Former St. Louis Building Inspector Admits $1.6 Million Fraud

ST. LOUIS - A former building inspector with the City of St. Louis on Tuesday admitted steering $1.64 million meant for the repair of decrepit buildings in St. Louis to himself and relatives.

Adebanjo "Banjo" Popoola, 57, pleaded guilty in U.S. District Court in St. Louis to three counts of wire fraud. Popoola was a building division inspector with the City of St. Louis at the time and was responsible for managing important aspects of two programs designed to aid in the stabilizing and rehabilitating of city properties, Stable Communities STL and Prop NS. Stable Communities STL was funded through federal American Rescue Plan Act funds and intended for privately-owned properties. Prop NS was intended for residential properties owned by the City's Land Reutilization Authority (LRA) and was funded through City issued general obligation bonds. Popoola was primarily responsible for identifying properties for rehab or stabilization; developing the scope of work; seeking, reviewing and awarding bids; inspecting the work that had purportedly been completed on each property and then certifying that the work had been completed so funds could be disbursed to the contractors.

On Tuesday, he admitted having his sister, a Texas resident who had never visited St. Louis, incorporate Farst Construction LLC, in Missouri in October of 2022. His future wife set up a different company in February of 2021, Premier Finish Contractors LLC.

From about June 12, 2023, through Nov. 22, 2024, Popoola caused Farst to be awarded $1.4 million in construction contracts as part of the City's Stable Communities STL program. From about Feb. 22, 2023, through March 8, 2024, Popoola steered $339,500 in Prop NS contracts to Farst. From Oct. 9, 2023, through May 7, 2024, Popoola steered about $1.3 million from the Stable Communities STL program and about $853,100 from the Prop NS program to Premier. Of the $7.19 million ARPA funds disbursed through the Stable Communities STL program, Farst received $1.79 million and Premier received $1.53 million, or 42% of the total funds disbursed.

Private building owners and representatives of the LRA reported that on multiple projects, Farst and Premier failed to perform the rehabilitation and stabilization work for which the companies were paid but Popoola falsely certified that the work had been performed completely and properly.

After paying subcontractors for purported work on the stabilization projects, Popoola, his sister and wife shared in and personally used about $1.64 million. Popoola and his wife had joint bank accounts where the city funds were deposited and shared. He had the same arrangement with his sister. Popoola admitted using Prop NS and Stable Communities STL funds for residential mortgage payments, multiple vehicle purchases and repairs, travel expenses, his September 2023 Hawaii wedding, casino gambling, and other dining and entertainment expenses.

Popoola also admitted concealing his connection to the companies on city Employee Secondary Employment Questionnaires in 2022 and 2023, Popoola falsely stated that he had no personal interest, directly or indirectly, in a contract with the City of St. Louis and he also falsely represented that he had no interest in any business. His sister and wife falsely certified on contract documents when they claimed that "No officer, employee, or member of the governing body of the City of St. Louis, Missouri who exercises any functions or responsibilities in connection with the carrying out of the Project to which this Contract pertains shall have any private interest, direct or indirect, in this contract."

Popoola is scheduled to be sentenced on October 6. Wire fraud carries a penalty of up to 20 years in prison, a $250,000 fine or both prison and fine. He will also be ordered to repay the money.

The FBI investigated the case, with substantial cooperation from the City of St. Louis Comptroller's Office. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case.