Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun State, has been sentenced by a U.S. federal court to 56 months in prison for orchestrating a $4.2 million COVID‑19 relief fraud scheme.
He was also ordered to serve three years of supervised release and pay restitution of approximately $4.4 million. In addition, authorities seized his Medina, Ohio residence, acquired through proceeds of the fraud, along with $96,006.89 in other illicit gains.
The court found that between April 2020 and February 2022, Oloyede, in collaboration with Edward Oluwasanmi, submitted fraudulent loan applications under the U.S. Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) schemes. They used multiple businesses and a nonprofit, some belonging to Oloyede’s clients, to submit falsified claims, receiving roughly $1.7 million and $1.2 million, respectively. Oloyede also pocketed 15–20 percent in kickbacks for facilitating these loans without reporting the income to the IRS. The misused funds financed land acquisition, construction of a personal residence, and the purchase of a luxury vehicle. In total, 38 fraudulent applications resulted in disbursed funds of approximately $4.2 million.
Following the sentencing, discussions have emerged that the Osun State government, led by Governor Ademola Adeleke, may move to depose the monarch. Officials have indicated that any decision regarding Oloyede’s traditional status will await the conclusion of his U.S. trial and related proceedings.
