District of the Virgin Islands
Press releases recorded for this federal judicial district.
Puerto Rico Man Detained in Illegal Shipment of Firearms CaseRead the Press Release
St. Thomas, USVI – United States Magistrate Judge Ruth Miller today ordered the detention of Emmanuel Benel Cuadrado, 24, of Puerto Rico, who was arrested Sunday at the Cyril E. King Airport on St. Thomas and charged with illegally shipping firearms into the Virgin Islands, United States Attorney Ronald W. Sharpe announced.
Benel Cuadrado made his initial appearance in District Court before U.S. Magistrate Judge Ruth Miller on Monday, and was ordered held without bail pending today’s detention and preliminary hearing. According to documents filed in District Court, Customs and Border Protection officers and agents of Homeland Security Investigations intercepted a brown box that Benel Cuadrado placed on a Jet Blue flight traveling from Puerto Rico to St. Thomas on April 13th. The package contained three firearms, one Glock and two Smith and Wesson firearms. The three firearms were removed from the box and replaced with two fake firearms, and the box was allowed to continue on to St. Thomas. Upon Jet Blue’s arrival in St. Thomas, Benel Cuadrado retrieved the brown box from the airport’s baggage claim area.
If convicted, Benel Cuadrado faces a statutory maximum sentence of five years in prison. This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
The public is reminded that a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
2 Haitian Men Arrested in Alien Smuggling Conspiracy That Killed 8Read the Press Release
St. Thomas, USVI – Dieuseul Mompremier, 44, and Lamorthe Delva, 45, both Haitian nationals, were arrested Friday on St. Thomas after a federal grand jury returned a 10-count indictment charging them with conspiracy to smuggle illegal aliens into the United States, United States Attorney Ronald W. Sharpe announced today. After their arrest, Mompremier and Delva made their initial appearance before U.S. Magistrate Judge Ruth Miller, who ordered Delva held without bail pending trial, and continued Mompremier’s detention hearing to Thursday, April 17.
According to the indictment, in December 2010, Mompremier, Delva and Roro Edourre, 46, conspired with each other and additional co-conspirators to smuggle illegal aliens into St. John, U.S. Virgin Islands. On December 5, 2010, Edourre was the captain on the vessel “Jesus La,” with approximately 33 passengers, most of them Haitian nationals, including men, women and children, when the vessel traveled from St. Maarten, Netherlands Antilles, to the U.S. Virgin Islands. While Edourre was transporting the illegal aliens on the vessel, Mompremier and Delva waited in the U.S. Virgin Islands and communicated with their co-conspirators by telephone. The U.S. Coast Guard spotted the vessel carrying Edourre and his passengers, and Edourre attempted to evade the Coast Guard. While attempting to evade the Coast Guard, the “Jesus La” ran aground and sank, resulting in the death of at least eight individuals, including four children.
In addition to conspiracy to smuggle aliens, Mompremier, Delva and Edourre are charged with unlawfully attempting to bring aliens into the United States. Mompremier also is charged with transportation of an alien within the United States on or about December 28, 2011. Edourre also was prosecuted for manslaughter in the British Virgin Islands, where he is currently serving his sentence.
The 10-count indictment is the result of months of investigative work by U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
USA Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Court Orders Release of 4 Charged in Robery of Jewelry StoreRead the Press Release
St. Thomas, USVI – Over the objection of the Government, United States Magistrate Judge Ruth Miller today ordered the release of the four men charged in the robbery of Imperial Jewelry Store on St. Thomas, United States Attorney Ronald W. Sharpe announced. Judge Miller stayed her order releasing the four men until 9 a.m. Monday to give the Government an opportunity to appeal the order to the district court judge.
Shaquim Fredericks, 19, Warkim Gabriel, 18, Alvin Thomas, 19, and Chefton Newton, 26, all of St. Thomas, were charged in Federal Court on April 4 with Interference with Commerce by Threats of Violence. They appeared today in federal court for their preliminary and detention hearing.
After finding probable cause to charge the four men with Hobbs Act robbery, the court ordered their release with conditions, including: home confinement, electronic monitoring, thirdparty custodian and $50,000 cash bond. The four men are allowed to post 10% of the bond.
According to documents filed in federal court, on March 15, 2014, the four defendants and three additional individuals committed armed robbery of the Imperial Jewelry Store on Main Street, St. Thomas, robbing the store of more than $1millionworth of merchandise. After leaving the store, the defendants fled to the bushy area behind Fireburn Hill where they were apprehended by officers and detectives from the Virgin Islands Police Department.
If convicted, defendants face a statutory maximum sentence of 20 years in prison.
This case is being investigated by the Bureau of Alcohol Tobacco Explosives and Firearms, the Federal Bureau of Investigations, and the Virgin Islands Police Department. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
Federal Search Warrant Executed at Golden Grove Correctional Facility in St. CroixRead the Press Release
St. Croix, USVI – A federal search warrant authorizing federal agents to search the Golden Grove Adult Correctional and Detention Facility (Golden Grove) in St. Croix for illegal contraband was executed last night, announced Ronald W. Sharpe, United States Attorney for the District of the Virgin Islands, Vito S. Guarino, Special Agent in Charge of the Drug Enforcement Administration (DEA) Caribbean Division and Carlos Cases Special Agent in Charge of the Federal Bureau of Investigation (FBI) San Juan Field Division. The search warrant authorized federal agents to search inmates’ cells and certain common areas such as the prison yard and workshop areas for illegal contraband, weapons, controlled substances and cellular telephones. Under federal and territorial law, it is illegal for inmates to possess such items. Federal inmates awaiting trial and those already sentenced and pending transfer to a federal correctional facility are held at Golden Grove.
The search is part of a multi-year federal investigation involving the smuggling of illegal contraband into Golden Grove by Correctional Officers (COs), inmates, and others. According to the affidavit in support of the warrant, COs have been directly involved in the smuggling of contraband into the prison and are often paid by inmates to do so. The affidavit also states that numerous inmates regularly possess illegal contraband. The affidavit also details the methods used by COs and inmates to smuggle and hide contraband inside the prison. These methods include the use of cellular phones by inmates to arrange for delivery of contraband to COs, the smuggling of contraband into the prison by COs using their personal belongings, and the concealment of contraband by inmates in their cells and other places in the prison. The affidavit also reveals the following:
• Between February 2012 and February 2014, fifty-one (51) of approximately 350 prison cells at Golden Grove have been searched by the Bureau of Corrections. These searches have resulted in the seizure of marijuana, weapons such as shanks and knives, cellular telephones, telephone chargers, SIM cards (subscriber module), and cable boxes.
• Inmates are often “tipped off” by prison officials prior to searches.
• Since November 2012, there have been 11 stabbing incidents (one resulting in the death of an inmate) with the most recent stabbing incident occurring February 20, 2014.
• A cellular telephone was used by inmates to arrange a murder for hire plot against two COs.
• Cellular telephones were used by inmates to arrange the sale or purchase of contraband in the prison.
• Most inmates (approximately 90%) are in daily possession of some form of prison contraband.
• Despite the recent arrest of two COs for attempting to smuggle contraband into the prison, contraband continues to be smuggled into Golden Grove.
U.S. Attorney Sharpe said a search warrant is an investigative tool used to collect evidence of criminal offenses, and that the execution of the warrant at Golden Grove is part of an ongoing investigation. “The smuggling of contraband into Golden Grove is a serious offense that jeopardizes not just the inmates and corrections officers but the entire community,” said U.S. Attorney Sharpe.
“Shanks, knives, and controlled substances pose an obvious danger to other inmates and correctional personnel,” stated Special Agent in Charge Guarino. “As the search warrant affidavit shows, cellular telephones in the hands of inmates also pose a serious threat to the security of the prison. They can be used to commit further crimes, run criminal organizations from inside prisons, intimidate witnesses, plot escapes, and facilitate drug trafficking inside the prison.”
The investigation leading to today’s search warrant was led by the St. Croix DEA High Intensity Drug Trafficking Area (HIDTA) Task Force, which includes officers from the Virgin Islands Police Department (VIPD), with assistance from the FBI. Assisting HIDTA in today’s search were agents from the FBI, the U.S. Marshals Service, Bureau of Alcohol Tobacco Firearms and Explosives, Internal Revenue Service Criminal Investigation Division, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), U.S. Customs and Border Protection, VIPD, and the Virgin Islands National Guard.
There were no arrests in connection with today’s search. The search warrants and a redacted version of the affidavit in support of the search warrants have been unsealed today. The results of the search will be made public at a later date.
St. Thomas Man Arrested and Detained for CarjackingRead the Press Release
St. Thomas, USVI – United States Attorney Ronald W. Sharpe stated today that Troy J. Normil, 18, of St. Thomas, has been arrested and charged in a federal criminal complaint with Carjacking. Normil was arrested on March 20 and has been in custody pending a preliminary and detention hearing, which was held today before Magistrate Judge Ruth Miller. At the conclusion of today’s hearing, Magistrate Judge Miller found Normil was a flight risk and a danger to the community and ordered him detained pending trial. A trial date has not yet been scheduled.
According to the affidavit accompanying the criminal complaint, on November 23, 2013, Troy J. Normil and another individual blocked the roadway with a SUV as the victim traveled on the roadway. When the victim stopped because the roadway was blocked, Normil demanded money. When the victim stated he had none, Normil and his accomplice then stole the victim’s s cellular telephone and his Honda Elite Scooter at gunpoint. If convicted of the carjacking offense as alleged in the criminal complaint, Normil faces up to 15 years in federal prison.
United States Attorney Sharpe reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Nelson L. Jones.
St. Croix Man Indicted on Carjacking and Related ChargesRead the Press Release
St. Croix, USVI – United States Attorney Ronald W. Sharpe stated today that a federal grand jury in St. Croix has returned a seven-count indictment charging Abdallah Abdallah, 23, of St. Croix, with Carjacking, Using a Firearm During Crime of Violence, Robbery First Degree, Unauthorized Possession of Firearm During Violent Crime, Possession of Stolen Property, Unauthorized Possession of Ammunition and Felon in Possession of Ammunition. The indictment was returned on March 19, 2014.
According to the Indictment, on December 24, 2013, Abdallah and another individual carjacked a red Ford Focus at gunpoint from the victim. If convicted of the carjacking offense as alleged in Count One of the Indictment, Abdallah faces up to 15 years in federal prison. In addition, if Abdallah is convicted of using a firearm in connection with the carjacking offense, as alleged in Count Two of the indictment, he faces a mandatory term of imprisonment of 7 years in federal prison, which by law must be served consecutively to any sentence he receives for the carjacking offense.
