ST. CROIX — The U.S. government may expand Morris Anselmi’s immunity agreement to include his own Paycheck Protection Program fraud case, allowing his deposition to resume in the federal case against Davidson and Sasha Charlemagne, who are accused of stealing disaster relief program funds, according to the prosecution.
Assistant U.S. Attorney Denise George, providing an update today in District Court on St. Croix, told U.S. Magistrate Judge Emile Henderson III that the U.S. Attorney’s Office is strongly considering broadening Anselmi’s immunity agreement.
George raised the possibility in response to a court opinion and order barring Anselmi’s testimony due to the limited scope of his current immunity agreement. She told WTJX after the hearing that expanding the agreement to include Anselmi’s PPP fraud case would enable his deposition to proceed in the Charlemagnes’ case.
Davidson Charlemagne and his wife, Sasha Charlemagne, allegedly stole federal funds by fraudulently obtaining a $4.4 million contract with the Virgin Islands Housing Finance Authority to store and manage lumber shipped by the Federal Emergency Management Agency for rebuilding efforts after Hurricanes Irma and Maria in 2017. Davidson Charlemagne, who owns D&S Trucking, allegedly proposed for Island Services Group to submit a bid for the contract, with D&S Trucking serving as subcontractor. The lumber was eventually stored on the grounds of the shuttered Alexander Henderson Elementary School, as Davidson Charlemagne served as director of Maintenance for the Virgin Islands Department of Education.
Anselmi, a government witness residing in Texas, co-owns Island Services Group with Kimberly McCollum. Both were indicted in a separate case for allegedly stealing $500,000 in coronavirus relief funds through the Paycheck Protection Program.
The government filed a motion on March 20 to take a videotaped deposition of Anselmi to preserve his testimony for the Charlemagnes’ trial due to his serious medical issues. On March 25, the defense jointly requested to conduct a virtual videotaped deposition. Henderson granted both requests, ordering that the deposition occur in two-hour sessions due to Anselmi’s health. The first session took place on April 8.
During the second session on April 28, a dispute arose as to the extent to which Anselmi could be cross-examined regarding the PPP indictment. The parties agreed the court must resolve the issue before continuing. The dispute centers on whether the government could use Anselmi’s testimony in the Charlemagnes’ case against him in the PPP case, given the limited immunity agreement.
READ MORE: Morris Anselmi, indicted of PPP fraud, hopes to get immunity by testifying against the Charlemagnes
The government maintains that Anselmi’s immunity covers only his business dealings with the Charlemagnes related to the VIHFA contract. Attorney David Cattie, representing Davidson Charlemagne, argued that the immunity agreement is broader and does not restrict testimony to only those business dealings. He asserted that Anselmi cannot refuse to testify on the basis of his privilege against self-incrimination. Pamela Colon, representing Sasha Charlemagne, agreed.
The court considered whether the limited immunity agreement prevented Anselmi from responding to cross-examination without incriminating himself and whether this limitation infringed upon the Charlemagnes’ Sixth Amendment right to confront a witness.
In an opinion and order issued last Wednesday, Senior District Judge Wilma Lewis found that the parties intended to immunize Anselmi only for testimony related to his business dealings with the Charlemagnes under the VIHFA contract. As a result, the court concluded that Anselmi may assert his Fifth Amendment privilege in the Charlemagnes’ case.
Lewis noted that the language in the agreement required Anselmi to answer only questions in the deposition pertaining to the “subject matter of this case,” referring to the case against the Charlemagnes. She indicated that this limited understanding was further confirmed during the April 28 deposition, when government attorneys immediately objected to any mention of the PPP indictment and Anselmi appeared confused when asked about it. Lewis found that all parties to the agreement clearly did not intend to immunize Anselmi for anything beyond the narrow scope related to the VIHFA contract.
Lewis also considered the rights of the defendants to confront Anselmi during cross-examination. She noted that Anselmi asserted his right to remain silent in response to questions asked during the deposition by both Cattie and Colon that she determined to be appropriate areas of inquiry. Therefore, she noted a classic dilemma of constitutional rights because the Charlemagnes’ Sixth Amendment right to confront Anselmi conflicts with his Fifth Amendment right to remain silent.
Lewis concluded that the only remedy that preserves the rights of all three individuals is the exclusion of Anselmi’s testimony from the case — unless his criminal exposure changes in a way that allows him to fully respond to cross-examination.
Both of the Charlemagnes are charged with money laundering conspiracy, wire fraud, and nine counts of making false claims upon the United States by allegedly submitting fraudulent timesheets indicating that Sasha Charlemagne had worked multiple eight-hour days at the woodpile site despite not being physically present in the territory. Davidson Charlemagne is also charged with fraud concerning programs receiving federal funds. The Charlemagnes pleaded not guilty to charges related to the theft of disaster relief program funds during their initial arraignment on June 20, 2024. They were arraigned on new charges of false claims on October 25, 2024.
READ MORE: Charlemagnes arraigned on new charges of false claims connected to timesheets in woodpile fraud case
The Charlemagnes’ case is tied to an indictment that charged Darin Richardson, former VIHFA chief operating officer, with crimes in connection to the contract the Authority awarded Island Services Group for the management of the lumber. Richardson’s case was severed from the Charlemagnes’ case, so he stood trial alone. On March 5, a jury found Richardson guilty on all five counts — a local charge of criminal conflict of interest, and four federal charges of bank fraud, money laundering, making a materially false statement, and making a false statement on loan and credit applications. Richardson’s sentencing is scheduled for 9:30 a.m. September 30 in District Court on St. Croix.
READ MORE: Darin Richardson found guilty on all five counts including fraud after jury deliberates for one day
As the prosecution moves closer to a trial date for the Charlemagnes, George notified the court that her office sent out a “substantial amount” of discovery to Cattie and Colon last week. She said she expects a smaller batch of information to go out next week to complete the discovery process.
In the case against Anselmi and McCollum, George said she expects to participate in a meeting next week to determine how the government will proceed. Attorney Scot McChain, who represents Anselmi, confirmed that negotiations remain ongoing to reach a resolution. Attorney Annabelle Nadler, representing McCollum, said the defendants are awaiting a decision from the government. She remained hopeful that she would have a response at the next calendar call, which is scheduled for 9 a.m. December 15.
