U.S. Grand Jury has indicted Nigerian Inspector Banjo Popoola over $4.7 million construction contract fraud.
NewsOnline Nigeria reports that U.S. grand jury has indicted a Nigerian national, Banjo Popoola, who worked as a building development inspector in St. Louis, Missouri, over an alleged multimillion-dollar fraud scheme involving construction contracts awarded to companies linked to his wife and sister.
According to the indictment filed at the U.S. District Court for the Eastern District of Missouri, Popoola allegedly used his position to direct lucrative renovation contracts to two companies connected to family members while receiving kickbacks from the proceeds.
As part of his official duties, Popoola was responsible for identifying dilapidated private properties, overseeing bids for renovation projects, selecting contractors, and inspecting completed work before recommending payment. Investigators say he exploited that authority to manipulate the process.
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Prosecutors allege that in October 2022, Popoola persuaded his sister, who lives in Texas, to establish a Missouri-based company, Farst Construction LLC, despite having little or no experience in construction. Earlier, in February 2021, he allegedly encouraged his partner to incorporate another firm, Premier Finish Contractors LLC.
Between February 2021 and August 2024, authorities say Popoola awarded more than $4.7 million in contracts to the two companies through city housing rehabilitation programmes. Investigators estimate that he personally obtained over $1.6 million from the scheme.
The indictment states that Popoola sometimes cashed cheques issued to the companies and used multiple addresses, including one belonging to his former spouse, in company documentation. Authorities also allege that he approved and certified projects as completed even when the work had not been carried out.
Under the Stable Communities STL programme, prosecutors say Popoola awarded 10 contracts worth over $1.5 million to Premier, while Farst Construction received 13 contracts valued at approximately $1.8 million. Under another housing initiative, NS Props, Farst was awarded eight contracts worth $339,500, while Premier received 23 contracts valued at about $1.03 million.
The United States Department of Justice said Popoola’s actions violated conflict-of-interest rules. Investigators noted that he had signed official St. Louis employee disclosure forms in 2022 and 2023 declaring that he had no financial interest in the contracts awarded.
Prosecutors argue those declarations were false because of his alleged connections to the companies run by his relatives.
Authorities also traced some of the alleged illicit funds to personal expenses, including residential mortgage payments, airline tickets, luxury car purchases such as a Lexus, casino gambling, and an extravagant wedding in Hawaii.
Popoola now faces three counts of wire fraud, and federal prosecutors are seeking forfeiture of at least $1.6 million if he is convicted.