Abdallah appeared today before U.S. Magistrate Judge George W. Cannon for a detention hearing and was ordered detained pending trial. A trial date has not yet been scheduled. United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
The case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Rhonda Williams-Henry and Alphonso Andrews.
St. Thomas Man Sentenced to 5 Months for Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI- District Court Judge Curtis V. Gomez today sentenced Melroy Burgan, 25, to five months in prison for possession with intent to distribute marijuana, to be followed by three years of supervised release, announced United States Attorney Ronald W. Sharpe and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Special Agent in Charge Angel M. Melendez.
On November 5, 2013, Burgan pleaded guilty to possession with intent to distribute marijuana. According to the plea documents filed in court, on August 17, 2013, Burgan traveled from the Ft. Lauderdale- Hollywood International Airport to the Cyril E. King Airport in St. Thomas with three kilograms of marijuana in his suitcase. After Customs and Border Protection (CBP) detected the marijuana in Burgan’s suitcase, they allowed the suitcase to continue through the normal luggage procedures. Burgan, who lives on St. Thomas, was arrested after he retrieved the suitcase from the luggage carousel. During questioning, Burgan admitted ownership of the suitcase and all of its contents.
The case was investigated by CBP and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Ishmael Meyers, Jr.
Federal Jury Convicts St. Thomas Man of Production of Child Pornography and Other Child Exploitation OffensesRead the Press Release
St. Thomas, USVI - After a two-day trial in District Court in St. Thomas, a federal jury on Tuesday found Tony Jefferson Browne, 31, guilty of 12 counts of federal child exploitation offenses involving four girls ranging from ages 12 to 17, announced United States Attorney Ronald W. Sharpe, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Angel M. Melendez, and Virgin Islands Police Department (VIPD) Commissioner Rodney Querrard, Jr.
According to the evidence presented at trial, Browne first made contact with the minor girls on Facebook, where he pretended to be a female and befriended them. After befriending the minors, Browne persuaded them to send him nude and sexually suggestive photos of themselves. After receiving the photos, Browne contacted the minors using his Facebook account “Billy Button,” and threatened to place the minors’ nude and sexually suggestive photos on the Internet if they did not send him additional photos and have sex with him. Evidence at trial also established that Browne sent images of his erect penis via Facebook and his cellular telephone to three of the minor girls, and kept pornographic images of the minor females on his cellular telephone and Facebook page.
The jury found Browne guilty of four counts of production of child pornography, one count of coercion and enticement of a minor, four counts of receipt of child pornography, and three counts of transfer of obscene material to a minor. Following his conviction, Browne was remanded to the custody of the U.S. Marshals Service. Sentencing is scheduled for July 3, 2014.
Browne faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison for each count of production of child pornography. He faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for coercion and enticement. For receipt of child pornography, Browne faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison for each count. For transfer of obscene images to a minor, Browne faces a maximum penalty of 10 years in prison for each count. Additionally, each count carries a $250,000 fine.
U.S. Attorney Sharpe commended the efforts of HSI and VIPD who investigated the case. The case was prosecuted by Assistant U.S. Attorney Everard Potter.
Suspected child exploitation or missing children cases may be reported to the National Center for Missing and Exploited Children via its toll-free 24-hour hotline at 202-514-5678, or HSI at (340)693-2250.
U.S. Marshal’s Service Captures St. Thomas Man Who Escaped from Federal Custody in JanuaryRead the Press Release
St. Thomas, USVI – The United States Marshal’s Service today arrested fugitive Raheem Creque, a.k.a. “Shano,” 36, of St. Thomas on an outstanding federal warrant, announced United States Attorney Ronald W. Sharpe and United States Marshal Cheryl Jacobs. After his capture, Creque appeared before District Court Magistrate Judge Ruth Miller, who scheduled his detention and preliminary hearing for March 3rd.
Creque was arrested on January 21, 2014, by Homeland Security Investigations (HSI) and charged with enticing and coercing a minor to engage in sexual activity through use of a facility of interstate commerce. After his detention hearing on January 22, 2014, Magistrate Judge Miller ordered Creque held without bail, and remanded him to the custody of the United States Marshal’s Service (USMS). On January 23, 2014, Creque escaped from the Virgin Islands Bureau of Corrections at the Alexander A. Farrelly Criminal Justice Complex.
On January 24, 2014, District Court Judge Curtis Gomez issued an arrest warrant for Creque. An aggressive, multi-agency manhunt, coordinated by the USMS, and consisting of the USMS, DEA, ATF, FBI, HSI, Customs and Border Protection, Virgin Islands Police Department, Virgin Islands Bureau of Corrections, and British Virgin Islands authorities, was launched to apprehend Creque. The Daily News, TV-2, the CBS affiliate in the U.S. Virgin Islands, and Crime Stoppers also were contacted to assist with media coverage and to inform the public of the escape.
Creque was arrested at approximately 11 a.m. today based on information from the public. The United States Marshals Service would like to thank all of the participating agencies, and especially the residents of the U.S. Virgin Islands, for their help and cooperation in apprehending Creque.
Suspected child exploitation or missing children cases may be reported to the Homeland Security Investigations tip line at 1-866-DHS-2-ICE or online at: www.ice.gov/exec/forms/hsi-tips/tips.asp or to the National Center for Missing and Exploited Children via its toll-free 24 –hour hotline at 202-514-5678.
St. Thomas Man and St. John Woman Arrested for Impersonating Fbi AgentsRead the Press Release
St. Thomas, USVI – Alana Liburd, 30, of St. John and Yamini Potter, 31, of St. Thomas were arrested today by agents from the Federal Bureau of Investigation (FBI) for impersonating FBI employees as part of a scheme to defraud people out of hundreds of dollars, United States Attorney Ronald W. Sharpe announced. Both Liburd and Potter appeared today in District Court in St. Thomas before U.S. Magistrate Judge Ruth Miller, and were released on a $5,000 unsecured bond.
According to court documents, Potter and Liburd told several individuals that they were FBI employees responsible for forming a new FBI Taskforce in the Virgin Islands. Potter and Liburd then recruited several individuals to become FBI agents, but only after receiving hundreds of dollars from them, which they claimed was for initial paperwork and training. Under federal law it is a felony offense to falsely assume or pretend to be an officer or employee of a federal agency and demand or obtain money or thing of value.
If convicted, Potter and Liburd each face up to three years in prison and fines of up to $250,000. The public is reminded that a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by the U.S. Attorney’s Office.
Puerto Rico/U.S. Virgin Islands High Intensity Drug Trafficking Area Program Receives National RecognitionRead the Press Release
St. Thomas, VI – White House Drug Control Policy Director Gil Kerlikowske has awarded the St. Thomas Major Organization Investigations unit of the Puerto Rico/U.S. Virgin Islands High Intensity Drug Trafficking Area program (HIDTA) the 2013 national award for Outstanding Task Force Effort, announced United States Attorney Ronald W. Sharpe.
United States Attorney Sharpe, who served as the Chairperson of the PR/USVI HIDTA from June 2012 through December 2013, congratulated the St. Thomas MOI on being chosen for this prestigious award. “Close collaboration with our federal and local law enforcement partners is critical to our efforts to reduce the supply of illicit drugs and the violence associated with its distribution and use,” Sharpe said.
“The DEA Caribbean Division is very proud of the accomplishments of our St. Thomas HIDTA Task Force and we congratulate them for this well-deserved 2013 ONDCP Director's Award,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA Caribbean Division “Key to the St Thomas HIDTA Task Force sustained success is the close coordination and joint work with our law enforcement partners VIPD, ATF, FBI, HSI, IRS, CBP, and the USMS.”
Disrupting and dismantling drug trafficking organizations is fundamental to the mission of the PR/USVI HIDTA. In furtherance of this goal, the St. Thomas Major Organization Investigations (MOI) unit formed an operation known by law enforcement as “Operation Franco’s Folly/Excess Baggage” that targeted the trafficking of narcotics through the St. Thomas Airport. Through the course of the operation, law enforcement employed innovative investigative tactics while maintaining a high level of secrecy which led to the arrest and indictment of 28 individuals, the seizure of over 40 kilograms of cocaine destined for Puerto Rico, Florida and Georgia, and the seizure of a substantial amount of assets. Operation Franco’s Folly also uncovered significant public corruption, which led to the arrest and prosecution of several airport baggage handlers and a Transportation Security Administration officer, whose official positions and access to sensitive areas of the airport posed serious risks to national security.
Significantly, the operation revealed that Roberto Tapia, Director of Enforcement Operations for the Virgin Islands Department of Planning and Natural Resources (DPNR) utilized his official supervisory law enforcement position as well as a DPNR vessel and automobile to facilitate narcotics smuggling. Angelo Hill, former Chief of the Virgin Islands Police Department (VIPD) assisted Tapia by helping him traffic narcotics and avoid detection by federal law enforcement. In September 2013, Tapia pleaded guilty to racketeering charges in connection with his use of DPNR as a criminal enterprise to engage in illegal drug trafficking activities. Angelo Hill also pleaded guilty to related charges. Both men are in custody awaiting sentencing.
The Office of National Drug Control Policy’s HIDTA program provides federal resources to designated areas to help reduce drug trafficking and its harmful consequences. Law 3 enforcement organizations within HIDTAs assess drug-trafficking problems and design specific initiatives to decrease the production, manufacture, transportation, distribution, and chronic use of drugs and money laundering. The HIDTA program plays a vital role in the Obama Administration’s efforts to make the nation safer and healthier by reducing drug use and its consequences. There are currently 28 HIDTAs, which include approximately 16 percent of all counties in the United States and 60 percent of the U.S. population. HIDTA-designated counties are located in 46 states, Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
Sharpe also commended the agencies that comprise the St. Thomas MOI for their efforts in securing the award and for the overall success of the HIDTA program. These agencies include the Federal Bureau of Investigation (FBI), U.S. Drug Enforcement Administration (DEA), Virgin Islands Police Department (VIPD), United States Marshals Service (USMS), Internal Revenue Service Criminal Investigation Division (IRS-CID), U.S. Department of Homeland Security, Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Additional information about the HIDTA program is available on the ONDCP Web site: www.WhiteHouseDrugPolicy.gov
St. Thomas Man Arrested and Charged for Failing to Register as Sex OffenderRead the Press Release
St. Thomas, USVI – Jevon O. Stridiron, 25, of St. Thomas was arrested yesterday by the United States Marshals Service after being indicted by a federal grand jury for failing to register as a sex offender announced United States Attorney Ronald W. Sharpe. Stridiron appeared in District Court in St. Thomas today before U.S. Magistrate Judge Ruth Miller for arraignment and was released on a $5,000 unsecured bond, and other conditions, after a not guilty plea. A trial date has been scheduled for April 7, 2014.
