Oba Joseph Oloyede, the Apetu of Ipetumodu in Osun state, has been taken into custody by the United States Federal Bureau of Investigation (FBI) after being indicted for conspiracy, wire fraud, and money laundering involving $4.2 million.
Oloyede, 61, was crowned as the monarch of Ipetumodu in 2019 but frequently travelled between Nigeria and the US for “royal and personal engagements”.
The Nigerian monarch, who also holds American citizenship, is battling a 13-count fraud indictment at the U.S. District Court for the Northern District of Ohio.
His prolonged absence has left the royal stool of Ipetumodu vacant for nearly a year, stirring serious concerns among indigenes, especially as he missed three major traditional festivals, including the annual Odun Egungun and Odun Edi.
Oloyede, based in Cleveland, Ohio was arrested on May 4, 2024, after the U.S. District Court issued a warrant for his apprehension. The FBI accused him of orchestrating a scheme through his six registered companies to fraudulently obtain loans meant for struggling businesses during the COVID-19 pandemic.
To alleviate the economic devastation caused by the COVID-19 pandemic in 2020, the U.S. government allowed small business owners to request financial aid like the Economic Injury Disaster Loan (EIDL), which must be used for certain expenses that include paying fixed debts, payroll and other “permissible” bills.
Loan applicants were required to submit their quarterly federal and annual tax returns, wage and tax statements and other supporting documents to show that their businesses might collapse without external aid in light of the global health crisis.
The FBI found out that Oloyede not only falsified the supporting documents he submitted to apply for the loans but also diverted the money for his own personal use, violating federal laws.
FBI records show that in June 2020 alone, Oloyede received over $100,000 loan for four of his six companies, including Available Tax Services, Available Tutors, Available Financial and Available Transportation.
On October 7, 2021, Oloyede was awarded a $500,000 loan for his company JO&A. Two days later, he got another $500,000 loan for Available Transportation.
Further investigations revealed that the monarch, with a background in accounting, also assisted co-conspirators in executing similar fraud schemes, charging them a percentage of the loan amount upon disbursement.
“Oloyede assisted co-conspirators and confederate borrowers who submitted and caused to be submitted PPP and EIDL loan applications containing false information,” stated the indictment filed on April 3, 2024.
Unaware that he had been indicted, Mr Oloyede left Nigeria and returned to the U.S., where his family is based. It did not take long before the FBI swooped him into custody after he landed on U.S. soil.
A statement issued by the US department of transportation said a grand jury indicted Oloyede and one Edward Oluwasanmi for conspiracy, wire fraud, and money laundering.
“The indictment alleges that Oloyede and Oluwasanmi fraudulently obtained over $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, including Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDLs),” the statement reads.
Oloyede and Oluwasanmi were arrested on April 5, 2024.
According to the indictment, from April 2020 through February 28, 2022, Oloyede and Oluwasanmi submitted PPP and EIDL applications containing false information for entities under their control.
They also allegedly submitted falsified tax and wage documents to support these applications.
“Oloyede received $1.7 million, and Oluwasanmi received $1.2 million in SBA funds for their businesses,” the statement added.
“Additionally, Oloyede submitted falsified PPP and EIDL applications in the names of other co-conspirators and confederate borrowers and their businesses.
“Oloyede obtained approximately $1.3 million through those applications, totaling at least $4.2 million obtained through the fraud.”
The statement said relevant US authorities, in collaboration with the Federal Bureau of Investigation (FBI) and the Internal Revenue Service Criminal Investigation, are investigating the case.
