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Thursday, August 18, 2022
HomeNewsArchivesDERRICK, CLAIRE ROMNEY PLEAD IN FRAUD CASES

DERRICK, CLAIRE ROMNEY PLEAD IN FRAUD CASES

St. Thomas entrepreneurs Derrick and Claire Romney have pleaded guilty in connection with two cases pending in District Court, one involving bankruptcy fraud and the other involving FEMA fraud.
U.S. Attorney James A. Hurd Jr. announced Thursday that Derrick Romney, 49, and Claire Romney, 46, president and vice president of Romney Enterprises Inc., pleaded guilty to one count of bankruptcy fraud in connection with Romney Enterprises' bankruptcy.
In the Federal Emergency Management Agency case, the two Romneys and CNA Enterprises Inc. pleaded guilty to conspiracy to commit criminal offenses against the United States with fraudulent billing for Hurricane Marilyn repair work paid by FEMA.
The penalties for the bankruptcy fraud and conspiracy offenses are up to five years in jail and up to a $250,000 fine. Hurd's release gave no sentencing date.
The FEMA work involved the cleanup of Water Island and construction of temporary emergency homes at Estates Nazareth and Ross after Hurricane Marilyn.
The Romneys and CNA "submitted false and inflated involces for the work that they claimed they had performed," Hurd's release said.
As part of their plea agreement, they agreed to pay restitution of $134,557 to FEMA and a fine of up to $50,000, Hurd said.
In the bankruptcy fraud, the Romneys "admitted that they sold four pieces of heavy equipment belonging to the corporation days before the bankruptcy case was filed, and failed to disclose the sale to the bankruptcy trustee" as the law requires, Hurd said.

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