The United States has taken the first steps toward seizing more than $158,000 from accounts in the names of Davidson and Sasha Charlemagne, alleging that the funds represent the proceeds of their alleged fraudulent activity in connection with a contract with the Virgin Islands Housing Finance Authority for the storage and maintenance of lumber purchased for the territory as hurricane relief supplies.

The complaints filed Monday before the District Court indicate that the money resides in three Banco Popular accounts; $62,989.05 in an account associated with the name d/b/a Poker Run, $71,470.21 in an account associated with the name d/b/a D&S Trucking and $24,287.38 in a third account under their personal names only.

The money, according to the three complaints, is a fraction of the approximately $3.1 million that “flowed directly into bank accounts controlled by Davidson Charlemagne and Sasha Charlemagne” of the Virgin Islands Housing Finance Authority. This, prosecutors say, indicates “concerted efforts” made by the Charlemagne to spend the money they were paid under the terms of the wood pile contract. As described in the initial criminal complaint, the money was allegedly used to pay credit card bills, purchase equipment, fireworks, and make cash transfers to themselves.

The money was transferred to the Poker Run account from the defendant’s personal bank accounts, and these transfers “often coincided with transfers from D&S Trucking to Davidson Charlemagne, which were then transferred to the Poker Run account.” The account also reportedly received money directly from ISG, the company that allegedly submitted the fraudulent offer (prepared by Mr. Charlemagne) to HIVFA for the management of the wood pile. “There is no evidence that the Charlemagnes’ business, Poker Run, was part of the lumber contract between ISG and D&S Trucking,” the complaint states. Similarly, the other accounts received and transferred funds related to the fraudulent contract.

Prosecutors allege that the shifting of money between these accounts was a key part of Charlemagne’s conspiracy to conceal the origin of the funds. The bank accounts were also allegedly used primarily for the flow of illicit funds more than anything else; Payments under the timber contract represented “more than 90% of the funds in D&S Trucking’s bank account,” according to a court document. Meanwhile, payroll deposits into the couple’s personal account, “apparently from Davidson Charlemagne’s employment at the VI Department of Education,” accounted for just 18% of funds deposited between January 2019 and Nov. 22.

The FBI investigator tasked with unraveling the financial flows of the alleged scheme says the three accounts from which the government seeks to recover funds are not the only places where the Charlemagne hid money. They allegedly “also used other accounts and financial instruments not yet discovered by the government to conceal the source and disposition of the fraudulent proceeds from the timber contract.”

If investigators discover these additional accounts and instruments, they are expected to take steps to seize these monies and assets as well.