2 p.m.
A federal grand jury charged former V.I. Port Authority Director Carlton Dowe with four counts of bank fraud, four counts of making a false statement on a loan application and aggravated identity theft. See indictment here.
11:30 a.m.
V.I. Port Authority Executive Director Carlton Dowe reportedly turned himself in and was released from custody Friday after appearing in federal court on St. Thomas, where he also surrendered his passport. The charges against Dowe have not yet been made public, but U.S. District Court Judge Alan Teague granted prosecutors’ motion to unseal the case Friday morning. Dowe is being charged in the District of Puerto Rico, according to a court filing.
VIPA Board Chair Willard John told the Source Friday that Dowe recently informed the board via email and in writing of his intent to retire effective April 10. John said the board was unaware of any legal proceedings at the time of Dowe’s notice and was “finding out this morning like everyone else.” He added that the board will be conferring with the Port Authority’s legal counsel to determine whether Dowe remains eligible to receive pay in light of the arrest.
Court files were not accessible as of 1 p.m. Friday.
The case marks the second time Dowe has faced federal charges. On Aug. 13, 2004, then-Sen. Carlton Dowe was indicted on two counts of federal wire fraud, accused of orchestrating a scheme between 2000 and 2002 to obtain a duplicate government payment tied to a prior back pay judgment, totaling more than $75,000. Prosecutors alleged he directed a Fire Service employee to alter payroll records to disguise the payment, while also attempting to influence statements during the subsequent investigation.
Less than a week later, on Aug. 19, 2004, Dowe was released following his initial court appearance and ordered to stand trial beginning Oct. 12, 2004, as the case moved forward in federal court. The charges centered on what authorities described as a double payment of government funds, setting the stage for a closely watched trial involving testimony from government employees and financial records.
At trial in late September and early October 2005, prosecutors called witnesses, including a co-worker who testified about the processing of the disputed payment, while Dowe took the stand in his own defense, denying he instructed anyone to issue the funds. After the government rested and closing arguments concluded, a jury on Oct. 5, 2005, found Dowe not guilty of all charges, ending the case after roughly a year of proceedings.
The Source will provide more updates as they become available.
