Osun Monarch jailed 56 months in U.S. for $4.2m COVID-19 relief fraud

A traditional ruler from Osun State, Oba Joseph Oloyede, the Apetu of Ipetumodu, has been sentenced to 56 months in a United States federal prison after being found guilty of defrauding the U.S. government of millions of dollars in COVID-19 relief funds.

According to court documents, the monarch was convicted for orchestrating a scheme to fraudulently obtain approximately $4.2 million in pandemic relief loans intended to support struggling American businesses during the height of the COVID-19 outbreak.

In addition to the prison term, the U.S. court ordered Oba Oloyede to pay $4.4 million in restitution, forfeit his residence in Ohio, and undergo three years of supervised release upon completion of his sentence.

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The case adds to a growing list of high-profile fraud prosecutions linked to the misuse of COVID-19 stimulus programs. U.S. authorities said the monarch and his accomplices submitted falsified applications for federal relief funds, using shell companies and fabricated payroll records to siphon money that was meant for genuine small businesses.

Investigators revealed that some of the stolen funds were diverted into personal luxuries, including real estate purchases. His Ohio home, now subject to forfeiture, was cited by prosecutors as one of the assets acquired through the fraudulent scheme.

Legal analysts say the stiff sentence underscores U.S. prosecutors’ determination to hold accountable both citizens and foreign nationals who exploited emergency relief programs during the pandemic.

The conviction has sparked shockwaves back in Nigeria, particularly in Osun State, where Oba Oloyede was regarded as a custodian of tradition in Ipetumodu community.

As part of the judgment, the monarch will remain under strict monitoring even after his prison term, with the supervised release expected to ensure compliance with repayment obligations and prevent further financial crimes.