District of Puerto Rico
Press releases recorded for this federal judicial district.
U.S. Attorney W. Stephen Muldrow Statement on Murder of Three Police Officers in the Line of DutyRead the Press Release
United States Attorney W. Stephen Muldrow released the following statement regarding the fatal shootings of two police officers from the municipality of Carolina, Luis Salamán Conde and Eliezer Hernández Cartagena, and one Puerto Rico police officer, Luis Marrero Díaz:
“I condemn yesterday’s senseless shooting of three police officers in the strongest possible terms. This was an unspeakable act of barbarism, and I was deeply saddened to hear of the loss of these brave officers in the line of duty.
On behalf of all those who serve in the United States Attorney’s Office (USAO), I want to express my heartfelt condolences to the officers’ loved ones and their colleagues. I will make available all of the resources of the USAO and work with other federal law enforcement agencies to assist the Puerto Rico Department of Justice and the Department of Public Safety in the investigation and prosecution of these crimes.
This violent attack underscores the dangers that are routinely faced by those who protect and serve their fellow citizens. We must honor the valor and the sacrifices of all law enforcement officers with a steadfast commitment to keeping them safe. This means building closer bonds between officers and the communities they serve, so that public safety is not a cause that is served by a courageous few, but a promise that’s fulfilled by police officials and citizens working side by side.”
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Fugitive Vladimir Natera Abreu Arrested in the Dominican RepublicRead the Press Release
SAN JUAN, Puerto Rico – Today, Vladimir Natera-Abreu and Joset Rivera-Verdejo were arrested by the Dominican National Police and were later deported to Puerto Rico. The defendants were fugitives since February 2019, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
Defendant Natera-Abreu was one of the main leaders in the drug trafficking organization known as “Las FARC,” (Las FuerzasArmadas Revolucionarias de Cantera). “Las FARC” operated out of the Barrio Obrero Ward, including, but not limited to El Guano sector, Playita sector, William Street, Eleven Street, Cantera sector, and the Public Housing Projects Villa Kennedy, Las Casas, El Mirador, and Las Margaritas, all located in Santurce, since in or about 2006. The goal of “Las FARC” was to maintain control of all the drug trafficking activities within the Santurce area by the use of force, threats, violence, and intimidation.
Natera-Abreu and Rivera-Verdejo had been previously charged in a seven-count indictment for conspiracy to possess with intent to distribute narcotics, aiding and abetting in the possession and distribution of heroin, crack, cocaine, and marihuana, and possession of a firearm in furtherance of drug trafficking. The charged drug conspiracy included 75 defendants.
Assistant U.S. Attorneys Alberto López-Rocafort and Teresa S. Zapata-Valladares are in charge of the prosecution of the case. The FBI was in charge of the investigation of the case. If convicted the defendant faces a mandatory minimum sentence of 15 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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8 Individuals Charged for Drug Trafficking from Puerto Rico to New YorkRead the Press Release
SAN JUAN, Puerto Rico – On December 3, 2020, a federal grand jury in the District of Puerto Rico returned a three count indictment charging five men and three women, who are members of a drug trafficking organization, with conspiracy to possess with intent to distribute controlled substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA) in conjunction with the Airport Investigations and Tactical Team (AirTAT) were in charge of the investigation. AirTAT identifies, locates, disrupts, dismantles, and prosecutes transnational crime organizations using the airports in Puerto Rico to smuggle narcotics, weapons, human cargo, counterfeit documents, illegal proceeds, and other contraband.
“This investigation demonstrates the collaborative effort to identify, target and dismantle drug trafficking organizations involved in transporting narcotics from Puerto Rico to the U.S. mainland,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “The U.S. Attorney’s Office will continue to work with our law enforcement partners to attack this problem and deter the use of Puerto Rico as a transshipment location.”
DEA Caribbean Division Special Agent in Charge, A.J. Collazo said that “We will continue to utilize all our inter-agency resources towards the disruption and dismantlement of these drug trafficking organizations whatever modality they utilize.”
The indictment alleges that in 2018, the defendants, together with other persons known and unknown to the Grand Jury conspired to obtain, transport, and distribute narcotics, including cocaine, from Puerto Rico to New York. This drug trafficking organization is a network of recruiters, coordinators, and transporters traveling from the District of Puerto Rico to the continental United States via commercial flights with narcotics for wholesale distribution, all for significant financial gain and profit.
The defendants indicted are:
Jaime Antonio Nieto-Irizarry
Frankie Javier Piñero-Miranda
Elena García-Muñíz
Sergio Rosario-Cruz
José Luis Acevedo-Atilano
Jaime David Ruiz-Delgado
Tiffany Michelle Zayas-Román
Saraí Denisse Rivera-Díaz
Assistant U.S. Attorneys Jawayria Z. Auchter and Richard T. Passanisi from the Transnational Organized Crime Section arein charge of the prosecution of the case. If convicted, the defendants face a minimum sentence of 10 years in prison and a maximum sentence of life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until proven guilty.
This investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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U.S. Attorney W. Stephen Muldrow Statement on the Passing of Judge Juan Pérez-GiménezRead the Press Release
United States Attorney W. Stephen Muldrow released the following statement regarding the passing of The Honorable Juan M. Pérez-Giménez, United States Court, District of Puerto Rico:
On behalf of the U.S. Attorney’s Office for the District of Puerto Rico, we mourn the loss of Senior Judge Pérez-Giménez. We honor the life and legacy of The Honorable Juan Pérez-Giménez for his many years of dedicated public service. He was an advocate before the Court, an incisive questioner, a clear and careful writer, and a model of dignity and civility.
I extend our deepest condolences to his family, his colleagues on the Court, his former law clerks, and all who knew and admired him. May his memory be eternal.
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Alerta De Fraude: Estafadores Que Se Hacen Pasar Por Representantes De Compañías De CelularesRead the Press Release
SAN JUAN, P.R. - El Servicio Secreto de los Estados Unidos (Servicio Secreto) ha recibido varias denuncias sobre individuos que se hacen pasar por representantes de servicio al cliente de compañías locales de celulares. Estos individuos están llamando al público como parte de un esquema de fraude para recibir información personal y financiera, anunció el Fiscal Federal W. Stephen Muldrow. La Fiscalía Federal de los EE.UU. para el Distrito de Puerto Rico exhorta al público a permanecer alerta y no proveer información personal o códigos de acceso en estas llamadas.
Las denuncias recibidas por el Servicio Secreto indican que estos estafadores se hacen pasar por empleados de la compañía de celulares e intentan obtener la información personal del receptor de la llamada ofreciéndoles un descuento a aquellos que se registren para pago automático a través de ATH Móvil. El cliente recibe una llamada en la que le indican que el proveedor de servicios esta actualizando la red de 3G a 5G y también le ofrecen un descuento en su factura si usan ATH Móvil. Luego, les dicen a los clientes que para poder recibir el descuento tienen que confirmar la información de su cuenta.
Estando en la llamada, el estafador envía un código de autentificación desde la página de internet de la compañía al cliente. Luego, el estafador le pide al cliente que confirme verbalmente el código diciendo que necesita confirmar la identidad del cliente antes de proceder a discutir la información de la cuenta. Una vez que el cliente provee el código, el estafador obtiene acceso a la cuenta que tiene el cliente con la compañía. En este punto ya el estafador tiene control de la cuenta del cliente y fraudulentamente pide que el cliente provea su información de ATH Móvil. Luego le dicen a los clientes que deben apagar sus celulares para que se puedan completar los cambios en la cuenta. En este tiempo, los estafadores transfieren fondos a distintas cuentas de banco en Puerto Rico y fuera de la jurisdicción o hacen compras fraudulentas utilizando la información del cliente.
Exhortamos a aquellos que reciban este tipo de llamadas a no proveer información personal o códigos de acceso en estas llamadas. El público puede reportar estas estafas al Servicio Secreto llamado al 787-277-1515.
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U.S. Law Enforcement Takes Action Against Approximately 2,300 Money Mules in Global Crackdown on Money LaunderingRead the Press Release
WASHINGTON – The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies announced the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds. Europol announced a simultaneous effort, the European Money Mule Action (EMMA) today.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country. The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.
“Money mules fuel fraud against some of America’s most vulnerable populations. Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from American consumers and businesses to transnational criminal organizations.”
Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.
Some highlights from this year’s efforts are:
• Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.
• Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews. The U.S. Department of Labor Office of Inspector General in Puerto Rico served one warning letter to a senior citizen who may have knowingly acted as a money mule in an unemployment insurance fraud scheme.
• On approximately 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.
• The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.
• U. S. Attorney’s Offices and the Consumer Protection Branch filed 17 civil injunctive actions seeking court orders requiring money mules to stop facilitating fraudulent activity. Districts filing those actions include the Western District of Washington, District of South Carolina, Middle District of Florida, Southern District of Florida, Central District of California, Northern District of New York, and District of Colorado.
Additionally, more than 35 individuals were criminally charged or arrested for their roles in receiving victim payments and forwarding the fraud proceeds to accomplices or laundering fraud proceeds. Cases include:
• The U.S. Attorney’s Office for the Central District of California indicted three individuals for collecting parcels containing victim proceeds in a government imposter scheme.
• The U.S. Attorney’s Office for the District of Maryland indicted three individuals for opening bank accounts using falsified documents for the purposes of facilitating a business email compromise scam.
• The U.S. Attorney’s Office for the Western District of Texas indicted an individual for facilitating a lottery fraud scheme. The indictment also seeks to forfeit over $1.2 million.
• The U.S. Attorney’s Office for the Northern District of Ohio indicted two money mules who facilitated a grandparents scam.
• The U.S. Attorney’s Office for the Eastern District of Virginia charged a money mule who laundered gift cards purchased by fraud victims.
Additional criminal charges were brought by U.S. Attorney’s Offices in Southern District of Florida, Western District of Pennsylvania, Western District of North Carolina, Southern District of Texas, the Southern District of Mississippi, and the District of New Jersey.
The above charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“The success of the Money Mule Initiative is the culmination of the hard work by and coordination between the FBI and our federal, state, local, and international partners,” said FBI Director Christopher Wray. “This campaign has resulted in hundreds of criminal arrests worldwide and justice for countless victims. Today’s announcement should send a clear message to those engaged in this type of criminal activity: they are not outside the reach of law enforcement, and the FBI and its partners will relentlessly pursue them in order to protect the American people.”
“The Postal Inspection Service has zero tolerance for fraudsters who use the U.S. Mail to transport funds from scammed victims,” said Chief Postal Inspector Gary Barksdale. “Postal Inspectors use cutting-edge technology to build strong cases and campaigns like those announced today, which make significant progress towards disrupting money mule networks. Postal Inspectors and our law enforcement partners will be relentless in the pursuit of criminal organizations that perpetrate these schemes.”
The agencies participating in the Money Mule Initiative and community partners are undertaking an outreach campaign to increase awareness of how fraudsters use and recruit money mules. U.S. Attorney’s Offices across the country, through their Elder Justice Coordinators, will be reaching out to their communities to educate the public about money mules. AmeriCorp Seniors (formerly Senior Corps) will be working to increase awareness of how money mules facilitate fraud and how consumers can avoid unwittingly assisting fraud schemes.
Additionally, the American Bankers Association will be engaging with its members on money mules and the role of financial institutions in addressing the problem. The Department of Justice will also be distributing resources for state and local law enforcement on identifying, disrupting, investigating, and prosecuting money mules.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. In March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive efforts to combat elder fraud seek to halt the billions of dollars seniors lose each year to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
AG
20-1301
Do not reply to this message. If you have questions, please use the contacts in the message or call the Office of Public Affairs at 202-514-2007.
Nine Individuals Charged in A Superseding Indictment for Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a superseding indictment charging nine individuals for firearms trafficking without a license in the District of Puerto Rico, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The investigation was a joint effort between U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), and the Puerto Rico Police Department (PRPD).
According to the superseding indictment, defendants Kenrick Vargas-Castro, Emmanuel Rivera-Figueroa, Christopher Shaquille Pérez-Álvarez, Kassandra Cruz, and Mariam Figueroa engaged in the business of dealing in firearms without a license. The purpose of their firearms trafficking conspiracy was to ship firearms from Texas to Puerto Rico for distribution within Puerto Rico for pecuniary gain.
As part of the conspiracy, Pérez-Álvarez purchased firearms in Texas and sent them to Puerto Rico where other co-conspirators delivered them to other individuals in exchange for money. Defendant Mariam Figueroa-Alicea straw purchased firearms in Texas and received money transfers from co-conspirators who were part of the firearms trafficking organization located in Puerto Rico. Defendant Kassandra Cruz prepared firearms for mailing, sent them to Puerto Rico by mail, and received money transfers related to these transactions.
Kenrick Vargas-Castro delivered the firearms to individuals in Puerto Rico in exchange for money. Rivera-Figueroa received firearms from Vargas-Castro and others and delivered them to other individuals in exchange for money.
Count two of the superseding indictment charges Kenrick Vargas-Castro, Kevin Ramos, Leemarie Torres-Castro, Julio Torres-Castro, Emmanuel Rivera-Figueroa, and Christian Pérez-Álvarez for conspiracy to possess with intent to distribute over five (5) kilograms of cocaine. These defendants are facing a narcotics forfeiture allegation of $66,933.
Count three charges Kenrick Vargas-Castro, Kevin Ramos, Leemarie Torres-Castro, and Julio Torres-Castro with using means of communication, that is, telephones and the United States mail, to facilitate the trafficking of firearms. Count four charges Kenrick Vargas-Castro, Kevin Ramos, and Leemarie Torres-Castro with a money laundering conspiracy. According to the superseding indictment, these three coconspirators transported currency from the continental United States into Puerto Rico, having the currency concealed within luggage and transported through commercial airlines for delivery in Puerto Rico. They are facing a money laundering forfeiture allegation of $66,291.
