ST. CROIX — All 11 defendants arrested in January for their alleged involvement in a Medicaid fraud scheme within the Virgin Islands Department of Human Services now have legal representation.
The court appointed counsel for 10 of the defendants after determining they were financially unable to retain attorneys. One defendant retained private counsel.
An investigation led by the VI Department of Justice resulted in the arrest on January 28 of six DHS employees and five of their family members or associates.
The accused employees, who have been suspended, worked within the department’s Medical Assistance Program (MAP), which administers Medicaid, and the Supplemental Nutrition Assistance Program (SNAP). Repeated requests to Human Services Commissioner Averil George and DHS spokesperson Ryan Nugent about whether the suspended employees are receiving pay went unanswered.
The defendants are accused of misusing government computer systems to alter or override eligibility safeguards, resulting in the unlawful disbursement of about $309,099.44 in Medicaid funds that the territory lost as a result, according to the DOJ.
The defendants include four MAP employees — Shantenysha Victor-Davis, Doenyka Lewis, Shanoya Hendrickson, and Kenera Sheneal Frederick — and two SNAP employees — Lisa Minelli Montanez and Clarissa Nuñez. The other five defendants are Carmen Saldana-Nuñez, mother of Nuñez; Karen Blyden, mother of Hendrickson; Sharon Henry, mother of Frederick; Akim Davis, husband of Victor-Davis and father of their child; and Shane Gaston, who has a child with Montanez.
The Virgin Islands Police Department arrested all 11 defendants on January 28 based on arrest warrants issued by the Superior Court. Davis turned himself in after a wanted bulletin was issued for his arrest. Police arrested the others at multiple locations, including DHS offices in Estate Hannah’s Rest and private residences throughout the island.
When asked why the defendants were not given the opportunity to turn themselves in, Attorney General Gordon Rhea said arrests can occur in several ways, including on a warrant or through voluntary surrender. He noted that people facing federal charges after a grand jury indictment have been allowed to surrender voluntarily, while those charged locally have been arrested on Superior Court warrants.
READ MORE: Eleven arrested in MAP, SNAP fraud; Akim Davis turns himself in after wanted bulletin, 10 post bail
Immediately following their arrests, Magistrate Judge Yolan Brow-Ross granted a motion filed by the Office of the Territorial Public Defender to be relieved as counsel for all 11 defendants. The OTPD made the request to avoid the appearance of impropriety or possible conflict of interest because one of its employees is the subject of an ongoing Medicaid-related investigation connected to the underlying events that resulted in the arrest of the defendants.
The court then appointed counsel for 10 defendants. Those defendants and their appointed counsel are: Victor-Davis (Office of Conflict Counsel); Lewis (Chase Campbell Charbonnet); Hendrickson (Renee Dowling); Nuñez (Christopher Carbine); Saldana-Nuñez (Beverly Edney); Blyden (Mary Faith Carpenter); Henry (Office of the Territorial Public Defender); Davis (Warren Cole); Gaston (Vincent Colianni II); and Frederick (H.A. Curt Otto).
While the court appointed counsel to represent 10 of the defendants, attorney Nicole-Lynn King-Richardson has entered an appearance to represent Montanez.
The case is being prosecuted by Acting Deputy Attorney General Patricia Lynn Pryor, director of the DOJ’s White-Collar Crime and Public Corruption Unit.
All the defendants pleaded not guilty after being advised of their rights during their initial appearance in Superior Court before Brow-Ross on January 29.
READ MORE: All 11 defendants charged in $309,000 Medicaid fraud scheme advised of rights, plead not guilty
All the defendants are charged with Medicaid fraud, accessing a computer for fraudulent purposes, and fraudulent claims against the government.
Additionally, five of the DHS employees — Nuñez, Victor-Davis, Lewis, Montanez, and Frederick — were also charged with embezzlement.
The maximum penalty for both Medicaid fraud and accessing a computer for fraudulent purposes is five years in prison, while the maximum penalty for fraudulent claims against the government is two years in prison. Embezzlement carries a maximum penalty of 10 years in prison.
During their arraignments, all the defendants pleaded not guilty to all charges filed against them and requested speedy jury trials. Brow-Ross noted their pleas and granted their requests for speedy jury trials.
All the defendants are expected to be tried together as co-defendants. Their case has been assigned to Judge Ernest Morris Jr. A discovery conference for all defendants is scheduled for 9 a.m. on May 6.
