The Apetu of Ipetumodu, Oba Joseph Olugbenga Oloyede, a traditional ruler from Osun State, Nigeria, has been sentenced to 56 months in a United States federal prison for his role in a multimillion-dollar COVID-19 relief fraud scheme.
Delivering judgment on Tuesday, US District Judge Christopher Boyko convicted the monarch of wire fraud, money laundering, and tax offences linked to fraudulent applications for pandemic-era loan and grant programmes.
Fraudulent Scheme
According to prosecutors, Oba Oloyede, who holds dual Nigerian and American citizenship, conspired with Ohio resident Edward Oluwasanmi, 62, to file 38 fraudulent loan applications between April 2020 and February 2022 under the Paycheck Protection Programme (PPP) and the Economic Injury Disaster Loan (EIDL) scheme.
The pair siphoned more than $4.2 million, with Oloyede pocketing $1.7 million while Oluwasanmi secured $1.2 million for his companies.
Lavish Spending & Penalties
Investigators revealed that the monarch spent the funds on land, luxury real estate in Medina, Ohio, and high-end vehicles.
In addition to his prison term, Oloyede was ordered to:
- Pay $4.4 million in restitution.
- Forfeit his Medina residence and over $96,000 in seized proceeds.
- Serve three years of supervised release after prison.
Co-Conspirator’s Sentence
Oluwasanmi, a tax client-turned-partner, was sentenced in July 2024 to 27 months in prison, restitution of $1.2 million, forfeiture of a commercial property, and a $15,000 fine.
Investigations & Reaction
The case was jointly investigated by the FBI Cleveland Division, IRS-Criminal Investigations, and the US Department of Transportation’s Office of Inspector General, under the Pandemic Response Accountability Committee Fraud Task Force.
The conviction of a sitting Nigerian monarch has triggered widespread shock in Ipetumodu, Osun State, where many residents expressed disbelief that their traditional ruler was involved in defrauding pandemic relief funds.
The ruling highlights US authorities’ ongoing crackdown on COVID-19 fraud, which drained billions from emergency support programmes meant for struggling businesses.