FOR IMMEDIATE RELEASE FRIDAY, AUGUST 13, 2004 WWW.USDOJ.GOV CRM (202) 514-2008 TDD (202) 514-1888 WASHINGTON, D.C. - David M. Nissman, United States Attorney for the District of the Virgin Islands, and Assistant Attorney General Christopher A. Wray of the Criminal Division announced today that, on Aug. 12, 2004, a federal grand jury sitting in St. Thomas returned a two-count wire fraud indictment against Senator Carlton Dowe of the U.S. Virgin Islands.
The indictment charges Dowe with stealing $75,207.75 in government funds. Specifically, the indictment alleges that, from January 2000 through February 2002, Dowe concocted and engaged in a fraudulent scheme to resubmit a $50,000 court judgment for back pay to the Virgin Islands Fire Service -- where Dowe served as Director from January 1995 through January 1999 -- after receiving payment in full through the Legal Judgments Special Fund administered by the Virgin Islands Attorney General. In seeking to disguise the duplicate payment, Dowe allegedly instructed a Fire Service employee to alter his payroll records to reflect a retroactive increase in his hourly wage, and combine the payment with an unrelated and unpaid back pay claim, rather than disclose the true nature of the payment. According to the indictment, Dowe never informed the Fire Service employee that he already had received the $50,000 payment. In the end, Dowe is alleged to have fraudulently received, through a series of interstate wire transfers, a lump sum duplicate payment from the territorial government in the pre-tax amount of $75,207.75.
The indictment further charges that, when the Office of the Virgin Islands Inspector General began investigating the payment, Dowe coaxed the Fire Service employee who calculated and processed the fraudulent claim at his direction to lie to investigators about Dowes involvement in calculating and submitting the duplicate back pay claim. The penalty for the federal offenses is a maximum of twenty (20) years in prison and a fine of not more than $250,000.
This case is being handled by Trial Attorney Armando O. Bonilla of the Public Integrity Section, headed by Section Chief Noel L. Hillman. Assistant United States Attorney Major Coleman of the District of the Virgin Islands is serving as local counsel. The case is being investigated by the Virgin Islands Office of the Inspector General.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty in court. 04-560
Source: US Department of Justice
