In a shocking turn of events, the Apetu of Ipetumodu, Oba Joseph Oloyede, a prominent Nigerian monarch, has been detained by the Federal Bureau of Investigation (FBI) in connection with an alleged $4.2 million COVID-19 relief funds scam. This startling development has sent ripples through Nigeria’s traditional and political circles, raising questions about accountability and the misuse of power.

The Apetu of Ipetumodu, Oba Joseph Oloyede, a Nigerian monarch from the Southwest region who was reported missing in March 2024, has been located in FBI custody.

He is facing serious charges for allegedly defrauding the U.S. government of $4.2 million in COVID-19 relief funds.

Reports indicate that the Nigerian monarch, who is also a U.S. citizen, is currently facing a 13-count fraud indictment in the U.S. District Court for the Northern District of Ohio. 

According to U.S. court documents, Mr. Oloyede was apprehended on May 4, 2024, following the issuance of a warrant for his arrest.

The FBI alleges that he coordinated a fraudulent scheme using his six registered companies to acquire loans intended for struggling businesses during the COVID-19 pandemic. 

In 2020, the U.S. government launched financial aid programs, including the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL), to support businesses impacted by the pandemic. 

However, applicants were mandated to submit tax records, wage statements, and other financial documents to verify their eligibility.

Meanwhile, investigations revealed that Mr. Oloyede allegedly falsified these documents and misappropriated the funds for personal expenses, violating federal law. 

FBI records indicate that in June 2020 alone, he secured over $100,000 in loans for four of his six companies, including Available Tax Services, Available Tutors, Available Financial, and Available Transportation. On October 7, 2021, he received a $500,000 loan for JO&A, followed by another $500,000 loan two days later for Available Transportation.

The monarch, an accountant by profession, is suspected of using their expertise to assist co-conspirators in carrying out similar fraud schemes, receiving a cut of the loan amount after disbursement, further investigations suggest.

“Oloyede assisted co-conspirators and confederate borrowers who submitted and caused to be submitted PPP and EIDL loan applications containing false information,” the indictment claimed.

On April 3, 2024, a grand jury in the U.S. District Court for the Northern District of Ohio returned an indictment against Joseph Oloyede and Edward Oluwasanmi. The indictment charges the defendants with conspiracy, wire fraud, and money laundering.

It is alleged that from April 2020 to February 2022, the defendants fraudulently obtained more than $4.2 million in funds guaranteed by the Small Business Administration (SBA). Mr Oloyede is alleged to have received $1.7 million for his own businesses and an additional $1.3 million by submitting fraudulent applications on behalf of co-conspirators.

The investigation into Mr. Oloyede’s activities is being conducted collaboratively by the Federal Bureau of Investigation (FBI), the Internal Revenue Service Criminal Investigation (IRS-CI), and the U.S. Department of Transportation’s Office of Inspector General (DOT-OIG), operating under the auspices of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force.

The Apetu of Ipetumodu, who ascended to the throne in 2019, has maintained frequent travel between Nigeria and the United States.  His extended absence of nearly one year, during which he was unable to attend three significant traditional festivals, notably the Odun Egungun and Odun Edi, has generated apprehension within the Ipetumodu community.

DOT-OIG, as part of the PRAC Fraud Task Force, is conducting this investigation with the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.

In April 2024, a federal grand jury in Cleveland returned a 13-count indictment charging two individuals including Oloyede for their alleged roles in a scheme to fraudulently obtain approximately $4.2 million in COVID-19 relief funds guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Oloyede, 61, of Medina, Ohio and Edward Oluwasanmi, 61, of Willoughby, Ohio, were charged with conspiracy to commit wire fraud, wire fraud, and money laundering offenses.

Oloyede and Oluwasanmi are accused of defrauding the SBA and financial institutions by obtaining COVID-19 relief funds (EIDL and PPP) under false pretences. 

According to an indictment released by the U.S. Attorney’s Office, Northern District of Ohio, they submitted loan applications with false information and falsified tax and wage documents between approximately April 2020 and February 2022.