ST. CROIX — Port Authority Executive Director Carlton Dowe has been federally indicted on bank fraud charges tied to an alleged scheme to submit loan applications with materially false information to Banco Popular de Puerto Rico to refinance his existing mortgage loans, according to an indictment.
Dowe, who notified the Virgin Islands Port Authority board chair of his pending retirement in a letter dated today, was seen at District Court on St. Thomas today with his son, Roane, and friends — former Senator Allison Petrus and retired government official Keith Richards.
According to an order setting conditions of release that Dowe signed today, he must appear in District Court on St. Thomas as required.
Dowe is charged with four counts of bank fraud, four counts of making a false statement on a loan application, and one count of aggravated identity theft in connection to actions he allegedly committed from March 18, 2021 to November 10, 2023 in the District of Puerto Rico and elsewhere within the jurisdiction of the U.S. District Court for the District of Puerto Rico.
As part of the alleged scheme, Dowe is accused of falsely stating his income in his loan applications and submitting fraudulent lease agreements with a forged signature of a purported tenant. He allegedly made a false statement on March 18, 2021 in execution of one loan application that he was to earn an expected monthly payment of $4,500 from a fake lease agreement with someone identified by the initials M.N. He is charged with identify theft for allegedly using the identification belonging to M.N. on March 18, 2021 in connection to bank/loan fraud.
In a separate loan application, Dowe allegedly made a false statement on three different dates in 2023 that he was to earn an expected $15,500 per month from a lease agreement with another individual, identified as J.P., that was not valid.
The indictment was filed March 12 in District Court in Puerto Rico. It was filed in District Court, Division of St. Thomas/St. John on Thursday and unsealed today. Attorney Joseph DiRuzzo III, of Ft. Lauderdale, Florida, has filed a notice of appearance as counsel of record for Dowe.
In a letter dated today to VIPA Board Chair Willard John, Dowe gave notice of his retirement as VIPA executive director effective April 10.
However, the news appeared to catch even top leadership at the Port Authority off guard.
The Virgin Islands Consortium first reported on Dowe’s retirement at 10:58 a.m. today. Just minutes later, at 11:11 a.m., WTJX reached out to John, who at the time said he was not aware of Dowe’s intended retirement and could not confirm the development. After obtaining a copy of the letter, WTJX contacted John again shortly after noon, at 12:01 p.m., for reaction.
John, who then confirmed receipt of Dowe’s letter, told WTJX he did not know why Dowe announced his plans to retire next month at this time.
“We now as a board, are looking forward to what is our succession plan, No. 1, and how do we assure that we continue to achieve the things that we have been achieving, that we complete the projects that’s on the books right now, and looking forward to what we’re going to do in the near future and far future,” John said.
John was recently confirmed by the VI Legislature for another term on the VIPA board, despite having already served the two-term maximum. Because the law generally limits board members to two terms, his reappointment was advanced along with two others who reached their term limit — Leona Smith and former Senator Celestino White Sr. — under a provision for “exceptional service.” John, Smith, and White were confirmed by the Senate during legislative session on Wednesday for another term on the VIPA board in 11‑3 votes, opposed by Senators Kenneth Gittens, Franklin Johnson, and Clifford Joseph Sr.
Dowe, who served as a senator in the VI Legislature from 2009 to 2013, led VIPA in two stints, from 2013 to 2016 and again from 2019 to the present. His tenure has included efforts to expand and modernize seaports and airports, advance the Crown Bay cruise project, and strengthen partnerships with major cruise lines, as well as oversee cargo and logistics improvements.
As part of his conditions of release, Dowe must sign an Appearance Bond, if ordered. He may not leave St. Thomas without receiving approval by the court, and he had until 5 p.m. today to surrender any passport. A U.S. passport receipt from the clerk of the court with today’s date shows his signature.
Dowe must submit to supervision by and report for supervision of the Office of Probation/Pretrial Services as directed, avoid all contact — directly or indirectly — with any person who is or may be a victim or witness in the investigation or prosecution, and not use alcohol excessively. He must report as soon as possible, to the Pretrial Services or supervising officer, every contact with law enforcement personnel, including arrests, questioning, or traffic stops.
Additionally, Dowe must not violate federal, state, or local law while on release; must cooperate in the collection of a DNA sample if it is authorized by the U.S. Code, Title 34, Section 40702; and must advise the court or the pretrial services office or supervising officer in writing before making any change of residence or telephone number.
