A St. Thomas woman charged with compounding a crime in the embezzlement of $1.7 million from Little Switzerland four years ago entered a plea in Territorial Court over the weekend that, for all intents and purposes, avoids a jury trial that was set to begin Tuesday.
Lydia Magras-Greaux, through her attorney, Treston Moore, pleaded "no contest" to one count of compounding the crime of embezzlement. In return, prosecutors agreed to drop other charges against her. The plea bargain came during an unusual hearing before Judge Ishmael Meyers. Court insiders said the Saturday hearing was scheduled so that potential jury members could be given early notification that they would not be needed on Tuesday.
In a nolo contendere, or no-contest, plea, the defendant does not admit to guilt but does not challenge the charges. Meyers set sentencing for mid-July. The crime carries a maximum sentence of three years in prison.
Shortly after charges were brought against the other defendant in the Little Switzerland case, Lorrain Quetel, she entered into a guilty plea-bargain arrangement with the Justice Department. Her sentencing was delayed until the resolution of the government's case against Magras-Greaux, who also goes by the name Lydia Magras. Quetel also is to be sentenced in mid-July.
The government alleged that Quetel used her position at Little Switzerland to embezzle $1.7 million from the company and that Magras-Greaux compounded the crime by allowing the embezzled funds to be deposited into accounts of Bon Voyage Travel to which she had access as an officer of the now-defunct travel agency.
Assistant Attorney General Douglas Sprotte said the government was prepared to prove a scheme that saw money embezzled from Little Switzerland's Scotia Bank account transferred to Bon Voyage accounts.
"Ultimately, Lorrain Quetel embezzled approximately $1.4 million" and deposited those funds into the accounts of Bon Voyage Travel, Sprotte said at the Saturday hearing.
Legal sources said this weekend that the last-minute filing of the no-contest plea to avoid the criminal jury trial could work to Magras-Greaux's benefit during a pending civil case over the same matter. With Quetel having already pleaded guilty to the embezzlement, the burden of proof lies with Little Switzerland, the plaintiff, to prove liability on the part of Magras-Greaux.
Attorney Adriane Dudley, representing Little Switzerland, declined to comment Sunday on Saturday's development, saying she needed to discuss the implications of the no-contest plea with officials of the company before reacting publicly.
According to court records, the embezzlement of funds from Little Switzerland began on Aug. 12, 1996, and was discovered during an audit for that year. An investigation began in late 1997, and Quetel and Magras-Greaux were charged in 1998. Various motions filed by attorneys for Magras-Greaux delayed the trial.
Judge Ive Arlington Swan is expected to preside over the civil case brought by Little Switzerland against the two women. No date has been set for that trial.
