Osun State’s traditional ruler, Oba Joseph Olugbenga Oloyede, known as the Apetu of Ipetumodu, has been sentenced to 56 months in a U.S. federal prison following his role in a multimillion-dollar COVID-19 relief fraud scheme.
Court Verdict and Sentence Details
On August 26, 2025, U.S. District Judge Christopher A. Boyko, sitting in the Northern District of Ohio, handed down the sentence. The court also ordered Oba Oloyede to pay $4,408,543.38 in restitution, serve three years of supervised release, and forfeit property tied to the scheme, including his home in Medina, Ohio, and approximately $96,000 in seized funds.
The Fraud Scheme Unveiled
Between April 2020 and February 2022, Oba Oloyede and his co-conspirator, Edward Oluwasanmi, orchestrated a scheme exploiting the U.S. Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs under the CARES Act. They submitted dozens of fraudulent applications through multiple shell companies and misused identities of tax clients to illicitly secure relief funds.
Oba Oloyede personally benefited from about $1.7 million, while Oluwasanmi received around $1.2 million. A portion of the fraud proceeds funded real estate purchases, a luxury vehicle, and other personal acquisitions.
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Guilty Plea and Appeal for Leniency
On April 21, 2025, Oba Oloyede formally entered a guilty plea to counts including conspiracy to commit wire fraud and money laundering. His lawyers filed a sentencing memorandum on August 19, urging the court to factor in the emotional and health strain caused by the pandemic. They argued that while COVID-19 was not a justification, it was a contributing factor in his misconduct.
Background and Fallout in Ipetumodu
Oba Oloyede’s arrest in May 2024 by the FBI in Cleveland marked the first public awareness of his abrupt disappearance. His sudden absence during important traditional festivals—such as Odun Egungun and Odun Edi—caused unrest and concern among the people of Ipetumodu.
Before ascending the throne in late 2019, he was known as a respected accountant, adjunct professor, and tax consultant in the U.S. The scandal abruptly cast his reign into ignominy, creating a leadership vacuum back home.
Repercussions and Community Impact
As a result of the conviction, the Osun State government is reportedly considering deposing Oba Oloyede from the throne. The community of Ipetumodu now faces a prolonged period without an acting monarch amid legal and cultural turmoil.
