ST. CROIX — Former Virgin Islands Housing Finance Authority Chief Operating Officer Darin Richardson was released Monday from a federal prison in Puerto Rico after the U.S. Court of Appeals for the Third Circuit granted his motion to be released pending appeal of his local and federal convictions.
Richardson’s attorney, Darren John-Baptiste, confirmed his client was released after Circuit Judge Cindy Chung granted the motion on June 30.
“I’m really happy for him because, contrary to public opinion, he absolutely is not a corrupt government official,” John-Baptiste said.
Richardson had been incarcerated since April after self-surrendering to the U.S. Marshals Service following the denial of an earlier request to remain free while pursuing an appeal.
After the Third Circuit granted Richardson’s release pending appeal, his attorney filed an emergency motion asking the appellate court to prevent Virgin Islands officials from taking him into custody on the local conflict-of-interest conviction. According to the filing, John-Baptiste learned the Superior Court Marshal’s Division intended to execute the local sentence and asked the court to specifically stay that judgment pending appeal. There is no indication of a ruling in the docket at this time.
Richardson was convicted locally of criminal conflict of interest and federally of making a material false statement to a federal agent, bank fraud, making a false statement on a loan or credit application, and money laundering.
District Judge Mark Kearney sentenced Richardson on March 26 to six months on the four federal convictions and two-and-a-half years on the local conflict-of-interest count, with the sentences ordered to run consecutively.
Richardson, who served as VIHFA’s chief operating officer from 2020 to 2022, self-surrendered on April 7 after Kearney denied both an oral motion made immediately after sentencing and a subsequent written renewed motion seeking release pending appeal.
In denying that request, Kearney found no basis to allow Richardson to remain free while pursuing an anticipated appeal.
Richardson appealed that decision to the Third Circuit, arguing his case presented substantial legal questions likely to result in reversal, a new trial or a reduced sentence.
In a filing with the appellate court, John-Baptiste focused primarily on the local conflict-of-interest conviction, arguing it alone accounts for the consecutive 30-month sentence that extends his imprisonment beyond the six-month federal term.
The defense argues the appeal raises several “fairly debatable” legal issues regarding the conflict-of-interest conviction. Specifically, John-Baptiste contends prosecutors failed to link Richardson’s official duties to a $107,000 payment received 19 months after the contract award, and notes the money came from a separate entity, ISG Florida, that never contracted with VIHFA because ISG Virgin Islands received the contract. Richardson claims his constitutional rights were violated when the court allowed hearsay about why ISG co-owner Morris Anselmi sent the wire yet blocked the defense from introducing the FBI agent’s official record showing Anselmi characterized the payment as an unrelated business investment.
John-Baptiste argued that if Richardson prevails on any of those issues related to the local conviction, the consecutive 30-month sentence would be eliminated or a new trial ordered.
Before Richardson surrendered, his motions for release pending appeal also challenged several evidentiary rulings made during trial, including the admission of testimony from Kimberly McCollum, ISG co-owner, and summary exhibits related to the company. The defense argued that evidence was essential to proving the conflict-of-interest charge and should not have been admitted.
The defense further argued missing notes taken by FBI Special Agent Jamila Davis during Richardson’s interview raised a substantial appellate issue because they related directly to the false statement conviction.
Prosecutors opposed Richardson’s request for release, arguing his renewed motion presented no new evidence, change in law or error in the District Court’s prior ruling. They also argued Richardson had not yet filed a notice of appeal at the time of the District Court proceedings and characterized the challenged evidentiary rulings as routine trial decisions entitled to substantial deference on appeal.
The government further argued Richardson had already received unusual leniency by remaining free for more than a year after his March 5, 2025, conviction and additional time following sentencing before surrendering, describing the motion as an attempt to delay the inevitable.
Despite those arguments, the Third Circuit granted Richardson’s request for release pending appeal. The appellate court has not yet ruled on the merits of his appeal challenging the convictions.
Richardson’s release comes as another high-profile Virgin Islands public corruption case is also moving before the Third Circuit.
On Monday, former Office of Management and Budget Director Jenifer O’Neal departed from the John A. Bell Adult Correctional Facility on St. Croix and is now in the custody of the Federal Bureau of Prisons after Kearney denied her requests to remain free pending appeal of her convictions for bribery concerning programs receiving federal funds, conspiracy to commit money laundering and two counts of honest services wire fraud. She was found guilty of accepting bribe payments tied to inflated invoices submitted under a $1.48 million federally funded contract and was sentenced to seven years in prison.
Meanwhile, O’Neal’s appellate representation has changed. Attorneys Joseph DiRuzzo III and Daniel Lader, of the law firm Margulis Gelfand DiRuzzo & Lambson out of Fort Lauderdale, Florida, have entered appearances on her behalf before the appellate court.
