The traditional ruler of Ipetumodu, Oba Joseph Oloyede, who vanished from public view in March 2024, has been found in FBI custody in the United States. The monarch, who also holds American citizenship, is facing 13 counts of fraud for allegedly defrauding the U.S. government of $4.2 million in COVID-19 relief funds.
His prolonged absence from Ipetumodu, particularly during key cultural events such as the annual Odun Egungun and Odun Edi festivals, had left many residents speculating about his whereabouts. However, it has now emerged that he has been detained in the U.S., where he is standing trial at the U.S. District Court for the Northern District of Ohio.
Allegations and arrest
Authorities in the U.S. claim that Oba Oloyede misused financial assistance meant for small businesses affected by the COVID-19 pandemic. The FBI alleges that he fraudulently obtained loans through six registered companies, submitting falsified documents to secure funds intended for business survival.
In 2020, the U.S. government introduced the Economic Injury Disaster Loan (EIDL) programme to provide financial relief to struggling businesses. To qualify, applicants were required to submit tax returns and financial records proving their need for assistance. However, investigators say Oba Oloyede manipulated these records, securing funds that were later diverted for personal use.
The FBI’s findings indicate that in June 2020, he obtained over $100,000 for four of his companies—Available Tax Services, Available Tutors, Available Financial, and Available Transportation. In October 2021, he reportedly received two separate $500,000 loans within days, one for JO&A and another for Available Transportation.
A widening investigation
Further investigations suggest that the monarch was not acting alone. U.S. authorities claim he assisted others in obtaining fraudulent loans, allegedly taking a cut from each disbursement.
“Oloyede assisted co-conspirators and confederate borrowers who submitted and caused to be submitted PPP and EIDL loan applications containing false information,” the indictment, filed in April 2024, states.
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Unaware that he had been indicted, Oba Oloyede returned to the U.S., where he was promptly arrested by the FBI on May 4, 2024.
Uncertainty in Ipetumodu
His arrest has sparked concerns in Ipetumodu, where the royal stool has remained unoccupied for nearly a year. With the possibility of a lengthy legal battle ahead, questions are now being raised about whether the community will seek a new ruler should he be convicted.
For now, Ipetumodu remains without a king, as its traditional leader fights to clear his name in a U.S. court.