Dowe to Contest Federal Charges as Case Remains in Puerto Rico for Now

Attorney Joseph DiRuzzo has signaled that Carlton Dowe intends to fight the federal allegations filed against him, a position that for now keeps the case in the District of Puerto Rico rather than opening the door to a transfer under Rule 20 of the Federal Rules of Criminal Procedure.

In a one-page notice filed in the District Court of the Virgin Islands, Mr. DiRuzzo stated that Mr. Dowe “will be contesting the allegations” against him, offering an early indication of the defense’s posture just days after the charges were announced.

Mr. Dowe was charged last week with several counts of fraudulent activity tied to the refinancing of the mortgage on his home. According to the indictment, he submitted loan applications containing materially false information in order to refinance existing mortgage loans. Prosecutors allege that he falsely stated his income, submitted fraudulent lease agreements, submitted lease agreements with purported tenants containing materially false information, and caused the submission of a forged signature of a purported tenant and real person on a fraudulent lease agreement used to support a loan application.

On Friday, U.S. Magistrate Alan Teague ordered a hearing for Monday afternoon to determine whether Rule 20 might apply in the matter. The rule allows a federal criminal case to be transferred from the district where it is pending to the district where a defendant is present, but only if the defendant intends to plead guilty or no contest.