DISTRICT COURT OF THE VIRGIN ISLANDS 
DIVISION OF ST. THOMAS AND ST. JOHN 
UNITED STATES OF AMERICA (RURAL 
DEVELOPMENT f/k/a FARMERS HOME 
ADMINISTRATION), 
Plaintiff, 
v. 
DIANA DAVID, CFSC CONSORTIUM LLC, and 
VIRGIN ISLANDS BUREAU OF INTERNAL 
REVENUE 
Defendants. 
 
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Civil No. 2011–116 
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ATTORNEYS: 
 
Ronald Sharpe, United States Attorney 
Jason T. Cohen, AUSA 
Timothy J. Abraham, AUSA 
United States Attorney’s Office 
St. Thomas, VI 
 
For the plaintiff, 
 
Diana David 
 
Pro se defendant, 
 
CFSC Consortium LLC 
 
Unrepresented entity. 
 
 
JUDGMENT 
 
 
GÓMEZ, J. 
 
Before the Court is the motion of the plaintiff, the United 
States of America (Rural Development f/k/a Farmers Home 
Administration)(“the Government”), for default judgment against 
Diana David (“David”) and CFSC Consortium LLC (“CFSC”). 
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United States v. David et al. 
11-cv-116 
Judgment 
Page 2 
Upon consideration of the record, the Court finds the 
following facts:  
1. On May 30, 1990, Diana David borrowed $93,000 from the 
Government.  
2. The loan was evidenced by a promissory note (the “Note”), 
which David executed and delivered to the Government on May 
30, 1990. Pursuant to the Note, David agreed to repay the 
Government in installments of $719 per month.  Interest 
accrued on the loan at the rate of 8.75% each year. 
3. The Note permitted the Government to accelerate payment due 
in the event David failed to make timely payments.   
4. The Note was secured by a first priority mortgage of the 
same date. 
5. David was the record owner of property described as: 
 
Parcel No. 98 Estate Bordeaux 
No. 6 West End Quarter 
St. Thomas, Virgin Islands 
as described in P.W.D. C-9-1918-T71 
 
(the “Property”).  
6. David executed a mortgage which secures the payment of the 
Note (the “FHA Mortgage”). The FHA Mortgage is attached to 
the Property. The FHA Mortgage terms give the Government 
the right to foreclose on the Property in the event of 
default on the loan.  
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United States v. David et al. 
11-cv-116 
Judgment 
Page 3 
7. The FHA Mortgage was recorded at the Office of the Recorder 
of Deeds for St. Thomas and St. John on May 31, 1990, in 
official record book 35-Z, page 368, Sub No. 3069, and 
entered in the real property register for Auxiliary No. 29, 
page 45. 
8. David entered a subsidy repayment agreement (the “SRA”) 
which permitted the Government to recapture interest 
credits granted to David in the event of foreclosure on the 
FHA Mortgage.   
9. On October 27, 1992, David executed a second mortgage on 
the Property (the “SBA Mortgage”).  The SBA Mortgage 
secured a loan of $60,000 made from the United States Small 
Business Association (the “SBA”) to David.  The SBA 
Mortgage was recorded on October 30, 1992, in book 40-E, 
page 32, Doc. No. 5758. 
10. 
On March 28, 2000, David defaulted under the terms of the 
Note and FHA Mortgage by failing to pay her monthly 
installments on the principal and interest.  David remains 
in default under the terms of the Note and the FHA 
Mortgage. 
11. 
On September 30, 2000, the SBA sold and assigned the SBA 
Mortgage to CFSC.   
12. 
The Government gave notice of default to David by 
correspondence dated August 12, 2000.  The notice was sent 
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United States v. David et al. 
11-cv-116 
Judgment 
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to the last address given by David to the Government and to 
the address of the Property. The notice of default advised 
that failure to cure the default would result in 
acceleration and foreclosure. 
13. 
The Government declared the entire unpaid principal under 
the Note with accrued interest due and payable. 
14. 
The Government filed its action for debt and foreclosure 
against David on October 26, 2011. CFSC and the Virgin 
Islands Bureau of Internal Revenue were included as 
defendant junior lien-holders. 
15. 
On August 29, 2012, the Government filed a stipulation of 
dismissal of the Virgin Islands Bureau of Internal Revenue. 
16. 
David and CFSC did not answer or otherwise appear. 
17. David is not an incompetent, a minor, or in the military 
service of the United States. 
18. 
The Clerk of Court entered default against David on April 
5, 2013.  The Clerk of Court entered default against CFSC 
on June 25, 2013. 
19. 
The Government filed the instant motion for default 
judgment on November 1, 2013.   
20. 
As of July 1, 2013, the total amount due to the Government 
under the Note was $234,314.34.  Interest accrued at the 
rate of $9.16 per day. 
The premises considered, it is hereby 
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United States v. David et al. 
11-cv-116 
Judgment 
Page 5 
ORDERED that the Government’s motion for default judgment 
is GRANTED; and it is further  
ORDERED that David is liable to the Government for the Note 
in the amount of $234,314.34. Interest continues to accrue on 
this amount at the rate of $9.16 per diem until the date of this 
Judgment, and thereafter at the statutory rate; it is further 
ORDERED that the FHA Mortgage is a first priority lien; it 
is further 
ORDERED that the SBA Mortgage is a second priority lien; it 
is further 
ORDERED that the FHA Mortgage, and any liens subsequent to 
it, are hereby foreclosed; it is further 
 