Upon conviction of the offenses listed in the superseding indictment, Kenrick Vargas-Castro shall forfeit to the United States one Keltec PLR16 pistol, one Aero Precision X-15 pistol, sixty-three (63) .300 caliber bullets, one round of .45 caliber ammunition, and fifty (50) rounds of .40 caliber ammunition. Christopher Shaquille Pérez-Álvarez and Mariam Figueroa-Alicea shall forfeit to the United States nine (9) Century Arms Micro Draco pistols 7.62 caliber.
“We will vigorously prosecute those involved in the illegal trafficking of drugs and firearms, which are subsequently used in the commission of violent crimes like the shootings that we have seen lately in our communities,” said U.S. Attorney Muldrow. “These arrests show our commitment to hold people accountable for drug and firearms trafficking, as well as for laundering the proceeds of their criminal activities.”
“The indictment and arrest of these individuals sends a clear message to those involved in money laundering as well as drug and illegal weapons trafficking,” said Ivan J. Arvelo, special agent in charge for HSI San Juan. “ICE HSI, along with its local, state and federal law enforcement partners, will go after them, bring them to justice and seize the assets produced by their illicit activity.”
Assistant U.S. Attorneys Jeanette M. Collazo-Ortiz and Jonathan L. Gottfried, Chief of the Violent Crimes and National Security Section, are in charge of the prosecution of the case. If convicted, the defendants face up to five years in prison for the firearms trafficking conspiracy; up to twenty for drug trafficking; and up to twenty years for money laundering.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Fraud Alert: Scammers Claiming to Be Representatives of Cell Phone ProvidersRead the Press Release
SAN JUAN, P.R. – The United States Secret Service (Secret Service) has received multiple reports that individuals falsely claiming to be customer service representatives of local cell phone providers are calling members of the public as part of a scam to receive personal and financial information, announced United States Attorney W. Stephen Muldrow. The United States Attorney’s Office for the District of Puerto Rico strongly encourages the public to remain vigilant and not to provide personal information or access codes during these calls.
Reports received by the Secret Service indicate that these scammers falsely represent themselves as employees of the cell phone provider and attempt to obtain personal information from the call recipient by offering a discount to those that register for auto-pay with ATH Movil. The customer receives a call and is told that the cell phone provider is updating the network from 3G to 5G and also offering a discount off their cell phone bill if they pay using ATH-Movil. Customers are then told that in order to receive the discount, they need to confirm account information.
During the call, the scammer sends an authentication code from the cell phone provider’s website to the customer. The scammer then requests that the customer verbally confirm the code claiming that the scammer needs to confirm the identity of the customer before proceeding to discuss their account information. Once the customer provides the code, the scammer gains access to the customer’s account with the cell phone provider. The scammer now controls the customer’s account, and fraudulently requests that the customer provide their ATH Movil information. Customers are then told to turn off their phones for the changes in the account to take place. During this time, the scammers are able to transfer funds to different bank accounts in Puerto Rico and outside of the jurisdiction and/or make fraudulent purchases using the customer’s information.
Those who receive these calls are encouraged not to provide personal information or access codes during these calls. The public can report these scams to the Secret Service by calling 787-277-1515.
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Elder Fraud Prevention Campaign during COVID-19Read the Press Release
SAN JUAN, P.R. - The United States Attorney for the District of Puerto Rico, W. Stephen Muldrow, and the Elder Justice Task Force (EJTF) announced today the launch of an elder fraud education and prevention campaign during the COVID-19 pandemic.
The public service campaign aims to raise awareness about the different types of fraud associated with the pandemic that have been prevalent during these past months; advise senior citizens and their caretakers on how to prevent becoming victims of these scams; and inform the different ways to report cases of fraud. The campaign encourages the public to provide information to the federal and state authorities in a confidential manner.
“This educational campaign seeks to provide the elderly and the general public with the tools to prevent criminals from taking advantage of the crisis we are living through. As I have stated in previous occasions, the well-being of our elderly citizens during this pandemic is one of our main priorities. I commend the efforts of the Elder Justice Task Force and those who have joined our mission during this emergency,” said U.S. Attorney Muldrow.
The Acting Secretary of the Puerto Rico Department of Justice, Inés del C. Carrau Martínez, urged Medicare and Medicaid beneficiaries to protect themselves, be cautious, and disregard any unsolicited calls or visits that offer COVID-19 testing, vaccinations, or medical equipment, if they suspect anything is amiss. “We are dealing with a serious and complex health issue. We have to take care of our elderly so they don’t become a target for scams through false advertisement or offers,” stated Secretary Carrau.
“We have been very diligent in providing guidance to the population we serve and at senior centers so that they do not become victims of fraud. Today we are doubling our efforts with this excellent task force in order to raise awareness about these illegal practices,” said the Secretary of the Puerto Rico Department of Family Affairs, Orlando López Belmonte.
“As part of this initiative, we call on the family caretakers who support the elderly to be alert, because they are a key part in detecting, avoiding, and reporting these new scams associated with COVID-19 that threaten their own and their loved ones’ financial safety,” warned José R. Acarón, local director of AARP PR.
“This educational campaign is part of a preventive approach geared towards protecting the rights of the elderly population in Puerto Rico, and fighting crimes that target them. There is a pressing need for education, particularly during the pandemic,” informed Dr. Carmen Delia Sánchez Salgado, Ombudsman for the Elderly.
Other entities that have joined forces in this campaign are the Postal Inspector Service; the U.S. Department of Health and Human Services, Office of the Inspector General; the Federal Trade Commission (FTC); and the Federal Bureau of Investigation (FBI).
This campaign stems from the Elder Justice Initiative. The EJTF’s mission is to support and coordinate the U.S. Department of Justice’s compliance efforts to combat abuse, neglect, financial fraud, and scams that target our nation’s seniors. The EJTF in Puerto Rico is coordinated by Assistant U.S. Attorney Jacqueline Novas. To report a suspected fraud, please call the following numbers: National Elder Fraud Hotline 1-833-372-8311; National Center for Disaster Fraud 1-866-720-5721; the FBI Internet Crime Complaint Center 1-800-225-5324; the FTC 1-877-FTC-HELP (382-4357); and/or the HHS - 800-HHS-TIPS (800-447-8477); or submit a report at the Federal Department of Justice’s website www.Justice.gov/DisasterComplaintForm or through the FTC’s website ReporteFraude.ftc.gov.
Learn more about these scams and how to protect yourself by visiting the fbi.gov/coronavirus and the FTC at ftc.gov/es/coronavirus
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage (https://www.justice.gov/elderjustice). Elder fraud complaints may be filed with the FTC at https://reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
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Campaña de prevención de estafas a adultos mayores durante la pandemia del COVID-19Read the Press Release
SAN JUAN, P.R. – El Fiscal Federal de los Estados Unidos para el Distrito de Puerto Rico, W. Stephen Muldrow y el Elder Justice Task Force (EJTF, por sus siglas en inglés) anunciaron hoy el lanzamiento de una campaña de educación y prevención de estafas a adultos mayores en tiempos de la pandemia del COVID-19.
La campaña de servicio público busca alertar sobre las nuevas modalidades de fraude que hemos visto durante los últimos meses relacionadas a la pandemia, además de dar consejos a los adultos mayores y sus cuidadores para evitar ser víctimas de éstas estafas, y dar a conocer las distintas maneras para reportar casos o sospechas de fraude. También invita al público a proveer información de manera confidencial a las autoridades de ley y orden, tanto a nivel federal como estatal.
“Esta campaña de educación busca proveer herramientas, tanto a los adultos mayores como al público en general, para evitar que los criminales se aprovechen de la crisis que estamos viviendo. Como he declarado en ocasiones anteriores, el bienestar de nuestros ciudadanos de edad avanzada durante esta pandemia es una de nuestras principales prioridades. Elogio los esfuerzos del Elder Justice Task Force y aquellos que se han unido a nuestra misión durante esta emergencia”, dijo el Fiscal Federal Muldrow.
La Secretaria Interina del Departamento de Justicia, Inés del C. Carrau Martínez exhortó a los beneficiarios de Medicare y Medicaid a que se protejan, sean cautelosos y si sospechan de cualquier llamada inesperada o visitas a su hogar en las que le ofrecen pruebas de COVID-19, vacunas contra esta enfermedad o suplido de equipos médicos, hagan caso omiso. “Nos encontramos ante una situación de salud seria y compleja, debemos cuidar de nuestra población de edad avanzada para que no sean objeto de estafa mediante anuncios u ofrecimientos engañosos”, indicó la titular de Justicia.
“Hemos estado muy activos y orientando en los centros para adultos mayores y a la población a la que subvencionamos, para que no se conviertan en víctimas de estafas. Hoy redoblamos esfuerzos con este gran grupo de trabajo para prevenir y educar a toda la población sobre estas prácticas ilícitas,” señaló el Secretario de la Familia, Orlando López Belmonte.
“Como parte de esta iniciativa hacemos un llamado a los cuidadores familiares que apoyan personas mayores, ya que ellos son claves para detectar, evitar y denunciar las nuevas estafas relacionadas al COVID -19, que atentan contra la seguridad financiera de ellos y sus seres queridos”, alertó José R. Acarón, director estatal de AARP PR.
“Esta campaña educativa forma parte de un acercamiento preventivo dirigido a proteger los derechos de la población adulta mayor en Puerto Rico y combatir crímenes hacia ellos. La necesidad de educar en asuntos de fraude es urgente particularmente en estos tiempos de Pandemia”, informó la Dra. Carmen Delia Sánchez Salgado, Procuradora de las Personas de Edad Avanzada.
Otras entidades que han colaborado mano a mano con esta campaña son el Servicio de Inspectores Postales; Oficina del Inspector General del Departamento de Salud Federal; la Comisión Federal de Comercio (FTC, por sus siglas en inglés); y el FBI.
La campaña surge como parte de la Iniciativa de Justicia para los Ancianos, del Departamento de Justicia de los Estados Unidos. La misión del EJTF de Puerto Rico es apoyar y coordinar los esfuerzos programáticos y de cumplimiento del Departamento de Justicia Federal para combatir el abuso, la negligencia y el fraude financiero y las estafas que tienen como blanco a las personas de edad avanzada de nuestra nación. Los esfuerzos del Task Force en Puerto Rico están dirigidos por la Coordinadora de EJTF, la Fiscal Federal Auxiliar Jacqueline Novas. Para informar sobre casos sospechosos de fraude puede llamar a los siguientes números: National Elder Fraud Hotline 1-833-372-8311; National Center for Disaster Fraud 1-866-720-5721; al FBI Internet Crime Complaint Center 1-800-225-5324; al FTC 1-877-FTC-HELP (382-4357); y/o a HHS - 800-HHS-TIPS (800-447-8477); o reportar a través del portal del Departamento de Justicia Federal www.Justice.gov/DisasterComplaintForm o a través del portal de la FTC ReporteFraude.ftc.gov.
Conozca más acerca de estas estafas y cómo puede protegerse, visitando fbi.gov/coronavirus y la FTC en ftc.gov/es/coronavirus
Desde que el presidente Trump promulgó la Ley bipartidista de Enjuiciamiento y Prevención del Abuso de Ancianos (EAPPA, por sus siglas en inglés), el Departamento de Justicia ha participado en cientos de acciones para hacer cumplir la ley en casos criminales y civiles que afectaban desproporcionalmente o estaban dirigidos a las personas mayores.
Para mayor información acerca de los esfuerzos del departamento para ayudar a las personas mayores visite el portal de la Iniciativa de Justicia para los Ancianos (https://www.justice.gov/elderjustice-espanol). Para presentar una denuncia de fraude a personas mayores ante la FTC acceda a https://reportefraude.ftc.gov/#/ o llame al 877-FTC-HELP. El Departamento de Justicia proporciona una variedad de recursos relacionados a la victimización por fraude a personas mayores mediante su Oficina para Víctimas del Delito, a la cual se puede acceder en https://ovc.ojp.gov/library/recursos-en-espanol.
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Woman Indicted and Arrested for Lying to an Agency of the United StatesRead the Press Release
SAN JUAN, P.R. –On November 18, 2020, a federal grand jury in the District of Puerto Rico returned a one-count indictment charging Krystal Marie Rivera with false statements made to an agency of the United States, announced United States Attorney W. Stephen Muldrow. The FBI and the Puerto Rico Police Bureau were in charge of the investigation. Rivera was arrested today without incident.
According to the information contained in the indictment, on October 22, 2020, defendant Rivera willfully and knowingly made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the executive branch of the Government of the United States, by stating to FBI task force officers, at the Police of Puerto Rico Robbery Division, in the District of Puerto Rico, that she had been kidnapped by several individuals. The statements and representations were false because, as Krystal Marie Rivera then and there knew, she had not been kidnapped, but was rather voluntarily spending time with an acquaintance.
“The U.S. Attorney’s Office will investigate and prosecute individuals that mislead and disrupt law enforcement operations by providing false information to law enforcement agents,” said U.S. Attorney Muldrow.
“Every time a kidnapping is reported, a sophisticated law enforcement system is set into motion. Countless agents, analysts, and other law enforcement personnel are deployed to immediate action to locate and recover the victim,” said FBI Special Agent in Charge Riviere. “Faking a kidnapping is no laughing matter. It is an irresponsible act, which costs law-abiding taxpayers a lot of money. The FBI will pursue the misuse of law enforcement power to its ultimate consequence.”
