Former Virgin Islands Housing Finance Authority (VIHFA) Chief Operating Officer Darin Richardson has been sentenced to 36 months in prison after being convicted on multiple federal charges, including bank fraud, money laundering, and making false statements to investigators.

United States Attorney Adam F Sleeper announced the sentence, which was handed down by United States District Judge Mark Kearney following Richardson’s convictions on charges of criminal conflict of interest, bank fraud, false statements to a federal agent, false statements on a loan application, and money laundering.

According to evidence presented at trial, Richardson used his position as a senior executive at VIHFA to engage in fraudulent and self-dealing transactions for personal financial gain.

While serving as Chief Operating Officer, Richardson participated in awarding a multi-million-dollar contract to a company whose owner later provided him with $107,000 under the guise of a business investment. 

Prosecutors said he failed to disclose the financial relationship in a timely or truthful manner and continued to take official actions affecting the company, including approving payments under the contract.

Authorities further said Richardson used those funds, along with 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 money for its intended purpose, he allegedly diverted it toward his personal real estate investment.

The court also heard that Richardson made materially false statements to federal investigators in an effort to conceal his financial dealings. 

He is also accused of defrauding a financial institution by submitting fraudulent documents in support of a construction loan application, including an estimate falsely represented as being prepared by a licensed contractor. 

After obtaining the loan, he further misrepresented how the funds would be used.