~ Banned from civil service ~
PHILIPSBURG–All three suspects in the case involving embezzlement and forgery committed at the St. Maarten Tourist Bureau (STB), STB’s New York office and East Caribbean Destination (ECD) Management Company were found guilty by the Court on Wednesday.
Main suspect Regina Labega (59), former head of the Tourist Bureau and current policy advisor to Minister of Tourism, Economic Affairs, Transport and Telecommunications (TEATT) Stuart Johnson, was sentenced to 12 months suspended, on three years’ probation, and a NAf. 300,000 fine. She was also banned from being a civil servant for a period of five years.
The Court found it proven that Labega had committed embezzlement in her capacity as a civil servant and had committed tax crimes. The Court said that Labega, as the factual owner of ECD, had misappropriated funds belonging to STB and had used these to enrich herself.
The Court held it against her that she had secretly wanted to pick up a piece of St. Maarten government money aimed at the promotion of tourism to the island via a company she had founded.
“She is hiding behind an Anguillan company set up by herself to prevent it from being known that she is actually doing business with herself. She did not receive permission for such a secondary position. Acting as an official in this way is non-transparent, not business-like, prevents proper control over the legitimate and efficient use of public money and is, therefore, harmful to society.
“The reputation and honesty of the St. Maarten administration has also been seriously damaged by the defendant,” the Judge stated in the verdict.
The same goes for the “systematic” failure to submit tax returns. That too is a form of dishonest behaviour by a civil servant, the Judge said. “Moreover, an unequal competitive relationship is created with regard to individuals and companies that do business honestly.” The Court held it against Labega that she did not recognise her improper behaviour and that she still thinks she did not do anything wrong, as she had stated during the court hearings. The Judge stated in the verdict that he had considered imposing unconditional prison sentences for all three suspects, but decided otherwise due to the fact that the crimes were committed between March 2009 and February 2013, which was considered to exceed the reasonable time limit. The suspects were arrested May 30, 2016.
During the hearing of this case, the Prosecutor’s Office had called for a NAf. 500,000 fine, 240 hours of community service and a civil-service ban for Labega.
ECD co-directors former civil servant Erica Fortuno (38) and author and cultural icon Fabian Badejo (68) were convicted of embezzlement and were both found guilty of tax crimes.
Fortuno was sentenced to three months suspended, on three years’ probation, and will have to pay a NAf. 50,000 fine.
Badejo, who received the same punishment as Fortuno, was found guilty of similar charges and of having committed forgery in filing tax returns.
Badejo and Fortuno were both also banned from the civil service for five years.
The Prosecutor had called for NAf. 80,000 fines and 120 hours of community service for these two defendants. The now-defunct company ECD, which was used in the tax crimes, will have to pay a NAf. 50,000 fine. The Prosecutor’s Office had demanded a NAf. 100,000 fine.
The suspects were also charged with money-laundering to the amount of US $140,000 and with embezzlement of almost $27,500 at the Tourist Bureau between December 3, 2008, and October 21, 2010, by using J.P. Morgan Chase Bank cheques for other purposes than the promotion of St. Maarten in the North American market.
The Court found these charges not proven and said that where the Chase payments were concerned it could not be proven that government money had been fully or partially withdrawn from “a public destination.”
Labega, Fortuno and Badejo were also acquitted of membership in a criminal organisation. Their lawyers had pleaded for their clients’ full acquittal.
It is expected that all defendants will be filing for appeal, which they can do within two weeks.
Source: The Daily Herald https://www.thedailyherald.sx/islands/83102-regina-labega-found-guilty-of-embezzlement-at-tourist-bureau
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