Oba Joseph Olugbenga Oloyede, the traditional ruler of Ipetumodu in Osun State, was recently sentenced to nearly five years in a U.S. federal prison for his role in a significant COVID-19 relief fraud scheme. The sentencing, which took place on August 26, 2025, in a U.S. District Court in Cleveland, Ohio, marked the culmination of a legal saga that began with his arrest and subsequent guilty plea.
The fraud scheme, as detailed by the U.S. Attorney’s Office for the Northern District of Ohio, involved the exploitation of the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. These programs were created under the CARES Act to provide emergency financial relief to small businesses struggling due to the COVID-19 pandemic.
Oba Oloyede, a dual citizen of the U.S. and Nigeria, was found to have conspired with others to submit multiple fraudulent applications for these loans.
According to court documents, Oba Oloyede and his co-conspirators fabricated information to secure millions of dollars in loans. They allegedly created fictitious business entities, provided false employee and payroll data, and submitted fraudulent tax forms. The total amount of the fraud exceeded $4.4 million, with the funds intended to help legitimate businesses but instead being siphoned off for personal gain.
The investigation into Oba Oloyede’s activities was conducted by several U.S. federal agencies, including the FBI and the Small Business Administration Office of Inspector General. He was arrested and later pleaded guilty to charges of conspiracy to commit wire fraud. His plea was a key factor in the legal proceedings, as it led to a reduced sentence compared to what he might have faced if he had gone to trial and been convicted on all counts.
During the sentencing, U.S. District Judge Christopher A. Boyko sentenced him to 56 months in prison, a term that reflects the seriousness of the crime and the significant amount of money involved. In addition to the prison sentence, Oba Oloyede was ordered to pay back the full $4.4 million in restitution to the U.S. government. He must also serve three years of supervised release after his prison term and forfeit a home he had purchased in the U.S. using the fraudulent funds.
The conviction and imprisonment of a traditional ruler on foreign soil have significant implications in Nigeria, particularly in the town of Ipetumodu. The Apetumodu stool, as the title is known, is a respected position with deep historical and cultural roots. The news of Oba Oloyede’s sentencing has raised questions about the future of his reign and the traditional leadership of the town.
The Osun State Government has weighed in on the matter, stating that it is taking a careful approach. A spokesperson for the government indicated that they will need to obtain an official and Certified True Copy of the judgment from the U.S. court before they can make any formal decision regarding Oba Oloyede’s status as the traditional ruler. This process is crucial as it will provide the legal basis for any action, such as a possible dethronement or the appointment of an interim leader.
The case has become a cautionary tale, highlighting the reach of U.S. law enforcement and the consequences for individuals who engage in financial crimes, regardless of their status or title in another country.
It also underscores the importance of due process in traditional governance, as the Osun State Government seeks to navigate a complex legal and cultural issue. The future of the Apetumodu stool remains uncertain as the community and government await the next steps.
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