Celeste Bermudez, a former St. Croix resident now living in Massachusetts, was indicted by a Virgin Islands grand jury on a six-count indictment charging her with defrauding a federal program, U.S. Attorney Ronald Sharpe reported Thursday.
According to Sharpe’s news release, the indictment was handed down Jan. 12 and the 41-year-old Bermudez made her first court appearance before U.S. Magistrate Judge Ruth Miller on Jan. 15. She is charged with theft of federal program funds, money laundering, and making and subscribing a false income tax return.
Miller set bail conditions for Bermudez, who is on release pending trial.
According to the indictment, Bermudez was the finance director of the Virgin Islands Community AIDS Resource and Education Inc. a nonprofit organization dedicated to promoting HIV-AIDS education and support services to individuals. In 2011, the U.S. Department of Housing and Urban Development approved approximately $1.3 million in grant funds to VICARE. During the period July 1, 2011, through June 30, 2014, the Department of Health and Human Services Centers for Disease Control and Prevention awarded VICARE approximately $627,365 in grant funds.
Bermudez is charged with embezzling approximately $293,710 during the period January 2012 through December 2013. The indictment also charges Bermudez with engaging in monetary transactions in financial institutions with the embezzled funds, as well as making and subscribing a false 2011 income tax return.
If convicted, Bermudez faces maximum sentences of 10 years in prison and a $250,000 fine for the federal program fraud and money laundering counts, and not more than three years in prison or a $5,000 fine for the tax count.
The case was investigated by HUD Office of Inspector General, HHS Office of Inspector General, and the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Kim L. Chisholm and Meredith Edwards.
