ST. CROIX — A St. Thomas business owner who accepted a plea agreement in a $650,000 housing fraud case must repay 12 families as part of a five-year probation sentence after failing to deliver contracted prefabricated homes, the Virgin Islands Department of Justice recently announced.
Anson Gallaway, 48, of Estate Frydendal, owner of GHL Home Innovations, accepted payments ranging from $1,330 to $151,450 between February 2020 and December 2021 from individuals and families on St. Thomas and St. Croix for prefabricated homes that were never built. In total, victims lost $656,911.51.
The sentencing, handed down on July 22 by Superior Court Judge Ernest Morris Jr., follows Gallaway’s guilty plea in April to one count of obtaining money by false pretense. In exchange, 19 other charges across four criminal cases were dismissed with prejudice.
Attorney General Gordon Rhea said in a DOJ statement issued Thursday that Gallaway exploited the hopes of families seeking affordable housing.
“This judgment ensures accountability, begins the process of rebuilding for the victims of these deceptive and corrupt business practices, and sends a clear message that those who exploit our residents for personal gain will be held accountable,” Rhea stated.
Although the crime of obtaining money by false pretense carries a maximum sentence of 10 years in prison, Gallaway avoided prison through a structured probation plan requiring monthly restitution payment. However, failure to pay could still result in incarceration.
Gallaway’s attorney, David Cattie, successfully argued for probation under Title 5, Section 3711(c) of the Virgin Islands Code, which allows for deferred adjudication in certain nonviolent cases. Cattie emphasized Gallaway’s acceptance of responsibility, willingness and financial preparation to make restitution, and serious medical condition that results in frequent hospitalization and cannot be adequately treated in prison.
“Short of the crimes having not occurred, probation without conviction serves as a desirous result here for the community and the victims,” Cattie wrote in Gallaway’s sentencing memorandum. “Gallaway will be required to make his victims whole and, if he does not, the court would be able to terminate his treatment under Section 3711(c) and sentence him accordingly. This will ensure that Gallaway abides with the law and that the victims are paid back.”
Cattie indicated in the sentencing memorandum that Gallaway currently resides in Florida, in part to have access to a broad range of medical providers to treat his health issues. He noted Gallaway’s desire to remain in Florida so he can continue working at his business to earn income to pay the restitution he owes.
Before sentencing, Gallaway had already returned about $220,000, including $100,000 paid earlier in the process and an additional $120,000 deposited into his attorney’s escrow account. However, he still owes $439,911.51 in restitution.
Morris sentenced Gallaway to a five-year prison sentence with all but one day suspended, and credit for one day of time served, as well as supervised probation for a period of five years. In addition to paying $500 in probation fees and $75 in court costs, Gallaway must make monthly restitution payments of at least $4,000, starting September 1. Restitution will be distributed quarterly to ensure consistent repayments. The court detailed the exact restitution amounts owed to each victim and the quarterly percentages due, with those who lost the most slated to receive higher percentages.
As Gallaway continues paying restitution, Morris scheduled a status conference at 9 a.m. November 19 in Superior Court.
The case was prosecuted by Acting Deputy Attorney General Patricia Lynn Pryor, director of the DOJ’s White-Collar Crime Unit. Rhea expressed gratitude to Pryor and everyone involved in the case for their hard work, including the entire Economic Crimes Unit of the Virgin Islands Police Department.
