Former St. Louis Building Inspector Pleads Guilty to $1.64 Million Fraud Scheme, Spent Public Funds on Hawaii Wedding, Gambling

Former St. Louis Building Inspector Pleads Guilty to $1.64 Million Fraud Scheme, Spent Public Funds on Hawaii Wedding, Gambling

A former building inspector for the City of St. Louis, Adebanjo Popoola, has pleaded guilty to stealing approximately $1.64 million in taxpayer funds that were intended to repair abandoned and dilapidated buildings across the city.

The 57-year-old admitted to three counts of wire fraud in the U.S. District Court in St. Louis, bringing an end to a major federal investigation into one of the city's largest public corruption cases involving rehabilitation funds.

How the $1.64 Million Fraud Was Carried Out

According to the U.S. Attorney's Office, Popoola played a key role in overseeing two publicly funded property rehabilitation programs:

- Stable Communities STL, funded through the federal American Rescue Plan Act (ARPA) to renovate privately owned properties.

- Prop NS, financed through City of St. Louis general obligation bonds to rehabilitate residential properties owned by the city's Land Reutilization Authority (LRA).

As a city building inspector, Popoola was responsible for identifying buildings requiring repairs, preparing project scopes, reviewing contractor bids, inspecting completed work, and approving payments.

Federal prosecutors said he abused this position by secretly steering lucrative contracts to companies controlled by his relatives.

Millions Awarded to Companies Owned by Family Members

Investigators revealed that Popoola's sister, who lived in Texas and had reportedly never visited St. Louis, registered Farst Construction LLC in Missouri in October 2022.

His future wife also established Premier Finish Contractors LLC in February 2021.

Between June 2023 and November 2024:

- Farst Construction received about $1.4 million in Stable Communities STL contracts.

- The company also secured another $339,500 through the Prop NS program.

Meanwhile, Premier Finish Contractors received:

- Approximately $1.3 million from Stable Communities STL.

- Another $853,100 from Prop NS contracts.

Authorities said the two companies received an astonishing 42% of all Stable Communities STL funding, collecting more than $3.3 million combined.

Projects Were Never Properly Completed

Federal investigators discovered that many of the projects billed by the companies were either unfinished or failed to meet required standards.

Despite this, Popoola allegedly certified that the work had been completed satisfactorily, allowing millions of dollars in public funds to be released.

After paying subcontractors, prosecutors said Popoola, his wife, and his sister diverted approximately $1.64 million for personal use.

Stolen Funds Paid for Hawaii Wedding, Gambling and Luxury Expenses

Court documents revealed that the stolen money was deposited into joint bank accounts shared by Popoola with his wife and sister.

Prosecutors said he spent the illegally obtained funds on:

- Mortgage payments

- Vehicle purchases and repairs

- Travel expenses

- His September 2023 Hawaii wedding

- Casino gambling

- Dining

- Entertainment and other personal expenses

False Statements to Hide the Scheme

Authorities also accused Popoola of concealing his financial interests by falsely stating on City Employee Secondary Employment Questionnaires in 2022 and 2023 that he had no ownership or personal interest in businesses receiving city contracts.

His wife and sister allegedly signed contract documents falsely certifying that no City of St. Louis employee involved in administering the projects had any direct or indirect financial interest in the contracts.

Sentencing Scheduled for October

Popoola is scheduled to be sentenced on October 6.

Each of the three wire fraud charges carries:

- Up to 20 years in federal prison

- A maximum fine of $250,000

- Mandatory restitution of the stolen funds

The investigation was led by the FBI, with significant assistance from the City of St. Louis Comptroller's Office. The prosecution is being handled by Assistant U.S. Attorney Hal Goldsmith.

Why This Case Matters

The case highlights growing concerns about oversight and accountability in government-funded infrastructure and housing rehabilitation programs.

Federal authorities say the prosecution demonstrates their commitment to protecting taxpayer money and ensuring public officials who abuse their positions are held accountable.

Frequently Asked Questions (FAQ)

Who is Adebanjo Popoola?

Adebanjo Popoola is a former building inspector for the City of St. Louis who pleaded guilty to orchestrating a multimillion-dollar wire fraud scheme involving public rehabilitation funds.

How much money was stolen?

Federal prosecutors say approximately $1.64 million was diverted for Popoola's personal benefit after contracts worth millions were awarded to companies linked to his wife and sister.

What did he spend the money on?

According to court records, the money funded mortgage payments, vehicle expenses, travel, a Hawaii wedding, casino gambling, dining, and other personal entertainment.

When will Popoola be sentenced?

His sentencing is scheduled for October 6 in federal court.

What sentence could he face?

Each wire fraud conviction carries a maximum penalty of 20 years in prison, fines of up to $250,000, and an order to repay the stolen public funds.

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