U.S. indicts Nigerian-born engineer over $4.7 million contract fraud scheme

A U.S. grand jury has indicted Nigerian-born building development inspector, Banjo Popoola, over allegations that he fraudulently awarded multimillion-dollar public construction contracts to companies linked to his wife and sister in exchange for kickbacks.

According to the U.S. Department of Justice, Popoola, who worked in St. Louis, Missouri, is facing three counts of wire fraud and could forfeit at least $1.6 million linked to the alleged scheme.

As a building development inspector, Popoola was responsible for identifying dilapidated properties, inviting bids for renovation work, selecting contractors, and certifying completed projects for payment.

Prosecutors allege that he abused this position by setting up a network of companies controlled by close relatives to win government contracts between 2021 and 2024.

His sister reportedly registered Farst Construction LLC in Missouri, while his wife incorporated Premier Finish Contractors LLC. Both firms allegedly received repeated contract awards despite limited construction experience.

The indictment claims that Popoola personally benefited from the arrangement, including cashing cheques written to the companies and receiving illicit proceeds from the contracts.

Alleged proceeds spent on a luxury lifestyle and an overseas wedding

Authorities say Popoola’s companies were awarded more than $4.7 million in contracts across multiple city housing programmes, with over $1.6 million allegedly traced directly to him.

Court documents further allege that he certified incomplete or non-existent renovation projects as completed, enabling payment approvals from city authorities.

Prosecutors say the proceeds of the scheme were spent on personal luxury expenses, including mortgage payments, car purchases, casino gambling, travel, and a lavish wedding in Hawaii with his second wife.

The indictment also notes that Popoola had previously signed compliance forms declaring no financial interest in the companies receiving contracts, statements investigators now allege were false.

U.S. authorities argue that his actions violated public service ethics and procurement rules and that he knowingly used his position to steer contracts to entities he secretly controlled.

If convicted, Popoola faces significant prison time alongside financial forfeiture as the Justice Department continues its case in the U.S. District Court for the Eastern District of Missouri.

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