Former St. Croix Sen. John Tutein, now a vice president in St. Croix businessman Jeffrey Prosser’s Innovative Communication Corp., pleaded not guilty Wednesday to five counts of bribery.
At the arraignment hearing on St. Thomas, U.S. Magistrate Judge Geoffrey Barnard set a jury trial for Oct. 4. Tutein, 41, was represented by attorney Treston Moore while Assistant U.S. Attorney Curtis Gomez represented the government.
Tutein was arrested Aug. 13 on a District Court warrant for allegedly offering a bribe to an unnamed Virgin Islands senator in exchange for the senator’s support of legislation favoring ICC.
During Senate deliberations May 21 on the proposed ICC-V.I. government land swap, known as the "Prosser deal," Sen. Allie-Allison Petrus accused Tutein of offering him an envelope full of $100 bills last October in exchange for support on an upcoming issue. Tutein denied the accusations.
On Aug. 24, Tutein was indicted on nine federal and territorial offenses by a federal grand jury on St. Thomas. In the indictment, U.S. Attorney James Hurd named the senator — Petrus — and alleged that from on or about Oct 1, 1998, through Feb. 5, 1999, Tutein offered to give the St. Thomas senator and other individuals cash, a van and a mobile TV broadcast van worth a combined $177,000.
The offer was allegedly made in connection to a series of transactions of the V.I. government, namely the Prosser-V.I. government land exchange.
The land transaction would have involved Prosser’s company purchasing 2,800 acres of land on St. Croix’s northwest shore for close to $30 million. Prosser would have turned over to the V.I. government 1,000 acres of improved, subdivided land, which would have been given to government workers in lieu of some $200 million they are owed in retroactive wages.
Prosser also would have given nearly $10 million for public projects to be built on all of the territory’s islands.
In return, Prosser would have received full tax breaks for 10 of his companies for 30 years, valued between $180 million and $3.5 billion.
The controversial proposal was considered by Gov. Charles Turnbull, then pulled by Prosser after intense criticism in the community. The deal, however, was revived and approved 8-7 in the Senate, during which Petrus made his accusations. It was eventually vetoed by Turnbull.
The maximum penalty for bribery concerning programs receiving federal funds is 10 years in prison and a $250,000 fine. The territorial offense of bribing public officials is five years and a $1,000 fine. The maximum penalty for inducement of conflict of interest is five years and a $5,000 fine.
The U.S. Attorney’s Office has jurisdiction because the V.I. government receives more than $10,000 in federal funds annually.
