Nigerian monarch arrested by FBI over $4.2 million COVID-19 fraud

The Apetu of Ipetumodu, Oba Joseph Oloyede, a Nigerian monarch from Osun State, has been arrested and detained by the U.S. Federal Bureau of Investigation (FBI) over allegations of defrauding the U.S. government of $4.2 million in COVID-19 relief funds.

Oba Oloyede, who was declared missing in March 2024, was found in FBI custody and is facing a 13-count indictment at the U.S. District Court for the Northern District of Ohio.

The indictment, filed on April 3, 2024, accuses him and his associate, Edward Oluwasanmi, of conspiracy, wire fraud, and money laundering.

According to U.S. court documents, the monarch was arrested on May 4, 2024, following an arrest warrant.

The FBI claims Oloyede orchestrated a fraudulent scheme through six registered companies, obtaining relief loans meant to support struggling businesses during the COVID-19 pandemic.

The U.S. government introduced financial aid programs, including the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL), in 2020 to assist businesses affected by the pandemic.

However, investigators allege that Oloyede falsified documents to fraudulently obtain millions of dollars.

Fraudulent Loan Applications and Indictment Details

FBI records reveal that in June 2020 alone, Oloyede secured over $100,000 in loans for four of his companies: Available Tax Services, Available Tutors, Available Financial, and Available Transportation.

In October 2021, he received a $500,000 loan for JO&A and another $500,000 for Available Transportation.

Further investigations indicate that Oloyede assisted co-conspirators in securing fraudulent loans, charging them a percentage of the loan amounts.

"Oloyede assisted co-conspirators and confederate borrowers who submitted and caused to be submitted PPP and EIDL loan applications containing false information," the indictment stated.

According to prosecutors, between April 2020 and February 2022, Oloyede and Oluwasanmi fraudulently obtained over $4.2 million in Small Business Administration (SBA) funds.

Oloyede reportedly pocketed $1.7 million for his businesses and an additional $1.3 million by submitting falsified applications for co-conspirators.

The case is being investigated by the FBI, Internal Revenue Service Criminal Investigation (IRS-CI), and the U.S. Department of Transportation's Office of Inspector General (DOT-OIG), under the Pandemic Response Accountability Committee (PRAC) Fraud Task Force.

Royal Absence and Community Concerns

Oloyede, an accountant by profession, was crowned Apetu of Ipetumodu in 2019. He frequently travelled between Nigeria and the U.S. for his royal and personal engagements.

However, his prolonged absence left the Ipetumodu royal stool vacant for nearly a year, raising concerns among the indigenes.

He reportedly missed three major traditional festivals, including the annual Odun Egungun and Odun Edi celebrations.

With his current legal battle in the U.S., it remains uncertain when or if he will return to Nigeria. If convicted, he faces severe penalties, including potential jail time and asset forfeiture.

The case underscores the U.S. government's ongoing efforts to combat pandemic relief fraud and hold offenders accountable.

The indictment released by the U.S. Attorney's Office for the Northern District of Ohio states that Oloyede and Oluwasanmi submitted falsified tax and wage documents to obtain SBA loans.

"The indictment alleges that they obtained approximately $1.2 million for Oluwasanmi's entities and $1.7 million for Oloyede's entities," the document read.

Oloyede is also alleged to have facilitated fraudulent PPP and EIDL loan applications for other individuals, securing an additional $1.3 million in the process.

As investigations continue, authorities warn that more individuals connected to the scheme may face prosecution.

The Nigerian community in the U.S. and Ipetumodu indigenes are closely monitoring the unfolding legal battle of their embattled monarch.