ST. CROIX — Attorneys for Morris Anselmi and Kimberly McCollum, co-owners of Island Services Group LLC, told a federal magistrate judge today in District Court on St. Croix that the co-defendants are nearing a plea agreement in their Paycheck Protection Program fraud case.
Anselmi and McCollum were indicted on February 20, 2024 for allegedly stealing approximately $500,000 in coronavirus relief funds through the U.S. Small Business Administration’s Paycheck Protection Program. Their attorneys updated Magistrate Judge Emile Henderson III on the status of plea negotiations during a calendar call today.
“Progress is being made,” attorney Scot McChain, who represents Anselmi, said while appearing before the court in person.
Attorney Annabelle Nadler, who participated virtually along with the prosecution, expounded on McChain’s statement on behalf of her client — McCollum.
“We are almost at the very end of this,” she said, noting that the government made a general offer of resolution.
U.S. Attorney Adam Sleeper, who stood in during the hearing for Assistant U.S. Attorney Denise George, agreed with the defense attorneys.
“I think we’re moving toward a resolution,” he said.
After the hearing, McChain told WTJX a plea agreement will likely be in place by next month, noting that the parties are working out the finer points.
“There’s been a general plea offer that we feel is acceptable,” he said.
Anselmi and McCollum are accused of devising a scheme to defraud the federal government through the SBA and United Fidelity Bank, which owns Bank of St. Croix and participated in the Paycheck Protection Program as a lender. Anselmi and McCollum are both charged with wire fraud conspiracy and making false statements to the SBA and a financial institution. McCollum is also charged with wire fraud and mail fraud.
After receiving PPP loans that were meant to cover ISG’s legitimate business expenses such as payroll, rent, and utility payments, the defendants allegedly siphoned a portion of the loan proceeds into McCollum’s personal bank account and submitted applications to the SBA for forgiveness of the loans, falsely claiming the funds had been used for authorized purposes. The government claims a portion of the loan funds were used to personally enrich McCollum.
The potential plea deal comes as prosecutors have considered broadening an immunity agreement extended to Anselmi in exchange for his testimony in another federal fraud case involving ISG, the Virgin Islands Housing Finance Authority, and contractors Davidson and Sasha Charlemagne. Expanding Anselmi’s immunity agreement to include his PPP fraud case as well as the case against the Charlemagnes would allow his stalled deposition to resume in the Charlemagnes’ case.
READ MORE: Government may broaden Anselmi’s immunity agreement to resume witness testimony in Charlemagne case
The government’s case against the Charlemagnes alleges the married couple stole federal funds by fraudulently obtaining a $4.4 million VIHFA contract 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 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. The court 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. A dispute regarding the extent to which Anselmi could be cross-examined regarding his PPP indictment arose during the second deposition session on April 28.
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 the Charlemagnes’ case proceeds toward trial, the question regarding whether the government will broaden Anselmi’s immunity to also cover his PPP fraud case remains pending.
“I have a feeling that that issue may be resolved through the plea,” McChain told WTJX.
The Charlemagnes’ case is tied to Darin Richardson, the former VIHFA chief operating officer convicted in March on all five counts charged against him — bank fraud, money laundering, and criminal conflict of interest, making a materially false statement, and making a false statement on loan and credit applications.
READ MORE: Darin Richardson found guilty on all five counts including fraud after jury deliberates for one day
The prosecution proved during Richardson’s trial that Anselmi wired him $107,000 because Richardson served as COO for the VIHFA, which awarded ISG the lumber management contract that grew to $4.4 million.
Richardson’s sentencing is scheduled for 9:30 a.m. on January 30, 2026 in District Court on St. Croix.
The next calendar call for Anselmi and McCollum is scheduled for 9 a.m. January 15, 2026 in District Court on St. Croix.
