Ex-OMB director still working to retain legal counsel in fraud case

A seizure warrant affidavit recently unsealed in federal court has shed additional light on the timeline of events that led up to the Jan. 10 indictments of former V.I. Police Commissioner Ray Martinez and former Office of Management and Budget Director Jenifer O’Neal.

Martinez and O’Neal are co-defendants, and each have pleaded not guilty to all charges, including honest services wire fraud, bribery from programs receiving federal funds, and money laundering conspiracy. Both were released after signing unsecured $10,000 appearance bonds.

On Wednesday, Assistant U.S. Attorney Michael Conley asked the court to schedule an expedited status conference, after learning that O’Neal has not retained legal counsel and is technically representing herself at the moment, according to a motion filed in U.S. District Court.

Attorney Treston Moore represented O’Neal at her arraignment, but the government “has just been informed that Defendant O’Neal is now pro se, though she remains in the process of potentially hiring a new attorney,” according to Conley’s motion.

That “complicates” the prosecution’s efforts to comply with U.S. Magistrate Judge G. Alan Teague’s Jan. 10 order, which set Friday as the deadline for the parties to discuss the timetable and procedure for discovery.

Conley asked the court to schedule a remote status conference today or tomorrow.

“Attorney Moore, who represented Defendant O’Neal on a limited basis at her arraignment and who has not yet been formally retained, has no objection to this motion and is available on either day,” Conley wrote.

Attorney Michael Sheesley represented Martinez at his arraignment, and “As of the time of filing, Attorney Sheesley was not able to be reached,” according to the motion.

Sheesley also represented Martinez’s restaurant, Don Felito’s Cookshop, in a case where FBI agents executed a warrant on Dec. 16, seizing a $10,000 kitchen hood from the property that the U.S. Attorney’s Office believes was purchased with stolen funds.

Teague reviewed an FBI affidavit and signed the warrant on Dec. 5 after finding there was probable cause for the seizure.

The affidavit was unsealed Sunday, after Teague ordered Sheesley to refile a motion for return of the property in the criminal matter against Martinez.

The affidavit recounts how former cybersecurity contractor David Whitaker “obtained no-bid, exigent contract work” through Martinez, to assist the V.I. Police Department “with investigating surveillance devices that were, allegedly, illegally placed in Virgin Islands Government Offices.”

According to the FBI affidavit, “Whitaker is currently cooperating with federal authorities and recently pleaded guilty to a three-count Information,” charging him with two counts of wire fraud and one count of federal program bribery.

“As part of his plea agreement, Whitaker admitted to planting 12 out of 13 surveillance devices that his company, Mon Ethos, claimed to find in Virgin Islands government offices. After completing the exigent initial contract with the VIPD, Mon Ethos was awarded a separate $1,489,683 million contract to perform investigative support through data discovery and forensic analysis services for the VIPD. This contract was to be paid through the use of American Rescue Plan Act,” according to the affidavit.

“Evidence identified thus far in this investigation has established probable cause to believe that Martinez used his position as VIPD Commissioner to conspire with OMB Director O’Neal and Whitaker to fraudulently obtain funds from inflated Mon Ethos invoices from at least December 2023 through January 2024,” according to the affidavit.

Whitaker has owned several different companies, including Mon Ethos Pro Support, and Office of Data Discovery Forensic Analysis, which was registered at the same mailing address in the Virgin Islands, as well as a separate company called Office of Data Discovery Forensic Analysis registered on the mainland.

Between 2022 and October 2023, Whitaker billed the government for work performed by ODDFA without a contract in place, which was paid to Mon Ethos, according to records reviewed by The Daily News.

“Throughout the entire investigation into the placement of surveillance devices in Virgin Islands’ government offices, Whitaker submitted invoices totaling $130,195,” according to the affidavit.

Mon Ethos subsequently obtained a $1.49 million no-bid government contract in October 2023, which Gov. Albert Bryan Jr. approved.

O’Neal signed off on the use of $1.5 million in American Rescue Plan Act funds to pay for the contract.

Whitaker consented to FBI monitoring of his telephone on Oct. 6, 2023, which resulted in recordings of “conversations where Martinez and Whitaker discussed providing money from inflated Mon Ethos invoices to pay for equipment for Martinez’ restaurant Don Felito’s Cookshop,” according to the affidavit.

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