ORDERED that the aforesaid lien shall be foreclosed and the 
Property shall be sold by the United States Marshal according to 
law and the proceeds of such sale shall be applied first to the 
expenses associated with any sale, including but not limited to 
the costs of publication and the commission assessed by the 
United States Marshal’s Service pursuant to Title 28, Section 
1921 of the United States Code, and then toward satisfaction of 
this Judgment in favor of the Government, including any costs 
and attorney’s fees that may be awarded upon application and any 
sums that may be paid by the Government for insurance premiums, 
taxes, and expenditures necessary to maintain the Property 
pending sale with interest from the date of any such payment. 
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United States v. David et al. 
11-cv-116 
Judgment 
Page 6 
Pursuant to Title 5, Section 489(5) of the Virgin Islands Code, 
the surplus, if any, remaining after application of the proceeds 
as provided above, shall be returned to the debtor; and it is 
further 
ORDERED that: 
1. 
Pursuant to Title 5, Section 484 of the Virgin Islands 
Code, notice of the Marshal’s sale shall be posted for four 
(4) weeks prior to the sale in a public place in or near 
the Office of the Clerk of the Court; and published once a 
week for at least four (4) consecutive weeks prior to the 
sale in a newspaper regularly issued and of general 
circulation in the U.S. Virgin Islands, which uses 
newsprint. The notice shall describe the Property as set 
out above and shall contain the terms and conditions of 
sale as set out herein. 
2. 
The terms and conditions of the sale shall be as follows: 
a. 
The Property shall be sold as a whole at a public sale 
at the Office of the U.S. Marshal, Federal Building, 
St. Thomas, U.S. Virgin Islands. 
b. 
The Government may bid a credit against its Judgment 
and interest thereon, plus any costs and expenses, 
without tender of cash. 
c. 
The terms of the sale as to all other persons or 
parties bidding shall be cash. 
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United States v. David et al. 
11-cv-116 
Judgment 
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d. 
The successful bidder on the Property shall be 
required to deposit with the United States Marshal 
cash equal to ten percent of his total bid at or 
before 5:00 p.m. on the date of the sale of the 
Property; and the remaining ninety percent of the said 
purchase price to be paid on or before 5:00 p.m. 
within thirty days inclusive, of the date of sale of 
the Property. 
e. 
The United States Marshal shall make his report of the 
sale of the Property within ten days from the date of 
the sale. 
3. 
The Government shall have any and all writs necessary to 
execute the terms of this Judgment. 
4. 
David shall be liable to the Government for any deficiency 
remaining after the sale of the Property. 
 
 
S\ 
 
 
 
 
CURTIS V. GÓMEZ 
District Judge 
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