- A U.S. court has sentenced the Apetu of Ipetumodu, Osun State, Oba Joseph Olugbenga Oloyede, to 56 months in prison for a $4.2 million COVID-19 relief fund scam.
- The monarch pleaded guilty to wire fraud, money laundering, and false tax filings after diverting pandemic aid through fake loan applications.
- He was ordered to repay over $4.4 million and forfeit assets, including a house and cash.
A United States court has sentenced the Apetu of Ipetumodu in Osun State, Oba Joseph Olugbenga Oloyede, to four years and eight months imprisonment over his involvement in a $4.2 million COVID-19 relief fraud scheme.
The judgment was delivered on Tuesday by Judge Christopher Boyko of the U.S. District Court for the Northern District of Ohio, who also ordered the monarch to pay more than $4.4 million in restitution and to forfeit assets linked to the crime.
According to the U.S. Attorney’s Office, Oloyede pleaded guilty to six counts, including conspiracy to commit wire fraud, money laundering, and filing false tax returns.
Investigators revealed that from April 2020 to February 2022, Oloyede, along with his associate, 62-year-old Edward Oluwasanmi, exploited federal COVID-19 relief programmes designed to support businesses during the pandemic.
They reportedly submitted multiple fraudulent applications under the Paycheck Protection Programme (PPP) and the Economic Injury Disaster Loan (EIDL) scheme, using shell companies and even the identities of tax clients.
Court documents showed that Oloyede personally pocketed about $1.7 million, while Oluwasanmi received approximately $1.2 million. The monarch also allegedly collected kickbacks of up to 20 percent from fake loans filed under his clients’ names.
Prosecutors said Oloyede used part of the illicit funds to buy land, construct a house, and acquire a luxury vehicle. He has since forfeited his home in Medina, Ohio, along with nearly $100,000 in seized proceeds.
Oluwasanmi had earlier been sentenced in July 2024 to 27 months in prison, a $15,000 fine, and restitution exceeding $1.2 million.
The large-scale fraud, involving at least 38 bogus loan applications, was uncovered following investigations by the FBI, IRS–Criminal Investigations, and the U.S. Department of Transportation Office of the Inspector General, working under the Pandemic Response Accountability Committee Fraud Task Force.
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