Attorney General Gordon Rhea told senators Thursday that the Virgin Islands Department of Justice has active public corruption investigations underway and that criminal filings in some of those cases could come within the next several weeks.
The exchange came during the Department of Justice’s fiscal year 2027 budget hearing, after Sen. Kenneth Gittens pressed Rhea on whether the territory is doing enough to investigate fraud, bribery, theft and misuse of public funds at the local level.
Gittens focused on the department’s White-Collar Crime and Public Corruption Unit, which Rhea’s written testimony says is responsible for investigating and prosecuting complex financial crimes, public corruption offenses and other matters involving the misuse of public trust and resources. According to the testimony, the unit currently operates with only one employee — its director — while coordinating with the Virgin Islands Police Department’s Economic Crimes Unit, federal law enforcement agencies, other DOJ divisions and the Regional Organized Crime Information Center.
“How serious are we taking public corruption in the territory?” Gittens asked, questioning whether one employee is sufficient to staff a territorial unit responsible for such cases.
“No, I agree with you completely,” Rhea said. “It is not sufficient.”
Rhea said the department has been relying on collaboration with federal authorities, VIPD’s Economic Crimes Unit and DOJ’s Special Investigations Division while it works to strengthen the unit.
“What I’ve been doing until we get more funds … is to have our white-collar unit work in conjunction with other entities,” Rhea said. “We’ve cooperated very closely with the federal white-collar authorities. And in addition, obviously, we work very closely with the Police Department, and our SID has been a major force to help us with white collar.”
The discussion comes after several high-profile federal investigations and prosecutions in recent months have placed renewed attention on government contracting, disaster recovery spending and public accountability in the Virgin Islands. Gittens said those cases have raised a larger question about whether the territory has enough local capacity to police itself, particularly when the suspected misuse involves local, rather than federal, funds.
“The federal government is coming in and watching their dime,” Gittens said. “But what are we doing to aggressively watch the local government dime?”
Rhea said complaints involving government officials can be reported to the head of the relevant department, the Department of Justice or the police. He also said the department acts when allegations are brought to its attention.
“When issues of corruption are brought to our attention, we move on it,” Rhea said.
Gittens then asked whether DOJ currently has active investigations involving government officials, boards or contractors accused of fraud, bribery, theft or other abuses of public funds or public office.
“Yes,” Rhea said. “I can tell you that there are some investigations of that that are progressing.”
Pressed further on how far along those investigations are, Rhea said some cases are nearing the point of criminal charges.
“I believe there’s going to be some filings that will take place in the next couple of weeks,” Rhea said. “Some of the cases have reached that stage.”
When Gittens asked whether “the next couple of weeks” meant two, three or four weeks, Rhea cautioned that he could not give an absolute deadline because cases must be ready before charges are filed. But he said some investigations are “almost to the end” and that charging decisions appear imminent.
“I can’t tell you if it’s going to be two weeks, three weeks,” Rhea said, “but I can tell you there are some that my understanding is are now almost to the end of the investigation and that charging is becoming imminent in the next few weeks.”
Rhea’s written testimony said the White-Collar Crime and Public Corruption Unit currently has 44 open cases across both districts and has closed 25 cases during the reporting period through prosecution, plea agreements or other methods. Restitution to victims remains a priority, according to the testimony.
The unit’s work also includes Medicaid fraud and elder exploitation cases. Rhea’s testimony said one recent Medicaid fraud investigation, conducted in collaboration with the Medicaid Fraud Control Unit and other local and federal law enforcement agencies, resulted in charges against 11 defendants. Another investigation led to a case involving a caretaker accused of fraudulently obtaining more than $130,000 from an 82-year-old resident suffering from dementia. Other elder exploitation convictions have resulted in more than $325,000 in restitution, according to the testimony.
The Medicaid Fraud Control Unit itself has initiated 14 arrests involving Medicaid fraud and one arrest involving neglect and financial exploitation of a vulnerable person, according to Rhea’s testimony. The unit currently has nine active investigations involving allegations of Medicaid fraud, false claims, unlicensed practice, abuse, neglect, financial exploitation and other violations affecting the Virgin Islands Medicaid program.
Current Medicaid fraud investigations involve potential losses and recoveries exceeding $2.5 million, the testimony states.
But Rhea told lawmakers that the growing complexity of financial crimes requires more dedicated staffing, including investigators, financial specialists and attorneys who can focus specifically on white-collar and public corruption work.
“Right now, we just don’t have the money to do it,” Rhea said.
Gittens urged the department to make public corruption a clear priority, saying residents need confidence that complaints involving government officials or contractors will be investigated locally and not only when federal authorities intervene.
“I just need you and the Department of Justice to make public corruption in the territory a priority,” Gittens said. “That commitment needs to be made.”
Rhea said expanding the unit is one of his goals during the remaining months of the administration.
“I’m looking forward to expanding that division,” he said. “That’s one of the things I really want to do.”
