On January 10, the Department of Justice announced that an indictment was unsealed charging Ray Martinez, the former police commissioner of the Virgin Islands Police Department (VIPD), and Jenifer O’Neal, the former director of the Virgin Islands Office of Management and Budget, with alleged participation in a bribery and money laundering scheme. Both appeared in federal court in St. Thomas, U.S. Virgin Islands, for their initial hearings.
According to court documents, Martinez, 56, and O’Neal, 53, both of St. Thomas, allegedly accepted payments from David Whitaker, a former government contractor. The scheme is said to have started as early as November 2022 and continued until June 2024, with O’Neal joining by January 2024. Allegations include using funds from these payments for personal transactions, such as paying rent for O’Neal’s coffee shop.
In exchange for these payments, Martinez and O’Neal allegedly facilitated approval of inflated invoices and assisted Whitaker in obtaining payments from the Virgin Islands government. The allegations also suggest that Martinez helped Whitaker secure a $1.48 million contract to provide services to the VIPD in October 2023. Additionally, after the investigation became public, Martinez is accused of obstructing the process by encouraging Whitaker to destroy evidence and submitting falsified documents in response to a subpoena.
The charges against Martinez and O’Neal include five counts of honest services wire fraud, each carrying a maximum penalty of 20 years in prison. They are also charged with federal program bribery, which carries a maximum sentence of 10 years, and conspiracy to commit money laundering, which could lead to up to 20 years in prison. Martinez faces additional obstruction of justice charges, with a potential penalty of 20 years per count.
If you or your business is dealing with legal matters related to financial transactions or public service compliance, the attorneys at Chilivis Grubman have ample experience and are ready to assist. Contact us today to explore how we can help.