Following his Aug. 13 arrest on bribery charges, former V.I. Sen. John Tutein was indicted Tuesday on nine federal and territorial offenses by a federal grand jury on St. Thomas.
Tutein, 41, faces charges of bribery concerning programs receiving federal funds and the territorial offenses of bribery of public officials and inducement to conflict of interest. Tutein, a vice president in St. Croix businessman Jeffrey Prosser’s Innovative Communication Corp., is charged with two counts each of the territorial offenses.
Officials in the U.S. Attorney's Office could not be reached Tuesday night for comment on why the Tutein matter had been referred to the federal grand jury after federal charges previously were filed or whether the grand jury's indictment signals a broader inquiry into the bribery issue.
According to U.S. Attorney James Hurd, the indictment alleges that from about October 1998 through Feb. 5, 1999, Tutein offered to give Sen. Allie-Allison Petrus and other individuals cash, a van and a mobile TV broadcast van worth a combined $177,000. The offer was allegedly made in connection with a series of transactions involving the V.I. government.
During Senate deliberations May 21 on the proposed ICC-V.I. government land swap, Petrus accused Tutein of offering him an envelope full of $100 bills last October in exchange for support on an upcoming issue. Tutein denied the accusations.
The so-called "Prosser deal" would have involved ICC purchasing 2,800 acres of land on St. Croix’s northwest shore for less than $30 million. Prosser would have turned over to the V.I. government 1,000 acres of improved, subdivided land, which would have been given to government workers in lieu of some $200 million they are owed in retroactive wages. He would also have given nearly $10 million for public projects to be built on all of the territory’s islands.
In return, Prosser would have received full tax breaks for 10 of his companies for 30 years, valued between $180 million and $3.5 billion.
The controversial proposal was considered by Gov. Charles Turnbull, then pulled by Prosser after intense criticism from union officials and others in the community. However, senators revived the deal and approved it 8-7. It was during their deliberations that Petrus made his accusations. Turnbull vetoed the bill.
The maximum penalty for bribery concerning programs receiving federal funds is 10 years in prison and a $250,000 fine. The territorial offense of bribing public officials carries penalties of five years and a $1,000 fine. The maximum penalty for inducement of conflict of interest is five years and a $5,000 fine.
The U.S. Attorney’s Office has jurisdiction because the V.I. government receives more than $10,000 in federal funds annually.
Tutein will be in court Sept. 1 for his arraignment on the grand jury indictment.
