Former V.I. Bureau of Internal Revenue Director Louis Willis and Balbo Construction owner Gerard Castor pleaded not guilty Thursday to all charges currently pending against them, including counts of tax evasion and tax fraud.
Both were arrested on Valentine’s Day. The charges against Willis include one count each of conspiracy to evade or defeat taxes, fraud and providing false statements.
Castor, who joined Willis in V.I. Magistrate Court on Thursday for an arraignment hearing, is facing charges of tax evasion, willful failure to collect or pay over gross receipts taxes, and perjury.
Both men are looking at fines of no more than $10,000 and/or five years in prison for each tax charge, and similar fines and/or no more than three years in prison for the fraudulent statements/perjury charges.
Some of the charges date back to Willis’s time as BIR director, when he allegedly helped issue Balbo Construction tax clearance letters even though the company was delinquent on its filings and payments, according to an affidavit filed with the court.
The documents state that Balbo had not filed a corporate tax return from 1997 to 2000, owed a balance on its 1998 gross receipts tax returns, and had not filed gross receipts tax returns in 1999 and 2000, among other things.
After leaving BIR, Willis was also allegedly hired by Castor to prepare Balbo’s delinquent returns – dating back to 1998. According to the affidavit, Willis "understated" 27 returns – for a total $2.9 million, leaving the government with a more than $118,000 liability.
During an initial hearing earlier this month, Willis and Castor were allowed to post 10 percent of the $75,000 bail recommended by the government or a property bond that could satisfy the bail requirement. Both have since posted bail, and Magistrate Court Judge Henry Carr said Thursday that the rest of the terms and conditions, such as having the men surrender their travel documents, still apply while they’re out on bail.
The case has been assigned to V.I. Superior Court Judge Michael Dunston. According to Carr, Willis would have until April 4 to change their pleas.