The case is being prosecuted by Assistant United States Attorney David T. Henek and the Chief of the Violent Crimes and National Security Unit, Assistant U.S. Attorney Jonathan Gottfried. If convicted, the defendant could face a maximum penalty of five years of imprisonment and a fine of not more than $250,000.00.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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20 Members of A Violent Gang Charged for Drug Trafficking and Firearms Violations in Santa Isabel, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On November 9, 2020, a federal grand jury in the District of Puerto Rico returned an indictment charging 20 violent gang members with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) Ponce Strike Force investigated the case.
“We are committed to dismantling and removing the threat posed by criminal organizations that insist on flooding our communities with narcotics and violence,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “I want to congratulate the outstanding federal, state, and local law enforcement cooperation that resulted in this successful operation. Our continued collaboration is critical to dismantle these criminal organizations.”
“The Drug Enforcement Administration initiated Project Safeguard to target violent drug trafficking networks like the one taken down this week here in Puerto Rico,” said Acting Administrator Timothy J. Shea. “Building on our relationships with law enforcement organizations like the Puerto Rico Police Bureau Strike Force, as well as the FBI, and U.S. Marshal’s Service, DEA is helping to make communities in America and her territories safer because no one should have to live with bullets flying and drug dealing right outside their doors.”
DEA Caribbean Division Special Agent in Charge, A.J. Collazo said that “Yesterday’s arrests are a reminder of our message to local drug trafficking organizations that our inter-agency consolidated efforts to track them down and bring them to justice, will continue. Our enforcement operations will prevail, to enhance the safety of our communities and families. We welcome DEA’s Administrator, Timothy Shea to Puerto Rico to share in the success of this operation.”
The indictment alleges that from in or about the year 2015, to the date of the return of the indictment, the drug trafficking organization distributed heroin, cocaine, cocaine base (commonly known as “crack”), and marihuana, within 1,000 feet of the Rincón Taíno and the Pedro Descartes Public Housing Projects (PHP), and other areas in the municipality of Santa Isabel, all for financial gain and profit. Fifteen (15) defendants are facing one charge for possession of firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of $3,558,750.
As part of the conspiracy, the members of the drug trafficking gang established a drug point that would move within different areas inside the public housing projects in order to avoid police detection. Some co-conspirators would collect the profits from the drug trafficking sales and travel within the municipality of Santa Isabel and other areas nearby to deliver the proceeds to the leaders of the organization. The defendants had access to different vehicles in order to transport money, narcotics, and firearms. The leaders had final approval authority to impose disciplinary action upon residents of the Rincón Taíno and Pedro Descartes PHP, on members of rival drug trafficking gangs, and on the members of the conspiracy if they disobeyed the rules imposed by the drug trafficking organization. The members of the gang would use force, violence, and intimidation in order to maintain control of the areas in which they operated. The defendants indicted are:
David Pacheco-Torres, a/k/a “Peluco”
Luis Enrique Torres-Torres, a/k/a “Riquito”
José M. Morales-Torres, a/k/a “Pipito”
Luis E. Brito-Rodríguez, a/k/a “Quiri”
Moisés Torres-Sánchez, a/k/a “Moi”
Juan Ramón Díaz-Valcárcel, a/k/a “Sombra”
Fabián Morales-Montes, a/k/a “Fabio”
José Fabián Morales-De Jesús, a/k/a “Fabián”
Jarette Fabián Morales-De Jesús, a/k/a “Jare”
Héctor A. Quintana-Santos, a/k/a “Hectito”
Eduardo Antongiorgi-Cartagena, a/k/a “Esquipi”
Eduardo Peña-Zayas, a/k/a “Jordan/Goldo”
Noel Malavé-Santiago
Bryan Torres-Torres, a/k/a “Puchita/Pucha”
José Osvaldo Reyes, a/k/a “Bubu”
Lisandra Baerga-Torres
Raúl L. Cabán-Ortiz, a/k/a “Rauly”
Marilyn Báez-Rentas
Kevin M. Pérez-Montañez
Christopher A. Cordero-Sostre
Gang Section Assistant U.S. Attorney Pedro R. Casablanca and Special Assistant U.S. Attorney Yanira Colón-García are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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30 Individuals Indicted and Arrested for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
SAN JUAN, Puerto Rico – On November 6, 2020, a federal grand jury in the District of Puerto Rico returned a four-count indictment charging 30 individuals with conspiracy to possess a controlled substance on board a vessel subject to the jurisdiction of the United States, conspiracy to import a controlled substance into the United States, and attempt to import a controlled substance into the United States. Each of these charges carries a mandatory prison sentence of ten years and up to life imprisonment. U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and FBI Special Agent in Charge Rafael Riviere Vázquez made the announcement.
The defendants indicted are:
Rafael Texidor Pérez
Carlos Javier Nieves Rivera
José Raúl Dotel
Roberto Cedeño Olivencia
Maywilliams José Salazar Salazar
Andrys Mata Salazar
Josué Rafael Gutiérrez Salazar
Mauro Rafael Lugo González
Isaías Hipólito Salazar Salazar
Edison Luis Ramos Gómez
Jorman Román Rodríguez Carreño
Adruzal José Rojas Rojas
Franklin José Rodríguez Rivera
Osward José Salazar Rodríguez
Juan Carlos Suniaga Suniaga
José Luis Salazar Guerra
Alexis José Salazar Rivera
Marco Antonio Romero Romero
Ángel Miguel Rodríguez Jauregui
Jesús Antonio Carreño
Leonel Alexander Camacho Lugo
Carlos José Alcalá Rivas
Valentín Antonio Espinoza Salazar
Ángel Placido Manta Salazar
Adrián José Romero Salazar
Pedro Alejandro Salazar
Jacier Alejandro Salazar Marcano
Alexis Raúl Moreno Guerrero
José Moreno
José Sucre
“This indictment and arrests are a reflection of our resolve to combat drug trafficking and a clear indication of the success of our joint investigative efforts,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “The Transnational Criminal Organizations seeking to import narcotics into the Continental United States should know that the Puerto Rico law enforcement agencies are working together to eradicate their threat, and that we will continue to aggressively attack their drug smuggling and money laundering operations.”
“The FBI is and will remain ever vigilant in the pursuit of criminal organizations and individuals who wish to do their harmful business in our jurisdiction. Bad actors should know the FBI and its law enforcement partners are everywhere, all the time and we are a team,” said FBI Special Agent in Charge Riviere Vázquez. “I’d like to take this opportunity to thank all of our partners who worked with us in this large-scale operation, specifically, Police of Puerto Rico – FURA Intel, U.S. Marshal Services, U.S. Customs and Border Protection, Puerto Rico Department of Correction, U.S. Border Patrol and U.S. Coast Guard. This outstanding result would not have been possible without their collaboration.”
According to the allegations in the indictment, beginning on an unknown date and continuing up to November 1, 2020, the defendants conspired to possess with intent to distribute cocaine while on board vessels subject to the jurisdiction of the United States, and conspired to import 500-700 kg of cocaine from Venezuela. After the arrest operation on November 1, the total weight of the cocaine recovered was 679.2 kg. The estimated street value of that quantity of cocaine, based on the per kilogram value in Puerto Rico, is over $20 million.
The two Venezuelan boats, a 50-foot vessel named Los ojos de mi negra and a 65-foot vessel named Frania-1, each of which had 13 Venezuelan nationals aboard, are included in the forfeiture allegation of the indictment. All of the defendants are at the Metropolitan Detention Center awaiting trial.
Assistant U.S. Attorney Sean P. Murphy is in charge of the prosecution of the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Co-Owner of Puerto Rican Online Aquarium Business Pleads Guilty to Two Lacey Act Felonies and Export Smuggling for Illicit Trafficking of Protected Reef CreaturesRead the Press Release
A resident of San Sebastian, Puerto Rico, pleaded guilty today to export smuggling and two felony violations of the Lacey Act for collecting, purchasing, falsely labeling, and shipping protected marine invertebrate species as part of an effort to subvert Puerto Rican law designed to protect corals and other reef species, the Department of Justice announced.
During 2014 through 2016, Luis Joel Vargas Martell (Vargas) was the co-owner of a home-based saltwater aquarium business, Carebbean Reefers (spelling error intentional) that also operated online through the EBay store “Redragon1975”. A large part of the business was devoted to the sale of native Puerto Rican marine species that are popular in the saltwater aquarium trade.
Vargas sent illegally collected live specimens to customers in the mainland United States and foreign countries by commercial courier services. One of the most popular items that Vargas and his business sent off-island was an organism from the genus Ricordea. These animals are known as “rics,” “polyps,” or “mushrooms” in the aquarium industry. Members of the genus form part of the reef structure and spend their adult lives fastened in place to the reef. These animals are colorful in natural light, but what makes them particularly interesting to aquarium owners is that they “glow” under the UV lights that are typically used in high-end saltwater aquariums.
It is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are going to be sent off-island or otherwise sold commercially, nor is there a permit available to do so. Vargas personally collected much of the Ricordea and other reef creatures that he sold off-island. On multiple occasions, he would accompany his business partner, Raymond Torres, and they would snorkel from the shoreline in search of Ricordea. Because Ricordea are attached to the reef substrate, the pair would utilize a chisel to break off the animals, and in doing so, take chunks of the reef with them.
In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, the scheme included falsely labelling many of the live shipments as inanimate objects. From January 2014 to March 2016, Vargas sent or caused to be sent at least 40 shipments of marine species that were illegally harvested in the waters of Puerto Rico. While there is some variation in the price of Ricordea depending on coloration, size, and other factors, the aggregate retail value of illegal Ricordea shipped by Vargas was worth at least $90,000.
Vargas will be sentence at a future date designated by the court. Torres pleaded guilty to similar charges on June 9, 2020. He is scheduled to be sentenced on Dec. 8, 2020.
This case was investigated as part of Operation Rock Bottom and Operation Borinquen Chisel by Special Agents of the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration with support from the USFWS Inspectors. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section along with Assistant U.S. Attorney Carmen Marquez of the U.S. Attorney’s Office for the District of Puerto Rico.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Ricordea polyps illegally harvested by the defendant for use in the aquarium trade. Notice that the polyps are still attached to reef substrate. Ricordea polyps illegally harvested by the defendant. Photo shows other specimens in one of the business’ saltwater tanks. Ricordea polyps illegally harvested by the defendant for use in the aquarium trade. Notice that the polyps are still attached to reef substrate.Puerto Rico Legislator Indicted for Theft, Bribery, and Honest Services Wire FraudRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned a nine-count indictment on November 4, 2020 against legislator Nestor Alonso-Vega, for his alleged participation in a theft, bribery, and kickback scheme. U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and FBI Special Agent in Charge Rafael Riviere Vázquez made the announcement.
“Public corruption poses a threat to our democratic institutions, erodes confidence in government, and, if left unchecked, can tear apart the very fabric of our democracy,” said U.S. Attorney Muldrow. “My office will continue to diligently investigate and prosecute public corruption schemes to protect the public and hold these persons involved accountable for their actions.”
“As I have said before, public corruption erodes public trust in its government institutions. Very few other violations can cause the generalized public anxiety and civil unrest, which corruption does. This is why public corruption is and will remain FBI San Juan’s top priority,” said FBI Special Agent in Charge Riviere Vázquez. “The public is reminded that coming forward to report acts of corruption is not only in everyone’s best interests, but it is also a civic and patriotic duty, of everyone who loves this beautiful island.”
The indictment charges Alonso-Vega with Federal Funds Theft, Bribery, and Kickbacks; and Honest Services Wire Fraud. Alonso-Vega, aided and abetted by others, executed said scheme from April 2018 through September 2020.
As detailed in the indictment, between April 2018 and September 2020, Alonso-Vega authorized several salary adjustments for Person A, an employee in Alonso-Vega’s legislative office. Between in or about February 2018, and in or about April 2018, Person A’s bi-weekly, net government salary was approximately $760.02. Starting in or about April 2018, Person A’s bi-weekly, net government salary was increased to approximately $1,446.52 by Alonso-Vega. Starting in or about May 2018, Person A’s bi-weekly, net government salary was increased to approximately $2,043.08. Starting in or about July 2018, Person A’s bi-weekly, net government salary was decreased to approximately $1,417.00, due to an across-the-board budget cut. However, starting in or about October 2019, Person A’s bi-weekly, net government salary was again increased to approximately $2,270.68 by Alonso-Vega, and remained at that level until in or about July 2020, when Person A left Alonso-Vega’s office.
Out of every inflated paycheck, it was agreed that Person A would kickback to Alonso-Vega half of the total amount of the pay raise, split between each pay day.
The indictment further alleges that Person A used a variety of means to transfer the kickbacks to Alonso-Vega. For example, Person A would sometimes transfer money by using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones; make withdrawals around the time he received his directly deposited paycheck and pay Alonso-Vega in cash; and, at times, Person A would make payments to Alonso-Vega’s Home Depot account.
The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Assistant U.S. Attorney Scott Anderson.
The federal program bribery and theft charges carry a maximum penalty of 10 years in prison. Each count of honest services wire fraud carries a maximum penalty of 20 years in prison.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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U.S. Attorney’s Office Reaches Settlement Under the False Claims Act over Illegal International Trade PracticesRead the Press Release
SAN JUAN, Puerto Rico – On October 20, 2020, Days and Towers, LLC. agreed to pay the United States of America the sum of $817,927.58, to settle claims under the False Claims Act, 31 U.S.C. §3729, and unpaid customs duties, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow, and Ivan J. Arvelo, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge for Puerto Rico and U.S. Virgin Islands. The investigation leading to this settlement agreement revealed that from in or about August 2015, to in or about August 2019, Days and Towers submitted approximately 51 import product entries to U.S. Customs and Border Protection (CBP) containing false tariff schedules intending to reduce its customs obligations.
