Local contractor George Flemming was convicted on 27 charges, including program fraud and wire fraud based on fraudulent deprivation of the good and honest services of a territorial government official.
According to the indictment, George Flemming and Walter John Jr. agreed that John would use his position as procurement specialist at the V.I. Housing Authority on St. Croix to corruptly secure payments to George Flemming — d/b/a Mr. G's Maintenance Services — under a federally funded contract to repair 50 vacant VIHA units.
In furtherance of this scheme Flemming and John agreed that Flemming would pay John money he was not entitled to receive for every unit repaired.
Flemming, through Mr. G's Maintenance, paid more than $30,000 to John during the life of the contract and John corruptly secured expedited payments under the contract to Flemming.
The maximum statutory penalty for conspiracy to commit wire fraud and wire fraud is 30 years in prison and a $1 million fine. The maximum penalty for conspiracy to commit program fraud and program fraud is 10 years in prison and a $250,000 fine.
U.S. Attorney Anthony Jenkins said this case was the result of an investigation by the Department of Housing and Urban Development and the Office of the Inspector General.
Jenkins asks citizens to report suspected corruption in any aspect of government to the Public Corruption Hotline at 774-9296.
Jenkins said the detection and prosecution of public corruption in the Virgin Islands is a priority of the U.S. Attorney's Office, and federal and local law enforcement. He said any public official who engages in corrupt practices should be reported and proper investigation and prosecution will be vigorously pursued by local and federal law enforcement authorities working together.
The Flemming case was prosecuted by Assistant U.S. Attorney Denise Hinds with the assistance of HUD Special Agent Edwin S. Bonano.
A sentencing date has not been set, pending the preparation of a pre-sentence report.
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