Auditor Targets St. Louis Building Division Over $1.67M Fraud | The Locally Times
A federal indictment and allegations a former inspector diverted $1.67 million in public funds have triggered a state audit of the St. Louis Building Division.
Nearly $1.7 million in public funds, allegedly diverted by a former inspector, has triggered a comprehensive performance audit of the City of St. Louis Building Division, State Auditor Scott Fitzpatrick announced today. The audit, launched after a federal indictment and evidence of improper governmental activity, aims to uncover how such alleged wrongdoing occurred and to recommend measures to prevent future fraud and abuse. State Auditor Scott Fitzpatrick’s office confirmed the audit will scrutinize millions of dollars processed by the building stabilization program and the division’s broader operations. This investigation was initially prompted by whistleblower complaints and a public request from former St. Louis City Mayor Tishaura Jones. Details regarding the federally indicted inspector’s name, the indictment date, or the whistleblowers’ identities remain undisclosed in public records. ## Genesis of the State Audit The State Auditor’s performance audit of the St. Louis Building Division stems from an investigation that unearthed evidence of misconduct. This probe was initially spurred by whistleblower complaints and a public request from former St. Louis City Mayor Tishaura Jones. Media reports further fueled concerns, detailing alleged ties between a building inspector and contractors who received a significant share of building stabilization funds. Additionally, reports cited allegations that other inspectors solicited charitable donations during day care facility inspections. The audit’s launch today, March 27, 2026, directly follows a federal indictment against a former building inspector accused of defrauding the city of $1.67 million. A timeline for the audit’s completion or the release of its findings has not been provided. ## Allegations of $1.67 Million Misuse At the heart of the State Auditor’s inquiry are allegations that a former building inspector defrauded St. Louis of $1.67 million. Fitzpatrick’s investigation uncovered specific concerns, including an inspector allegedly directing State and Local Fiscal Recovery Funds — federal allocations meant for pandemic recovery and infrastructure — to businesses with which they were affiliated. These funds were originally earmarked for building stabilization. The audit will also scrutinize additional allegations: building inspectors soliciting charitable donations during city business, particularly during day care facility inspections. While the full extent of the former inspector’s ties to contractors and the total amount of potentially misdirected State and Local Fiscal Recovery Funds remain unspecified in public records, these issues form a critical part of the performance audit. ## Building Stabilization Program Under Scrutiny The City of St. Louis’s building stabilization program, which current Mayor Cara Spencer shut down in April 2025, is a significant focus of the performance audit. Even after its termination, Auditor Fitzpatrick’s office will examine the millions of dollars that flowed through the program. The audit seeks to understand its operations and pinpoint any vulnerabilities that may have enabled the alleged misconduct. Mayor Spencer’s decision to close the program in April 2025 came before the State Auditor’s announcement. Now, the audit will provide an independent review of the program’s financial management and oversight, including a deep dive into reported concerns about building inspectors’ affiliations with contractors who benefited from program funds. Louis minimize the risk of future fraud and abuse. These recommendations are expected to shape future city policies on procurement, public fund oversight, and ethical conduct for employees. Residents with relevant information about the St. Louis Building Division or the building stabilization program are encouraged to provide it confidentially to the State Auditor’s Whistleblower Hotline at 800-347-8597. Submissions can also be made via email at moaudit@auditor.mo.gov or through the auditor’s website at www.auditor.mo.gov/hotline, allowing the community to actively participate in the accountability process. ## Key Questions **How much money is involved in the alleged fraud?** A former building inspector has been federally indicted for allegedly defrauding the city of $1.67 million. The audit will also examine millions of dollars that moved through the building stabilization program. **What specific activities are being investigated?** Auditor Fitzpatrick’s investigation identified concerns including a building inspector allegedly directing State and Local Fiscal Recovery Funds to affiliated businesses and building inspectors soliciting charitable donations during inspections. **How can residents provide information to the audit?** Individuals can provide confidential information to the State Auditor’s Whistleblower Hotline at 800-347-8597, by email at moaudit@auditor.mo.gov, or by visiting www.auditor.mo.gov/hotline.