By: Manoah Kikekon
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| Apetu of Ipetumodu Oba Joseph Oloyede |
Oba Joseph Oloyede, the traditional ruler of Ipetumodu in Osun State, Nigeria, has been sentenced to five years in a United States federal prison for orchestrating a multimillion-dollar COVID-19 relief fraud scheme.
The sentence was handed down on August 26, 2025, by Judge Christopher A. Boyko in the Northern District of Ohio, marking a significant fall from grace for the monarch who once served as a symbol of progress for his community .
Details of the Fraud Scheme and Sentencing
According to court documents, Oloyede utilized six different companies to fraudulently obtain loans through the U.S. Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program critical relief initiatives designed to support businesses during the pandemic-induced economic crisis. The monarch engaged in document forgery and payroll inflation to divert funds intended for struggling American businesses, ultimately obtaining over $4.4 million in illicit loans .
The sentencing structure included: 56-month sentences on counts one and 13 of the indictment. 36-month sentences on counts one and two of the supplemental information. All terms to run concurrently, resulting in a five-year total sensentence. Three years of supervised release following incarceration. $4,408,543.38 in restitution to be paid to victims. Asset forfeiture including a Medina County property and bank funds
Sentencing Details:
Prison Sentence, 5 years (56 months on primary counts).
Supervised Release, 3 years post-incarceration.
Restitution, $4,408,543.38 to victims.
Asset Forfeiture, Property in Medina County, $96,000+ from bank accounts.
Special Assessment, $400 mandatory payment.
Cultural Impact and Community Response
Back in Ipetumodu, Oloyede's absence has created a significant leadership vacuum. The monarch had been missing key traditional ceremonies for over a year, including the culturally important Egungun festival and Odun Edi, raising concerns among community members even before his arrest came to light. His sentencing has plunged the town into uncertainty, with local chiefs struggling to maintain traditional governance structures in the absence of their recognized ruler .
The case represents an unprecedented embarrassment for Yoruba traditional institutions, as it's highly unusual for a sitting monarch to be convicted and imprisoned abroad for financial crimes. Many residents who had celebrated Oloyede's installation in 2019 as a step toward progressive leadership now grapple with the reality of their ruler's criminal actions and their implications for the community's reputation.
Legal Proceedings and Defense Strategy
Oloyede's legal team, attorneys Cal Cumpstone and Michael I. Marein, filed a sentencing memorandum on August 19, 2025, seeking leniency from the court. They argued that the extraordinary circumstances of the COVID-19 pandemic influenced their client's poor decision-making, noting his pre-existing health concerns and the generally destabilizing effect of the global crisis .
The defense highlighted Oloyede's previously impeccable record as a longtime U.S. resident who had worked as a banker and adjunct professor before earning a doctorate and returning to Nigeria for his royal role. They emphasized his remorse and acceptance of responsibility, portraying the fraud as a tragic deviation from an otherwise responsible life of service .
Broader Implications and Context
This case highlights several important issues:
COVID-19 Relief Fraud: Oloyede joins a growing list of individuals who exploited U.S. pandemic relief programs, resulting in billions of dollars in fraudulent payments worldwide.
Transnational Crime: The case demonstrates how financial crimes increasingly cross international borders, requiring sophisticated cooperation between jurisdictions.
Cultural Dimensions: The situation creates unique cultural tensions when traditional leadership structures intersect with modern legal systems of different countries.
Deterrence Value: The sentencing sends a strong message about the serious consequences of abusing emergency relief programs, regardless of the perpetrator's status or nationality.