A United States-based Nigerian engineer, Adebanjo Popoola, has pleaded guilty to diverting approximately $1.64 million in public funds into bank accounts belonging to himself, his wife and his sister.
Popoola, 57, admitted to three counts of wire fraud before the United States District Court for the Eastern District of Missouri after prosecutors accused him of abusing his position as a former building inspector with the City of St. Louis.
According to court documents, the funds were allocated for the rehabilitation of dilapidated buildings under the Stable Communities STL and Prop NS housing programmes but were fraudulently redirected through companies linked to members of his family.
Investigators said Popoola used his official role to award contracts to two companies owned by his wife and sister.
His sister, who resides in Texas and had reportedly never visited St. Louis, registered Farst Construction LLC in 2022, while his future wife established Premier Finish Contractors LLC a year earlier.
Between 2023 and 2024, the two firms were awarded contracts worth more than $3.8 million, representing about 42 per cent of the $7.19 million disbursed under the Stable Communities STL programme.
Prosecutors alleged that several of the projects were either left unfinished or were not executed in line with contractual requirements despite Popoola certifying that the work had been satisfactorily completed.
Court filings further revealed that after payments were made to subcontractors, Popoola, his wife and sister shared about $1.64 million, which he admitted spending on personal expenses, including mortgage payments, vehicle purchases and repairs, travel, his wedding in Hawaii in September 2023, casino gambling, dining and other lifestyle costs.
The defendant also admitted making false declarations in 2022 and 2023 by stating that he had no personal interest in any city contract or business transaction.
His wife and sister were also said to have signed documents certifying that no official or employee of the City of St. Louis had any direct or indirect financial interest in the contracts.
Popoola is scheduled to be sentenced on October 6. Each count of wire fraud carries a maximum penalty of 20 years’ imprisonment, a fine of up to $250,000, or both.
He is also expected to make full restitution of the misappropriated funds.
The case was investigated by the Federal Bureau of Investigation with support from the City of St. Louis Comptroller’s Office.
