Osun Monarch, Apetu of Ipetumodu, Sentenced to Nearly Five Years in US Prison for $4.2 Million COVID-19 Relief Fraud
In a stunning fall from grace, a traditional Nigerian monarch has been sentenced to a significant federal prison term in the United States for orchestrating a multi-million dollar pandemic relief fraud scheme. Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun State, was sentenced on Tuesday to four years and eight months in prison by Judge Christopher Boyko of the United States District Court.
The sentencing marks the culmination of a major investigation into the abuse of COVID-19 relief funds and serves as a stark warning against the exploitation of emergency assistance programs designed to help struggling businesses and individuals during the global health crisis.
The Details of the Fraudulent Scheme
According to the U.S. Department of Justice, Oloyede masterminded a sophisticated scheme that fraudulently obtained approximately $4.2 million in COVID-19 relief funds. The monarch, who is also a U.S.-based accountant and information systems expert, pleaded guilty to 13 separate charges related to the scam, including conspiracy to commit wire fraud, wire fraud, money laundering, and engaging in monetary transactions with criminally derived property.
The elaborate fraud involved submitting numerous false applications for pandemic relief programs established by the U.S. government to support businesses during lockdowns and economic disruptions. These programs, including the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), were intended as lifelines for legitimate businesses struggling to stay afloat during the unprecedented crisis.
Co-Conspirator and Additional Charges
Oloyede did not act alone in executing this scheme. He was arrested alongside Edward Oluwasanmi, a Nigerian pastor, in early 2024 for their coordinated roles in the fraudulent operation. The two men faced identical 13-count indictments for their participation in the conspiracy to defraud the United States government.
Beyond the wire fraud and conspiracy charges, Oloyede was also ordered to pay $195,000 to the Internal Revenue Service (IRS) for filing a false tax return—a separate but related offense that demonstrated the comprehensive nature of his financial crimes.
Court Orders Significant Financial Penalties
In addition to the prison sentence, Judge Boyko imposed severe financial penalties on the traditional ruler. The court ordered Oloyede to pay $4.2 million in restitution—the full amount fraudulently obtained from COVID-19 relief programs. This restitution order aims to recoup the taxpayers’ money that was misappropriated through the scheme.
The forfeiture orders extended beyond cash repayments. The judge mandated that Oloyede surrender $96,000 seized from his bank accounts and forfeit his home on Foote Road, which records show he purchased in 2021 for $130,000 using proceeds from the fraudulent activities. These asset seizures are typical in fraud cases where criminals attempt to convert illegally obtained funds into tangible property.
The Judge’s Stern Rebuke
During the sentencing hearing, Judge Boyko delivered a pointed assessment of Oloyede’s actions, describing him as “a very smart guy who did a lot of stupid things.” This characterization highlighted the particular disappointment in seeing someone with obvious intelligence and education—an accountant and information systems expert—choose to exploit emergency relief programs meant for those genuinely suffering during the pandemic.
The judge further indicated that he would have imposed an even longer prison sentence if not for Oloyede’s undisclosed health issues, suggesting that the court showed some measure of leniency based on medical considerations.
A Royal Title Amid Criminal Activities
What makes this case particularly noteworthy is Oloyede’s dual identity as both a U.S.-based financial professional and a traditional Nigerian ruler. He was appointed as the Apetu of Ipetumodu in July 2019, approximately a year before the COVID-19 pandemic began and just as he was initiating the fraudulent scheme that would ultimately lead to his downfall.
This juxtaposition of traditional authority and modern financial crime has captured public attention on both sides of the Atlantic, raising questions about how someone holding such a respected position could engage in systematic fraud against a government program designed to help those in need during a global emergency.
Broader Implications for COVID-19 Relief Fraud Prosecutions
Oloyede’s case represents just one of thousands of prosecutions underway related to COVID-19 relief fraud in the United States. The U.S. government has identified approximately $200 billion in potential fraud across its various pandemic relief programs, representing nearly 20% of the $1.2 trillion disbursed through these initiatives.
The Department of Justice has established a COVID-19 Fraud Enforcement Task Force to coordinate investigations and prosecutions of pandemic-related fraud cases. To date, the agency has charged more than 3,500 defendants with crimes related to pandemic relief fraud, seized over $1.4 billion in fraudulently obtained funds, and initiated more than 400 civil investigations into potential fraud.
International Dimensions of Pandemic Fraud
This case also highlights the international dimensions of COVID-19 relief fraud, with schemes often crossing borders and involving participants from multiple countries. The collaboration between U.S. authorities and international law enforcement agencies has been crucial in identifying and prosecuting these complex cases.
For Nigeria specifically, the case represents an embarrassment as the country works to combat its reputation as a hub for financial fraud. The involvement of a traditional ruler in such a scheme is particularly damaging to efforts to improve Nigeria’s international standing regarding financial crimes.
The Path Forward: Incarceration and Aftermath
With his sentencing now complete, Oloyede will begin serving his 56-month prison term in the U.S. federal prison system. Following his release, he will likely face deportation proceedings as a non-citizen convicted of serious crimes, which would bar him from reentering the United States.
The financial penalties imposed will continue long after his prison term ends. The restitution order of $4.2 million represents a debt that will follow him indefinitely, with the U.S. government authorized to pursue collection through various means, including garnishment of future income and seizure of assets.
Back in Ipetumodu, the community must now grapple with the absence of their traditional ruler and the stigma associated with his criminal conviction. The kingship tradition will likely face questions about how to proceed when a sitting monarch is convicted of serious crimes in a foreign jurisdiction.
Conclusion: A Cautionary Tale
The case of Oba Joseph Oloyede serves as a stark cautionary tale about the consequences of exploiting emergency relief programs. It demonstrates that neither professional credentials nor traditional titles provide immunity from prosecution for financial crimes, particularly those that divert resources meant for those truly in need during times of crisis.
As the world continues to assess the full impact of pandemic relief programs and work to recover misappropriated funds, this sentencing sends a clear message that those who sought to profit from global suffering will be held accountable—regardless of their status or position.
Full credit to the original publisher: Per Second News – https://persecondnews.com/2025/08/27/96618/