A Nigerian traditional ruler has been ordered to forfeit millions in assets by a U.S. federal court after pleading guilty to a $4.2 million COVID-19 relief fraud scheme.
Oba Joseph Olugbenga Oloyede, the monarch of Ipetu-Modu in Osun State, Nigeria, admitted to defrauding the United States government and has been stripped of several assets, including funds in U.S. bank accounts and a residential property in Ohio.
The 62-year-old, who also holds American citizenship, entered a plea bargain on 24 April 2025, pleading guilty to 13 counts, including wire fraud, money laundering, and defrauding a federal relief programme.
The charges stemmed from an investigation into fraudulent claims made under the U.S. government’s pandemic relief efforts, particularly the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) scheme administered by the Small Business Administration.
The ruling, issued by Judge Christopher Boyko of the U.S. District Court for the Northern District of Ohio on 5 May 2025, allows the federal government to seize the assets as part of a preliminary forfeiture order.
Among the forfeited assets are a residential property in Medina County, Ohio, purchased in May 2021 under the name of his wife, Sherri Oloyede, and $96,006.89 held in a JP Morgan Chase bank account under the name Joseph Oloyede and Associates Ltd.
Despite the property being registered in his wife’s name, both Mr and Mrs Oloyede agreed not to contest the forfeiture under the terms of the plea deal, which also waives the monarch’s right to appeal the decision or seek future restitution.
According to court documents, Oloyede orchestrated the fraud between April 2020 and February 2022, exploiting COVID-era federal relief initiatives meant to support struggling businesses during the pandemic.
He used six companies—both real and fictitious—to apply for fraudulent loans, including Joseph Oloyede & Associates (JO&A), Available Transportation, Available Tax Services, Available Tutors, and Available Financial. Additional shell companies were also allegedly involved.
One of the largest disbursements came on 7 October 2021, when JO&A received $500,000 through falsified tax and payroll documents. Two days later, Available Transportation received another $500,000 under similar circumstances.
Prosecutors say that in June 2020 alone, Oloyede’s companies obtained more than $100,000 through false applications. He also assisted co-conspirators in submitting fraudulent claims, charging a commission on successful payouts.
In total, Oloyede personally secured $1.7 million, helped others obtain around $1.3 million, and his associate Edward Oluwasanmi’s entities received $1.2 million—bringing the total fraud to approximately $4.2 million.
Oloyede was arrested on 4 May 2024 after unknowingly returning to the United States, where a sealed indictment awaited him. He was later granted bail on a $20,000 bond under strict conditions, including surrendering both his U.S. and Nigerian passports.
His U.S. passport, number 56244, and Nigerian passport, number A0897, are currently being held in federal custody pending sentencing.
Back in Nigeria, the development has caused a leadership vacuum in Ipetu-Modu, where Oba Oloyede has held the traditional title of Apetu since 2019.
Residents have expressed growing frustration over the monarch’s absence, particularly during major cultural events such as the Odun Egungun and Odun Edi festivals, where his presence is traditionally required.
Reports say the community had declared him missing earlier this year, unaware that he had been detained by the FBI in the United States.
His frequent travels between Cleveland, Ohio, and Nigeria as both a traditional ruler and a professional accountant allegedly enabled him to conceal his fraudulent activities for years.
The case continues to spark outrage both in Nigeria and among the diaspora, as community leaders call for clarity over the future of the Ipetumodu throne.
