How U.S. Jailed Osun Monarch Over $4.2m Pandemic Fraud
THECONSCIENCE NG reports that the Ipetumodu community in Osun State has been thrown into shock after news broke that its traditional ruler, Oba Joseph Olugbenga Oloyede, the Apetu of Ipetumodu, was sentenced to more than four years in a United States prison for his role in a multi-million-dollar COVID-19 fraud scheme.
For many in the community, the development is more than just a headline — it is the downfall of a leader once entrusted with guiding his people. Oloyede, 62, who also holds U.S. citizenship, was convicted of wire and tax fraud after taking advantage of emergency loan programmes designed to help struggling American businesses during the pandemic.
On 26 August, U.S. District Judge Christopher A. Boyko delivered the verdict: a 56-month prison term, three years of supervised release, and a restitution order of more than $4.4 million. The monarch also lost his Medina, Ohio mansion and nearly $100,000 traced to the fraudulent activities.
Prosecutors said Oloyede, working with his partner, Edward Oluwasanmi, carried out the fraud between April 2020 and February 2022, filing dozens of fake loan applications under the U.S. government’s CARES Act. “Oloyede exploited the desperation of the pandemic, submitting fraudulent PPP and EIDL applications — even in the names of unsuspecting clients,” the U.S. Attorney’s Office said. “He pocketed kickbacks of up to 20% on loans he illegally secured, while failing to report this dirty money on his tax returns.”
Behind the court documents lies a tale of misplaced priorities. Investigators revealed that the monarch, who also worked as a tax preparer, diverted the stolen funds into luxury — acquiring land, building a lavish home, and buying expensive cars — while countless small businesses in America were closing their doors for good.
His accomplice, Oluwasanmi, 62, received his own punishment in July: 27 months in prison, $1.2 million in restitution, and the forfeiture of properties and bank accounts linked to the fraud. But it was Oloyede, as a traditional leader, whose fall from grace carries heavier symbolic weight.
According to investigators, Oloyede personally orchestrated 38 fraudulent loan approvals, worth over $4.2 million. “This was not just fraud, it was theft from the American people at their most vulnerable time,” prosecutors noted, underscoring the moral stain of the scheme.
The U.S. Attorney’s Office said the case was painstakingly investigated by the FBI, IRS-Criminal Investigations, and the Pandemic Response Accountability Committee Fraud Task Force.
For his community, back home in Nigeria, it raises painful questions about trust, leadership, and the human cost of betrayal.
