Apetu of Ipetumodu Jailed 56 Months in US Over $4.2 Million COVID-19 Fraud

Oba Joseph Oloyede, the traditional ruler of Ipetumodu in Osun State, has been sentenced to 56 months in prison in the United States for orchestrating a $4.2 million fraud involving COVID-19 relief loans. The 62-year-old dual Nigerian-American citizen residing in Medina, Ohio, was sentenced on August 26, 2025, by U.S. District Judge Christopher A. Boyko in the Northern District of Ohio.

Oloyede pleaded guilty earlier this year to six counts, including conspiracy to commit wire fraud, engaging in monetary transactions with criminally derived property, and making false tax returns. He was also ordered to pay $4,408,543.38 in restitution and serve three years of supervised release following his prison term. Additionally, he forfeited his Medina home and $96,006.89 in fraud proceeds seized by investigators.

Court records reveal that from April 2020 to February 2022, Oloyede and co-conspirator Edward Oluwasanmi submitted fraudulent loan applications through multiple businesses registered in Ohio, exploiting federal pandemic relief programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) under the CARES Act. The duo obtained approximately $1.7 million for Oloyede’s entities and $1.2 million for Oluwasanmi’s, with Oloyede also collecting undisclosed kickbacks from clients whose loans he fraudulently secured on their behalf.

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Oluwasanmi, a Nigerian pastor, was sentenced in July 2024 to 27 months in prison for his role in the conspiracy, along with fines and restitution payments.

Prosecutors stated that Oloyede used funds from the scheme to acquire personal assets, including land, a home, and a luxury vehicle. The case was investigated by several federal agencies including the FBI, IRS, and the Pandemic Response Accountability Committee Fraud Task Force.

Back in Osun State, Oba Oloyede’s incarceration has left Ipetumodu without an active monarch for over a year, creating uncertainty around traditional leadership and casting a shadow over the community and state’s traditional council.

This sentencing underscores the ongoing global impact and exploitation risks of COVID-19 relief efforts and the severe consequences for those involved in fraudulent schemes.