Osun Monarch, Apetu Of Ipetumodu, Olugbenga Oloyede, Jailed 56 months In US Over $4.2 Million COVID-19 Fraud

August 29, 2025

A U.S. federal court has sentenced Oba Joseph Olugbenga Oloyede, the Apetu of Ipetumodu in Ife North Local Government Area of Osun State, to 56 months imprisonment for orchestrating a multi-million-dollar fraud scheme targeting U.S. COVID-19 relief programmes that were intended to assist small businesses with economic hardship they suffered as a result of the COVID-19 pandemic.

The monarch, who pleaded guilty in April 2025, was convicted of Wire Fraud, Tax Fraud, and Money Laundering after he and his associate, Edward Oluwasanmi, submitted 38 fraudulent applications under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).

Between 2020 and 2022, Oloyede and his partner obtained over $4.2 million, with prosecutors revealing that the monarch diverted proceeds into personal luxury spending, including his Medina, Ohio mansion.

U.S. District Judge Christopher A. Boyko on August 26 not only handed him a four years and eight months prison term but also ordered $4.4 million restitution, forfeiture of assets, and three years of supervised release after prison.

The Osun State Government has responded discreetly, with Commissioner for Local Government and Chieftaincy Matters, Dosu Babatunde, saying the government would not take any action until it must have first obtain certified copies of the U.S. court judgment before making any pronouncement on Oloyede’s throne.

“This is a sensitive matter. We will not act on social media reports. The Ministry will engage legal advisers, review the judgment, and follow due process before any decision on the Apetu stool is taken,” Babatunde told reporters in Osogbo.

In Ipetumodu, community sources told our reporters that residents were shocked and embarrassed by the news. Some chiefs expressed disappointment, saying the monarch’s actions had brought “global disgrace” to the town.

One palace insider, who spoke anonymously, asked “How can a custodian of tradition be involved in fraud abroad?” However, rival royal families in Ipetumodu are reportedly already lobbying for succession in anticipation of possible dethronement.

Legal experts argue that the conviction presents a test case for Nigeria’s handling of traditional rulers implicated in international crimes.

A constitutional lawyer Olusula Abiola (SAN) told Peoples Chronicles that while Nigerian monarchs are “not above the law,” the Nigerian Constitution leaves deposition to state governments, meaning Governor Ademola Adeleke have a responsibility and a serious decision to make.

“This case highlights the dangers of handing traditional authority to criminals. A monarch found guilty of financial crimes abroad undermines both Nigeria’s image and the credibility of the chieftaincy institution,” Abiola said.

U.S. prosecutors said the conviction reflects Washington’s resolve to pursue pandemic fraud globally. The FBI, IRS-Criminal Investigation, and Small Business Administration-OIG jointly investigated the case.

“Fraudsters, regardless of title or position, will be held accountable,” the U.S. Attorney’s Office in Ohio stated.

The conviction of a sitting Nigerian monarch abroad has also stirred debate about dual citizenship, integrity in leadership, and Nigeria’s worsening global reputation for corruption. For now, the once-revered Osun State Monarch faces years behind bars in America — his crown hanging precariously on the weight of a fraud conviction that could define Nigeria’s traditional establishment.