ST. CROIX — Former Virgin Islands Port Authority Executive Director Carlton Dowe pleaded not guilty to federal bank fraud charges today, waiving his appearance at his arraignment via a signed court document.
Additionally, Dowe’s attorney, Joseph DiRuzzo III, submitted a request on Monday to be admitted to practice in the U.S. District Court for the District of Puerto Rico for Dowe’s case only.
Dowe, who served as a senator in the VI Legislature from 2009 to 2013, was 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 initially filed on March 12 in Puerto Rico.
On March 20, Dowe appeared in District Court on St. Thomas, where he signed an order setting conditions of release. He also submitted a letter to the chair of the VIPA board, Willard John, on March 20 announcing his retirement effective April 10.
READ MORE: VIPA ED Carlton Dowe indicted on bank fraud, tells board of retirement same day as court appearance
Dowe is accused of submitting fraudulent loan applications by overstating his income and using fake lease agreements, including one with a forged signature. In March 2021, he allegedly claimed he would earn $4,500 a month from a nonexistent lease tied to an individual identified as M.N., whose identity he is also accused of using, leading to an identity theft charge. In a separate application, he allegedly made additional false statements in 2023, claiming he would receive $15,500 monthly from another invalid lease agreement with an individual identified as J.P.
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.