The settlement is the result of coordinated efforts between the U.S. Attorney’s Office, District of Puerto Rico, and the Global Trade Investigations (GTI) Task Force. The GTI is an integrated Task Force of ICE HSI and CBP personnel working together under the Caribbean Anti-Money Laundering Alliance (CMLA).
“This case underscores the collaborative efforts employed by the U.S. Attorney’s Office, in coordination law enforcement partners of HSI and CBP under the CMLA to hold individuals and corporate entities accountable for fraudulent conduct that disrupts our nation’s international trade,” said U.S. Attorney W. Stephen Muldrow. “Our office will continue to investigate illegal trade practices and will aggressively pursue civil and criminal actions against those who attempt to defraud the United States.”
“Violations under the federal False Claims Act can result in significant fines and penalties as this case clearly demonstrates,” said Iván J. Arvelo, Special Agent in Charge for HSI San Juan and the U.S. Virgin Islands. “HSI, along with our partners in the Caribbean Anti-Money Laundering Alliance, will continue working together against local and international money laundering and other serious financial crimes,” added Arvelo.
“CBP’s trade enforcement efforts seek to better identify, detect, and interdict shipments at risk of duty evasion,” indicated Gregory Álvarez, Director of Field Operations for Puerto Rico and the U.S. Virgin Islands. “CBP advances these efforts through partnerships with the private sector, advanced technology, and integrated enforcement.”
This case was prosecuted by Assistant U.S. Attorney Jorge L. Matos from the U.S. Attorney’s Office Civil Division, in conjunction with HSI Special Agents Rafael O. González and Ivan Serpa with the support of CBP.
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U.S. Attorney W. Stephen Muldrow Appoints Election Officer for the District of Puerto RicoRead the Press Release
United States Attorney W. Stephen Muldrow announced today that the Chief of the Financial Fraud & Corruption Section, Assistant United States Attorney (AUSA) Seth Erbe, will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Erbe has been appointed to serve as the District Election Officer (DEO) for the District of Puerto Rico, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
United States Attorney Muldrow said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Muldrow stated that AUSA/DEO Erbe will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: 787-340-1795 or 787-340-1890.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 787-754-6000 or 787-987-6500.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at (800) 253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney Muldrow said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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El Fiscal Federal Para El Distrito De Puerto Rico W. Stephen Muldrow Nombra Funcionario ElectoralRead the Press Release
El fiscal federal W. Stephen Muldrow anunció hoy que el Jefe de la Sección de Fraude Financiero y Corrupción, el fiscal federal auxiliar (AUSA, por sus siglas en inglés) Seth Erbe, liderará los esfuerzos de su oficina relacionados con el Programa del Día de las Elecciones del Departamento de Justicia a nivel nacional para las elecciones generales este próximo 3 de noviembre de 2020. Se ha nombrado a AUSA Erbe para que ejerza como el funcionario electoral del distrito (DEO, por sus siglas en inglés) para el Distrito de Puerto Rico. En dicha capacidad, en este Distrito, será responsable por supervisar el manejo de las querellas de fraude electoral y las inquietudes sobre los derechos de los electores en consulta con la sede del Departamento de Justicia en Washington.
El fiscal Muldrow expresó: “Todo ciudadano tiene que poder votar sin interferencias o discriminación y que su voto se cuente sin que se lo roben fraudulentamente. El Departamento de Justicia siempre actuará cuando sea debido para proteger la integridad del proceso electoral”.
El Departamento de Justicia juega un papel importante en impedir el fraude electoral y el discrimen en las urnas y en combatir estas faltas cuando y dondequiera que ocurran. El tradicional Programa del Día de las Elecciones promueve estos objetivos y también busca garantizar la confianza del público en la integridad del proceso electoral al proporcionar puntos de contacto locales dentro del Departamento para que el público informe sobre posibles fraudes electorales y violaciones de los derechos de los electores mientras los colegios de votación estén abiertos el día de las elecciones.
La ley federal protege contra delitos como intimidar o sobornar a los electores, comprar y vender votos, hacerse pasar por electores, alterar los recuentos de votos, llenar las urnas y marcar las boletas de los electores en contra de su voluntad o sin tomar en cuenta su opinión. También existen protecciones especiales para los derechos de los electores y establece que pueden votar libres de actos que los intimiden o acosen.
Por ejemplo, personas que actúen con la intención interrumpir o intimidar a los electores en los colegios de votación al interrogarlos o desafiarlos, o al tomarles fotos o videos, con el pretexto de que se trata de acciones para descubrir votaciones ilegales pueden violar la ley federal de derecho al voto. Además, la ley federal protege el derecho de los electores a marcar su propia papeleta o a que los asista una persona que ellos elijan (cuando los electores necesitan ayuda debido a una discapacidad o por analfabetismo).
El sufragio es el fundamento de la democracia estadounidense. Todos debemos asegurarnos de que aquellos que tienen derecho al voto, puedan ejercerlo si así lo eligen y que aquellos que busquen corromperlo tengan que enfrentar a la justicia. Para responder a las querellas de fraude electoral o inquietudes sobre los derechos de los electores durante el período de votación que finaliza el 3 de noviembre de 2020, y para garantizar que dichas quejas se dirijan a las autoridades correspondientes, el fiscal federal Muldrow expresó que AUSA/DEO Erbe estará de turno en este Distrito mientras los colegios estén abiertos. El público puede comunicarse con él en los siguientes números de teléfono 787-340-1795 o 787-340-1890.
Además, el FBI tendrá agentes especiales disponibles en cada oficina local y agencia residente en todo el país para recibir querellas de fraude electoral y otros abusos electorales el día de las elecciones. El público puede comunicarse con la oficina local del FBI llamando al 787-754-6000 o 787-987-6500.
Las querellas sobre posibles violaciones de las leyes federales de derecho al voto pueden presentarse directamente a la División de Derechos Civiles en Washington, DC, por teléfono al (800) 253-3931 o mediante el formulario de querellas en https://civilrights.justice.gov/.
En caso de un delito de violencia o intimidación, llame al 911 de inmediato y antes de comunicarse con las autoridades federales. La policía estatal y local tiene jurisdicción primaria sobre los colegios de votación y casi siempre tienen la capacidad de reaccionar más rápidamente ante una emergencia.
El fiscal federal Muldrow afirmó que “asegurar unas elecciones libres y justas depende en gran parte de la cooperación del electorado estadounidense. “Es imperativo que aquellos que tienen información específica sobre discrimen o fraude electoral lo reporten mi oficina, el FBI o la División de Derechos Civiles”.
El año 2020 marca el 150 aniversario del Departamento de Justicia. Conozca más sobre la historia de nuestra agencia en www.Justice.gov/Celebrating150Years.
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U.S. Attorney W. Stephen Muldrow Statement on the Passing of Judge TorruellaRead the Press Release
United States Attorney W. Stephen Muldrow released the following statement regarding the passing of The Honorable Juan R. Torruella, United States Court of Appeals for the First Circuit, on behalf of the United States Attorney’s Office.
We are saddened by the passing of Judge Torruella. He was a distinguished jurist and a great man who served the First Circuit, the District Court of Puerto Rico, and all of Puerto Rico with integrity and distinction. We honor his many years of dedicated public service, including his decades as a learned jurist and mentor to many, including many law clerks who serve or have served as Assistant U.S. Attorneys in the District of Puerto Rico and throughout the Department of Justice.
We extend our deepest condolences to his family, friends, and colleagues, as well as the countless people whose lives he touched over his long and illustrious career.
May his memory be eternal.
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Puerto Rico CPA Indicted and Arrested on Wire Fraud Charges in Relation to Act 20 and Act 22 SchemeRead the Press Release
On Oct. 14, 2020, a federal grand jury in the District of Puerto Rico returned an indictment charging Gabriel F. Hernández, with ten counts of wire fraud, in violation of Title 18, U.S. Code, Section 1343, announced W. Stephen Muldrow, U.S. Attorney, District of Puerto Rico, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Tyler R. Hatcher, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office. The indictment was unsealed this week after the arrest of the defendant by federal law enforcement officers from IRS-CI.
According to allegations in the indictment, Hernández, a CPA who served as the tax manager and partner-in-charge of the tax division of a large public accounting, tax, consulting, and business advisory firm, devised a scheme to defraud the IRS. The scheme, as alleged, related in part to two tax incentive acts: Act 20, also known as the Export Services Act, which offers tax incentives for Puerto Rican companies to export services to other jurisdictions, and Act 22, also known as the Individual Investors Act, which offered tax incentives to individuals who relocate to Puerto Rico. Under the scheme, as alleged, Hernández unjustly enriched himself and others by receiving fees in exchange for preparing and filing and causing to be prepared and filed a false federal income tax return with the IRS and fraudulent applications and other records related to the acts. The indictment further alleges that, as part of the scheme Hernández and others evaded the assessment and payment of taxes by engaging in financial transactions devoid of any economic substance (sham transactions). The transactions allegedly were intended to create the illusion that Hernandez’s clients earned income from services performed within Puerto Rico, rather than within the mainland United States.
If found guilty, the defendant faces a maximum statutory sentence of up to 20 years in prison and a fine up to $250,000 for charges relating to wire fraud.
An indictment is a charging document containing allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney W. Stephen Muldrow and PDAAG Zuckerman commended the investigative efforts of IRS-CI’s Miami Field Office. This case is being prosecuted by Assistant U.S. Attorney Seth A. Erbe and Department of Justice Assistant Chief Gregory E. Tortella and Special Attorney Francesca L. Bartolomey.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Doctor Pleads Guilty to Social Security FraudRead the Press Release
SAN JUAN, P.R. – Defendant Americo Oms-Rivera plead guilty before United States District Judge Francisco A. Besosa to conspiracy to commit wire fraud, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
On August of 2016, a Federal Grand Jury in the District of Puerto Rico returned a 16-count indictment charging doctor Americo Oms-Rivera, his secretary Mayte González Muñoz, and Francisco Cabrera Alvarado, a former Social Security Administration (SSA) employee, for fraud in the application process for SSA disability insurance benefits in Puerto Rico. González-Muñoz and Cabrera Alvarado plead guilty on March of 2017.
The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides monetary benefits to workers with severe, long-term disabilities, who have worked in SSA covered employment for a required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits.
Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application. The application and supporting evidence is then evaluated by SSA to determine the individual’s medical impairments and determine the effect of the impairment on the claimant’s ability to work on a sustained basis.
The defendant admitted that starting on March 2009, until on or about October of 2015, the defendant and other co-conspirators knowingly and willfully conspired and agreed together and with each other, to devise a scheme and artifice to defraud the SSA, and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises. For example, Oms Rivera would backdate medical records of patients applying for disability insurance benefits by creating fictitious medical appointments that never took place. This was done to create the appearance of a longer history of medical treatment and for the purpose of tricking or deceiving the SSA into approving disability insurance benefits.
As part of the plea agreement, Oms Rivera will pay SSA $321,000 in restitution, and agreed to the forfeiture of a property at Palmas del Mar, Humacao. In addition, Oms Rivera will surrender his DEA license, and will be excluded from participating in SSA cases, as well as Medicare, Medicaid and all other federal health care programs.
“We will continue to aggressively investigate and prosecute anyone who seeks to defraud or exploit the federal assistance programs established to help the most vulnerable of our communities,” said U.S. Attorney Muldrow. “This defendant abused the trust placed in him as a professional for personal gain. We thank our law enforcement partners for their years-long investigation and commitment to this case.”
“Today’s guilty plea represents years of hard work by OIG investigators as well as the U.S. Attorney’s Office, to gather evidence of this fraud scheme,” said Gail S. Ennis, Inspector General of the Social Security Administration. “Dr. Oms submitted false medical evidence in support of Social Security disability claims, which is a betrayal of the public trust—one we take very seriously. We will continue to pursue those who facilitate Social Security fraud, and I encourage the citizens of Puerto Rico to report allegations to our hotline at oig.ssa.gov.”
This case was investigated by the Social Security Administration Office of the Inspector General, New York Field Division, under the supervision of Special Agent-in-Charge John F. Grasso. Special Assistant United States Attorney Vanessa D. Bonano-Rodríguez from the Social Security Administration was in charge of the prosecution of the case.
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Puerto Rico CPA Indicted and Arrested on Wire Fraud Charges in Relation to Act 20 and Act 22 SchemeRead the Press Release
SAN JUAN, PUERTO RICO – On October 14, 2020, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging Gabriel F. Hernández, with ten counts of wire fraud, in violation of Title 18, United States Code, Section 1343. W. Stephen Muldrow, United States Attorney, District of Puerto Rico and Tyler R. Hatcher, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement. The indictment was unsealed today after the arrest of the defendant by federal law enforcement officers from IRS-CI.
“As I have said in the past, persons who are involved in committing fraud are encouraged to come forward to authorities – that includes individuals that are fraudulently using Puerto Rico’s tax laws to evade federal taxes,” said U.S. Attorney Muldrow. “This case should also serve as a warning to anyone considering seeking to evade taxes by illegally exploiting federal and Puerto Rico tax laws.”
“Federal and Puerto Rican tax laws have been put in place to invigorate the economy and provide financial relief to Puerto Rico. IRS Criminal Investigation will vigorously pursue any individuals and professionals that fraudulently enrich themselves by abusing government tax incentive programs,” said Tyler R. Hatcher, Special Agent in Charge of the IRS-CI Miami Field Office.
