Inspection of Real Property Auctions Held by the Office of the Lieutenant Governor

The Office of the Virgin Islands Inspector General has issued the inspection report of Real Property Auctions Held by the Office of the Lieutenant Governor. We found validity to the allegations of questionable bidding practices and a lack of compliance with statutory regulations governing real property auctions conducted by the Lieutenant Governor’s Office. Specifically, we found that as a result of procedural changes made in real property auctions by officials at the Lieutenant Governor’s Office; (a) individuals were allowed to manipulate the bidding process, to fraudulently restrict other potential individuals from making legitimate bids on properties offered for auction, (b) questionable and inaccurate bid recording and recordkeeping brought into question several of the reported highest bids for several properties that were sold, (c) properties were not properly researched to ensure that they were eligible for sale, (d) payment time frames established by the Code were not properly adhered to, (e) adequate documentation of the Notice of Attachment process, as required by the Code, was not always maintained to ensure that taxpayers’ constitutional right of due process was followed, and (f) auction costs and fees were not assessed and collected once properties were sold or redeemed. To view the report, click here.