V.I. officials denounce blog alleging they accepted bribes

Rumor and innuendo swirled across the territory on Thursday, as word spread rapidly about a story published in a Washington-based online media outlet that contained allegations about bribe-taking by V.I. government officials.

The story appeared in the Daily Caller, an online news source founded by Tucker Carlson, a television commentator known for his conservative views and a contributor to Fox News, and Neil Patel, former chief policy adviser to former Vice President Richard Cheney.

The Daily Caller story, citing an unnamed U.S. Department of Justice source, contains allegations of bribe-taking by two federal prosecutors who are not named, as well as Gov. John deJongh Jr., V.I. Attorney General Vincent Frazer and an "unspecified number of Virgin Islands legislators."

Government House has vehemently denied those allegations.

The Daily Caller's unnamed source says a federal investigation was started to look into allegations of financial irregularities by the National Rural Utilities Cooperative Finance Corporation, or CFC. According to the unnamed source, the investigation also was looking into accusations that V.I. government officials accepted bribes to "quash local concerns" about alleged CFC irregularities as CFC moved to take over Innovative Communications Corp. after ICC was forced into involuntary bankruptcy.

The unnamed source also contends that no arrests have yet been made because of reluctance by U.S. Attorney General Eric Holder.

Former ICC owner Jeffrey Prosser and a number of his attorneys are also quoted extensively in the story.

The V.I. Daily News on Thursday contacted local government officials about the story.

Government House spokesman Jean Greaux Jr. took questions, but at the end of the day, released only a prepared statement in which he confirmed he had spoken to the reporter at the Daily Caller before the story was posted. In Thursday's release, Greaux, who is quoted in the story, describes The Daily Caller as "a partisan online publication."

"The reporter was told that what he was proposing to print was totally false, outrageous and, absurd on its face," Greaux said in the release.

DeJongh and Frazer are seeking a retraction, according to the release.

Frazer did not respond to calls from The Daily News on Thursday.

U.S. Attorney for the Virgin Islands Ronald Sharpe told The Daily News that he had no comment on the allegations in the story.

In response to a Daily News inquiry about the allegations, Laura Sweeney, a spokeswoman for the U.S. Department of Justice, sent a written statement saying: "We are not aware of any facts supporting any allegation of bribery, one of the many inaccurate and unsupported claims in this story."

In a written response to Daily News inquiries, Brad Captain, vice-president of corporate communications for CFC, said that the allegations about CFC and the Rural Telephone Finance Cooperative in the story are false. CFC founded and manages the Rural Telephone Finance Cooperative, which issues loans to telecom companies.

"The story is based on a collection of old and recycled accusations made by representatives of a former borrower that is in bankruptcy after failing to make loan payments. The courts have repeatedly dismissed all cases related to alleged financial improprieties and other accusations of inappropriate activities by CFC," Captain wrote.

Senate President Ronald Russell said he took The Daily Caller story "with a grain of salt."

"I don't even know the publication, much less any of the information that was placed in it," Russell said. "To me, I don't know if it's reliable or even credible."

Russell noted, however, that he was concerned about the rumors that flew quickly around the territory in response to the story.

"What I was concerned about was about how quick it spread. It seems like people are always willing to believe the worst about public officials, without any credible source," Russell said.

Sen. Louis Hill, who was president of the 28th Legislature, said he had read the story, but does not know anything about the allegations in it. He said that in his opinion, the story appeared to be politically motivated.

"It's a story from a right-wing newspaper, and it appears that the story is to embarrass President Obama and his attorney general, that's what it looks like to me," Hill said. "That was my take on it."

Hill said he was aware that the story had become a topic of conversation in the territory.

"I think everybody in the community is very upset about a lot of things, and there is a lot of stress in the community right now," Hill said. "It's probably very easy for people under stress and who are dissatisfied with the government to look at articles like that and give them validity. I personally don't think there is any real validity to the article."

Senate Majority Leader Celestino White Sr. said that he knows of no investigation, and said that he had not seen the story.

"The Internet and blogs have now become a source that individuals often have to be defending themselves against," he said.

White said that in his lengthy time in the Legislature, and working for the V.I. Police Department before that, he has "seen and heard it all."

"I don't chase mirage. It seems as though mirage is being chased," White said.

V.I. Delegate to Congress Donna Christensen said that she had not heard anything in Washington about the allegations, although she was aware of the talk in the territory.

"I really am not going to comment on the article," she said. "I don't know the paper. I don't know the reliability of the article."

Former U.S. Attorney for the Virgin Islands David Nissman, who left the post in August 2004, said that in his 17 years with the U.S. Department of Justice, he did not recall ever seeing a case where a federal prosecutor was accused of taking a bribe.

"I have been aware when prosecutors had overstepped their bounds, but don't recall ever seeing a case where a federal prosecutor received a bribe," Nissman said. "When I read that in the story, it surprised me. I do not know whether it is true or not."

Nissman also spoke well of Sharpe.

"I believe him to be a person of high integrity, and I can't imagine that he is heavily influenced by any local politician or any national politician," Nissman said. "That's just not how things work in the U.S. Attorneys Office in the Virgin Islands."

- Contact Joy Blackburn at 714-9145 or email jblackburn@dailynews.vi.

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