Celeste Bermudez Indicted in $293K Federal Grant Heist

St. Thomas, USVI — A former St. Croix resident has been indicted on federal charges for allegedly looting more than $293,000 from taxpayer-funded AIDS programs meant to help the vulnerable. Celeste P. Bermudez, 41, of Methuen, Massachusetts, was hit with a six-count indictment on January 12, 2017, charging her with theft of federal program funds, money laundering, and filing a false 2011 income tax return, the U.S. Attorney’s Office announced.

Bermudez, once the finance director of the Virgin Islands Community AIDS Resource & Education, Inc. (VICARE), allegedly funneled $293,710 in federal grant money into her own pockets between January 2012 and December 2013. The nonprofit, tasked with delivering HIV-AIDS education and support services, received about $1.3 million from the U.S. Department of Housing and Urban Development (HUD) in 2011, followed by $627,365 from the Centers for Disease Control and Prevention (CDC) under the Department of Health and Human Services (HHS) between 2011 and 2014.

The indictment details how Bermudez allegedly used stolen funds in monetary transactions at financial institutions — a direct violation of federal anti-money laundering laws. Prosecutors also charge that she filed a false federal income tax return for 2011, attempting to conceal the illicit income. The grand jury’s charges expose a calculated betrayal of public trust by a woman responsible for managing life-saving health funds.

If convicted, Bermudez faces up to ten years in prison and a $250,000 fine for each count of federal program fraud and money laundering. The tax charge carries a maximum sentence of three years in prison or a $5,000 fine. She made her initial appearance on January 15, 2017, and was arraigned before U.S. Magistrate Judge Ruth Miller, who set bail conditions allowing her release pending trial.

The case was jointly investigated by the HUD Office of Inspector General, the HHS Office of Inspector General, and the IRS Criminal Investigation division. It’s now being prosecuted by Assistant U.S. Attorneys Kim L. Chisholm and Meredith Edwards, who are building a case likely to spotlight weaknesses in federal grant oversight in U.S. territories.

U.S. Attorney Ronald W. Sharpe emphasized that the indictment is merely a formal accusation and not proof of guilt. “Every defendant is presumed innocent until and unless proven guilty,” Sharpe stated. But for those relying on VICARE’s services, the alleged theft represents more than just stolen dollars — it’s a theft of care, dignity, and survival.