U.S. jails Nigerian monarch over $4.2 million COVID-19 loan fraud

The Apetu of Ipetumodu in Osun State, monarch Joseph Oloyede, was sentenced to 56 months in prison by a U.S. Federal Court, a stunning fall from grace for a man of royal stature. 

This verdict stemmed from a multimillion-dollar fraud exploiting the United States’ emergency COVID-19 loan programs intended for struggling businesses.

Fraud Scheme Unveiled

Oba Oloyede, 62, who holds both Nigerian and U.S. citizenship and resides in Medina, Ohio, orchestrated a vast conspiracy alongside his co-defendant, Edward Oluwasanmi. 

Together, they exploited the Paycheck 

Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) under the CARES Act between April 2020 and February 2022.

The court uncovered that Oloyede submitted 38 fraudulent loan applications amounting to over $4.2 million in relief funds. 

This staggering deceit was carried out through several business entities five owned by Oloyede himself, one nonprofit, and three additional companies controlled by Oluwasanmi.

How the Scam Worked

Oloyede, who also worked as a tax preparer, allegedly submitted applications using false data on behalf of his clients and businesses. 

He received 15 to 20 percent kickbacks from these loans without reporting the illicit income to the IRS. 

This dishonesty allowed him to amass great personal wealth.

Prosecutors revealed that Oloyede used the stolen funds to acquire properties, build a luxury home, and purchase expensive vehicles blatant profiteering that mocked the intended relief purpose.

Legal Consequences and Asset Forfeiture

U.S. District Judge Christopher A. Boyko handed down the harsh sentence, underscoring the severity of Oloyede’s white-collar crimes. 

Besides the prison term, the monarch was ordered to pay about $4.4 million in restitution.

Additionally, the court mandated forfeiture of his Medina residence on Foote Road, deemed bought with illicit gains, plus an extra $96,000 seized by investigators.

Edward Oluwasanmi, a Nigerian pastor and accomplice, had previously received a 27-month sentence and ordered to repay over $1.2 million. 

Together, their actions exposed exploitable cracks in pandemic emergency programs designed to aid genuine small businesses.

Far-reaching Implications

This case triggers a bitter conversation about ethics and leadership, especially for someone who holds a traditional leadership title in Nigeria. 

The Apetu’s involvement in such a high-profile fraud raises painful questions about the integrity of some elites who operate and exploit dual citizenship privileges.

It also exposes vulnerabilities in emergency government programs.

With well-connected insiders manipulating them more than the vulnerable businesses they aim to help.

Personal and Political Fallout

This scandal tarnishes the image of the Osun State monarchy and undermines public trust. 

It paints a disturbing pattern of privilege abuse and greed, intensifying calls for greater accountability among Nigerian leaders.

The monarch status as a monarch becomes a controversial talking point. 

Many question how a custodian of culture became embroiled in federal fraud, shaking faith in traditional institutions.