St. Croix Business Owners Accused of Misusing $500,000 in PPP Funds

ST. CROIX — United States Attorney Delia L. Smith has announced charges against Kimberly McCollum and Morris Anselmi, owners of Island Services Group, for the alleged theft of $500,000 in federal Coronavirus Relief Funds. McCollum, who made her initial court appearance before U.S. Magistrate Judge Emile Henderson, III, has been released on a $500,000 bond.

The charges stem from activities related to the Paycheck Protection Program (PPP), part of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act passed by Congress in March 2020. The CARES Act aimed to provide emergency financial support to Americans impacted by the economic downturn due to the Covid-19 pandemic. Specifically, the PPP offered forgivable loans to small businesses for job retention and other critical expenses.

According to the United States Attorney's office, in 2020 and 2021, McCollum and Anselmi allegedly orchestrated a scheme to defraud the United States by securing a $989,400 PPP loan under false pretenses. The funds were intended for business expenses related to their St. Croix enterprise. However, it is alleged that McCollum redirected $500,000 of these funds to her personal account, using them to settle debts of another business she owned and to purchase a $200,000 annuity.