Exclusive: Sealed FBI Document Obtained By VI Consortium Lays Bare Alleged Corruption In VI Government

ST. CROIX — There’s a historic chain of corruption that’s embedded deep in the Government of the Virgin Islands, a document obtained by The Virgin Islands Consortium lays bare. A culture where bribes for contracts and other financial gain to enrich oneself have permeated one administration after the next, leading to the arrest of former Governor John P. de Jongh official Julito Francis, 53, the former director of Finance and Administration for the Virgin Islands Public Finance Authority, who was charged with 11 counts of conspiracy, bribery, extortion under color of official right, honest services wire fraud and perjury.

The high profile arrests by the federal government last Thursday confirmed what many have suspected: that corruption has infiltrated the GVI at the cost of its people, who lose every time a bribe is successful and every time a contract is awarded to a contractor based on backdoor dealing.

This document, a federal interview with Alwyn Williams, also known as Alvin Williams Sr., the father of disgraced former Senator Alvin Williams, Jr., reveals how underhanded deals have costed the territory.

It includes revelations about former Governor Charles W. Turnbull’s alleged involvement in corruption, who had a “bagman” during his tenure to collect and dispense monies gained illicitly. The document also sheds light on what led former Dept. of Public Works Commissioner Darryl Smalls, who is now Virgin Islands Housing Authority’s Director of Modernization, to report former Sen. Williams, Jr.

Williams Sr. also alleged in the interview that former Governor John P. de Jongh would assure that some contracts were awarded to firms that supported his agenda, and brings to the fore the alleged involvement of former Senators Celestino White and Carlton Dowe in the alleged wrongdoings.

Below is a full reproduction of the interview (verbatim), conducted in 2013 at the United States Attorney’s Office by Kim Lindquist, Kelly Lake, United States Deputy Marshal Brian Bierman, Virgin Islands Inspector General Special Investigator Nicolas Peru, and Defense Attorney George Hodge.

After being advised of the interviewing FBI Special Agent, Jackson Purkey, Williams provided the following information:

“Williams stated that he was aware that Senator Celestino White and Senator Carlton Dowe wanted his son, Alvin L. Williams Jr. to vote on some issue and believed it was a bond issue. Williams knew his son was not going to vote in favor of the bond. Dowe requested to meet with Williams Jr. and Williams outside the legislature building. Dowe told Williams and Williams Jr. that he knew that ACE Development was financially hurting and that if Williams Jr. voted in favor of the bond
that he (Dowe) would ensure that ACE received work from the government. Dowe went on to state that he would get the work through his relationship with Governor John P. de Jongh.

“Dowe stated that if Williams Jr. did not vote in favor of the bond that Dowe’s reputation with Dejongh would be tarnished. Williams stated that he did not believe Dowe. Williams stated that his son did vote in favor of the bond and ACE did receive work as a result. Williams stated that Darryl Smalls, Commissioner of Public Works did not want to give ACE the work and that Louis Penn Sr., chief of staff for de Jongh, had to make several phone calls to Smalls to get Smalls to give ACE the contract. Williams stated that Dowe had approached Williams a second time for vote on an issue. Dowe had apparently promised de Jongh that he would obtain the necessary votes for the issue and told Williams Jr. that he would lose favor with de Jongh if Williams did not provide his vote.

“Williams stated that he received a call from his son who told him that Dowe and the de Jongh had given ACE work. Williams Jr. told Williams that they were given a “gut cleaning” contract and told Williams where to take the heavy equipment. Williams stated that they started in Frydenjoh and were met by Lionel Olive from the Department of Public Works. Olive directed ACE to the location and provided instruction to ACE. After receiving the contract for the guts, Olive approached Williams about an old fire truck that Williams had won at an auction. Williams stated that Olive had tried on several prior occasions to purchase the truck from Williams and Williams declined. After completing the gut project, Olive told Williams that he wanted the truck. Williams thought that if he gave Olive the truck that he would be paid the money he was owed. Williams believed the truck was worth two or three thousand dollars.

“Olive instructed ACE to move to the Nadir gut before the Fredenjoh location was completed. Williams stated there was not any supervision or review of work being conducted of ACE by any DPW employee. Williams stated that he tried to provide invoices everyday for the work being conducted but that Olive advised that there was none needed. Williams stated that the work was worth approximately $140,000. Williams stated that during the work of the gut or shortly after but before he was paid he randomly ran into Smalls. One meeting occurred at Megan’s Bay Beach and the other occurred at the ball park in Frenchtown.

“During one of those meeting, Smalls began to tell Williams how “all these guys” don’t know how much I do for them. Smalls went on to discuss how much he does for the other contractors and how they do not show their appreciation. Smalls then started to discuss how much construction work he had to complete on a personal project and how much it was going to cost. Williams recalled Smalls stating it was going to cost $25,000. Williams stated that this was the same amount of money that DPW owed him from a prior job from several years ago. From the conversation with Smalls, Williams understood that Smalls was explaining to Williams that without his approval ACE would not have gotten the gut cleaning project and that he, Williams, needed to give some money to Smalls as a kickback for the contract. Williams understood that Smalls was asking for $25,000.