According to allegations in the indictment, Hernández, a CPA who served as Tax Manager and Partner-in-Charge of the Tax Division of a large public accounting, tax, consulting and business advisory firm, devised a scheme to defraud the Internal Revenue Service of the United States Department of the Treasury. The scheme involved the submission of false information to the government of Puerto Rico in an attempt to fraudulently provide Company A with federal tax relief via the provisions of Act 20.
Act 20, also known as the Export Services Act, offers tax incentives for Puerto Rican companies to export services to other jurisdictions. The tax benefits on income derived from customers outside Puerto Rico in relation to services rendered from Puerto Rico included a fixed income tax rate of 4% for eligible export services, a 100% tax-exemption on dividends from earning and profits, and a 60% tax-exemption on local municipal taxes.
In December 2018, Hernández formed Company A under Puerto Rico law for an undercover special agent of the IRS-CI posing as a wealthy United States taxpayer from Arizona. In December 2019, Hernández caused to be prepared and filed a fraudulent tax-exemption application with the Office of Industrial Development and fraudulently obtained Act 20 tax exemption status for Company A.
In December 2019, Hernández also determined that Company A would report $500,000 in business earned income in Puerto Rico, which would reduce Company A’s federal taxes. Then in July 2020, Hernández caused a Puerto Rico corporate tax return for Company to be prepared and filed with the Puerto Rico Department of Treasury (Hacienda), falsely claiming that $500,000 was earned in Puerto Rico by Company A.
Hernández also caused the preparation and filing of false 2020-2021 Business Volume Declarations with the Municipality of San Juan based on the false earnings. The defendant unjustly enriched himself and others by receiving fees in exchange for these false and fraudulent acts.
The indictment further alleges that, as part of the scheme, the defendant defrauded the IRS, and unlawfully evaded the assessment and payment of taxes, by engaging in financial transactions devoid of any economic substance (sham transactions). The transactions were intended to create the illusion of a consulting business earning income from services performed within Puerto Rico, rather than within the mainland United States. The defendant and others communicated by e-mail and telephone with undercover special agents of the IRS-CI in interstate and foreign commerce as part of the scheme. The defendant and others misrepresented, concealed, and hid, acts done in furtherance of the scheme.
If found guilty, the defendant faces a maximum statutory sentence of up to 20 years in prison and a fine up to $250,000 for charges relating to wire fraud. An indictment is a charging document containing allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney W. Stephen Muldrow commends the investigative efforts of IRS-CI’s Miami Field Office. This case is being prosecuted by Assistant U.S. Attorney Seth A. Erbe and Department of Justice Assistant Chief Gregory E. Tortella and Special Attorney Francesca L. Bartolomey.
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U.S. Attorney W. Stephen Muldrow Announces $3,107,586 in Justice Department Grants to Combat Addiction CrisisRead the Press Release
San Juan, Puerto Rico – U.S. Attorney W. Stephen Muldrow today announced awards of $3,107,586 in Department of Justice grants to fight drug abuse and addiction in the District of Puerto Rico. The grants were awarded by the Department’s Office of Justice Programs (OJP) and are part of more than $341 million going to communities nationwide.
“The addiction crisis has taken an enormous toll on America’s families and communities, eroding public health, threatening public safety and claiming tens of thousands of lives year after year,” said Attorney General William P. Barr. “Through comprehensive measures taken by this administration, we have been able to curtail the opioid epidemic, but new and powerful drugs are presenting exceptional challenges that we must be prepared to meet. The Justice Department’s substantial investments in enforcement, response, and treatment will help us overcome these challenges and work towards freeing Americans from abuse and addiction.”
Illegal drugs and illicit drug use have claimed the lives of nearly 400,000 Americans since the turn of the century. Powerful synthetic opioids like fentanyl are exacting an enormous toll on families and communities, and an emergence in the use of methamphetamines and other psychostimulants is drawing drug traffickers and driving up overdose rates. Three years ago, President Trump declared a Public Health Emergency and initiated a whole-of-government approach dedicated to ending this national tragedy. The Department of Justice has invested unprecedented levels of funding in combating the addiction crisis. The awards announced today build on those earlier investments.
“If we hope to defeat an enemy as powerful, persistent and adaptable as illicit drugs, we must be at least as determined and versatile, focusing our ingenuity and resources on curbing abuse and fighting addiction,” said OJP’s Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will enable criminal justice officials and substance abuse, mental health and other medical professionals to pool their assets and bring the full weight of our public safety and treatment systems down on this epidemic that has already caused so much harm.”
“Combatting the opioid crisis is a Department of Justice priority,” said U.S. Attorney Muldrow. “Prevention and access to effective treatments for opioid abuse and addiction are critical to fighting this epidemic.”
Funding is made available through OJP’s Bureau of Justice Assistance, National Institute of Justice, Office for Victims of Crime and Office of Juvenile Justice and Delinquency Prevention.
The following organizations received funding:
- Municipality of Bayamón: $890,070 for the Comprehensive Opioid, Stimulant, and Substance Abuse Site-based Program, which provides financial and technical assistance to state, local and tribal jurisdictions to reduce opioid and stimulant abuse and fatalities, and mitigate impacts on crime victims.
- Mental Health and Anti-Addiction Services Administration (ASSMCA, for its acronym in Spanish): $2,000,000 for the Harold Rogers Prescription Drug Monitoring Program, which enhances the capacity of regulatory and law enforcement agencies and public health officials to collect and analyze controlled substance prescription data and other scheduled chemical products through a centralized database administered by an authorized agency.
- Puerto Rico Department of Correction and Rehabilitation: $217,516 for the Residential Substance Abuse Treatment for State Prisoners Program, which helps states develop and implement residential substance abuse treatment programs within state and local correctional facilities.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
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28 Members of A Violent Gang Charged for Drug Trafficking and Firearms Violations in Guayama, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On October 7, 2020, a federal grand jury in the District of Puerto Rico returned an indictment charging 28 violent gang members with conspiracy to possess with intent to distribute, possession with intent to distribute controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA) and the Puerto Rico Police Department (PRPD), Guayama Strike Force investigated the case.
The indictment alleges that from 2015 to the date of the return of the indictment, the drug trafficking organization distributed heroin, cocaine, cocaine base (commonly known as “crack”), marihuana, and Oxycodone (Percocet) within 1,000 feet of the Luis Pales Matos Public Housing Project and other areas in the municipality of Guayama, all for financial gain and profit. Ten defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
As part of the conspiracy, the members of the drug trafficking gang established a drug point that would move within different areas inside the public housing project in order to avoid police detection. Some co-conspirators would travel to the municipality of Bayamón to pick up the narcotics that they would sell in Guayama and travel back to deliver the proceeds. The defendants had access to different vehicles in order to transport money, narcotics, and firearms. The leaders had final approval authority as to disciplinary action to be imposed upon members of rival drug trafficking gangs, and on the members of the conspiracy should they disobey the rules imposed by the drug trafficking organization. The members of the gang would use force, violence, and intimidation in order to maintain control of the areas in which they operated. The defendants indicted are:
Caleb Josué Toro-Negrón, a/k/a “Calembo”
Martín López-Torres, a/k/a “Barba”
David Nieves-Negrón, a/k/a “Frances”
Reinaldo Pérez-Marrero, a/k/a “Coco”
Luis G. Ortiz-Marrero, a/k/a “Muri”
Jesús E. González-Morales, a/k/a “Chino Monte Hatillo”
Jael G. Rodríguez-Colón
Pedro J. Rivera-Jiménez, a/k/a “Pedrito”
Hiram Pagán-Rabri, a/k/a “Pini”
Anthony O. Ramos-Sanabria, a/k/a “Lucero”
Elisaul Medina-La Santa, a/k/a “Panda”
Josniel M. Pérez-Ayala
Hilda E. Santell-Santiago
Michael A. Gutiérrez-Rodríguez
Ted William Rosario-Delgado
Miguel A. Santana-Negrón, a/k/a “Potro”
Anthony Morales-Vargas, a/k/a “Topo”
Richard Rodríguez-Figueroa, a/k/a “Bakery”
Kevin Contreras, a/k/a “NBA”
Héctor Omar Fontanez-Sanabria, a/k/a “Zombie/Omar”
Carlos J. Rodríguez-Vélez, a/k/a “Carlos Blunt”
Héctor H. Valentín-Pagán, a/k/a “Gaby Tatuaje”
José R. Vargas-Rivera
Angelica M. Santana-Negrón, a/k/a “Angie”
Jacqueline Álvarez-Rodríguez, a/k/a “Jacky”
Sheila Bonilla-Figueroa, a/k/a “La Gringa”
Jadiel Rodríguez-Colón, a/k/a “Checko”
Ángel Sánchez-Morales
“This indictment and arrests today are a reflection of our resolve to combat drug trafficking and violent crime,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We will continue to investigate these criminal organizations with our state and federal law enforcement partners, and send a clear message that drug trafficking will not be tolerated in our neighborhoods.”
A.J. Collazo, DEA Caribbean Division Special Agent in Charge, stated that: “The dismantling of this violent organization known as “LOS MENORES,” allows the residents of the Luis Pales Matos Public Housing Project to live in a safe community, especially during these times in which the effects of the ongoing Pandemic have made life challenging and difficult for us all. DEA is certain that with today’s arrests we have saved many lives that would have ended in tragedy. We won’t let our guard down. We will prevail.”
Gang Section Assistant U.S. Attorneys Corinne Cordero Romo and Enrique Silva Avilés are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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U.S. Attorney W. Stephen Muldrow Announces $844,543 to Advance Forensic Science in the District of Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney W. Stephen Muldrow today announced $844,543 in Department of Justice grants to the Puerto Rico Forensic Sciences Institute (Instituto de Ciencias Forenses) to fund crime laboratories, decrease DNA backlogs, support basic and applied forensic research, and help law enforcement identify missing persons. The grants, awarded by the Department’s Office of Justice Programs, are part of $192 million in funding to advance forensic science nationwide.
“Developments in forensic science have given investigators an extraordinary array of tools that can be enlisted to solve crimes and bring answers to victims and survivors, often after many years and even decades,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These investments in crime-fighting technology, from DNA analysis to drug toxicology to forensic anthropology, will help identify and convict perpetrators, ensure justice for innocent victims and keep communities safe by deterring future criminal activity.”
“The Department of Justice remains committed to advancing the use of forensic science and continues to make important recommendations in this integral component of our criminal justice system. Today’s announcement marks yet another step forward in the department’s efforts to strengthen the practice of forensic science in our nation’s laboratories and courtrooms,” said U.S. Attorney Muldrow. “We are continually looking at ways to ensure that forensic evidence is collected, analyzed and presented in a responsible and scientifically rigorous manner. This grant money provides additional resources to an important and valued partner in our ongoing efforts to reduce crime in Puerto Rico – the Puerto Rico Forensic Sciences Institute.”
Since 2004, the Office of Justice Programs has received an annual appropriation for DNA and other forensic science activities. The funding, administered through OJP’s Bureau of Justice Assistance and National Institute of Justice, supports DNA analysis, laboratory capacity enhancement and forensic science research that provides knowledge and tools to improve the quality and practice of forensic science.
For a complete list of individual grant programs, amounts, and the jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.
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Jorge Javier Marrero Gerena Arrested on Charges of Child PornographyRead the Press Release
SAN JUAN, P.R. – Jorge Javier Marrero Gerena, owner of the charter boat company Yatea Puerto Rico, was indicted and arrested for attempted coercion and enticement of a minor, coercion and enticement of a minor, and production of child pornography, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is in charge of the investigation of the case.
On October 8, 2020, a federal grand jury returned an indictment charging Marrero Gerena with four counts of child exploitation. Today, HSI special agents arrested Marrero Gerena at his place of residence.
The defendant used the Yatea PR Instagram account and a WhatsApp account to communicate via text messaging with minors. According to the four-count indictment, on February 8, 2020, the defendant induced a sixteen (16) year-old female minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Marrero Gerena is also facing two counts for using an instrumentality of interstate or foreign commerce, namely a cell phone, as well as internet text messaging services and social media direct messaging, to knowingly attempt to persuade, induce, entice, and coerce two individuals the defendant believed to be a thirteen (13) year-old female minor and a fifteen (15) year-old female minor to engage in sexual activity.
“The coercion and enticement of minors via the internet and through electronic devices to engage in otherwise illegal sexual conduct or to request and produce images of child pornography is illegal and carries serious consequences,” said U.S. Attorney Muldrow. “Requesting that a minor under the age of 18 send sexually explicit images is illegal. Be alert and report such illegal activities to law enforcement authorities. Prosecuting crimes against children is a high priority and Project Safe Childhood’s mission is focused on combatting those crimes and prosecuting those who prey on our children.”
To denounce crimes against children people may contact the Puerto Rico Crimes Against Children Task Force, at (787) 729-6969. You could also contact the FBI at (787) 987-6500.
“HSI is seeing a growing trend where children are being enticed, tricked and coerced online by adults to produce sexually explicit material of themselves,” said Ivan J. Arvelo, special agent in charge of HSI San Juan. “While we will continue to prioritize the arrest of child predators, we cannot arrest our way out of this problem: education is the key to prevention. This indictment represents a strong coordinated strike – by ICE’s Homeland Security Investigations, the U. S. Attorney’s Office and the members of the Puerto Rico Crimes Against Children Task Force– against child pornography and those who allegedly seek to harm our most vulnerable citizens, our young children. Clearly, this criminal activity has reached epidemic proportions and ICE HSI will continue to partner here and across jurisdictions to target those adults who egregiously violate the children of our communities.”
