A construction and engineering company filed a civil suit this week against The Strategy Group, a local consultant firm, for allegedly failing to pay for federally funded disaster recovery work.
According to the complaint filed in V.I. Superior Court by WM Williams and Partners Tuesday, The Strategy Group was hired to work “on various reconstruction projects” by disaster recovery consultant firm Witt O’Brien’s, which has a number of contracts with local government agencies, including the V.I. Disaster Recovery Office and Public Finance Authority. WM Williams, in turn, provided The Strategy Group with “independent project management services,” and the companies worked out a payment plan — outlined on a Strategy Group spreadsheet — in May 2024 through which WM Williams would be paid an hourly rate for work with the government and receive a percentage of the amounts invoiced on the ODR project.
Months later, WM Williams alleged, The Strategy Group reduced the firm’s payment and claimed that Witt O’Brien’s had reduced its $1.5 million subcontract.
“However, the Plaintiff had performed its services and [is] therefore entitled to payment of the agreed percentage with the defendants on the PFA – ODR project at the $1.5 million cost,” attorney Sharmane Davis-Brathwaite wrote in the complaint. WM Williams “is entitled to an equitable accounting of the money Witt O’Brien’s paid to Defendant Strategy Group for the PFA – ODR project pursuant to which Plaintiff performed and expected to be compensated as set forth in the May 26 spreadsheet.”
The firm claims that The Strategy Group owes at least $27,291 for the ODR work and an additional $45,560 for its work on other government projects.
In a statement provided to the Source, The Strategy Group acknowledged “that an outstanding balance is the subject of a pending legal matter” and said that they do not comment on active litigation but wanted to provide appropriate context.
“Strategy Group VI has not yet been paid by its primary contractor for certain disaster recovery work performed in the Territory,” according to the statement. “As a result, downstream payments to vendors have been delayed. This payment sequencing challenge is common throughout the U.S. Virgin Islands, where many disaster recovery firms remain unpaid or partially paid for extended periods, including prime contractors.”
A Witt O’Brien’s representative did not respond to the Source’s questions by Wednesday evening. The Source did not receive a response to a request for comment from the V.I. Disaster Recovery Office.
The complaint also noted that The Strategy Group principal, John Engerman, had a business interest in a software and computer company called 3TI and that revenues were reallocated from WM Williams to 3TI, which “was not licensed to perform project management services for purposes of the PFA – ODR project.”
“3TI did not contract with our primary contractor nor any public entity and did not provide licensed professional services to any public agency,” according to The Strategy Group statement. “Any individual support was requested by and compensated directly by Strategy Group VI as an independent contractor. No licensing issue exists.”
By way of damages, WM Williams is asking the court to mandate “an accounting of all money Witt O’Brien’s USVI LLC paid the defendants during the period of its services” as well as pre- and post-judgment interest, reimbursement for costs and attorney fees and any other relief the court deems proper.
The Strategy Group stated that it “has acted in good faith and has paid its vendors when funds were received from the prime contractor. We remain committed to resolving all outstanding obligations once funds are received. The matter will be addressed through the appropriate legal process.”
