The recent Federal Bureau of Investigation (FBI) raid on Don Felito’s Cookshop on St. Thomas, owned by former Police Commissioner Ray Martinez, has taken another turn as federal prosecutors filed opposition Tuesday to the restaurant’s request for the return of seized property. The December 31 filing by U.S. Attorney Delia Smith argues against returning a state-of-the-art commercial kitchen hood system, alleging it was acquired through proceeds linked to criminal activity.
Court records have revealed that federal agents executed a seizure warrant on Dec. 16 at the restaurant’s leased premises in Estate Thomas. The seizure included a Halifax EXHP 1048 commercial kitchen hood system and related components, classified as trade fixtures under federal law. The equipment, essential for the restaurant’s operations, is at the heart of a legal dispute between the government and Martinez’s business entity, Don Felito’s Cookshop, LLC.
The government’s most recent filing cites the relation-back doctrine, which establishes that property tied to criminal activity becomes the federal government’s asset at the time the illicit proceeds are used. Prosecutors argue that the hood system, a critical piece of kitchen infrastructure, was purchased with funds linked to financial misconduct.
“The government’s interest in the hood system vested the moment the purchase was finalized,” Smith wrote. Federal law provides for the forfeiture of property when there is probable cause to believe it was obtained using proceeds from criminal activity. Smith’s filing emphasized that the hood system, as a trade fixture, falls within this legal framework.
Meanwhile, a motion filed Dec. 17 by Martinez’s attorney Michael Sheesley contends that in the early morning of Dec. 16, FBI agents “armed with M4 automatic rifles and body armor” executed a search warrant and seized the kitchen hood system, including side curtains, “in order to make a spectacle out of the seizure.” An affidavit filed in support of the seizure remains sealed.
In doing so, the FBI agents damaged the property, leaving a leaking hole in the roof, “which is further evidence that the Hood System was part of the property,” and under U.S. Code concerning civil forfeiture of property may be seized only after a court order of forfeiture, according to the motion pushing for a return of the equipment.
In her Dec. 31 motion, however, Smith countered by pointing out that the equipment’s removal was lawful and that there is no evidence to suggest the restaurant is unable to replace it with funds untainted by alleged criminal activity.
The motion filed by Sheesley argues that the seized hood system was an integral part of the restaurant’s buildout, which remains incomplete. The government’s opposition, however, notes that the equipment’s classification as a trade fixture—movable personal property installed for business purposes—does not grant it immunity from seizure. Prosecutors maintain that the hood system can be replaced and that its removal does not hinder the establishment from completing its construction through legitimate means.
Prosecutors have also signaled their intention to retain the hood system as evidence, arguing that its acquisition directly ties to the broader federal case.
Martinez, who signed the lease for Don Felito’s Cookshop in 2022, resigned as Police Commissioner earlier in 2024 after receiving a target letter from the FBI indicating that he was under federal investigation related to no-bid contracts awarded by the Virgin Islands Police Department to Mon Ethos Pro Consulting, a company whose former owner pleaded guilty to funneling public funds into private ventures.