Assistant United States Attorney, and Project Safe Childhood Coordinator, Jenifer Y. Hernández Vega is responsible for the prosecution of the case. If convicted, the defendant faces a mandatory minimum sentence of fifteen (15) years imprisonment and a statutory maximum sentence of 30 years for the production of child exploitation material count, and a mandatory minimum sentence of ten (10) years with a maximum term of life imprisonment for each other count. An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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U.S. Attorney W. Stephen Muldrow Announces $900,000 to Support Offenders Returning to Communities in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney W. Stephen Muldrow today announced $900,000 in Department of Justice grants to reduce recidivism among adults and juvenile offenders returning to their communities in Puerto Rico after confinement. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $92 million in funding to support reentry efforts throughout the United States.
These awards represent President Trump’s commitment to assisting people in America’s prisons and detention facilities who have earned the opportunity to take their places back in society.
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lie before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help them get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
The reentry and recidivism reduction grants awarded will help communities develop and implement comprehensive strategies to address the challenges posed by reentry and recidivism; support reentry services for detained juveniles and incarcerated parents with children under the age of 18; and support research and evaluation programs to advance understanding about reoffending.
“The Department of Justice is committed to giving justice-involved individuals the tools they need to become productive members of society,” said U.S. Attorney Muldrow. “Providing meaningful support through prevention programs and other critical services is vital to our ongoing efforts to reduce recidivism, promote public safety, and foster positive results in communities across the island.”
The Mental Health and Anti-Addiction Services Administration (ASSMCA, for its acronym in Spanish) received $900,000 in funding from the Bureau of Justice Assistance for its Improving Reentry for Adults with Substance Use Disorders Program. The funding supports establishing, expanding, and improving treatment for people with substance use disorders during their incarceration and reentry into the community.
For a complete list of individual grant programs, amounts to be awarded, and the jurisdictions that will receive funding, visit:
https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/reentryfactsheet.pdf.
More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
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United States Attorney W. Stephen Muldrow Announces Initiative to Combat Violence Against Women and over $3.9 Million in Grant FundingRead the Press Release
SAN JUAN, Puerto Rico – In order to address the incidence of violent crimes against women, W. Stephen Muldrow, United States Attorney for the District of Puerto Rico, announced the creation of a working group comprised of state and federal agencies, non-profit organizations and higher learning institutions, to assess the threat and propose immediate and long-term measures to protect women against violence. The initiative will be led by the Public Affairs and Community Engagement Division, and encompasses a multi-pronged approach to prevent and prosecute gender based crimes in Puerto Rico. To be clear, we will prosecute those who commit such crimes to the fullest extent of the law.
Throughout the years, the U.S. Attorney’s Office has demonstrated its commitment to fight gender based violence, human trafficking, child exploitation, and other hate crimes based on an individual’s race, sex, gender orientation, nationality, and religion. Recent events in the District of Puerto Rico have raised concern in the community with regards to the safety of women and other vulnerable groups. We recognize that finding solutions to these issues requires a collaborative effort. In the coming weeks, we will reach out to all stakeholders to develop a multi-sector strategy to prevent and prosecute cases involving violence against women. An initiative to prosecute domestic violence gun crimes will be a component of these efforts.
Partnership for Domestic Violence Gun Prosecutions. This initiative is designed to combat domestic violence with the intent to prevent harm and loss of life before they occur. Under this initiative, and by working with federal, state and local law enforcement and nonprofit entities, the U.S. Attorney’s Office is making the investigation and prosecution of federal domestic violence crimes a priority. This initiative will also involve a campaign to put domestic abusers on notice of their prohibition to possessing firearms and train law enforcement on how to investigate federal domestic violence crimes. Local judges will be educated as to the impact of their orders on potential federal criminal prosecutions. Most importantly, we will bring awareness to the public, and to non-profit organizations that shelter and protect victims, on how to report domestic violence crimes to and work with federal authorities. In sum, this joint initiative will reduce domestic violence, save lives and assist victims.
Funding. In addition to the initiative for federal prosecution of domestic violence gun cases, the U.S. Justice Department’s Office on Violence Against Women (OVW) will direct over $3.9 million in grant funding to Puerto Rico to bolster efforts to curb domestic violence and sexual abuse. The grants include:
- Universidad del Sagrado Corazón: $299,962- Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus Program.
- Taller Salud, Incorporated (Loiza): $225,000- Grants to Enhance Culturally Specific Services for Victims of Sexual Assault, Domestic Violence, Dating Violence and Stalking Program.
- Hogar Nueva Mujer Santa Maria de la Merced, Incorporated: $750,000- Rural Sexual Assault, Domestic Violence, Dating Violence and Stalking Program.
- Office of the Women’s Advocate: $1,745,557- STOP Violence Against Women Formula Grant Program.
- Hogar Ruth Para Mujeres Maltratadas, Incorporated: $288,300- SASP Culturally Specific Solicitation (victims of sexual assault).
- Coordinadora Paz para la Mujer, PR Coalition Against Domestic Violence and Sexual Abuse: $243,619- State and Territorial Sexual Assault and Domestic Violence Coalitions Program
- Office of the Women’s Advocate: $418,575- Sexual Assault Services Formula Grant Program
“These grants will help victims escape abuse, seek justice, and rebuild their lives. For domestic violence victims, the added stressors of the pandemic can make a dangerous situation even worse,” said OVW Principal Deputy Director Laura Rogers. “Our grants in Puerto Rico are a timely contribution to approaches already underway to keep victims safe and hold offenders accountable for their crimes.” OVW’s current and forthcoming investments foster coordinated responses to violence against women, making resources available to local and tribal communities for investigation and prosecution, transitional housing, and culturally specific victim services, and training for professionals who respond to these crimes.
“Today, we are pledging to do even more to combat domestic violence. These grants will go a long way in making our homes, families and communities safer,” said U.S. Attorney Muldrow. “If we bring together law enforcement, victim advocates, our courts, attorneys, and the general public, we can effectively fight domestic violence, empower victims, and get them the help they so desperately need. We reiterate our commitment to collaborate with our state counterparts in the eradication of violence against women. Through prevention, prosecution, outreach and empowerment of victims we will end the cycle of violence against women. Our primary goal is simple: we will keep victims safe and hold offenders accountable.”
The Office of Justice Programs provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
Anyone affected by abuse and wishes to seek support should please call the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or text LOVEIS to 22522.
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Husband and Wife Indicted and Arrested for Health Care FraudRead the Press Release
SAN JUAN, Puerto Rico – On September 24, 2020, a Federal Grand Jury in the District of Puerto Rico returned two separate indictments charging Robert Crespo Zamora and Carmen J. Pagán Domínguez with health care fraud, aggravated identity theft, conspiracy to commit health care fraud, obstruction of a criminal investigation related to health care offenses, and mail fraud conspiracy, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The Office of Inspector General for the United States Department of Health and Human Services (HHS-OIG) led the investigation with the collaboration of the United States Postal Inspection Service (USPIS). The indictments were unsealed today upon the arrest of the two defendants by federal law enforcement officers from the HHS-OIG and USPIS.
A first indictment alleges that, from in or about November 2015, through in or about May 2020, defendants Carmen J. Pagán Domínguez and Robert Crespo Zamora, enriched themselves by causing the submission of at least one thousand two (1,002) false and fraudulent claims for non-invasive cardiovascular studies to Medicare, in the amount of $259,147.71. Cardiology Medical Group (CMG) and Cardiology Medical Services (CMS) received approximately $132,312.15 for the fraudulently submitted claims. During the scheme, Carmen J. Pagán Domínguez, the owner and biller for CMG and CMS, and Robert Crespo Zamora, a cardiovascular technician, caused the submission of claims to Medicare for non-invasive cardiovascular studies allegedly performed by two cardiologists, even though those services were not provided by said physicians.
According to a second indictment, from in or about January 2020, through in or about May 2020, defendants Robert Crespo Zamora and Carmen J. Pagán Domínguez enriched themselves by causing the submission of at least three hundred (300) false and fraudulent non-invasive cardiovascular studies claims to Medicare in the amount of $439,890.00. Cardiovascular Prophylaxis & Evolution (CPE) received approximately $249,272.00 for the fraudulently submitted claims. During the scheme, Robert Crespo Zamora, the owner and cardiovascular technician for CPE, and Carmen J. Pagán Domínguez, biller for CPE, caused the submission of claims for non-invasive cardiovascular testing, purportedly performed to Medicare beneficiaries, although defendants knew said testing services were not medically necessary, and the test results were never interpreted by a cardiologist, licensed physician, or any other qualified health care provider.
“The submission of false claims to federal health care benefit programs is unacceptable and a waste of taxpayer funds,” said U.S. Attorney W. Stephen Muldrow. “Today’s arrests show the Department of Justice’s and its law enforcement partners’ firm commitment to protect public funds and to safeguard the well-being of Medicare and Medicaid beneficiaries.”
“Health care professionals must be held to a high standard of ethical behavior,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”). “Along with our law enforcement partners, HHS-OIG will continue to ensure that those individuals and entities that bill federal health care programs do so in an honest manner.”
“United States Postal Inspectors will continue to aggressively investigate criminals who use the USPS and its products for illegal gain. We are committed to working with our law enforcement partners to investigate and bring to justice those who commit these types of offenses, and especially the impact that these financial crimes have on individuals, businesses, and government agencies alike,” said James V. Buthorn Inspector in Charge, USPIS Newark Division, San Juan Field Office.
If found guilty, the defendants face maximum sentences of: (a) up to ten years in prison for charges relating to health care fraud, conspiracy to commit health care fraud, and mail fraud conspiracy; (b) up to five years imprisonment for the obstruction of a criminal investigation related to health care offenses; and (c) a mandatory two-year consecutive term in prison for aggravated identity theft.
The case was investigated by the HHS-OIG and USPIS, and will be prosecuted by Assistant U.S. Attorney José Ruiz Santiago, Criminal Health Care Fraud Coordinator at the United States Attorney’s Office.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent, unless and until proven guilty.
The public is encouraged to report suspected instances of health care fraud to the HHS OIG Hotline at 1-800-HHS-TIPS (1-800-447-8477) or https://oig.hhs.gov/fraud/report-fraud/index.asp
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Former Senate Employee Sentenced for His Participation in A Scheme to Defraud the GovernmentRead the Press Release
SAN JUAN, P.R. – United States District Court Judge Francisco A. Besosa sentenced Ángel Figueroa-Cruz to 10 months in prison followed by a supervised release term of three years and 150 hours of community service for his participation in a scheme to defraud the government, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Figueroa-Cruz pleaded guilty on October 15, 2019 to one count of conspiracy to commit wire fraud.
On May 28, 2019, a federal grand jury returned an 18-count indictment charging former Senate employee Ángel Figueroa-Cruz, along with two former contractors Chrystal Robles-Báez and Isoel Sánchez-Santiago with conspiracy to commit wire fraud, 10 substantive counts of wire fraud, intentional misapplication of property by an agent of an organization receiving federal funds, aggravated identity theft, and money laundering.
Chrystal Robles-Báez and Isoel Sánchez-Santiago pleaded guilty in August 2019 and were sentenced on February 6, 2020, to four and ten months of imprisonment, respectively.
According to the allegations in the indictment, from in or about 2016 to June 2018, defendants Chrystal Robles-Báez, Isoel Sánchez-Santiago, and Ángel Figueroa-Cruz engaged in a scheme to defraud money and property from the government of Puerto Rico by means of materially false and fraudulent representations and promises. The defendants sought to accomplish their scheme to defraud by billing, approving, and collecting for contractual professional services work that was either not completed, or was performed in contravention to the explicit terms of the contracts.
As alleged in the indictment, the defendants participated in lawful electoral campaign activities for candidates to elected offices during the 2016 Puerto Rico general elections. After the general elections in late 2016, the defendants began to explore employment opportunities with the Government of Puerto Rico, including contracts for professional services. On January 1, 2017, defendant Chrystal Robles-Báez incorporated Global Instant Consulting Group, Inc. (“GICG”). The purpose of the corporation was to provide administrative and political counseling, workshops and public relations, and consulting. On the same day, defendant Isoel Sánchez-Santiago incorporated International Legislative and Governmental Consulting Group, Inc. (ILGCG). The purpose of the corporation was to provide governmental administrative consulting, creation of proposals, offering of workshops, and legislative process and parliamentary procedures.
In the process of establishing the corporations, defendant Robles-Báez solicited through interstate wire communications necessary documentation from various departments, agencies, and dependencies of the Government of Puerto Rico, including, but not limited to: (a) the Department of State; (b) the Treasury Department; and (c) the Police of Puerto Rico. Eventually, the defendants entered into professional services contracts with the Government of Puerto Rico. Specifically, the Puerto Rico Senate and the Puerto Rico House of Representatives.
According to the indictment, defendant Robles-Báez, on numerous occasions, certified and requested payments indicating that she had attended the Office of Governmental Affairs to provide professional services as detailed in the two GICG contracts, when in fact on those days the defendant did not attend the Office of Governmental Affairs or provide professional services. Additionally, defendants Robles-Báez and Sánchez-Santiago utilized the personal identifying information of numerous individuals, without their knowledge or consent, in order to give the impression that defendant Robles-Báez, as an “Intergovernmental Coordinator” on behalf of GICG, had provided those individuals with professional services, when in fact no such services were ever requested by those individuals.
Furthermore, defendant Robles-Báez utilized the assistance, contacts, and services of defendant Sánchez-Santiago in order to fraudulently justify work allegedly completed under the GICG contracts. Defendant Ángel Figueroa-Cruz, who was the Executive Director of the Office of Governmental Affairs in the Puerto Rico Senate, falsely certified as correct, the information contained in the bills/invoices for payment submitted by defendant Robles-Báez as an “Intergovernmental Coordinator” on behalf of GICG in support of payment. Defendants Robles-Báez and Sánchez- Santiago divided the proceeds of the conspiracy and scheme to defraud.
