s status or title.