ST. THOMAS — The former heads of three Virgin Islands agencies and a government contractor pleaded not guilty to federal bribery and wire fraud charges during their initial appearance and arraignment today in District Court on St. Thomas in two separate cases tied to David Whitaker, who has accepted a plea agreement.
Former Police Commissioner Ray Martinez, former Management and Budget Director Jenifer O’Neal, and former Sports, Parks and Recreation Commissioner Calvert White, who resigned today, are accused along with government contractor Benjamin Hendricks of accepting bribes from Whitaker, founder of the cybersecurity firm Mon Ethos Pros Support who also operated a subsidiary of MEPS called Office of Data Discovery Forensic Analysis.
All four defendants sat in court with blank expressions before they were escorted out by U.S. marshals in handcuffs with chains around their waists. The only time they spoke was when they stood up and stated their names to Magistrate Judge G. Alan Teague. They were released from custody with conditions pending trial, which is tentatively set for February 24, after posting unsecured appearance bonds of $10,000. Pretrial release conditions include surrendering passports, cooperating with the collection of DNA samples, and preapproving travel outside of the territory.
Indictments charging Martinez and O’Neal, and separately charging White and Hendricks signed by Assistant U.S. Attorney Michael Conley, who represented the government in court, were filed and sealed Wednesday, and unsealed today. To support its claims against the defendants, the government has incriminating audio recordings and text messages implicating all four defendants. There are also multiple terabytes of data and millions of pages of documents.
Conley indicated his intention to designate the cases as complex, so the deadlines given today for discovery, motions, pretrial conference, and trial will likely be pushed back. Conley requested until Thursday, January 16 to file a motion to designate the cases complex. He noted more than six million pages in discovery in connection to the case involving Martinez and O’Neal.
“To call discovery in this case voluminous would be a grotesque understatement,” Conley said.
Martinez and O’Neal, who both resigned from their positions in June 2024, are charged together in one of the cases for allegedly accepting bribes from Whitaker, according to the indictment.
Martinez, who was represented in court by attorney Michael Sheesley, is accused of accepting at least $110,358 in bribes, including equipment and labor for a restaurant he is planning to open called Don Felito’s Cookshop, flights to Boston and rooms at a Boston hotel, private school tuition payments for his two sons, rent payments for his home, expensive meals, and tickets to sporting events. In exchange, Martinez allegedly directed VIPD officials to authorize and facilitate the payment of invoices for Whitaker’s companies and authorized the award of a sole-source contract for Whitaker to provide technical case support to the VIPD for criminal investigations that was paid for using American Rescue Plan Act funds.
Martinez is accused of directing Whitaker to pay vendors and contractors directly for materials and construction at his restaurant, to pay his spouse for the tuition and rent payments, and accepting cash to conceal the alleged scheme. Martinez and Whitaker allegedly inflated contract invoices to cover bribe payments. Martinez allegedly falsified a promissory note to conceal the alleged rent payment after being approached by the FBI. He allegedly directed Whitaker to destroy his phone and computer to prevent their search in connection with a federal grand jury investigation.
Martinez is charged with five counts of honest services wire fraud scheme, one count of bribery concerning programs receiving federal funds, one count of money laundering conspiracy, and two counts of obstruction of justice.
O’Neal, who was represented in court by attorney Treston Moore, is accused of accepting at least $17,730 in bribes, and directing Whitaker to pay the lease for her restaurant directly to the landlord to conceal the alleged scheme. In exchange, O’Neal allegedly authorized the payments of invoices for Whitaker’s companies and directed OMB officials to facilitate the payment of those invoices.
O’Neal is charged with five counts of honest services wire fraud scheme, one count of bribery concerning programs receiving federal funds, and one count of money laundering conspiracy.
White and Hendricks, who are charged together in a separate case, are accused of bribery and wire fraud, according to the indictment.
White, who was represented in court by attorney Clive Rivers, allegedly accepted things of value from Whitaker, including a $16,000 bribe solicitation and a $5,000 bribe payment, to secure a contract to install security cameras at Department of Sports, Parks and Recreation facilities. He allegedly disclosed to Whitaker confidential information concerning contract bids before the department.
White is accused of concealing the alleged scheme by using Hendricks, a government contractor who owns and operates a company called A Clean Environment, to facilitate and obtain the bribe payment from Whitaker. White is accused of concealing his involvement in the Evaluation Committee’s evaluation of the bids for the contract in addition to deleting incriminating evidence from his phone.
White served as DSPR commissioner from 2019 until he resigned today.
READ MORE: “DSPR Commissioner Calvert White resigns after being indicted on federal charges of bribery, fraud”
Hendricks, who was represented in court by attorney Darren John-Baptiste, allegedly aided and abetted White in soliciting and obtaining the bribe payment from Whitaker.
White and Hendricks are both charged with one count of honest services wire fraud scheme and one count of bribery concerning programs receiving federal funds.
Whitaker accepted a federal plea agreement after planting a dozen spy cameras in various VI government offices, bribing a police official to obtain contracts, and attempting to defraud the Paycheck Protection Program, according to court documents.
Whitaker, who signed a plea agreement on March 27, 2024 that was not made public until September 9, 2024, allegedly spoke with O’Neal and Martinez in connection with a scheme to inflate an invoice.
Whitaker allegedly recorded a lunch meeting in January 2024 with O’Neal regarding $15,000 owed to her. O’Neal allegedly stated that she did not need the money owed to her in cash, but that Whitaker could buy things for her indirectly and pay for them.
Whitaker spoke with Martinez numerous times during phone calls that were recorded.
On January 1, 2024, Martinez called Whitaker on a recorded call to allegedly discuss wanting to get his restaurant, Don Felito’s Cookshop, open for the St. Thomas Carnival in March 2024. Martinez allegedly complained that he needed money for equipment to open the restaurant. Whitaker allegedly suggested inflating an invoice to add the restaurant equipment. Martinez is accused of doing exactly that.
On March 13, 2024, Martinez allegedly asked Whitaker to order equipment for his restaurant. Whitaker and Martinez allegedly purchased a vent hood and related accessories for a stove to be installed in the restaurant that cost $12,515.39.
While Martinez appeared in federal court today, his attorney, Sheesley, replied on Thursday to the government’s opposition to his prior motion calling for the return of kitchen equipment seized from Don Felito’s Cookshop, which Martinez leases from KAC Properties LLC. The attorney, in his reply, noted that it is believed the government never notified the court that it was in possession of the lease agreement and was aware that the hood system was attached to the real estate in question. While the government argues that the hood system was a “trade fixture,” Sheesley indicated it is not. He noted the government does not dispute that removal of the hood system left a hole in the roof of the property, suggesting the government seems to believe it can damage property owned by the landlord without notice and without any responsibility.
The U.S. Attorney’s Office, in its opposition to Sheesley’s motion for the return of the kitchen equipment, argued that an analysis of four factors to the case compels a finding that Don Felito’s Cookshop is not entitled to a return of the kitchen equipment.
Sheesley requested the court to order the prompt return and reinstallation of the hood system, order the government to proffer evidence of why a bond or other security is necessary, and hold a prompt post-seizure hearing.
