ST. CROIX — Federal prosecutors allege Davidson and Sasha Charlemagne fraudulently obtained more than $3.1 million in federal disaster recovery funds through a scheme involving false certifications, undisclosed conflicts of interest, and falsified employee timesheets, according to a trial brief filed ahead of their criminal trial.
The nine-page filing, submitted June 29, outlines the government’s case against the married couple, identifies more than 40 anticipated witnesses, and details the evidence prosecutors intend to present to a jury.
According to the trial brief, Davidson Charlemagne, while serving as district and later territorial director of maintenance for the government of the Virgin Islands, arranged for his company, D&S Trucking, to receive the bulk of a Virgin Islands Housing Finance Authority contract to manage hurricane recovery lumber funded through the U.S. Department of Housing and Urban Development.
Prosecutors contend Davidson Charlemagne secured the contract by falsely certifying that D&S Trucking carried the liability insurance required to qualify as a subcontractor and by concealing that he was already being paid to perform substantially the same work. They allege the contract ultimately generated more than $3.6 million in payments to the prime contractor, with approximately $3.177 million flowing to the Charlemagnes.
The government also alleges the couple submitted false timesheets claiming Sasha Charlemagne worked as warehouse manager while she was outside the Virgin Islands, resulting in fraudulent reimbursement requests paid with federal disaster recovery funds. Prosecutors further contend the defendants used the proceeds to pay personal and business expenses.
If convicted, prosecutors said they will seek forfeiture of approximately $158,746 seized from three Banco Popular bank accounts held by D&S Trucking and the Charlemagnes, along with a money judgment of no less than $3 million representing the alleged criminal proceeds.
The government’s witness list includes current and former Virgin Islands Housing Finance Authority officials, FBI and HUD investigators, an agent with the U.S. Small Business Administration, an official with the Virgin Islands Department of Education, an insurance representative, airline custodians of records, and other witnesses. Prosecutors also intend to introduce business and bank records, recorded telephone conversations, a video interview of Davidson Charlemagne, and the videotaped deposition of witness Morris Anselmi, co-owner of Island Services Group, the prime contractor involved in the matter.
Davidson Charlemagne is charged with fraud involving federally funded programs, wire fraud, nine counts of presenting false claims to the United States, and conspiracy to commit money laundering. Sasha Charlemagne is charged with wire fraud, nine counts of presenting false claims, and conspiracy to commit money laundering. Both have pleaded not guilty.
The trial, however, will not begin this month.
District Judge Mark Kearney on July 1 formally postponed the July 17 trial, granting prosecutors’ request for a continuance after Assistant U.S. Attorney Denise George sought additional time following the death of her father.
Under Kearney’s order, jury selection will begin November 2, with opening statements and testimony scheduled to start November 3 in St. Thomas. The judge also canceled the July 9 final pretrial conference and established a new schedule for pretrial filings through late October.
Kearney found the continuance was necessary because proceeding as scheduled would deny both the government and the defense sufficient time to prepare for trial and could result in an unfair proceeding or miscarriage of justice. Both defendants consented to the delay and agreed to waive their speedy trial rights until the new trial date.
The order follows a virtual status conference held June 30 after prosecutors asked the court to continue the trial by at least 30 days.
According to the government’s motion, George is on bereavement leave following her father’s death, with funeral arrangements occurring during what prosecutors described as a critical period of trial preparation. The motion also stated that no other attorney in the U.S. Attorney’s Office was prepared to assume primary responsibility because former co-counsel Cherrisse Amaro had left the office and newly assigned prosecutor Kimberly Riley was still becoming familiar with the case.
During the June 30 hearing, Kearney initially explored possible trial dates in September and October but ultimately concluded his own trial schedule in Philadelphia would not permit enough time for what prosecutors estimate will be an eight- to nine-day trial. He then proposed moving the case to the first week of November.
In addition to setting the new trial date, Kearney ordered prosecutors to disclose additional evidence and witness information by August 17, required defense motions challenging certain evidence by August 24, and scheduled a final pretrial conference for October 29.
