SHOCKING: FBI Arrests Yoruba Oba Oloyede (Apetu of Ipetumodu) for Alleged $4.2M COVID-19 Fraud

By Ed Malik, A | ed@ddnewsonline.com | posted 18th february, 2025

The recent discovery of Oba Joseph Oloyede, the Apetu of Ipetumodu, in FBI custody on charges of defrauding the U.S. government of $4.2 million in COVID-19 relief funds has left the royal stool of Ipetumodu vacant for nearly a year.

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The arrest is certainly a low in the estimation of traditional institution. His absence became noticeable and caused significant concern among the indigenes, especially as the monarch missed three major traditional festivals, including the annual Odun Egungun and Odun Edi.

Ipetumodu, located in Osun State, Nigeria, is a city rich in cultural heritage. The Egungun Festival, held annually in July or August, spans seven days and culminates with all masquerades gathering at the Ipetumodu Market Square, in front of the Apetumodu’s palace, to entertain the crowd. The Apetumodu and his chiefs greet them and perform ceremonial blessings.

The Edi Festival, another significant event, is traditionally presided over by the Apetumodu and his chief priest, the Apena of Ipetumodu. This festival, lasting seven days, involves gatherings at the palace grounds to mark its commencement. Both festivals are integral to the town’s cultural identity and are typically led by the reigning monarch.

Chief Oloyede who is based in Cleveland, 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 Mr. 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.

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FBI records show that In June 2020 alone, Mr. Oloyede received over $100,000 loan for four of his six companies, including Available Tax Services, Available Tutors, Available Financial and Available Transportation.

Rewinding the story, it was alleged that on October 7, 2021, Mr. 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.

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Crowned in 2019, the Apetumodu often shuffled between Nigeria to attend to his royal duties and the U.S. to visit his family.

It is unclear whether the indigenes of Ipetumodu were aware of the damning allegations hanging on their monarch’s head and whether the town will choose a new ruler should Mr Oloyede be found guilty and sentenced to prison. What is however, the absence of Oba Oloyede during these festivals has disrupted traditional proceedings and raised concerns about the preservation of cultural practices in Ipetumodu.