Former Virgin Islands Housing Finance Authority Executive Sentenced to 36 Months in Prison for Fraud, Conflict of Interest, False Statements, and Money Laundering
Summary
Darin Richardson, former Chief Operating Officer of the Virgin Islands Housing Finance Authority (VIHFA), was sentenced on March 27, 2026 to 36 months of imprisonment by U.S. District Judge Mark A. Kearney after convictions for criminal conflict of interest, bank fraud, false statements to a federal agent and on a loan and credit application, and money laundering, U.S. Attorney Adam F. Sleeper of the District of Virgin Islands announced. According to trial evidence, Richardson took part in awarding a multi-million-dollar contract to a company whose owner later provided Richardson $107,000 under the guise of a business investment. The evidence showed Richardson used those funds and a fraudulently secured construction loan to buy property in the Fortuna area of St. Thomas at a U.S. Marshals Service auction. HUD-OIG, the SBA and the FBI investigated.
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Press Release Former Virgin Islands Housing Finance Authority Executive Sentenced to 36 Months in Prison for Fraud, Conflict of Interest, False Statements, and Money Laundering Friday, March 27, 2026 For Immediate Release U.S. Attorney's Office, District of Virgin Islands St. Thomas, VI –United States Attorney Adam F. Sleeper announced today that former Virgin Islands Housing Finance Authority (“VIHFA”) Chief Operating Officer Darin Richardson was sentenced today to 36 months of imprisonment by United States District Judge Mark A. Kearney following his convictions for criminal conflict of interest, bank fraud, making false statements to a federal agent, making false statements on a loan and credit application, and money laundering. According to evidence presented at trial, Richardson used his position as a senior executive at VIHFA to engage in a series of fraudulent and self-dealing transactions for his personal financial gain. While serving as Chief Operating Officer, Richardson participated in the award of a multi-million-dollar contract to a company whose owner later provided him with $107,000 under the guise of a business investment. Richardson failed to disclose this financial relationship in a timely or truthful manner and continued to take official actions affecting that company, including approving payments under the contract. The evidence further established that Richardson used those funds—along with additional money obtained through a fraudulently secured construction loan—to purchase a property in the Fortuna area of St. Thomas through a United States Marshals Service auction. Rather than using the funds for their stated purpose, Richardson diverted the money to finance his personal real estate venture. The evidence also showed that Richardson made materially false statements to federal investigators in order to conceal the true nature of his financial dealings. In addition, he defrauded a financial institution by submitting fraudulent documents in support of a construction loan application, including an estimate that he falsely represented as having been prepared by a licensed contractor. After obtaining the loan, Richardson further misrepresented how the funds would be used. The case was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG), the U.S. Small Business Administration (SBA), and the Federal Bureau of Investigation (FBI). It was prosecuted by Assistant United States Attorney Cherrisse R. Amaro and former Assistant United States Attorney Dan Huston. Updated March 28, 2026 Topic Public Corruption Component USAO - Virgin Islands Related Content Press Release Former Commissioner Of Virgin Islands Department Of Sports, Parks, And Recreation Sentenced For Bribery Scheme Former Commissioner of the U.S. Virgin Islands Department of Sports, Parks, and Recreation (SP&R), Calvert White, was sentenced to five years in prison for soliciting and accepting a bribe from... January 23, 2026 Press Release FORMER VIPD COMMISSIONER AND FORMER OMB DIRECTOR FOUND GUILTY ON ALL COUNTS IN FEDERAL CORRUPTION TRIAL Ray Martinez, former Commissioner of the Virgin Islands Police Department (VIPD), and Jenifer O’Neal, former Director of the Virgin Islands Office of Management and Budget (OMB), were found guilty on... December 11, 2025 Press Release Former Commissioner of Virgin Islands Department of Sports, Parks, and Recreation and Co-Conspirator Convicted in Bribery Scheme St. Thomas, USVI — Acting U.S. Attorney Adam F. Sleeper announced today that former Commissioner of Virgin Islands Department of Sports, Parks, and Recreation Calvert White, 49, of St. Thomas... July 25, 2025
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