How a Nigerian Pastor, Monarch Got Caught in a $4.2m COVID-19 Fraud Scandal in US

A Nigerian pastor, Edward Oluwasanmi, has been sentenced to 27 months in prison by a United States District Court over his involvement in a $4.2 million COVID-19 relief fund fraud. His co-accused, a traditional ruler and the Apetu of Ipetumodu, Oba Joseph Oloyede, has also forfeited multiple properties in connection with the crime while awaiting his sentencing scheduled for August 1.

The duo were arrested in early 2024 and later pleaded guilty to multiple charges including conspiracy to commit wire fraud, money laundering, and engaging in monetary transactions from criminal proceeds. According to court documents, they exploited the U.S. Paycheck Protection Programme and the Economic Injury Disaster Loan scheme between April 2020 and February 2022, submitting falsified applications backed by fake tax and wage documents.

Pastor Oluwasanmi was convicted on counts 1, 11, and 12, with the judge ordering the prison sentence to run concurrently. He was also fined $15,000 and directed to report to the U.S. Marshal Service. Additionally, he will serve three years of supervised release and forfeit a commercial property located in South Euclid, Ohio.

Oba Oloyede, who is also a U.S.-based accountant, was accused of using his companies—Available Tax Services Inc., Available Financial Corporation, and Available Transportation Company—to carry out the fraud. Though he has pleaded guilty to his charges, his formal sentencing has been fixed for August 1.

The court ruled that both men must forfeit all assets derived from or linked to the fraud, including any property involved in money laundering offenses.

Meanwhile, in Nigeria, the Osun State Government has maintained a cautious stance, stating that it will await the court’s final ruling before taking any action on Oba Oloyede’s royal status. State Commissioner for Information, Kolapo Alimi, reaffirmed the principle of “innocent until proven guilty,” adding that no steps would be taken until a final judgment is delivered.

The U.S. Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted to help small businesses and nonprofits survive the economic fallout of the pandemic. Both men now face the consequences of defrauding a system meant to provide lifelines to struggling entities.