Society Gists

The traditional ruler of Ipetumodu in Osun State, the Apetu, Oba Joseph Oloyede, has been arrested by the United States Federal Bureau of Investigation (FBI) over allegations of fraudulently obtaining $4.2 million in COVID-19 relief funds.

Oba Oloyede, who also holds American citizenship, had been missing since March 2024, raising concerns among his subjects as he failed to attend three major traditional festivals, including the annual Odun Egungun and Odun Edi.

SocietyGists reports that his prolonged absence left the royal stool vacant for nearly a year, sparking speculation within the community. The monarch was eventually discovered in the custody of U.S. authorities after being arrested on May 4, 2024, upon his return to the United States.

He is now facing a 13-count indictment at the U.S. District Court for the Northern District of Ohio.

According to FBI investigations, Oba Oloyede allegedly orchestrated a fraudulent scheme through his six registered companies, using falsified documents to obtain loans meant for struggling businesses during the economic downturn caused by the COVID-19 pandemic.

The U.S. government, in response to the financial crisis of 2020, introduced programmes like the Economic Injury Disaster Loan (EIDL) to support small businesses. These funds were strictly meant for operational expenses such as payroll, fixed debts, and other legitimate costs.

However, the FBI alleges that Oba Oloyede diverted the funds for personal use.

Documents obtained by U.S. prosecutors revealed that in June 2020 alone, the monarch secured over $100,000 in loans for four of his companies—Available Tax Services, Available Tutors, Available Financial, and Available Transportation. Further investigations showed that on October 7, 2021, he was awarded a $500,000 loan for another company, JO&A, and just two days later, he obtained an additional $500,000 for Available Transportation.

Beyond his personal fraudulent claims, investigators revealed that the monarch used his background in accounting to assist co-conspirators in obtaining similar fraudulent loans, charging them a percentage of the approved funds.

“Oloyede assisted co-conspirators and confederate borrowers who submitted and caused to be submitted PPP and EIDL loan applications containing false information,” the indictment filed on April 3, 2024, stated.

Unaware that he had been indicted, the Apetu of Ipetumodu reportedly left Nigeria for the U.S., where his family resides.

However, upon arrival, he was swiftly apprehended by FBI agents. Crowned in 2019, Oba Oloyede was known for shuttling between Nigeria, where he fulfilled his royal duties, and the U.S., where he maintained family ties.

His arrest and impending trial have now thrown the traditional leadership of Ipetumodu into uncertainty.

It remains unclear whether the town was aware of the allegations before his arrest and whether the community will move to select a new ruler if he is convicted and sentenced to prison.