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Baton Rouge Businessman Sentenced to Prison for COVID-19 Loan Fraud
Baton Rouge Businessman Sentenced to Prison for COVID-19 Loan Fraud
Adolphus Obioha, a 65-year-old Nigerian naturalized citizen and owner of a driving school in Baton Rouge, was sentenced to 18 months in federal prison for fraudulently obtaining small-business loans totaling over $426,000 during the COVID-19 pandemic. Despite pledging to use the funds to keep his business afloat, Obioha sent a significant portion of the money overseas to relatives and used some of it to purchase property and a personal vehicle.
U.S. District Judge Brian Jackson also ordered Obioha to repay $472,000 in restitution to the U.S. Small Business Administration, the amount estimated to have been lost due to his fraudulent actions. Obioha pleaded guilty to theft of government funds and was given three years of court supervision after his release from prison.
Obioha, who immigrated to the U.S. in 1983 and established his driving school in 1997, applied for an Economic Injury Disaster Loan in June 2020 and received $104,000, which he misused for personal expenses. He later applied for and received an additional $323,000, which he also diverted for personal use.
Despite expressing remorse and claiming ignorance of the severity of his actions, Judge Jackson rebuked Obioha for taking advantage of the opportunities provided to him in the U.S. and failing to uphold the law. The judge emphasized the importance of accountability and ordered Obioha to surrender to federal authorities by June 24.
The case serves as a cautionary tale about the consequences of fraudulent behavior, especially during times of crisis when government aid is crucial for struggling businesses.
