A United States District Court has sentenced a Nigerian pastor, Edward Oluwasanmi, to 27 months’ imprisonment for fraudulently obtaining part of the $4.2 million COVID-19 relief funds, while his close associate, the Apetu of Ipetumodu, Oba Joseph Oloyede, awaits his own sentencing after agreeing to forfeit property to the US government.
Oluwasanmi and the Osun-born monarch were arrested in early 2024 in connection with a massive fraud scheme involving falsified loan applications under the US government’s Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The duo faced 13 counts ranging from conspiracy to commit wire fraud, wire fraud, money laundering, and engaging in monetary transactions involving criminally derived property.
Presiding Judge Christopher Boyko of the US District Court of Ohio, on Wednesday, July 2, sentenced Oluwasanmi to 27 months on counts one, 11, and 12 of the indictment, with the terms to run concurrently.
The court further ordered him to pay a fine of $15,000 and placed him under three years of supervised release after his prison term.
“Supervised release three years on each of counts 1 and 11–12, all such terms to run concurrently, with standard and special conditions,” the judgment read in part.
In addition, Oluwasanmi was ordered to forfeit a commercial property located at 422 South Green Road, South Euclid, Ohio, which investigators traced to the proceeds of the fraudulent scheme.
Meanwhile, Oba Oloyede — a US-based accountant and information systems expert who ascended the throne of Apetu in July 2019 — entered a guilty plea to counts one and 13 of his charges in April. His sentencing is scheduled for Friday, August 1, 2025.
Court filings revealed that between April 2020 and February 2022, the defendants used forged tax returns, fake wage documents, and fictitious company records to fraudulently obtain funds from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) initiative.
Both programs were designed to assist struggling small businesses and nonprofits during the pandemic. Instead, Oluwasanmi and Oloyede allegedly channeled the funds through multiple companies, including Available Tax Services Incorporated, Available Financial Corporation, and Available Transportation Company.
Investigators allege that some of the stolen funds were laundered through luxury purchases and commercial property acquisitions.
The monarch’s involvement has triggered a storm back home in Nigeria. In Osun State, where Oloyede holds the revered Apetu stool, the government said it is awaiting the final court ruling before taking any action.
State Commissioner for Information, Kolapo Alimi, said: “A person is innocent until a court convicts them. So, we don’t want to jump the gun; let us wait for the court’s pronouncement on the matter.”
However, sources in Ipetumodu revealed growing discontent among traditional chiefs and residents, many of whom expressed shock that a custodian of culture and heritage could be embroiled in an international fraud scandal.
One palace elder who spoke to Stone Reporters News on condition of anonymity said: “This is a shameful development. The Apetu stool carries dignity, and now the community’s name is being dragged through the mud in a foreign land.”
This case adds to the string of high-profile fraud scandals involving Nigerians abroad. Experts say the development further dents Nigeria’s global image and undermines the integrity of its traditional institutions.
Legal analyst, Barrister Chike Opara, told Stone Reporters News: “The involvement of a traditional ruler in an international fraud case is disturbing. It goes beyond personal shame — it erodes trust in our institutions and fuels stereotypes about Nigerians being synonymous with fraud. This is a wake-up call for stricter vetting processes when individuals ascend traditional stools.”
Similarly, US-based Nigerian criminologist, Dr. Funmilayo Adebayo, said the case underscores how “COVID-19 relief fraud became a playground for opportunists worldwide.”
“Unfortunately, Nigerians were disproportionately represented in these schemes. It is important for communities back home to start seeing fraud not just as a ‘foreign embarrassment’ but as a local cancer that destroys our moral fabric,” she warned.
As Oluwasanmi prepares to serve his prison term and Oloyede awaits judgment, the case serves as a stark reminder of the global consequences of fraud. For Osun State, the scandal has cast a shadow over a traditional institution, while for Nigeria at large, it is another painful dent in the country’s already fragile reputation on the global stage.
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