According to court documents, Stridiron was convicted in 2007 of a sex offense in Orange County, Florida. Under the Sex Offender Registration and Notification Act of 2006, a person convicted of a sex offense who travels in interstate commerce, is required to register with local authorities as a sex offender. The failure to do so is a crime under federal law. The indictment charging Stridiron alleges that he failed to register as a sex offender as required by the law when he traveled from Florida, changing his residence to the Virgin Islands.
If convicted of this offense, Stridiron faces up to 10 years in prison and fines of up to $250,000. The public is reminded that an indictment is only a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
St. Croix Man Arrested for Failing to Register as Sex OffenderRead the Press Release
St. Thomas, USVI – Christopher Mitchell, 45, of St. Croix was arrested today by the United States Marshals Service after being indicted by a federal grand jury for failing to register as a sex offender announced United States Attorney Ronald W. Sharpe. Mitchell appeared today in United States District Court in St. Croix before U.S. Magistrate Judge George W. Cannon and was released on conditions.
According to court documents, Mitchell was convicted in 1998 of a sex offense under the Uniform Code of Military Justice. Under the Sex Offender Registration and Notification Act of 2006, a person convicted of a sex offense is required to register with local authorities as a sex offender. The failure to do so is a crime under federal law. The indictment charging Mitchell alleges that he failed to register as a sex offender as required by the law.
If convicted of this offense, Mitchell faces up to 10 years in prison and fines of up to $250,000. The public is reminded that an indictment is only a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
St. Thomas Man Sentenced to Three Years in Prison for Tax Fraud ConspiracyRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced David Haddow, 52, of St. Thomas, Virgin Islands, to three years in prison for conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands, announced United States Attorney Ronald W. Sharpe and Internal Revenue Service Special Agent in Charge Jose A. Gonzalez. The Court also sentenced Haddow to three years of supervised release, 300 hours of community service, and ordered him to pay restitution to the Virgin Islands Bureau of Internal Revenue in the amount of $821,094 and to the United States Internal Revenue Service in the amount of $1,104,741. Haddow was remanded to the custody of the United States Marshals Service to begin serving his sentence at the conclusion of today’s hearing.
According to the evidence presented during the jury trial of Haddow and co-conspirator, Hansel Bailey, in 2004, Bailey incorporated a business in St. Thomas called Compass Diversified, and in 2005, that company was granted Economic Development Commission tax benefits. Bailey, 36, and another co-conspirator marketed a tax-savings scheme that would allow clients of Compass Diversified to claim bogus business deductions on their income tax returns by making payments to Compass, allegedly for management or consulting services. The clients would then recoup a substantial portion of the payment made to Compass in the form of a tax-free gift from a Virgin Islands-born resident. The scheme consisted of nothing more than a three-step circuitous money flow.
According to the evidence, in the first step, Compass clients made payments to Compass or wired money directly into Compass’ bank account. In step two, co-conspirator Haddow, at the direction of Bailey, transferred a substantial portion of that money into the personal bank account of a Compass employee. The last step consisted of a substantial portion of the original payment being returned to the Compass clients who made the payments to Compass on the front end of the transaction. As part of their scheme, Bailey and Haddow convinced a Virgin Islands-born resident to open a personal bank account for the sole purpose of sending tax-free gifts back to Compass clients. Compass Diversified never offered consulting or management services to any of their clients even though the clients were encouraged to claim deductions on their tax returns.
The jury also convicted co-conspirator Bailey of conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands. Bailey was sentenced on January 9, 2014, to five years in prison, and ordered to pay the same amounts in restitution to the Internal Revenue Service and the Virgin Islands Bureau of Internal Revenue. A third co-conspirator, Dwight Padilla, pleaded guilty in June 2013 to conspiracy to defraud the United States and was sentenced to 15 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $1,296,941 to the Internal Revenue Service.
U.S. Attorney Sharpe commended the efforts of the Internal Revenue Service, which investigated the case. The case was prosecuted by Assistant U.S. Attorneys Bryan E. Foreman and Kim L. Chisholm.
Four Defendants Plead Guilty for Role in Cocaine Trafficking OrganizationRead the Press Release
St. Thomas, USVI – Four defendants involved in a multi-kilogram cocaine trafficking organization pleaded guilty today in District Court on St. Thomas, announced United States Attorney Ronald W. Sharpe. Angel L. Negron, 53, of Puerto Rico; Edwin Monsanto, 53 of St. Thomas; Eddie Lopez-Lopez, 37,of Puerto Rico, and Stephen Torres, 27, of Puerto Rico, pleaded guilty before U.S. District Court Judge Curtis V. Gomez for their respective roles in a wide-ranging conspiracy to smuggle and distribute multi-kilograms of cocaine.
Negron-Beltran, Monsanto and Torres pleaded guilty to conspiring to traffic in cocaine, and Lopez-Lopez pleaded guilty to aiding and abetting the possession with intent to distribute cocaine. Negron-Beltran, Monsanto and Lopez face sentences ranging from 10 years to life, and maximum fines of $10 million. Torres faces up to 20 years in prison, and a maximum fine of $5 million
All four defendants were remanded to the custody of the United States Marshals Service pending sentencing, which is scheduled for June 5, 2014. The charges against these four defendants arose in connection with the investigation and prosecution of Roberto Tapia, the former Director of the Environmental Enforcement Division of the Virgin Islands Department of Planning and Natural 2 Resources (DPNR), for using DPNR as a criminal enterprise to engage in illegal drug trafficking activities. Tapia pleaded guilty in September, and is in custody awaiting sentencing. Two other co-conspirators, Angelo Hill, and Hector Alcenio, also pleaded guilty to related charges and are awaiting sentencing.
The remaining two defendants in the case, Raymond Brown, and Walter Hill, are scheduled for trial on February 18, 2014.
U.S. Attorney Sharpe commended the work of the Federal Public Corruption Task Force, which spearheaded the investigation. This Task Force is comprised of agents from the Federal Bureau of Investigation (FBI), the U.S. Drug Enforcement Administration (DEA), the Virgin Islands Police Department, the United States Marshals Service, the Internal Revenue Service Criminal Investigation Division (IRS-CI), the U.S. Department of Homeland Security, Homeland Security Investigations, the U.S. Customs and Border Protection, the United States Coast Guard, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Virgin Islands Inspector General Office.
U.S. Attorney’s Office Collects $2.6 Million in FY 2013Read the Press Release
St. Thomas, USVI – United States Attorney Ronald W. Sharpe announced today that the District of the Virgin Islands collected $2,671,486 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,387,388 was collected in criminal actions and $284,098 was collected in civil actions.
Additionally, the District of the Virgin Islands worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $26,000 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions not only help to ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“During these tight budgetary times, it is important that we use both civil and criminal actions to aggressively protect public funds, recover ill-gotten gains from fraudsters and criminal defendants, and make every effort to return these funds to crime victims and our struggling communities, ” said United States Attorney Sharpe.
In civil cases, the District of the Virgin Islands recovered $86,272 as part of a $125,849 settlement in a Social Security fraud case; $24,264 in a student loan case; $25,000 in an environmental case, and $134,421in a foreclosure case. In criminal cases, it recovered $240,392 from two defendants in a bank fraud case; $1,648,537 in two cases involving the illegal importation of black coral; $134,441 in a federal tax evasion case, and $28,646 in a FEMA fraud case.
The U.S. Attorney’s Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States, and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Nationwide, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Hansel Bailey Sentenced to Five Years in Prison for Tax Fraud ConspiracyRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Hansel Bailey, 36, of Orange County, California, to five years in prison for conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands, announced United States Attorney Ronald W. Sharpe and Internal Revenue Service Special Agent in Charge Jose A. Gonzalez. The Court also sentenced Bailey to three years of supervised release, and ordered him to pay restitution to the Virgin Islands Bureau of Internal Revenue in the amount of $821,094, and to the Internal Revenue Service in the amount of $1,104,741. Bailey was remanded to the custody of the United States Marshals Service to begin serving his sentence at the conclusion of today’s hearing.
According to the evidence presented during the jury trial of Bailey and co-conspirator, David Haddow, in 2004, Bailey incorporated a business in St. Thomas called Compass Diversified, and in 2005, that company was granted Economic Development Commission tax benefits. Bailey and another co-conspirator marketed a tax-savings scheme that would allow clients of Compass Diversified to claim bogus business deductions on their income tax returns by making payments to Compass, allegedly for management or consulting services. The clients would then recoup a substantial portion of the payment made to Compass in the form of a tax-free gift from a Virgin Islands-born resident. The scheme consisted of nothing more than a three-step circuitous money flow.
According to the evidence, in the first step, Compass clients made payments to Compass or wired money directly into Compass’ bank account. In step two, co-conspirator Haddow, at the direction of Bailey, transferred by check a substantial portion of that money into the personal bank account of a Compass employee. The last step consisted of a substantial portion of the original payment being returned by check or wire transfer to the Compass clients who made the payments to Compass on the front end of the transaction. As part of their scheme, Bailey and Haddow convinced a Virgin Islands-born resident to open a personal bank account for the sole purpose of sending tax-free gifts back to Compass clients. Compass Diversified never offered consulting or management services to any of their clients even though the clients were encouraged to claim deductions on their tax returns.
The jury also convicted co-conspirator Haddow of conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands. Haddow’s sentencing has been continued without a date. A second co-conspirator, Dwight Padilla, pleaded guilty in June 2013 to conspiracy to defraud the United States and was sentenced to 15 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $1,296,941 to the Internal Revenue Service.
U.S. Attorney Sharpe commended the efforts of the Internal Revenue Service, which investigated the case. The case was prosecuted by Assistant U.S. Attorneys Bryan E. Foreman and Kim L. Chisholm.
