ST. CROIX — The Virgin Islands Department of Justice is recommending that the Virgin Islands Board of Elections retain independent legal counsel to defend itself against a federal lawsuit filed by disqualified congressional aspirant Brett “Mac” McClafferty, citing potential conflicts of interest.
In a July 13 letter to Supervisor of Elections Caroline Fawkes obtained by WTJX, Attorney General Gordon Rhea recommended that the Board of Elections immediately retain independent counsel rather than rely on the DOJ, citing potential conflicts stemming from McClafferty’s pending criminal prosecution and the possibility that the board could refer the election matter to the department for investigation.
“Given the pending motion for emergency relief, and potential conflict concerns, the Virgin Islands Department of Justice recommends that the Elections Board immediately seek and retain independent counsel to defend its interests in this matter,” Rhea wrote.
McClafferty filed suit July 8 in the District Court of the Virgin Islands against Fawkes and Board of Elections Chairman Raymond Williams, challenging the board’s June 15 decision to disqualify him from the race for delegate to Congress.
The board’s decision was based on its review of the results of Fawkes’ investigation into irregularities involving nomination petition signatures collected on St. Croix. The lawsuit seeks declaratory and injunctive relief, damages, and restoration of McClafferty’s candidacy. On July 9, he also filed an emergency motion for a temporary restraining order asking the court to immediately certify him as a candidate while the case proceeds.
Rhea said it would be “imprudent” for the DOJ to investigate the board’s disqualification decision while simultaneously defending that same decision in court if the Elections Board later refers the matter to the department. He also said the department’s ongoing criminal prosecution of McClafferty could create the appearance that its defense of the Elections Board was biased.
“VIDOJ can decline representation in matters where the impartiality and integrity of the department may be questioned,” Rhea wrote. “Moreover, given that this is an election year, voter confidence related to the electoral process must be prioritized.”
The attorney general noted that Title 18 of the Virgin Islands Code authorizes the Elections Board to retain independent counsel.
Williams said he will convene an emergency meeting of the Board of Elections on Monday to discuss the attorney general’s recommendation during executive session.
“Whatever the will and wishes of the board are is what we’ll move forward with,” Williams said.
The conflict that the AG cites centers on McClafferty’s February arrest by the VIPD Economic Crime Unit, assisted by the FBI and U.S. Postal Service. He is facing felony charges, including grand larceny and passing forged bills, over an alleged $888,500 bank fraud scheme.
According to police, McClafferty deposited counterfeit checks from the British Virgin Islands and drew bad drafts from a Discover account between January and June 2024, resulting in over $80,000 in confirmed losses for Banco Popular. He was arrested on February 21 at his St. Thomas residence and released on bail on February 23.
McClafferty has denied the charges. On March 4, he and his company, Social Hospitality Group Inc. (operator of the St. Thomas Social restaurant), filed a civil lawsuit against Banco Popular in Superior Court. They allege the dispute stems from a legitimate $40,000 deposit for a proposed medical symposium that was supposed to be held at the restaurant. The suit accuses the bank of negligence and filing a false police report, claiming the bank’s flawed internal procedures led to the wrongful association of those deposits with McClafferty.
On July 10, Banco Popular removed the lawsuit from the Superior Court to District Court, Division of St. Thomas/St. John. Under federal law, defendants can transfer a civil case to federal court if the parties involved are from different states or territories and the financial damages being sought exceed $75,000. In their legal notice, the defendants established that this requirement is met because the plaintiffs are based in the Virgin Islands, while the bank is based in Puerto Rico. The defendants further asserted that the $75,000 financial threshold is met because the plaintiffs are seeking damages for negligence and defamation, claiming the bank’s actions cost them a business expansion opportunity and bookings valued at approximately $10 million.
In his complaint against Fawkes and Williams, McClafferty alleges he submitted enough valid signatures to qualify as an independent candidate after correcting deficiencies identified during the nomination petition review process. He contends election officials in both districts informed him that he had successfully cured those deficiencies before Fawkes later initiated an investigation into complaints regarding signatures collected on St. Croix.
McClafferty argues the supervisor lacked authority under Virgin Islands law to conduct that post-certification investigation and that only the Board of Elections has statutory authority to investigate allegations of election fraud for possible referral to the DOJ. He appealed his disqualification to the Board of Elections, which voted 7-2, with one abstention, to uphold the decision following an executive session.
READ MORE: Board of Elections upholds Brett McClafferty, Ida Smith disqualifications during contentious meeting
The lawsuit alleges violations of Virgin Islands election law and McClafferty’s constitutional rights under the First and Fourteenth Amendments. It also includes a civil Racketeer Influenced and Corrupt Organizations Act, or RICO, claim against Fawkes and Williams.
The case now centers on McClafferty’s request for emergency relief. In his motion for a temporary restraining order, McClafferty argues the matter must be resolved quickly because of imminent campaign finance filing deadlines, the August 1 Democratic primary, and the timeline for printing general election ballots. He is asking the District Court to immediately certify him as a candidate while the underlying lawsuit proceeds.