The case was prosecuted by Assistant United States Attorney and Criminal Division Chief Timothy Henwood. The case was investigated by the FBI and was referred by the Puerto Rico Department of Justice.
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President & Executive Vice President of Republic Group, Inc. Indicted and Arrested for Conspiracy to Commit Wire FraudRead the Press Release
SAN JUAN, P.R. – On Monday, August 31, 2020, defendant, Gary Steven Wykle and Alejandro Cortés-López were arrested and charged in a fourteen-count indictment alleging Conspiracy to Commit Wire Fraud, Securities Fraud, and Wire Fraud, announced today W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The FBI was in charge of the investigation.
Gary Steven Wyckle and Alejandro Cortés-López were, respectively, the President and Executive Vice President of The Republic Group, Inc. From in or about 2010, through 2017, Wyckle, and Cortés-López, along with other individuals known and unknown to the Grand Jury, raised over $12,000,000 in so-called Promissory Notes on behalf of The Republic Group, Inc.
Defendants Wyckle and Cortés-López solicited investors in person, via telephone, and via the internet, and caused materially false and misleading representations to be made to investors. Wyckle and Cortés-López falsely stated to investors that their investment would facilitate high-interest rate, short-term loans for various companies, including hotels, resorts, and other hospitality industries in the Dominican Republic, and elsewhere. The defendants failed to disclose to investors that investments would be used for Wyckle’s personal expenses, goods and services at retail stores, restaurants, travel, rent, entertainment, and to make lulling payments to existing investors. Defendant Cortés-López was paid a commission, which he failed to disclose, from each investor that he brought to The Republic Group, Inc.
“The defendants’ alleged conduct undermines the confidence investors place in the financial markets,” said U.S. Attorney W. Stephen Muldrow. “Financial markets are governed by rules that are supposed to protect investors. These defendants, skilled at convincing individuals to place their trust in them, engaged in a ‘Ponzi’ scheme to defraud investors, and ultimately cost them millions of dollars. We will investigate and prosecute these types of crimes to the fullest extent of the law.”
“When people lose trust in the systems, society crumbles. This is why the FBI is committed to staying ahead of this threat, by following the evidence wherever it may lead and pursuing these cases to the fullest extent of the law,” said Rafael Riviere Vázquez, Special Agent in Charge of the FBI.
Investors who believe they are victims of Gary Steven Wykle and Alejandro Cortés-López, and who signed contracts with them or The Republic Group, Inc., are encouraged to contact the U.S. Attorney’s Office at (787) 766-5656, to obtain information about the proceedings and their rights to restitution.
The case is being prosecuted by Assistant United States Attorney Edward Veronda. Both defendants are facing a maximum term of imprisonment of 30 years, and a fine not to exceed $1,000,000.
An indictment is only an accusation and not evidence of guilt. All defendants are presumed innocent until proven guilty.
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Agents Seize $27 Million in U.S. Currency Inside Boxes Bound for St. ThomasRead the Press Release
SAN JUAN, Puerto Rico – On August 29, 2020, as a result of a joint investigation between U.S. Customs and Border Protection (CBP), the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Puerto Rico Police Department, and the United States Attorney’s Office for the District of Puerto Rico, CBP officers seized undeclared currency totaling at least 27 million dollars. The currency was found inside boxes bound for St. Thomas, U.S. Virgin Islands.
CBP officers at Pier 10 in San Juan conducted an outbound cargo inspection on board the Motor Vessel (MV) Norma H II Voyage 818. During that inspection, a CBP K-9 alerted on pallets containing home moving boxes destined for St. Thomas. CBP officers opened one of the boxes and discovered U.S. currency wrapped in vacuum-sealed packages. Further inspection of the pallets revealed a total of 34 cargo boxes containing additional undeclared currency. CBP seized the currency pursuant to bulk cash smuggling laws and based on the failure to declare the currency.
This is an ongoing collaborative investigation conducted by CBP, the DEA Caribbean Field Division, HSI San Juan, the Puerto Rico Police Bureau and the United States Attorney’s Office for the District of Puerto Rico.
“This seizure is a clear indication of the success of our joint investigative efforts,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “Puerto Rico’s geographical location, along with its status as a territory of the United States, makes it an ideal target for Transnational Criminal Organizations seeking to import narcotics into the Continental United States and facilitate the repatriation of their drug proceeds. To eradicate this threat, we will continue to aggressively attack their drug smuggling and money laundering operations – depriving them of their illegal merchandise, their profits, and a safe haven.”
“This is without a doubt a historic money seizure in the Caribbean Region. Most likely more than one Transnational Criminal Organization is involved and seriously bleeding at this very moment. We will not let our guard down, and we will continue our joint efforts between Federal and state agencies without rest. Inter-agency efforts have been excellent and we’ll continue to achieve great results,” stated DEA Caribbean Division Special Agent in Charge A.J. Collazo.
“Legal currency can be transported if properly declared under U.S. law. Transnational Criminal Organizations seek to conceal proceeds and move it as part of their criminal activities,” indicated Gregory Álvarez, CBP Director of Field Operations in Puerto Rico and the U.S. Virgin Islands. “We remain committed to working with other federal and local law enforcement partners to detect and deter smuggling attempts throughout the Caribbean.”
“In recent years, the smuggling of bulk currency has become a preferred method for drug trafficking organizations and other criminal enterprises to move illicit proceeds across our borders,” said Iván J. Arvelo, special agent in charge for HSI San Juan and the U.S. Virgin Islands. “This seizure is proof that HSI remains vigilant and that, along with our partners in the Caribbean Corridor Strike Force, we will continue using our robust investigative authorities to identify, investigate, and apprehend those involved in bulk cash smuggling,” added Arvelo.
In addition to the law enforcement partners described above, these successful efforts, including the drug and money seizures described below, would not be possible without the full support of the United States Coast Guard, Coast Guard Investigative Service (CGIS), the Federal Bureau of Investigation (FBI), CBP’s Caribbean Air and Marine Branch, Puerto Rico’s Joint Forces of Rapid Action (FURA), the United States Marshals Service (USMS), and JIATF-South.
RECENT MARITIME DRUG SEIZURES
August 27, 2020 590 kilos 4 defendants near Añasco, PR
August 24, 2020 225 kilos 3 defendants near Aruba
July 22, 2020 387 kilos 3 defendants near Añasco, PR
July 17, 2020 41 kilos 5 defendants near Añasco, PR
June 30, 2020 393 kilos 5 defendants Mona Passage
June 9, 2020 150 kilos 2 defendants Isla Saona, DR
OTHER RECENT MONEY SEIZURES
August 11, 2020 $ 150,000 CCSF/AirTAT LMMIA, PR
August 3, 2020 $ 298,010 DEA/DNCD/CCSF Samana, DR
June 29, 2020 $ 2,241,610 CCSF St. Thomas
June 10, 2020 $ 2,254,378 DEA/CBP Vieques, PR
The Caribbean Corridor Strike Force (CCSF) is a multi-agency OCDETF Strike Force operating in the District of Puerto Rico. CCSF signatory agencies include the DEA, HSI, FBI, CGIS, USMS, and the U.S. Attorney’s Office. Assistant U.S. Attorney Max Pérez Bouret is the Chief of the Transnational Organized Crime (TOC) Section and Assistant U.S. Attorney Vanessa Bonhomme is the Deputy Chief of the TOC Section and the Lead CCSF Prosecutor.
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Four Police Officers Charged with Conspiracy to Commit RobberyRead the Press Release
SAN JUAN, Puerto Rico – On August 27, 2020, a federal grand jury in the District of Puerto Rico returned an indictment against four Puerto Rico Police officers charged with conspiracy to commit robbery, conspiracy to steal and convert government property, and theft and conversion of government property, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The FBI was in charge of the investigation of the case.
The indictment alleges that beginning on a date unknown through and continuing up to December 29, 2016, in the District of Puerto Rico, the defendants, Sergeant Miguel Conde-Vellón, Luis Rodríguez-García, and Carlos Boyrie-Laboy aiding and abetting each other, conspired to commit robbery and extortion, in that the defendants agreed to, attempted, and did, unlawfully take money and property from a government confidential source, whom defendants believed to be engaged in the sale of pyrotechnics.
On December 29, 2016, defendants, Conde-Vellón, Rodríguez-García, and Boyrie-Laboy, while acting in their official capacity as PRPD officers and carrying firearms, made an unauthorized, forced entry into a residence located in the Duque Ward in Naguabo, PR, which they believed to be the stash house location utilized by the purported illegal seller of pyrotechnics. The defendants searched the residence, located and took possession of the following pyrotechnics: two (2) boxes of fireworks each containing 40 pieces of generic fireworks, two (2) boxes each containing 53 pieces of Thunder Max fireworks, one (1) box containing 18 pieces of Premiere FWK fireworks, and $2,995.00 in U.S. currency, which they believed to be proceeds of illegal activity from the person and presence, of a confidential source without lawful authority. In fact, the pyrotechnics and money stolen by the defendants was the property of the United States, with a combined value in excess of $1,000.
On or about June 15, 2017, defendants, Conde-Vellón, Rodríguez-García, Boyrie-Laboy, and Quermie Marquez-Rivera, while acting in their official capacity as PRPD officers and carrying firearms, made an unauthorized, forced entry into a residence located in the Calabazas Ward in Yabucoa, PR, which they believed to be the stash house location utilized by the purported illegal seller of stolen electronic equipment. The defendants searched the residence in order to locate and steal cash and property belonging to the purported illegal seller of electronic equipment. They found and stole two Samsung Tablets, and $6,350.00 in U.S. currency, which they believed to be proceeds of illegal activity from a confidential informant without lawful authority. In fact, the electronic equipment and money stolen by the defendants was the property of the United States, with a combined value in excess of $1,000.
In both instances, none of the defendants obtained, or attempted to obtain, a search warrant for the locations they entered to steal property and cash. After stealing the money and property, neither of the four defendants reported the search, the details of the detention, nor the seizure of the total amount of money and property to the PRPD. The defendants divided the proceeds of the robberies amongst themselves.
Assistant U.S. Attorney Marie Christine Amy is in charge of the prosecution of the case. If convicted the defendants face a sentence of up to 20 years in prison for the violation of 18 U.S.C. § 1951, up to 10 years in prison for the violation of 18 U.S.C. § 641, and up to 5 years in prison for the violation of 18 U.S.C. § 371. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Approximately Two Million Dollars Seized After Fugitive’s ArrestRead the Press Release
SAN JUAN, Puerto Rico – On August 20, 2020, Elvin O. Cruz-Verges, a/k/a “Mellao,” was arrested in a joint law enforcement operation by the FBI, Police of Puerto Rico San Juan Strike Force, and the U.S. Marshals, in the municipality of Aguas Buenas, PR. Defendant Cruz-Verges was a fugitive since February of 2019, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
After the arrest, law enforcement authorities requested a search warrant for a residence where the accused was living, and seized approximately two million dollars in cash, 88 kilograms of cocaine, 3.8 kilograms of heroin, and other items.
Defendant Cruz-Verges was a leader in the drug trafficking organization known as “Las FARC,” (Las Fuerzas Armadas Revolucionarias de Cantera). “Las FARC” operated out of Barrio Obrero Ward, including but not limited to El Guano sector, Playita sector, William Street, Eleven Street, Cantera sector, and the Public Housing Projects Villa Kennedy, Las Casas, El Mirador, and Las Margaritas, all located in Santurce, since in or about the year 2006. The goal of “Las FARC” was to maintain control of all the drug trafficking activities within the Santurce area by the use of force, threats, violence, and intimidation.
Cruz-Verges had been previously charged in a seven-count indictment for conspiracy to possess with intent to distribute narcotics, aiding and abetting in the possession and distribution of heroin, crack, cocaine, and marihuana, and possession of a firearm in furtherance of drug trafficking. The charged drug conspiracy included 75 defendants.
Assistant U.S. Attorneys Alberto López-Rocafort and Teresa S. Zapata-Valladares are in charge of the prosecution of the case. If convicted the defendant faces a minimum sentence of 15 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Puerto Rico Legislator and Two Capitol Employees Indicted for Theft and BriberyRead the Press Release
On Wednesday, a federal grand jury in the District of Puerto Rico returned an eight-count indictment against legislator Nelson Del Valle Colon (Del Valle Colon), a member of the Puerto Rico House of Representatives, as well as two of his employees, Nickolle Santos-Estrada (Santos) and her mother Mildred Estrada-Rojas (Estrada), for their alleged participation in a multi-year theft, bribery, and kickback conspiracy.
The indictment charges Del Valle Colon, Santos, and Estrada with conspiracy as well as theft, bribery, and kickbacks concerning programs receiving federal funds. Del Valle Colon is facing two additional counts of honest services wire fraud, and one count of obstruction of justice for destroying data on his cell phone.
According to the allegations in the indictment, in early 2017, Del Valle Colon fraudulently inflated the salaries of Santos, Estrada, and another individual for no legitimate reason, and corruptly agreed that out of their inflated paychecks, the employees would keep a portion for themselves and kick back the other portion, generally between approximately $500 and $2,000, to Del Valle Colon.
“Puerto Rico legislator Nelson Del Valle Colon and his employees allegedly embarked on a years-long conspiracy to enrich themselves by embezzling funds and using bribes and kickbacks to defraud the Commonwealth of Puerto Rico,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “As this case shows, the Department of Justice and our law enforcement partners are committed to holding elected officials accountable for corrupt conduct.”