Former Senator Alvin L. Williams, Jr. Sentenced to 52 Months in Prison for RacketeeringRead the Press Release
St. Thomas, USVI -- District Court Judge Curtis V. Gomez today sentenced Alvin L. Williams, Jr., former senator for the Legislature of the Virgin Islands, to 52 months in federal prison for racketeering, announced United States Attorney Ronald W. Sharpe, Federal Bureau of Investigation (FBI) Special Agent in charge Joseph Campbell, United States Marshal Cheryl Jacobs, Virgin Islands Office of the Inspector General Steven van Beverhoudt, Internal Revenue Service Criminal Investigation Division (IRS CID) Special Agent in Charge Daniel W. Auer, U.S. Department of Education Office of Inspector General Special Agent in Charge Yessyka Santana, Drug Enforcement Administration (DEA) Special Agent in Charge Eric Barnard, and Virgin Islands Police Department (VIPD) Commissioner Rodney Querrard.
Williams, 34, was remanded to the custody of the United States Marshals Service to begin serving his sentence at the conclusion of today’s hearing. In addition to the prison sentence, Judge Gomez ordered Williams to serve three years of supervised release upon completion of his prison sentence, pay restitution in an amount to be determined, and perform 300 hours of community service.
On January 17, 2013, Williams pleaded guilty to operating and participating in a criminal enterprise whose members and associates engaged in illegal activities including: bribing a Virgin Islands public official, soliciting and receiving bribes from numerous St. Thomas construction project developers, fraudulently soliciting and increasing staff members’ salaries and using the increase of funds for his personal use, and having staff members fraudulently do his University of Phoenix online course for him during legislative work hours.
In the same hearing, Judge Gomez sentenced co-defendants Kim A. Blackett, 30, and Garry Sprauve, 64, two Virgin Islands legislative staff members who worked with Williams.
Sprauve was sentenced to serve one year in prison and three years of probation, and ordered to pay restitution in an amount to be determined and perform 300 hours of community service. Sprauve previously pleaded guilty to helping Williams bribe construction developers, and also participated with Williams in the fraudulent increase of Sprauve’s legislative salary in order for the increase to be used by Williams.
Blackett was placed on probation, ordered to pay restitution in an amount to be determined, and ordered to perform 300 hours of community service. Blackett previously pleaded guilty to fraudulently completing Williams’ online University of Phoenix course work during legislative work hours.
“Public service is a public trust. Those who violate this trust for personal gain will not escape justice,” U.S. Attorney Sharpe said. “Today’s sentences should be a reminder to all public officials of the possible consequences when they seek to use their office for their own personal gain.”
The case was investigated by the Federal Public Corruption Task Force, which comprises the FBI, United States Marshals Service, IRS-CI, U.S. Department of Education Inspector General, DEA, Virgin Islands Office of the Inspector General, and the VIPD. It was prosecuted by Assistant United States Attorneys Kim R. Lindquist and Kelly B. Lake.
Rodney Miller Sentenced to 21 Months in Prison for Tax FraudRead the Press Release
St. Thomas, USVI B District Court Judge Curtis V. Gomez today sentenced Rodney E. Miller, Sr., former Chief Executive Officer of Schneider Regional Medical Center, to 21 months in federal prison for income tax fraud, announced United States Attorney Ronald W. Sharpe and Internal Revenue Service Special Agent in Charge Jose A. Gonzalez.
Miller, 41, was remanded to the custody of the United States Marshals Service to begin serving his sentence at the conclusion of today’s hearing. In addition to the prison sentence, Judge Gomez ordered Miller to serve one year of supervised release upon completion of his prison sentence, and pay $86,798 in restitution to the Virgin Islands Bureau of Internal Revenue.
According to the evidence presented at trial, in 2006 Miller received taxable income and compensation from his position as CEO of Schneider Regional Medical Center in the amount of $510,947. The evidence further showed that Miller had funds directed to several bank accounts. When he filed his 2006 income tax return, Miller only reported income in the amount of $265,198, and a tax owing of $39,810. However, based on his true income for 2006 ($510,947) Miller’s tax liability was actually $126, 608, more than three times what he claimed he owed on his 2006 return.
“Individuals who evade taxes and commit tax fraud undermine the integrity and fairness of the income tax collection system,” U.S. Attorney Sharpe said. “With the assistance of the Internal Revenue Service and our partners at the Virgin Islands Bureau of Internal Revenue, tax cheats in the Virgin Islands will be vigorously investigated and prosecuted.”
“Today, justice is served, as Miller is being held accountable for intentionally violating his responsibility to pay his fair share of taxes to the VI BIR as mandated by law,” Special Agent in Charge Gonzalez said.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and prosecuted by Assistant United States Attorney Kim L. Chisholm.
Project Safe Neighborhoods Targets Communities Most Affected by Gun ViolenceRead the Press Release
St. Thomas, USVI - United States Attorney Ronald W. Sharpe announced today that as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, and in conjunction with the Virgin Islands Housing Authority (VIHA), a series of community meetings are presently taking place throughout the Virgin Islands to discuss and address criminal activity, including the escalating gun violence in the Virgin Islands. The goal of these meeting is to afford those persons most affected by gun violence an opportunity to meet and hear from law enforcement and other agencies charged with keeping our communities safe, and to provide a forum for community members to voice their concerns and needs.
The most recent meeting was held at the Community Center in Tutu High-Rise. During this lively two-hour event, a standing room only crowd heard from 14 Project Safe Neighborhoods (PSN) partners about ways to make the Tutu Community safer. The question and answer period following the presentations allowed residents and community members to voice their concerns about how to make their community safer, about the need for neighborhood cameras, and about the large number of guns entering the territory. Residents were also encouraged to complete a Crime Perception Survey, which was provided at the meeting. Once compiled and analyzed, these surveys will greatly assist law enforcement in identifying how violent crime is affecting our community, and how best to combat it.
Over the past several months, meetings have also been held at Oswald Harris Court, Contant Knolls, Bergs Home and Smith Bay in St. Thomas. The next meeting will be held at the Pearson Gardens Community Center, St. Thomas, on December 10, 2013 at 6:00 p.m., and a meeting is being planned for Grove Place in St. Croix. Follow-up meetings will also be held.
United States Attorney Sharpe noted that the U.S. Department of Justice’s Project Safe Neighborhoods is a nationwide commitment to reducing gun crime in America by marshaling federal and local resources to better locate, apprehend, and prosecute individuals who commit offenses involving firearms. United States Attorney Sharpe also commended the following PSN partners who are participating in these meetings and reaching out to the community: Virgin Islands Police Department, Virgin Islands Attorney General’s Office, Bureau of Alcohol Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Marshals Service, Crime Stoppers, Virgin Islands Housing Authority, My Brothers Workshop, Weed & Seed St. Thomas and St. Croix
“To end violent gun crime, we need to bring together law enforcement, prosecutors, community members, and community-based organizations,” United States Attorney Sharpe said. “Creating effective partnerships between the community and both law enforcement and non-law enforcement agencies is the first step in combating these crimes.”For more information about Project Safe Neighborhoods, please visit: www.psn.gov.
Two Virgin Islands Residents Indicted on Drug Trafficking ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald W. Sharpe, United States Attorney for the District of the Virgin Islands, Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Vito S. Guarino, Special Agent in Charge, U.S. Drug Enforcement Administration, Caribbean Division, and Angel M. Melendez, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), San Juan and U.S. Virgin Islands, announce the indictment of Dwight Iva Durant, 44, a Transportation Security Administration (TSA) Supervisor, and Shawn Dowe, 29, both of the Virgin Islands, for their alleged participation in a drug trafficking conspiracy. Defendant Durant was arrested yesterday in St. Thomas, United States Virgin Islands, where he made his initial appearance in federal court today. Dowe was arrested in California and will make his initial appearance in federal court tomorrow. The indictment was returned in Miami, Florida, where the defendants will stand trial.
The indictment, filed on November 14, 2013, and unsealed yesterday, charges Dwight Iva Durant and Shawn Dowe, each, with conspiracy to distribute five or more kilograms of cocaine and aiding and abetting the possession with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. If convicted, the defendants each face a mandatory minimum sentence of 10 years in prison and a possible statutory maximum sentence of life.
This case is a result of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of the DEA West Palm Beach Task Force which is comprised of the following agencies: Palm Beach County Sheriff’s Office, West Palm Beach Police Department, Jupiter Police Department, Delray Beach Police Department, Boynton Beach Police Department, and North Bay Village Police Department. In addition, Mr. Ferrer commended the investigative efforts of DEA Miami, DEA San Juan, ICE-HSI, Sunrise Police Department, and U.S. Transportation and Security Administration. The case is being prosecuted by Assistant U.S. Attorney Dustin M. Davis.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at http://www.justice.gov/usao-sdfl/pr. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Captain and Company Sentenced in Fatal Parasailing AccidentRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez on Friday sentenced the captain of a vessel that was involved in a fatal parasailing accident just outside of the Charlotte Amalie Harbor in 2011 to six months home confinement, announced United States Attorney Ronald W. Sharpe, United States Coast Guard Sector San Juan Commander Captain Drew W. Pearson, and Coast Guard South East Region Criminal Investigative Services Special Agent in Charge Jonathan Sall.
Captain Kyle Coleman, 33, also was ordered to serve one year of supervised release, 150 hours of community service with the United States Coast Guard, and pay restitution in the amount of $1,350,663.18 to the victims of the parasailing accident, joint and several with CWS Tours Inc., LLC.
CWS Tours also was sentenced to one year of supervised probation and 150 hours of community service with the United States Coast Guard.
On June 10, 2013, Coleman pleaded guilty to operating the motor vessel, Turtle, in a negligent manner, thereby causing the death of a passenger while on a parasailing excursion. The owner of CWS Tours, which owned the vessel, pleaded no contest and acknowledged that it was negligent with respect to the vessel, and as a result someone’s life was destroyed.
According to the plea documents filed in court, Coleman was the captain of the Turtle at the time it was conducting parasailing excursions on November 15, 2011, when a passenger, Bernice G. Kraftcheck, was killed. Kraftcheck and her daughter, Danielle Haese, were hoisted into the air for the parasail ride as wind conditions were deteriorating. The strong winds and a weak towline caused the towline to break, resulting in the parasail separating from the vessel and the two women falling into the water. The wind then propelled the parasail, with the women still attached, at a very high rate of speed causing the death of Kraftcheck and serious injuries to Haese.
This case was investigated by the United States Coast Guard, and prosecuted by Assistant United States Attorney Everard E. Potter.
