Osun Monarch Arrested by FBI for Alleged $4.2M COVID-19 Fraud

The Apetu of Ipetumodu, Oba Joseph Oloyede, a traditional ruler from Osun State, Nigeria, 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 later found in FBI custody and is now facing a 13-count indictment at the U.S. District Court for the Northern District of Ohio.

Details of the Indictment

The indictment, filed on April 3, 2024, charges Oba Oloyede and his associate, Edward Oluwasanmi, with conspiracy, wire fraud, and money laundering. U.S. court documents state that he was arrested on May 4, 2024, following an issued arrest warrant.

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

How the Fraud Was Carried Out

The U.S. government introduced financial relief programs such as the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) in 2020 to support businesses affected by the pandemic. However, investigators claim that Oba Oloyede falsified documents to fraudulently obtain millions of dollars from these programs.

According to FBI records, in June 2020 alone, Oba Oloyede secured over $100,000 in loans for four of his companies:

Available Tax Services

Available Tutors

Available Financial

Available Transportation

Further investigations show that in October 2021, he received:

$500,000 for JO&A

$500,000 for Available Transportation

Additionally, authorities claim Oba Oloyede assisted co-conspirators in securing fraudulent loans, charging them a percentage of the loan amounts as fees.

The traditional ruler now faces trial in the U.S., with legal experts predicting a long legal battle ahead.