Bank Fraud and Money Laundering Charges Added in Woodpile Scandal Case Against Darin Richardson

New allegations against Darin Richardson include misusing a $200,000 construction loan for property purchases, as the latest indictment brings all three defendants back together in court proceedings.

A second superseding indictment in what has become known as the woodpile scandal lays new charges of bank fraud, money laundering, and false statements on loan and credit applications against Darin Richardson, alleging fraudulent behavior in the construction and purchase of two separate properties on St. Thomas.

The new allegations center around a construction loan issued to Mr. Richardson, the former chief operating officer of the V.I. Housing Finance Authority, in December 2020. In August of that year, he reportedly electronically submitted a loan application to Banco Popular Puerto Rico for the sum of $200,000. According to the indictment, the loan was for the construction of “a single family-home” in Estate Bordeaux, St. Thomas. The new charging document says that “the loan agreement contained clauses that explicitly stated that the loan proceeds would be used for the completion and construction of the single-family home in Estate Bordeaux, in addition to closing costs.”