St. Croix Brothers Sentenced to Prison for Carjacking and Related OffensesRead the Press Release
St. Croix, USVI - District Court Chief Judge Wilma A. Lewis on Tuesday sentenced one St. Croix man to 22 years in prison, and his twin brother to 11 years for carjacking, robbery and other related offenses, announced United States Attorney Ronald W. Sharpe and Virgin Islands Police Commissioner Rodney Querrard.
Kareem Louis, 22, was sentenced to 121 months in prison for carjacking; 84 months for using and carrying a firearm during a crime of violence; 120 months for robbery; 180 months for unauthorized possession of a firearm during a violent crime, a mandatory minimum sentence; 180 months for unauthorized possession of a firearm; and 60 months for unauthorized use of a vehicle. All of the sentences are to be served concurrently, except the 84 months for using and carrying a firearm during a crime of violence, which will be served consecutively.
Raheem Louis, 22, was sentenced to 140 months for carjacking, 120 months for robbery, and 60 months for unauthorized use of a vehicle, all to be served concurrently. The Louis brothers also were ordered to pay $150 in restitution to the victim.
Kareem Louis was convicted on December 14, 2012 and Raheem Louis was convicted on December 19, 2011. Evidence presented at both trials established that on August 19, 2011, Kareem and Raheem Louis approached the victim after she had just unloaded a donation to the flea market in the Richmond area of St Croix. Kareem Louis pointed a long-barreled gun at the victim’s head and demanded the keys to her car. The defendants then sped off in her 2010 blue Jeep Compass. Evidence presented at trial also established that the brothers drove the stolen car to their minor siblings’ residence and used the vehicle to take their minor siblings to the Catherine’s Rest Supermarket on three occasions. On their third trip to the store, police apprehended Kareem Louis as he exited the Jeep Compass. He was ordered to stop and did so briefly before running to the side of the shop. As he was running, police observed him reach to his waist and observed a firearm in his hand. A long-barreled handgun was found behind a dumpster in the area where Kareem Louis was observed. Raheem Louis sped off in the vehicle and led the police on a high-speed chase. He abandoned the vehicle in the bushes near the Catherine’s Rest Road and Southside Road intersection. Raheem Louis was arrested pursuant to a warrant on September 1, 2011.
U.S. Attorney Sharpe commended the efforts of the Virgin Islands Police Department, which investigated this case. The case was prosecuted by Assistant U.S. Attorneys Rhonda Williams-Henry and Alphonso Andrews.
Former DPNR Enforcement Director Pleads Guilty to Using DPNR as Criminal Enterprise for Drug TraffickingRead the Press Release
St. Thomas, USVI – Roberto Tapia, former Director of the Environmental Enforcement Division of the Virgin Islands Department of Planning and Natural Resources (DPNR), pleaded guilty today in federal district court to using DPNR as a criminal enterprise to engage in illegal drug trafficking activities, announced United States Attorney Ronald W. Sharpe; Federal Bureau of Investigation (FBI) Special Agent in Charge Carlos Cases; U.S. Drug Enforcement Administration (DEA) Special Agent in Charge Vito Guarino; Virgin Islands Police Commissioner Rodney Querrard; United States Marshal for the District of the Virgin Islands Cheryl Jacobs; Internal Revenue Service Criminal Investigation Division (IRS-CI) Acting Special Agent in Charge Michael J. DePalma; U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Special Agent in Charge Angel Melendez; U.S. Customs and Border Protection (CBP) Special Agent in Charge Marcelino Borges; United States Coast Guard Captain Drew Pearson; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Hugo Barrera, and Virgin Islands Inspector General Steven van Beverhoudt.
Tapia, 55, was arrested on May 17, 2013, and charged with conspiracy to possess with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking. On September 12, 2013, he was charged in a 34-count second superseding indictment, along with six other defendants, including Virgin Islands police officer Angelo Hill, Raymond Brown, Hector Alcenio, Edwin Monsanto, Stephen Torres, and Eddie Lopez-Lopez.
The indictment and plea followed an extensive investigation conducted by the Federal Public Corruption Task Force, which culminated with the arrest of Tapia while in possession of seven kilograms of cocaine.
“Public corruption victimizes every law-abiding resident of the Virgin Islands,” U.S. Attorney Sharpe said. “This individual chose to abuse his position of trust as a law enforcement officer for selfish gain at the expense of the safety and welfare of the community. The USAO is committed to fighting public corruption, and will continue to target individuals who undermine the public trust.”
In entering his plea of guilty to racketeering before District Court Judge Curtis V. Gomez, Tapia admitted extensive cocaine trafficking activities over a substantial period of time, and utilizing his position with and assets of DPNR to facilitate those activities.
Tapia faces a maximum penalty of life in prison and up to $250,000 in fines, in addition to forfeiture penalties and restitution. Sentencing has been scheduled for January 9, 2014 before Judge Gomez.
United States Attorney Sharpe commended the work of the Public Corruption Task Force and Assistant U.S. Attorneys Kim R. Lindquist and Kelly B. Lake, who are prosecuting this case.
Federal Jury Convicts Former CEO of Schneider Regional Medical Center of Tax FraudRead the Press Release
St. Thomas, USVI - After a two-day trial in district court on St. Thomas, a federal jury convicted Rodney E. Miller, Sr., 41, of causing, and aiding and assisting in the preparation of his personal Individual Income Tax Return, Form 1040 for calendar year 2006, United States Attorney Ronald W. Sharpe, Internal Revenue Service Special Agent in Charge Michael DePalma and Internal Revenue Service Head of the Special Enforcement Program Terry Travers, announced today.
According to the evidence presented at trial, in 2007, Miller willfully filed his income tax return for the tax year 2006, knowing that it was false and fraudulent as to a material matter. Specifically, Miller reported total income in the amount of $265,198.00, whereas he then and there knew and believed that his true total income was $510,947.00.
Miller faces a maximum penalty of three years in prison, a maximum fine of $250,000, and a special assessment of $100. Sentencing is scheduled for December 5, 2013.
U.S. Attorney Sharpe commended the efforts of the Internal Revenue Service, which investigated the case. The case was prosecuted by Assistant United States Attorney Kim L. Chisholm.
Woman Pleads Guilty to Production of Child PornographyRead the Press Release
St. Thomas, USVI – Jamhila Hodge, 24, pleaded guilty Wednesday in federal district court on St. Thomas to one count of production of child pornography, announced United States Attorney Ronald W. Sharpe, U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Angel Melendez, and Virgin Islands Police Department Commissioner Rodney Querrard.
According to the plea agreement, Hodge used a cell phone to record a seven-minute video of an adult male engaging in sexual intercourse with a 15-year-old female. Hodge was arrested in April 2012 and charged in a five-count indictment with two counts of production of child pornography, two counts of possession of child pornography, and aiding and abetting second-degree aggravated rape. Co-defendant Calieb Webster, 30, was charged with one count of production of child pornography and second-degree aggravated rape. Webster’s trial is scheduled for August 12, 2013.
Hodge also pleaded guilty July 26, 2013 in federal district court on St. Croix to conspiracy to possess with intent to distribute cocaine. Webster pleaded guilty on August 5, 2013 in federal district court on St. Croix to conspiracy to possess with intent to distribute cocaine. Both Hodge and Webster, who were traveling together, were arrested on St. Croix in February 2012 when they presented themselves for preclearance inspection at the Henry E. Rohlsen Airport prior to boarding an American Airlines flight to New York via Miami. According to the plea agreement, approximately 36.32 kilograms of cocaine was found in their luggage.
Hodge faces a mandatory minimum sentence of 15 years in prison on the production of child pornography charge, and 10 years mandatory minimum on the drug charge. Webster faces a mandatory minimum sentence of 10 years in prison on the drug charge. Sentencing for Hodge has been set for October 24 on the child pornography charge, and October 31 on the drug charge. Sentencing for Webster has been set for November 7 on the drug charge.
The arrest of Webster and Hodge for production of child pornography is part of Homeland Security Investigations’ Operation Predator, a nationwide initiative to identify, investigate and arrest those who sexually exploit children. As part of Operation Predator, HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
The child pornography case is being prosecuted by Assistant United States Attorney Everard E. Potter. The drug case is being prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Janice D. Rey and Devon Mclean Sentenced to Prison for Fraudulent Investment SchemeRead the Press Release
St. Thomas, USVI - District Court Chief Judge Curtis V. Gomez today sentenced Janice D. Rey to 125 months in prison and ordered her to pay restitution to individual victims in the amount of $3,006,260 for her role in a scheme that defrauded investors of millions of dollars, announced United States Attorney Ronald W. Sharpe and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service - Criminal Investigation. Rey also was ordered to pay restitution to the Virgin Islands Bureau of Internal Revenue in the amount of $550,681.31.
Rey’s co-conspirator, Devon McLean was sentenced to 70 months in prison, and also ordered to pay restitution in the amount of $3,006,260. The court also entered a forfeiture money judgment in the amount of $5.5 million against both Rey and McLean.
On April 4, 2013, a federal jury convicted Rey of one count of conspiracy, eight counts of wire fraud, 43 counts of money laundering, and four counts of tax evasion under Virgin Islands law. Rey was sentenced to 60 months in prison for her conviction on the territorial tax charges, to be served concurrently with her sentence on the federal charges. On March 5, 2013, McLean pleaded guilty to wire fraud conspiracy.
According to the evidence presented at Rey’s trial, Rey and co-conspirator Devon McLean organized Paramount Group, LLC, and opened a bank account for the partnership in Nevada. Rey opened a store front location in St. Thomas called Rey Financial, which she used to meet with potential investors. Rey made false material representations and material factual omissions to potential investors in order to induce them to invest with Paramount Group. For example, Rey told the investors that their investments were safe, that Paramount Group was a part of Haliburton, that the investors were investing in “platform investments,” and that they would double their money in less than a year.
The case was investigated by the IRS Criminal Investigation Division. It was prosecuted by Assistant U.S. Attorneys Kim L. Chisholm and Everard Potter.
Federal Jury Convicts Two Men of Tax Fraud ConspiracyRead the Press Release
St. Thomas, USVI - After a three-day trial in district court on St. Thomas, a federal jury convicted Hansel Bailey, 36, of Orange County, California, and David Haddow, 61, of St. Thomas, of conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands, United States Attorney Ronald W. Sharpe announced today.
