Adebanjo “Banjo” Popoola, a Nigerian-born engineer and former building inspector with the City of St. Louis, has pleaded guilty to wire fraud after admitting to orchestrating a scheme that diverted more than $1.67 million in public funds meant for rehabilitating rundown properties in Missouri.
According to U.S. prosecutors, Popoola, 57, entered a guilty plea on Tuesday, June 30, before a U.S. District Court in St. Louis, admitting to three counts of wire fraud linked to the misappropriation of funds earmarked for city housing improvement projects.
Investigators said Popoola abused his position while overseeing two major property rehabilitation initiatives—Stable Communities STL and Prop NS—which were established to restore dilapidated buildings across the city.
Stable Communities STL was financed through federal funds provided under the American Rescue Plan Act to support privately owned properties, while Prop NS was funded through city-issued general obligation bonds to renovate residential buildings owned by the city’s Land Reutilization Authority.
As part of his official duties, Popoola was responsible for selecting properties for rehabilitation, preparing project scopes, reviewing and awarding contracts, inspecting completed work, and authorising payments to contractors.
Court documents revealed that he exploited those responsibilities by creating companies linked to his family members to secure contracts and receive payments.
Prosecutors said Popoola directed his sister, who lives in Texas and had never visited St. Louis, to establish Farst Construction LLC in Missouri in October 2022.
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Authorities also disclosed that his future wife formed another company, Premier Finish Contractors LLC, in February 2021, which was allegedly used in the fraudulent scheme.
The fraudulent activities enabled Popoola to channel approximately $1.67 million intended for repairing neglected buildings into businesses controlled by himself and his relatives, instead of using the funds for their intended public purpose.
The case is one of the latest prosecutions involving the misuse of public infrastructure funds in the United States.
Popoola now faces sentencing, where he could receive a prison term and be ordered to pay restitution for the funds fraudulently obtained.