Shockwaves in Osun: Nigerian Monarch Jailed in U.S. Over $4.2m COVID-19 Fraud

Oba Joseph Olugbenga Oloyede

By iNewsAfrica Staff Reporter | August 27, 2025

The ancient town of Ipetumodu, Osun State, was thrown into shock on Tuesday as news broke that its traditional ruler, Oba Joseph Olugbenga Oloyede, the Apetu of Ipetumodu, has been sentenced to over four years in prison in the United States for orchestrating a massive COVID-19 relief fraud scheme.

U.S. District Judge Christopher A. Boyko handed down the sentence of 56 months imprisonment on August 26, 2025, following Oloyede’s guilty plea to multiple counts of conspiracy to commit wire fraud, false tax returns, and engaging in monetary transactions involving criminal proceeds.

A Scheme Built on Pandemic Desperation

Court documents revealed that between April 2020 and February 2022, Oloyede—who holds dual U.S. and Nigerian citizenship—conspired with associates to exploit the Small Business Administration’s COVID-19 relief programs. The fraudsters filed 38 fraudulent loan applications, netting over $4.2 million meant to support struggling businesses and workers during the global pandemic.

Investigators say Oloyede used multiple business entities, including those of unsuspecting clients, to submit applications under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). He often charged clients 15–20% kickbacks on approved loans—payments he failed to declare on his taxes.

Lavish Lifestyle from Stolen Funds

Instead of helping small businesses survive, prosecutors said the monarch funneled the proceeds into luxury purchases—including land acquisitions, a high-end vehicle, and a lavish home in Medina, Ohio. That very property has now been seized by the U.S. government as part of restitution.

In addition to his prison term, Oloyede was ordered to pay $4,408,543.38 in restitution and forfeit $96,006.89 in cash seized during the investigation. He will also remain under three years of supervised release after completing his sentence.

From Royal Throne to Federal Prison

For many in Osun, the case has sparked outrage and disappointment. Oloyede ascended the throne as Apetu of Ipetumodu with promises of cultural preservation and community development, yet is now disgraced as one of several high-profile Nigerians convicted abroad for financial crimes.

“This is a dark day for our town. Our king, who should be a custodian of truth and honor, has brought shame to the stool,” a community elder told iNewsAfrica.

Wider Crackdown on COVID-19 Fraud

The sentencing underscores the U.S. Department of Justice’s aggressive crackdown on pandemic relief fraud, which saw billions of dollars siphoned off by fraudulent actors worldwide. Federal prosecutors stressed that no one is above the law—be they businesspeople, politicians, or even traditional monarchs.

As the Apetu of Ipetumodu begins his prison term, the case raises broader questions about the intersection of traditional authority, integrity, and accountability in Nigeria’s leadership.