According to the evidence presented at trial, in 2004 Bailey incorporated a business in St. Thomas called Compass Diversified, and in 2005, that company was granted EDC benefits. Bailey and another co-conspirator marketed a tax-savings scheme that would allow clients of Compass Diversified to claim bogus business deductions on their income tax returns by making payments to Compass, allegedly for management or consulting services. The clients would then recoup a substantial portion of the payment made to Compass in the form of a tax-free gift from a Virgin Islands-born resident. The scheme consisted of nothing more than a three-step circuitous money flow. In the first step, Compass clients made payments to Compass or wired money directly into Compass’ bank account. In step two, Haddow, at the direction of Bailey, transferred by check a substantial portion of that money into the personal bank account of a Compass employee. The last step consisted of a substantial portion of the original payment being returned by check or wire transfer to the Compass clients who made the payments to Compass on the front end of the transaction. As part of their scheme, Bailey and Haddow convinced a Virgin Islands-born resident to open a personal bank account for the sole purpose of sending tax-free gifts back to Compass clients. Compass Diversified never offered consulting or management services to any of their clients even though the clients were encouraged to claim deductions on their tax returns.
Bailey and Haddow face a maximum penalty of five years in prison for each count, a maximum fine of $250,000, and a special assessment of $100. Sentencing is scheduled for October 17, 2013 at 9:00 a.m. Co-conspirator Dwight Padilla pled guilty in June to conspiracy to defraud the United States. His sentencing is scheduled for September 19, 2013 at 9:00 a.m.
U.S. Attorney Sharpe commended the efforts of the Internal Revenue Service, which investigated the case. The case was prosecuted by First Assistant United States Attorney Bryan E. Foreman.
St. Thomas Man Arrested and Charged with Using Internet to Coerce and Entice Three Minor GirlsRead the Press Release
St. Thomas Man Arrested and Charged with Using Internet to Coerce and Entice Three Minor Girls St. Thomas, USVI – Tony Jefferson Browne, 30, of St. Thomas was arrested today and charged with using the Internet to coerce and entice three female minors to engage in sexual activity, announced United States Attorney Ronald W. Sharpe.
Browne made his initial appearance in District Court before U.S. Magistrate Judge Ruth Miller, and was ordered held without bail pending a detention and preliminary hearing on June 12, 2013. According to documents filed in District Court, Browne made contact with the minors on Facebook, developed a friendship with them, and then persuaded them to send him nude photos of themselves. After receiving the photos, Browne threatened to place the minors’ nude photos on the Internet if they did not have sex with him.
At the time of the arrest, Browne was a self-employed plumber. If convicted, Browne faces a statutory minimum penalty of 15 years in prison.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Everard Potter.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children via its toll-free 24-hour hotline at 202-514-5678, or to Homeland Security Investigations at (340) 693-2250.
The public is reminded that a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until and unless proven guilty.
Captain Pleads Guilty and Company Pleads No Contest in Fatal Parasailing AccidentRead the Press Release
St. Thomas, USVI – The captain of a vessel that was involved in a fatal parasailing accident just outside of the Charlotte Amalie Harbor in 2011 pleaded guilty, and the owner of the vessel pleaded no contest today in District Court, announced United States Attorney Ronald W. Sharpe, United States Coast Guard Sector San Juan Commander Captain Drew W. Pearson, and Coast Guard South East Region Criminal Investigative Services Special Agent-in-Charge Jonathan Sall.
Captain Kyle Coleman, 33, pleaded guilty to operating the motor vessel, Turtle, in a negligent manner, thereby causing the death of a passenger while on a parasailing excursion. CWS Tours, LLC, which owned the vessel, acknowledged that it was negligent with respect to the vessel, and as a result someone’s life was destroyed.
According to the plea, Coleman was the captain of the Turtle at the time it was conducting parasailing excursions just south of Water Island on November 15, 2011, when a passenger, Bernice G. Kraftcheck, was killed. Kraftcheck and her daughter, Danielle Haese, were hoisted into the air for the parasail ride as wind conditions were deteriorating. The strong winds and a weak towline caused the towline to break, resulting in the parasail separating from the vessel and the two women falling into the water. The wind then propelled the parasail, with the women still attached, at a very high rate of speed causing the death of Kraftcheck and serious injuries to Haese.
“Parasail company owners and operators are entrusted with the safety and welfare of their passengers,” U.S. Attorney Sharpe said. “In this case, both the company and the captain violated that trust by failing to observe wind conditions, safely maintain all equipment, and adequately prepare for emergencies. We hope that the victims’ families will take some comfort from the fact that both the company and captain will be held responsible for their criminal negligence.”
“While we will always keep the victims and their loved ones in our thoughts, the guilty pleas today provided needed accountability in a court of law," Capt. Drew W. Pearson said. "All parasail operators should take notice, realizing the serious actions and outcomes the Coast Guard and our partners at the U. S. Attorney's office will pursue, to ensure the safety of life at sea."
Coleman faces a maximum penalty of one year incarceration and a $5,000 fine, plus restitution to the victims. CWS Tours faces a maximum penalty of five years probation and a $250,000, plus restitution to the victims. CWS Tours also agreed to take part in at least two public service announcements produced in conjunction with the Coast Guard promoting the importance of parasailing safety, and cooperate with the reasonable recommendations of the Coast Guard in developing parasailing industry safety procedures.
Sentencing is set for September 12, 2013.
This case was investigated by the United States Coast Guard, and prosecuted by Assistant United States Attorney Everard E. Potter.
Parent Sentenced to 10 Months for Threatening School Administrators and TeacherRead the Press Release
St. Thomas, USVI - District Court Chief Judge Curtis V. Gomez today sentenced Vendel Alvin
Williams, 35, to 10 months in prison and three years of supervised release for threatening to shoot
school administrators and a teacher at the Gladys Abraham Elementary School on St. Thomas,
announced United States Attorney Ronald W. Sharpe, Virgin Islands Police Commissioner
Rodney Querrard and Federal Bureau of Investigation Special Agent-in-Charge Carlos Cases.On February 27, 2013, Williams pleaded guilty in federal court on St. Thomas to
transmitting a threat to injure a person via interstate commerce. According to the plea agreement
filed with the Court, on November 19, 2012, Williams made a telephone call to the Gladys
Abraham School, and after identifying himself, threatened to shoot the school administrators and a
teacher. He also threatened to kill the children who were allegedly bullying his child, who was a
student at the school.U.S. Attorney Sharpe praised the efforts of the Virgin Islands Police Department and
the FBI who investigated the case. The case was prosecuted by Assistant U.S. Attorney
Ishmael A. Meyers, Jr.VIPD Officer Angelo Hill Arrested for Drug TraffickingRead the Press Release
St. Thomas, USVI – Virgin Islands Police officer Angelo Hill was arrested Friday by federal agents and
charged with conspiracy to possess with intent to distribute cocaine as part of the investigation of Roberto
Tapia, Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of
Environmental Enforcement.The arrest was announced by United States Attorney for the District of the Virgin Islands Ronald
W. Sharpe; U.S. Drug Enforcement Administration (DEA) Special Agent-in-Charge Vito Guarino;
Federal Bureau of Investigation (FBI) Special Agent in Charge Carlos Cases; Internal Revenue Service
Criminal Investigation Division (IRS-CI) Acting Special Agent-in-Charge Michael J. DePalma; United
States Marshal for the District of the Virgin Islands Cheryl Jacobs; Virgin Islands Police Commissioner
Rodney Querrard; U.S. Department of Homeland Security, Homeland Security Investigations (HSI)
Acting Special Agent-in-Charge Angel Melendez; U.S. Customs and Border Protection (CBP) Special
Agent-in-Charge Marcelino Borges; United States Coast Guard Captain Drew Pearson; the Bureau of
Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent-in-Charge Hugo Barrera; Virgin Islands
Territorial Emergency Management Agency (VITEMA) Fusion Center Director Wayne Bryan; and Virgin Islands Office of Inspector General Steven van Beverhoudt.Hill made his initial appearance in District Court today on St. Thomas before U.S. Magistrate
Judge Ruth Miller, and was ordered held without bail pending a detention hearing May 28. Tapia was
arrested May 17, and two other defendants were arrested May 18 as part of the drug conspiracy
investigation.If convicted, Hill faces a statutory minimum penalty of 10 years in prison. This case is being
prosecuted by Assistant United States Attorneys Kim R. Lindquist and Kelly B. Lake, and is being
investigated by the DEA, FBI, U.S. Marshals Service, IRS-CI, VIPD, HSI, CBP, U.S. Coast Guard, ATF,
and the Public Corruption Task Force.The public is reminded that a criminal complaint is merely a charging document and is not
evidence of guilt. A defendant is presumed innocent until and unless proven guilty.Former St. Thomas Business Partners Sentenced to 6 Months in Prison in Tax SchemeRead the Press Release
St. Thomas, USVI – District Court Chief Judge Curtis V. Gomez on May 16, 2013 sentenced business
owners Joseph Thomas Edge and his wife, Laura A. Edge, to six months in prison for attempting to evade
or defeat tax, to be followed by six months of supervised release, announced Ronald W. Sharpe, United
States Attorney for the District of the Virgin Islands, and Michael J. DePalma, Acting Special
Agent-in-Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CI). Gomez also
ordered the Edges to pay restitution in the amount of $271,674 to the Virgin Islands Bureau of Internal
Revenue.Joseph and Laura Edge pleaded guilty on December 12, 2012, to attempting to evade or defeat tax
in violation of Virgin Islands law for the 2004 tax year. The Edges were part owners and operating
partners of Aqua Adventures, a company located on St Thomas that provided water tours. According to
the plea agreement, during the years, 2002 through 2006, the Edges attempted to evade a large part of the
tax due and owing to the IRB by concealing their earned income. They concealed their income by
causing personal debts to be paid through Aqua Adventures, and failing to report to IRB cash payments
the company received from selling merchandise.The case was investigated by IRS-CI, with assistance from IRB Criminal Investigation
Division. The case was prosecuted by Assistant United States Attorney Kelly Lake.DPNR Chief Enforcement Officer Arrested for Drug TraffickingRead the Press Release
St. Thomas, USVI – Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural
Resources (DPNR) Division of Environmental Enforcement, was arrested Friday by federal agents and
charged with conspiracy to possess with intent to distribute cocaine, and possession of a firearm in
furtherance of drug trafficking.The arrest was announced by United States Attorney for the District of the Virgin Islands Ronald
W. Sharpe; U.S. Drug Enforcement Administration (DEA) Acting Special Agent-in-Charge Pedro Janer;
Federal Bureau of Investigation (FBI) Special Agent in Charge Carlos Cases; Internal Revenue Service
Criminal Investigation Division (IRS-CI) Special Agent-in-Charge José A. Gonzalez; United States
Marshal for the District of the Virgin Islands Cheryl Jacobs; Virgin Islands Police Commissioner Rodney
Querrard; U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Acting
Special Agent-in-Charge Angel Melendez; U.S. Customs and Border Protection (CBP) Special
Agent-in-Charge Marcelino Borges; United States Coast Guard Captain Drew Pearson, and the Bureau of
Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent-in-Charge Hugo Barrera.Tapia made his initial appearance in District Court today before Chief Judge Curtis V. Gomez, and was ordered held without bail pending a detention hearing Tuesday. According to the criminal complaint
filed in District Court today, federal agents observed Tapia on Friday using a DPNR boat in furtherance of
a drug trafficking conspiracy. At the time of the arrest, Tapia was armed, wearing clothing bearing
official DPNR insignia and in possession of a bag containing approximately seven kilograms of cocaine.If convicted, Tapia faces a statutory minimum penalty of 10 years in prison.
