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The U.S. Senate Judiciary Committee has approved President Obama’s nomination of Ronald Sharpe as U.S. Attorney for the Virgin Islands by voice vote.

Sharpe, whom Obama nominated on March 10, has served as the interim U.S. Attorney for the Virgin Islands since September 2009.  He previously served in the U.S. Attorneys Office for the District of Columbia from 1995 to 2009 rising to the position of First Assistant U.S. Attorney.  The Virgin Islands has not had a confirmed U.S. Attorney since October 2008 when Anthony Jenkins resigned.Continue Reading U.S. Senate Judiciary Committee Approves Virgin Islands U.S. Attorney Nomination

A federal judge has dismissed the majority of the Virgin Islands Government Employees Retirement System’s (GERS) class-action complaint alleging J.P. Morgan and three related entities violated federal securities laws by making misleading statements in securities-offering documents concerning the quality of underlying mortgages.

Judge John G. Koeltl of the U.S. District Court for the Southern District of New York said GERS lacked standing to sue with respect to most of the securities because they had not bought them.Continue Reading Judge Kicks Out GERS Suit Against JPMorgan Chase

The Third Circuit Court of Appeals which includes the U.S. Virgin Islands, has affirmed the dismissal of class action claims against cell phone manufacturers and retailers of wireless handheld telephones alleging they are unsafe to use without headsets because holding the antennas next to the head purportedly exposes the user to dangerous levels of radio frequency (RF) radiation. Farina v. Nokia, Inc., No. 08-4034 (3d Cir., decided October 22, 2010).    

Continue Reading Third Circuit Rules Cell Phone RF Litigation Federally Preempted

The Federal Communications Commission (FCC) has proposed new rules that would require cell phone providers to provide usage alerts and related information to assist consumers in avoiding unexpected charges on their bills. The proposed rules would give consumers alerts, tools, and information to assist them in making decisions about their cell phone plans.   

The FCC stated that cell phone “bill shock” is a growing concern for consumers. According to an April-May 2010 FCC survey, 30 million Americans, one in six cell phone users, have experienced “bill shock.” The FCC is proposing rules that would require cell phone companies to provide consumers with simple alerts both before and when they incur overages. The FCC proposes that consumers be provided with basic information that would allow them to control their cell phone costs.

Continue Reading Cell Phone “Bill Shock” Rules

The Virgin Islands Bureau of Internal Revenue has implemented a 90 day gross receipts tax amnesty program.  The waiver of penalties and interest for failure to timely file territorial gross receipts taxes was granted as a result of Act No. 7233 which was signed into law by Governor John P. deJongh, Jr. on October 26, 2010.

Daniel J. Gravel, Chair of BoltNagi’s Corporate, Tax and Estate Planning Practice Group said that "taxpayers who file and pay their delinquent gross receipts taxes before the January 25, 2011 deadline will be exempt from the payment of penalties and interest for the late filing."  Gravel further noted, "Unlike previous amnesty programs that were enacted, all delinquent gross receipts taxes are eligible for the current amnesty program.  It is an outstanding value to Virgin Islands taxpayers."Continue Reading Gross Receipts Tax Amnesty In Effect

Virgin Islands landlords receving $600 or more annually in rent from real estate will be required to file Form VI-1099 with the Virgin Islands Bureau of Internal Revenue (BIR) and with their tenants.  They will also have to send Form VI-1099’s to the BIR for all service providers such as plumbers, electricians, handymen, accountants, etc. for rental property services provided to the landlord for payments of $600 or more.  To ensure compliance, the BIR may levy penalties of $50 for each failed to file Form VI-1099 or with the tenant or service provider.  These penalties are capped at $100,000 or $250,000 depending on the delinquency.

Designed to close the tax gap, this new legislation was passed to ensure that income paid to contractors gets reported accurately and deductions for work and improvements or rental properties can be verified by the VI-1099 form. While this new reporting requirement will not impact rental properties held out as a trade or business (owning multiple properties and a full-time business) since they are already covered, it will affect smaller, “mom and pop” landlords, who typically are not armed with accountants to track contractors, verify deductions and report taxes. This will also create a new burden for small real estate operations.

Continue Reading VI Landlords Face New Tax Responsibilites

On September 29, the U.S. Congress voted to extend higher loan limits for government-backed mortgages in the U.S. Virgin Islands and other high cost areas, a move that should help keep borrowing costs low and support the housing sector.

At the height of the financial crisis in 2008, the government raised the ceiling on the size of loans Fannie Mae and Freddie Mac could buy. At the time, the private market for so-called jumbo loans had all but dried up.

The legislation approved by the House of Representatives and Senate, which President Barack Obama is expected to sign into law, would keep in place until September 30,  2011 the higher $729,750 ceiling for single-family home mortgages in high cost areas such as the U.S. Virgin Islands.Continue Reading Congress Extends Higher Loan Limits for VI Fed Backed Mortgages

Tom Bolt, Managing Attorney of BoltNagi PC on St. Thomas; Yvonne Tharpes, Counsel to the 28th Legislature, of St. John, and Lisa Harris Moorhead, Virgin Islands Code Revisor, of St. Croix, were among the 260 practicing lawyers, governmental lawyers, judges, law professors, and lawyer-legislators participating in the 2010 Annual Meeting of the National Conference of Commissioners on Uniform State Laws (NCCUSL), which recently concluded in Chicago Illinois.

Continue Reading Virgin Islands Uniform Law Commissioners Participate in National Conference

Boards of directors of owners associations in the U.S. Virgin Islands and elsewhere play a critical role in managing timeshare resorts. This is especially true in mature resorts that are past the development stage and are being run by their owners. Boards frequently contract with management companies to handle the day to day operations of the resorts and may rely on their expertise — so long as all is going well.  But even with the best of management companies, board members bear a fiduciary obligation to the ownership and  must monitor and review the performance of the manager, resolve policy issues, and engage in the long range planning that is essential for a resort to remain healthy.

A primary challenge for any interval ownership regime is attracting qualified people to serve on boards of directors of owners’ associations. Because interval owners usually own only a week at a resort and don’t reside where the resort is located, their interest in participating in the management of the resort may not be a high priority. In fact, many owners just want to visit and have fun. To participate in board functions takes time and effort that few are willing to expend. That being said, there seems to be, in most cases, people who are willing to step forward, either because they like to be involved or have a sense of duty or, in the case of a troubled resort, to protect their interests.Continue Reading Timeshare Board Membership: A Key to a Successful Resort

 The Uniform Debt-Management Services Act (UDMSA) was signed into law  by Governor John P. deJongh Jr. of the Virgin Islands last Wednesday.  The act sponsored by St. Croix senators Terrence Nelson, Neville James and Samuel Sanes was drafted and approved by the Uniform Law Commission (ULC).   The UDMSA, approved by the ULC in 2005 and amended in 2008, was the result of a multi-year study into debt relief options for consumers. It is the first national effort at providing uniform rules to govern both consumer credit counseling services and debt settlement services.

 “In today’s economic climate, we are finding more and more consumers turning to debt management companies, which have tripled in number over the past few years,” said Tom Bolt, Chair of the Virgin Islands Uniform Law Commission.   “There have been frequent instances or accusations of abuse by consumers who utilize these services.  This legislation regulates the industry in uniformity with other jurisdcitions, while protecting our Virgin Islands consumers.”Continue Reading Governor Signs Bill Protecting VI Consumers Utilizing Debt Management Services