A traditional ruler from Osun State, Oba Joseph Oloyede of Ipetumodu, has been sentenced to 56 months in a United States prison for his role in a \$4.2 million COVID-19 loan fraud.
The sentence was handed down on Tuesday by Justice Christopher Boyko at a federal court in Ohio. Oba Oloyede, who was arrested in April 2024 alongside a Nigerian pastor, Edward Oluwasanmi, was found guilty of submitting false loan applications to access U.S. COVID-19 relief funds meant for struggling businesses.
The U.S. Department of Justice disclosed that both men used fake documents and misleading information to fraudulently obtain millions of dollars under the Paycheck Protection Program (PPP), a government scheme created to help small businesses stay afloat during the COVID-19 pandemic.
According to the 13-count charge, Oba Oloyede and Pastor Oluwasanmi submitted multiple fraudulent loan applications to different U.S. banks, claiming to own businesses that either did not exist or had no actual employees. They used stolen identities and fake financial statements to inflate the size of their businesses and qualify for large loans.
U.S. authorities said the duo collected a total of \$4.2 million through these schemes between 2020 and 2021.
The court found that the money was used to purchase luxury items, real estate, and other personal expenses.
Justice Boyko, while delivering judgment, sentenced Oba Oloyede to 56 months (4 years and 8 months) in prison and ordered him to repay \$4,408,543 in restitution. He is also to serve three years of supervised release after completing his jail term.
In addition, the monarch will forfeit a total of \$96,006 earlier seized by investigators, as well as his house located in Medina, Ohio.
Oba Oloyede’s co-defendant, Pastor Edward Oluwasanmi, had earlier been sentenced in July 2025 to 27 months in prison for his role in the same fraud scheme.
The pastor, who was based in Ohio, pleaded guilty to conspiracy to commit wire fraud and admitted to working with the monarch to prepare and submit fake documents for the COVID loan applications.
Both men were arrested in April 2024 after a joint investigation by the U.S. Secret Service and the Small Business Administration’s Office of Inspector General.
The news of Oba Oloyede’s conviction has sparked mixed reactions in Ipetumodu, a town in Ife North Local Government Area of Osun State.
Many residents expressed shock that a traditional ruler would be involved in such an international scandal. Others called for further investigation by Nigerian authorities to determine if any local laws were violated.
“It is shameful that a respected royal father has brought this kind of embarrassment to our community,” said a community leader who spoke anonymously. “We hope the government and the kingmakers will take the right steps moving forward.”
Attempts to reach members of the royal family for comments were unsuccessful at the time of filing this report.
Under Nigerian law, traditional rulers are expected to uphold moral standards and lead by example. While there is no automatic rule for dethronement following a conviction abroad, pressure is now mounting on the Osun State government and the kingmakers of Ipetumodu to address the situation.
Legal experts say a conviction for fraud in a foreign country may not directly lead to dethronement unless the state government or local traditional council initiates an official process.
In the past, some Nigerian monarchs have lost their titles over criminal conduct or political controversy. However, each case is usually handled based on the traditional rules of the specific community involved.
Oba Joseph Oloyede is the traditional ruler of Ipetumodu, a historical town in Osun State with cultural ties to the ancient city of Ile-Ife. He has served as king for several years and was believed to be residing in the U.S. before his arrest.
His involvement in the multi-million-dollar fraud has raised serious concerns about the conduct of some Nigerian elites abroad and how these actions impact the country’s image.
The sentencing of Oba Oloyede serves as a warning to others who may attempt to defraud government support schemes both in the U.S. and abroad.