This case is being prosecuted by Assistant United States Attorneys Kelly B. Lake and Kim R.
Lindquist, and is being investigated by the DEA, FBI, U.S. Marshals Service, IRS-CI, VIPD, HSI, CBP,
U.S. Coast Guard, ATF, and the Public Corruption Task Force.The public is reminded that a criminal complaint is merely a charging document and is not
evidence of guilt. A defendant is presumed innocent until and unless proven guilty.U.S. Attorney Sharpe also announced that a press conference will be held at 11 a.m. Monday in the
Ron deLugo Federal Building on St. Thomas.Attorney General Holder Appoints U.S. Attorney Sharpe to Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Eric Holder today announced the appointment of Ronald W.
Sharpe, United States Attorney for the District of the Virgin Islands, along with five others, to serve
two-year terms on the Attorney General’s Advisory Committee (AGAC). The other five U.S. Attorneys
are: David Barlow, District of Utah; Richard S. Hartunian, Northern District of New York; Barbara L.
McQuade, Eastern District of Michigan; Wendy J. Olson, District of Idaho; and Anne Tompkins, Western
District of North Carolina.“It’s a pleasure to welcome the newest members of the Attorney General’s Advisory Committee,
a group of U.S. Attorneys with whom I regularly consult on some of the most critical law enforcement and
public safety issues facing our country,” said Attorney General Holder. “I’m grateful for their service and
leadership on the AGAC. I applaud the excellent work that each of them is leading in their home districts.
And I look forward to working closely with them as we work together to confront the present challenges
and seize new opportunities to protect and ensure justice for the American people.”The AGAC, chaired by U.S. Attorney for the Eastern District of New York Loretta E. Lynch, was
created in 1973. The committee, which reports to the Attorney General through the Deputy Attorney
General, represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney
General on policy, management and operational issues impacting the Offices of the U.S. Attorneys. U.S.
Attorney Sharpe serves as a member of the AGAC’s Border and Immigration Law Enforcement
Subcommittee, LECC/Victim/Community Issues Subcommittee, and Environmental Issues Working
Group.“I am honored that Attorney General Holder has asked me to serve on this important committee,”
U.S. Attorney Sharpe said. “I look forward to working with my colleagues on the AGAC to help shape law
enforcement policy at the national level.”Sharpe was presidentially appointed U.S. Attorney for the District of the Virgin Islands on July 7,
2011, having served as Interim U.S. Attorney from September 2009 until his confirmation. He also
served as the First Assistant U.S. Attorney for the District of the Virgin Islands from 2008 to 2009. Prior to joining the U.S. Attorney’s Office in the Virgin Islands, Sharpe served as an Assistant U.S. Attorney in
the District of Columbia from 1995 to 2008, and as an associate at Jones Day from 1991 to 1995.The full AGAC membership is listed below:
Loretta E. Lynch, United States Attorney, Eastern District of New York, Chair
Sally Quillian Yates, United States Attorney, Northern District of Georgia, Vice Chair
David Barlow, United States Attorney, District of Utah
Laura E. Duffy, United States Attorney, Southern District of California
Richard S. Hartunian, United States Attorney, Northern District of New York
Timothy J. Heaphy, United States Attorney, Western District of Virginia
Brendan V. Johnson, United States Attorney, District of South Dakota
Pamela Cothran Marsh, United States Attorney, Northern District of Florida
Barbara L. McQuade, United States Attorney, Eastern District of Michigan
Wendy J. Olson, United States Attorney, District of Idaho
Carmen Milagros Ortiz, United States Attorney, District of Massachusetts
Robert L. Pitman, United States Attorney, Western District of Texas
James L. Santelle, United States Attorney, Eastern District of Wisconsin
Ronald W. Sharpe, United States Attorney, District of the Virgin Islands
Carter M. Stewart, United States Attorney, Southern District of Ohio
Anne Tompkins, United States Attorney, Western District of North Carolina
Ronald C. Machen, United States Attorney, District of Columbia, ex officio
Daniel Bella, Criminal Chief, Northern District of Indiana, ex officio
Suzanne Bauknight, Civil Chief, Eastern District of Tennessee, ex officio
Robert Zauzmer, Appellate Chief, Eastern District of Pennsylvania, ex officioFormer Schneider Hospital CEO Charged with Tax FraudRead the Press Release
St. Thomas – United States Attorney Ronald W. Sharpe and Special Agent in Charge José A. Gonzalez,
Internal Revenue Service, Criminal Investigation Division, announced the arrest and unsealing of a two-count indictment charging Rodney E. Miller with assisting and advising in the preparation and presentation of fraudulent income tax returns to the Virgin Islands Bureau of Internal Revenue (BIR) and the Internal Revenue Service (IRS). Miller, former CEO of the Schneider Regional Medical Center on St. Thomas, made his initial appearance in federal court Wednesday before South Carolina U.S. Magistrate Judge Bruce Hendricks, and was ordered to appear in the Virgin Islands on May 1, 2013.According to the indictment, Miller aided and assisted in the preparation of his personal Individual
Income Tax Return, Form 1040, for calendar year 2006, which was filed with the BIR pursuant to Internal Revenue Code, Title 26, Section 932(c)(4). The indictment further alleges that Miller willfully filed his 2006 income tax return knowing that it was false and fraudulent as to a material matter. Specifically, Miller reported total income in the amount of $265,198.00, although he knew that his true total income was substantially more than the amount reported.The indictment further alleges that Miller willfully assisted and advised in the preparation and presentation to the IRS, of his personal income tax return, Form 1040, for calendar year 2007 knowing that the return contained materially false information. Specifically, Miller reported total income in the amount of $255,589.00, knowing that his true total income was substantially more than the amount reported.
The maximum statutory penalty for each of the two counts charged is three years in prison. An
indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.This case is being investigated by the Internal Revenue Service, Criminal Investigation Division, and
is being prosecuted by Assistant United States Attorney Kim L. Chisholm.Federal Jury Convicts Janice D. Rey of Conspiracy, Wire Fraud, Money Laundering and Tax EvasionRead the Press Release
St. Thomas, USVI - After a two-day trial in District Court on St. Thomas, a federal jury found
JANICE D. REY, guilty on a 56 count indictment charging conspiracy, wire fraud, various federal
money laundering offenses and tax evasion, announced United States Attorney Ronald W. Sharpe, and
IRS Special Agent in Charge Jose A. Gonzalez. Rey was found guilty of one count of conspiracy, eight
counts of wire fraud, 43 counts of money laundering and four counts of tax evasion.According to the evidence presented at trial, Rey and co-conspirator Devon McLean organized
Paramount Group, LLC, and opened a bank account for the partnership in Nevada. Rey opened a store
front location in St. Thomas called Rey Financial, which was used by Rey to meet with potential
investors. Rey made false material representations and material factual omissions directly to potential
investors in order to induce them to invest with Paramount Group, including that investments were safe, that Paramount Group is a part of Halliburton, that investors were investing in “platform investments”
and that they would double their money in less than a year.The defendant faces a maximum statutory penalty of 20 years imprisonment and a $500,000 fine,
or $3,140,778.33, whichever is greater. The statutory penalty for tax evasion under local law is a fine
of not more than $10,000 or imprisonment not more than 5 years, or both. Devon McLean pled guilty
on March 5, 2013, to wire fraud conspiracy and is scheduled to be sentenced on June 6, 2013.The case was investigated by the IRS Criminal Investigation. It was prosecuted by Assistant
U.S. Attorneys Kim L. Chisholm and Everard Potter.Ringleader of Firearms Conspiracy Convicted in TexasRead the Press Release
St. Thomas, USVI – A ringleader of a firearms conspiracy involving more than 30 firearms, six of which were seized from crime scenes in the territory, was found guilty in Texas, United States Attorney Ronald W. Sharpe announced today.
On February 19, Tyrone Reid, 22, was found guilty of a conspiracy involving numerous co-defendants who lied to federal firearms dealers in the purchase of firearms, announced United States Attorney Kenneth Magidson of the Southern District of Texas. The Houston federal jury returned its verdict after three days of trial and approximately two hours of deliberation.
“The conviction of this firearms trafficker would not have occurred without the outstanding inter-agency cooperation by members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the Virgin Islands Police Department,” U.S. Attorney Sharpe said. “Indeed, the conviction of Reid will send a message to all in the Virgin Islands and beyond that illegal firearms trafficking will not be tolerated. I commend not only my colleagues in the United States Attorney’s Office for the Southern District of Texas for their substantial efforts in the prosecution of this case, but all of the Special Agents and Officers of ATF, HSI and VIPD for their coordinated efforts that made this prosecution a success. My office will continue to work with our federal and local law enforcement partners to do all that we can to stem the illicit flow of firearms into the Virgin Islands.”
Evidence presented at trial demonstrated that Reid would induce others to claim that they were the actual buyers of the firearms, even though Reid supplied the money and immediately took possession from the buyers. Testimony revealed that none of the purported buyers kept any of the more than 30 firearms they purchased, many of which were later found at crime scenes, both in the continental United States and Virgin Islands. Of the seven firearms seized in the Virgin Islands, six were seized from crime scenes, including a homicide. Two firearms also were found at New Jersey crime scenes, including an aggravated armed robbery.