“After receiving the approximately $140,000 check from DPW, Williams and Williams Jr. went to the bank to retrieve the money in which Small had asked. Williams stated that he had a small amount of money at this house and he withdrew 524,000. Williams Jr. was present at the teller during the withdrawal and counted the money. Williams Jr. stated that he had intended to give Smalls the entire $25,000 but felt that Smalls was being too greedy and decided to only give him $10,000. Williams felt chat Smalls turned the money over to the federal government and reported Williams Jr. because he was upset he didn’t receive the whole $25,000. Williams stated that de Jongh was not going to give additional work to Williams because Williams Jr. had supported Mapp for governor.

“Other work that Williams company has done for the government included working for Gerald Roy on the Cancer Center, Megan’s Bay and the ball park. Williams stated that Smalls was part owner in J&D electric. Williams stated that the J stood for JOLLY and D stood for DARYL. During the cancer center project Smalls had given a contract to his own company. Williams went on to state that J&D had received work on the DPW renovation. During the renovation of the legislature, Williams observed Louis “LOLO” Willis and another individual trying to remove some debris from the grounds. Williams made a comment to Willis that he was having a “boy do a man’s job.” Williams went on to explain to Willis how he would do a better job. Willis eventually hired Williams. Williams stated that he had a number of conversations with Willis on how to make the legislature property look better.

“They agreed upon adding a beach to the property. After completing the work Willis and Senator Donastorg got into any argument. It was found that Willis had not received a permit to make the changes to the shoreline, Williams had to removed the sand and return the shoreline to its original state. Williams’ bill totaled approximately $60,000.

“While waiting to get paid Williams had a conversation with Willis. Willis indicated that he was in financial strain and was unable to make his mortgage payment. Willis advised Williams that his mortgage bill was $3000. Williams understood this to mean that if Williams wanted to get paid for the work he had completed he needed to pay Willis $3000. After Williams was paid he took $3000 cash down to the legislature. Williams called his niece, Shelly Percival, who worked for Williams Jr. and advised her to tell Willis he was there and to come down so Williams could pay him.
Williams advised that Percival was one of Willis’ girlfriends and that he supposedly completed work on Percival mother’s home, his sister, using legislative resources. Williams advised that some of Balbo’s workers advised him that Percival wanted all the doors and windows from the renovation.

“One of the workers was Lenox Last Name Unknown (LNU). During one exchange Williams had with Willis, Willis advised that he had taken Percival to Las Vegas and “blew her head off”, referring to having sex, and he was now Williams nephew-in-law.

“Williams stated that he believed that Balbo had hired Roy’s Construction to complete the Legislative roof project. Williams stated that during the time Charles Turnbull was governor, Wayne Callwood, Commissioner of DPW, had come to Williams with a problem. Callwood advised Williams that Sucrum (phonetic) had walked off the job at the landfill and asked Williams if he could take it over. Williams inspected the job and agreed to take it on. Callwood advised Williams that bids were going to be taken for the landfill and to be ready. Williams provided the bid and won. The contract that he received was suppose to be for 4 years. Williams purchased $2 million worth of equipment from a company in Puerto Rico.

“Williams stated that Turnbull had to assist every time ACE needed to get paid. Williams stated that Turnbull and Leroy Marchena advised him that ACE had to pay them. Marchena had no official government job but was the “bag man” for Turnbull. Williams had made payments in excess of $100,000 to Turnbull and Marchena on behalf of Turnbull as bribes to keep the landfill contract. Williams stated that the most he ever paid to Turnbull or Marchena at one time was $30,000 or $40,000 and the minimum was $5000.

“Williams had been owed approximately $500,000 or $600,000 for the landfill when he made the $30,000 or $40,000 payment.  Williams paid Turnbull in cash because Turnbull would take nothing else. Turnbulll would write the amount he wanted down on a piece of paper, show it to Williams and then tear it up. Rohn Creque and Marchena did not want ACE to have the contract and turned a four year contract in to a 3 month renewal contract. At some point Marchena made a statement to Williams that he needed to review how much ACE was making off the landfill. Marchena complained how long it would take him to make that much money. Williams stated that Marchena and others held a “closed door” session or bid for the landfill contract and disqualified ACE. A-9 received the contract.

“Williams stated that the government owed ACE money and he had paid then Senator Norma Pickard money to help him get paid. In addition, Williams went to Pickard’s home and paid her $5000 cash to assist her with her campaign. Williams gave Pickard the $5000 on his own and without prompting.”

The Federal Bureau of Investigation’s interview with Williams, Sr. can be seen and downloaded here.