Financial Crime World

Mysterious Co-Conspirators Behind VIHFA Contract Scandal, FBI Investigation Reveals

A shocking investigation has uncovered a complex web of deceit and corruption surrounding the Virgin Islands Housing Finance Authority’s (VIHFA) contract for the storage and management of woodpiles in St. Croix and St. Thomas. The scheme, which defrauded taxpayers of millions of dollars, involved unknown co-conspirators who manipulated the bidding process to favor ISG and D&S Trucking.

The Scheme

According to court documents, VIHFA’s Chief Operations Officer (COO) Darin Richardson played a central role in the scandal. He awarded the contract to ISG and D&S Trucking despite violating federal regulations. Richardson had total authority over procurement decisions at VIHFA, but instead of following protocol, he evaluated and rated proposals from companies himself.

Investigation Reveals

The investigation revealed that:

  • ISG and D&S Trucking began collecting payments from VIHFA in February 2021, with monthly payments averaging $83,000.
  • However, it wasn’t until August 2021 – seven months later – that the company started removing the woodpiles from Sunshine Mall to Henderson Elementary School.
  • During this period, ISG and D&S Trucking received over $582,000 in payments before performing any work under the contract.

Additional Findings

The investigation also found:

  • The company’s Director of Maintenance, Charlemagne, received a 331% profit for labor costs, with only $461,379 paid to employees who managed the woodpiles.
  • No records exist showing Sasha Charlemagne was ever employed by D&S Trucking or earned a salary from the company.

Personal and Business Expenses

The scheme extended beyond the contract itself. The investigation revealed that:

  • VIHFA paid ISG and D&S Trucking over $3.6 million in federal funds since February 2021.
  • Approximately $3.2 million was credited to bank accounts owned by Davidson and Sasha Charlemagne, allegedly used for personal and business expenses.

Woodpiles Left Unused

The woodpiles, intended to help low-income families repair their homes damaged by Hurricanes Irma and Maria in 2017, remain largely unused and exposed to the elements for over three years. The case is being investigated by:

  • Housing and Urban Development Office of Inspector General
  • Federal Bureau of Investigation (FBI)
  • Small Business Administration Office of Inspector General

Quotes

“The indictment related to theft of HUD disaster relief program funds meant to benefit low-income families is a signal that we take seriously allegations of illegally obtained taxpayer dollars through fraudulent schemes,” said Acting Special Agent-in-Charge George Richardson of the HUD OIG Southeast Region. “We remain committed to working with our law enforcement partners to protect the integrity of HUD’s programs and ensure vulnerable people in our communities are provided critical resources upon which they can rely.”

Ongoing Investigation

The investigation is ongoing, and authorities urge anyone with information about the scheme to come forward.