According to the evidence presented at trial, Western Union receipts sent from the Virgin Islands to the continental United States reflected more than $60,000 in payments received by Reid. Three of the firearms were recovered by agents in a search at the home of one of Reid's associates, who also was linked
to money sent from the Virgin Islands to Reid in Houston.According to U.S. Attorney Magidson, Reid's grandmother traveled to Houston for the trial and testified that Reid sent guns to her in the Virgin Islands. Reid then took the stand on his own behalf and called his grandmother a liar.
Reid’s sentencing is scheduled for May 14, 2013 in Houston, Texas. He faces a maximum penalty of 20 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Virgin Islands Police Department.
Jury Convicts St. John Woman of Passport FraudRead the Press Release
St. Thomas, USVI- After a one-day jury trial in District Court on St. Thomas on Tuesday, a federal jury found Glissell Herrera, 32, guilty on two counts charging making a false statement in an application for a United States passport and one count of submitting a false document to a department or agency of the United States, announced United States Attorney Ronald W. Sharpe.
According to the evidence presented at trial, on June 19, 2007, and again on July 19, 2012, Herrera submitted a passport application for the benefit of her minor daughter. In support of those applications, Herrera submitted a fraudulent Puerto Rican birth certificate as proof of the minor’s United States citizenship. Herrera attested that all of the information submitted in furtherance of the passport applications was true. Testimony from the Director of the Department of Vital Statistics revealed that the Department had no record of the minor’s birth in Puerto Rico.
Herrera faces a maximum penalty of 10 years imprisonment for the offense of making a false statement in an application for a United States passport, and a maximum of five years imprisonment for submitting a false document to a department or agency of the United States. Herrera also faces a maximum fine of $250,000.00 and a special assessment of $300.00. Herrera remains detained pending sentencing.
U.S. Attorney Sharpe commended the efforts of the U.S. Department of State, Diplomatic Security Service, which investigated the case. The case was prosecuted by Assistant United States Attorney Ishmael A. Meyers Jr.
Former Jewelry Company Executive Sentenced in U.S.V.I. to Pay $1.1 Million in Fines and Community Service for Illegal Trade of Protected Black CoralRead the Press Release
Ashu Bhandari, the former president and CEO of GEM Manufacturing LLC, a U.S. Virgin Islands-based company, was sentenced Thursday in federal court in St. Thomas, U.S.V.I., for felony customs violations for his role in a scheme to illegally import protected black coral into the United States, the Department of Justice announced. Bhandari is the last defendant to be sentenced as the result of a far reaching investigation into the illegal trade in black coral. The scheme cost Bhandari’s company, GEM Manufacturing, millions of dollars in financial penalties and sent two of his trading partners to prison.
At today’s hearing, the court imposed a criminal fine of $918,950 and sentenced Bhandari to one month in jail, to be followed by one month of home confinement and one year of supervised release, during which Bhandari would be required to complete 300 hours of community service and be banned from any business venture involving coral or coral products. In addition to the fine, Bhandari will be required to pay $229,687 to the University of the Virgin Islands to be used for community service projects designed to research and protect black corals. The court recognized that Bhandari’s sentence was based, in part, on his cooperation with federal investigators in related illicit coral trafficking cases.
On Nov. 7, 2012, Ashu Bhandari pleaded guilty to one felony count of false classification of goods for his efforts to conceal his illegal importation of internationally protected black coral in 2009. GEM was in the business of manufacturing high-end jewelry and sculpture products that utilize black coral. During his term as CEO, Bhandari was responsible for ensuring the continued supply of raw black coral for the company. Black corals are considered important habitat for the deep sea marine environment and are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Each of the species of black coral is listed in Appendix II of CITES and is subject to strict trade regulations.
Bhandari admitted that by 2008, he learned that GEM’s Taiwanese suppliers of black coral could not obtain legitimate CITES certificates. In spite of this knowledge, Bhandari made a “business decision to go forward” with the Taiwanese suppliers. The Taiwanese suppliers would label the coral shipments as “plastic” in order to fool customs authorities in Hong Kong and the United States. Bhandari admitted that by 2009 he knew that the shipments he arranged on behalf of GEM were coming into St. Thomas falsely labeled.
“Mr. Bhandari actively participated in an illegal scheme to traffic in protected black coral, a trade that has helped deplete a world resource that serves as essential habitat for marine biodiversity,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division at the Department of Justice. “As this case clearly shows, the Department of Justice will continue to aggressively prosecute those who violate U.S. law by illegally trafficking in protected species.”
“The effective stewardship of our natural resources by vigorously enforcing environmental laws is a priority of the Department of Justice,” said Ronald W. Sharpe, U.S. Attorney for the District of the Virgin Islands. “This prosecution, like many cases involving the investigation and prosecution of those who set out to exploit our precious natural resources, was complex, time consuming and required the expertise of multiple law enforcement agencies. The dedication and cooperative efforts of the various law enforcement agencies involved in the successful prosecution of this matter are to be commended.”
“This investigation is the culmination of a three year joint investigation led by U.S. Fish and Wildlife Service’s Office of Law Enforcement in partnership with the National Oceanic and Atmospheric Administration, U.S. Immigration and Customs Enforcement-Homeland Security Investigations, U.S. Attorney’s Office, the U.S. Justice Department’s Environment and Natural Resources Division and U.S. Customs and Border Protection,” said U.S. Fish and Wildlife Service Resident Agent in Charge David Pharo. “This investigation serves as a great example of multiple agencies, working together to stem the tide of exploitation of internationally protected species originating in marine environments. This investigation demonstrates our commitment to combat illegal international wildlife trafficking and bring justice to those that exploit protected marine resources for personal gain no matter where they are located.”
“Illegal importation and exportation of commercial quantities of CITES-protected corals is one of our Division's high priorities,” said Otha Easley, Acting Special Agent in Charge for the National Oceanic and Atmospheric Administration’s Office of Law Enforcement's Southeast Division. “Effective enforcement of CITES helps ensure that collection of these species is sustainable and that their survival in the wild is assured.”
“This sentence sends a clear message to black coral traffickers that we and our federal law enforcement partners are in the business of preventing illegal wildlife trade,” said Angel Melendez, Acting Special Agent in charge of HSI San Juan and U.S.V.I. “We will continue to identify and apprehend those who exploit protected species for commercial gain.”
Black coral is a precious coral that can be polished to a high sheen, worked into artistic sculptures and used in inlaid jewelry. Black coral is typically found in deep waters and many species have long life spans and are slow-growing. Using deep sea submersibles, scientists have observed that fish and invertebrates tend to accumulate around the black coral colonies. Thus, black coral communities serve important habitat functions in the mesophotic and deepwater zones. In the last few decades, pressures from overharvesting, due in part to the wider availability of scuba gear and the introduction of invasive species have threatened this group of coral. Recent seizures of illegal black coral around the world have led many to believe that black coral poaching is on the rise.
On Oct. 26, 2011, in the related case of U.S. v. GEM Manufacturing LLC, Case No. 2011-19 (D. Virgin Islands), GEM was sentenced to criminal financial penalties and forfeitures exceeding $4.47 million and three and a half years of probation that included a 10-point compliance plan that incorporated an auditing, tracking and inventory control program. GEM was also banned from doing business with its former coral supplier, Peng Chia Enterprise Co. Ltd. and its management team of Ivan and Gloria Chu. Ashu Bhandari was the individual known as “Co-conspirator X” in the related case of U.S. v. Gloria and Ivan Chu, Case No. 2010-003 (D. Virgin Islands). In January 2010, federal agents arrested the Chus as part of a sting operation in Las Vegas. The Chus were subsequently indicted in 2010 for illegally providing black coral to GEM. On June 23, 2010, Ivan Chu was sentenced to serve 30 months in prison and pay a $12,500 fine. Gloria Chu was sentenced to serve 20 months in prison and pay a $12,500 fine.
The case, developed as a result of Operation “Black Gold”, was investigated by agents of the U.S. Fish and Wildlife Service (FWS) and NOAA with support from U.S. Immigration and Customs Enforcement-Homeland Security Investigations and U.S. Customs and Border Protection. Analysis of coral samples by the FWS’s National Forensics Laboratory in Ashland, Ore., was critical to the investigation. The case was prosecuted by Christopher Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division and Nelson Jones of the U.S. Attorney’s Office in the U.S. Virgin Islands.
Virgin Islands Senator Pleads Guilty to Operating and Participating in A Criminal Enterprise That Engaged in Bribery, Mail Fraud, and Wire Fraud St. Thomas, USVIRead the Press Release
St. Thomas, USVI - Former Virgin Islands Senator Alvin Williams, Jr., pleaded guilty today in federal district court to operating and participating in a criminal enterprise whose members and associates engaged in illegal activities, including bribery, mail fraud and wire fraud, announced United States Attorney Ronald W. Sharpe, Federal Bureau of Investigation (FBI) Special Agent in charge Joseph Campbell, United States Marshal Cheryl Jacobs, Virgin Islands Office of the Inspector General Steven van Beverhoudt, Internal Revenue Service Criminal Investigation Division (IRS-CI) Special Agent-in-Charge Jose A. Gonzalez, U.S. Department of Education Office of Inspector General Special Agent-in-Charge Yessyka Santana, Drug Enforcement Administration (DEA) Acting Special Agent-in-Charge Pedro J. Janer, and Virgin Islands Police Department (VIPD) Commissioner Henry White.
Williams, 34, and two other defendants were charged by grand jury indictment on November 8, 2012. The plea agreement followed an extensive investigation conducted by the Federal Public Corruption Task Force, which comprises the FBI, United States Marshals Service, IRS-CI, U.S. Department of Education Inspector General, DEA, Virgin Islands Office of the Inspector General, and the VIPD.
In entering his plea of guilty to Count One of the indictment, racketeering before U.S. District Court Judge Curtis V. Gomez, Williams admitted bribing a Virgin Islands public official and soliciting and receiving bribes from numerous St. Thomas construction project developers; fraudulently soliciting and increasing staff member salaries and using the increase of funds for his personal use; and using Virgin Islands Legislative staff members to do his University of Phoenix online coursework for him during legislative work hours.
Williams faces a maximum penalty of 20 years imprisonment and $250,000 in fines, in addition to forfeiture penalties and restitution. No sentencing date has been set.
United States Attorney Ronald W. Sharpe commended the work of the Public Corruption Task Force and Assistant U.S. Attorneys Kim R. Lindquist and Kelly B. Lake, who are prosecuting this case.