“Public corruption destroys the trust we have in our elected officials, which is essential for democracy to thrive,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “In this case, the citizens of Puerto Rico were betrayed by legislator Del Valle Colon, an elected official who abused his position for personal gain, and who must be held accountable for violating one of the basic tenets of public trust, that is, serving his constituents with integrity and honesty. The U.S. Attorney’s Office, and our law enforcement partners, will continue to relentlessly investigate and prosecute anyone who tries to undermine our system of government.”
“As we have said numerous times, public corruption is and will continue to be a priority for the FBI,” said Special Agent in Charge Rafael Riviere of the FBI’s San Juan Field Office. “May today be a reminder that we will not tolerate corruption and we will act swiftly to remove those who would violate public trust. Special thanks to our DOJ partners for their support of our mission.”
The indictment further alleges that the defendants used a variety of means to transfer the kickbacks to Del Valle Colon. Allegedly, Santos, Estrada, and the other individual would sometimes transfer cash by hand to Del Valle Colon. The defendants would also sometimes transfer kickbacks in approximately $500 increments to Del Valle Colon using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones.
The honest services wire fraud counts against Del Valle Colon involve WhatsApp messages sent by Del Valle Colon that furthered the scheme to defraud and deprive the citizens and the government of the Commonwealth of Puerto Rico of their right to Del Valle Colon’s honest services.
The indictment also charges Del Valle Colon with obstruction of justice. After becoming aware of the investigation into illegal activities at his legislative office in or about July 2020, Del Valle Colon deleted data on his cell phone including communications between himself and Santos, and between himself and Estrada.
The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott Anderson from the U.S. Attorney’s Office for the District of Puerto Rico.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Puerto Rico Legislator and Two Capitol Employees Indicted for Theft and BriberyRead the Press Release
WASHINGTON – On Wednesday, a federal grand jury in the District of Puerto Rico returned an eight-count indictment against legislator Nelson Del Valle Colon (Del Valle), a member of the Puerto Rico House of Representatives, as well as two of his employees, Nickolle Santos-Estrada (Santos) and her mother Mildred Estrada-Rojas (Estrada), for their alleged participation in a multi-year theft, bribery, and kickback conspiracy.
The indictment charges Del Valle, Santos, and Estrada with conspiracy as well as theft, bribery, and kickbacks concerning programs receiving federal funds. Del Valle Colon is facing two additional counts of honest services wire fraud, and one count of obstruction of justice for destroying data on his cell phone.
According to the allegations in the indictment, in early 2017, Del Valle Colon fraudulently inflated the salaries of Santos, Estrada, and another individual for no legitimate reason, and corruptly agreed that out of their inflated paychecks, the defendants would keep a portion for themselves and kick back the other portion, generally between approximately $500 and $2,000, to Del Valle Colon.
“Puerto Rico legislator Nelson Del Valle Colon and his employees allegedly embarked on a years-long conspiracy to enrich themselves by embezzling funds and using bribes and kickbacks to defraud the Commonwealth of Puerto Rico,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “As this case shows, the Department of Justice and our law enforcement partners are committed to holding elected officials accountable for corrupt conduct.”
“Public corruption destroys the trust we have in our elected officials, which is essential for democracy to thrive,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “In this case, the citizens of Puerto Rico were betrayed by legislator Del Valle Colón, an elected official who abused his position for personal gain, and who must be held accountable for violating one of the basic tenets of public trust, that is, serving his constituents with integrity and honesty. The U.S. Attorney’s Office, and our law enforcement partners, will continue to relentlessly investigate and prosecute anyone who tries to undermine our system of government.”
“As we have said numerous times, public corruption is and will continue to be a priority for the FBI,” said Special Agent in Charge Rafael Riviere of the FBI’s San Juan Field Office. “May today be a reminder that we will not tolerate corruption and we will act swiftly to remove those who would violate public trust. Special thanks to our DoJ partners for their support of our mission.”
The indictment further alleges that the defendants used a variety of means to transfer the kickbacks to Del Valle Colon. Allegedly, Santos, Estrada, and the other individual would sometimes transfer cash by hand to Del Valle Colon. The defendants would also sometimes transfer kickbacks in approximately $500 increments to Del Valle Colon using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones.
The honest services wire fraud counts against Del Valle Colon involve WhatsApp messages sent by Del Valle Colon that furthered the scheme to defraud and deprive the citizens and the government of the Commonwealth of Puerto Rico of their right to Del Valle Colon’s honest services.
The indictment also charges Del Valle Colon with obstruction of justice. After becoming aware of the investigation into illegal activities at his legislative office in or about July 2020, Del Valle Colon deleted data on his cell phone including communications between himself and Santos, and between himself and Estrada.
The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott Anderson from the U.S. Attorney’s Office for the District of Puerto Rico.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Five Individuals Charged with Kidnapping, Murder, and Firearms OffensesRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, a federal grand jury in the District of Puerto Rico returned a second superseding indictment against five defendants charged with kidnapping resulting in murder and firearm offenses, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) is in charge of the investigation and is being assisted by the Puerto Rico Department of Public Safety, the Puerto Rico Police Department (PRPD) and the Bureau of Forensic Sciences.
The indictment alleges that on or about June 8, 2018, in the District of Puerto Rico, defendants Brian Díaz-Serrano, a/k/a “Retro”; Roberto Meléndez-Hiraldo, a/k/a “Cocodrilo”; Jairo Huertas-Mercado; Joshua Luyando-González; and Jadnel Flores-Nater, a/k/a “Potro”, aiding and abetting each other, kidnapped W.G.E. and shot him multiple times with multiple firearms resulting in his death. The kidnapping occurred in the Diego Zalduondo Public Housing Project in Luquillo. The victim was then transported by vehicle to Carruzo Ward, in Carolina, where he was killed. In furtherance of the commission of the kidnapping, the defendants used two vehicles, a Toyota RAV4 Sports Utility Vehicle and a Toyota Camry, each vehicle being a means, facility, and instrumentality of interstate or foreign commerce. The second superseding indictment added defendants Luyando-González and Flores-Nater to the previously charged indictment.
The indictment includes one count for kidnapping and two counts relating to using, carrying, brandishing, and discharging a firearm during a crime of violence that resulted in the death of W.G.E.
Assistant U.S. Attorney David T. Henek of the District of Puerto Rico is in charge of the prosecution of the case. If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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22 Year Old Man Indicted and Arrested on Charges of Child PornographyRead the Press Release
SAN JUAN, P.R. – Francisco Xavier Ortiz-Colón, a private security guard, was indicted and arrested for production of child pornography, coercion and enticement of a minor, and receipt of child pornography, following a U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and a Puerto Rico Crimes Against Children Task Force (PRCACTF) investigation, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow.
On August 19, 2020, a federal grand jury returned an indictment charging Ortiz-Colón with 13 counts of child exploitation. Today, HSI special agents arrested Ortiz-Colón at his place of residence.
The indictment charges Ortiz-Colón with one count each of possession and receipt of child pornography and five counts each of production of child pornography and coercion and enticement of a minor. The charging document alleges that from August 2019 through June 2020, Ortiz-Colón, at different dates, induced, enticed and coerced six female victims, ranging from nine (9) to fourteen (14) years of age, to engage in sexually explicit conduct for the purpose of producing child pornography. Ortiz-Colon used an Instagram account to commit these crimes.
“The production of child sexual abuse material is a horrific crime that can negatively affect victims for their entire lives,” said U.S. Attorney Muldrow. “I am thankful to those who stopped this defendant from committing further crimes. The U.S. Attorney’s Office, and our law enforcement partners, are committed to aggressively investigating and prosecuting these crimes.”
“This case has to be one of the most aberrant child exploitation cases investigated by HSI San Juan in terms of the charges filed against the individual as well as his modus operandi,” said Ivan J. Arvelo, Special Agent in Charge for HSI San Juan and U.S. Virgin Islands. “This man told one of his victims “they (referring to law enforcement) will never catch me,” – he was caught and now faces a long time in jail if found guilty in a court of law.”
Assistant U.S. Attorney Jenifer Y. Hernández-Vega, Project Safe Childhood Coordinator in the Child Exploitation and Immigration Unit, is in charge of the prosecution of the case. If convicted, the defendant faces a mandatory minimum sentence of fifteen (15) years’ imprisonment, and a statutory maximum sentence of 30 years’ incarceration for the production of child pornography counts; a mandatory minimum sentence of ten (10) years’ imprisonment and a maximum penalty of life for the coercion and enticement of a minor counts; and a statutory maximum of twenty (20) years’ imprisonment for the receipt and possession of child pornography counts.
This investigation was conducted under HSI’s Operation Predator, an international initiative to protect children from sexual predators. Since the launch of Operation Predator in 2003, HSI has arrested more than 25,000 individuals for crimes against children, including the production and distribution of online child exploitation material, traveling overseas for sex with minors, and sex trafficking of children. In fiscal year 2019, more than 3,500 child predators were arrested by HSI special agents under this initiative and more than 1,000 victims identified or rescued.
For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page. HSI is a founding member of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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17 Individuals Charged with Drug Trafficking in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment against 17 defendants charged with conspiracy to possess with intent to distribute controlled substances, and aiding and abetting in the possession with intent to distribute crack (cocaine base), announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA), and the Puerto Rico Police Department (PRPD), Ponce Strike Force.
The indictment alleges that since the year 2012, and continuing up to January 2019, the drug trafficking organization distributed crack in the municipalities of Cabo Rojo, Mayagüez, and Hormigueros, PR, all for financial gain and profit. The 17 defendants acted in different roles in order to further the goals of their organization, to wit: one leader, two runners, and 14 delivery persons.
As part of the conspiracy, the members of the drug trafficking gang delivered crack to their clients. Customers would call a designated number, provide the amount of crack they wanted and their address, and the crack was delivered to them. The drug trafficking organization employed delivery persons, provided them the crack, a cell phone, and a rental car to deliver the crack. At the end of the shift, the delivery persons would pass along the cell phone and the rental car to the next delivery person on-call. The delivery service operated seven days a week, twenty-four hours a day.
The defendants indicted are: Christian Pérez-Rivera, a.k.a. “Alborata/Jefe/Buster/Boss”; Emilio Lamboy-Perdomo; Juan Carlos Colón-Méndez, a.k.a. “Jordan”; Reynaldo Sáez-Rivera, a.k.a. “Reynito”; Sean Magnum Acarón-Ramos, a.k.a. “Magnum”; Jean Carlos Pagán-Valentín, a.k.a. “Manolo”; Zell Benedict Martínez-Ruiz; Milaiza Nichelle Martiz-Cardona, a.k.a. “Mila/Prieta”; David Vélez-Bonet; Ruz Vanessa Vargas-Ramírez; Jaime Sánchez-Bravo, a.k.a. “Jaimito”; Marleen Ruiz-López; Alexis Mercado-García, a.k.a. “Gemelo”; Emmanuel Estrada-Pagán, a.k.a. “Manuel”; Ediel Cima De Villa-Moreau, a.k.a. “Kiko”; Jeanette Rivera-Cordero, a.k.a. “Jeanie”; and Jhosean Humberto Aquaron-Rivera, a.k.a. “Coco”.
“I am grateful for the tireless efforts of the investigators and prosecutors who have dismantled this drug trafficking organization with today’s arrests,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We will continue to investigate these criminal organizations with our law enforcement counterparts, and send a clear message that drugs trafficking will not be tolerated in our neighborhoods.”
DEA Caribbean Division Special Agent in Charge A.J. Collazo stated that “The world pandemic hasn’t stopped drug trafficking; hasn’t stopped all the violence linked to it. Especially during these hard times, we are more committed than ever to work on making our Island a safer place to live, stay healthy and thrive. The execution of our mission has no space to rest, no time to stay home. Criminal organizations may think they know better, but sooner or later, we’ll bring them to justice.”
Assistant U.S. Attorney Marc Chattah is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Puerto Rico Legislator Indicted for Theft, Bribery, and FraudRead the Press Release
A federal grand jury in the District of Puerto Rico returned a 13-count indictment against legislator María Milagros Charbonier-Laureano (Charbonier), aka “Tata,” a member of the Puerto Rico House of Representatives, as well as her husband Orlando Montes-Rivera (Montes), their son Orlando Gabriel Montes-Charbonier, and her assistant Frances Acevedo-Ceballos (Acevedo), for their alleged participation in a years-long theft, bribery, and kickback conspiracy.
The indictment charges Charbonier, Montes, Montes-Charbonier, and Acevedo with conspiracy; theft, bribery, and kickbacks concerning programs receiving federal funds; and honest services wire fraud. Charbonier, Montes, and Montes-Charbonier are facing two counts of money laundering. The indictment also charges Charbonier with obstruction of justice for destroying data on her cell phone.
According to the allegations in the indictment, from early 2017 until July 2020, Charbonier, Montes, Montes-Charbonier, and Acevedo executed a scheme to defraud the Commonwealth of Puerto Rico by engaging in a theft, bribery, and kickback scheme. In early 2017, Charbonier inflated her assistant Acevedo’s salary from $800 on a bi-weekly, after-tax basis to $2,100; this amount increased to nearly $2,900 by September 2019. Out of every inflated paycheck, it was agreed that Acevedo would keep a portion, and kick back between $1,000 and $1,500 to Charbonier, Montes, and Montes-Charbonier.
“Puerto Rico legislator María Milagros Charbonier-Laureano, her family, and her associates allegedly carried out a brazen scheme to defraud the Commonwealth of Puerto Rico through bribery, kickbacks, theft, and fraud,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “When elected officials betray the people's trust in order to enrich themselves at the public’s expense, the Justice Department will hold them accountable.”
“I encourage those who have information of public officials involved in criminal acts to come forward. We will continue investigating and prosecuting elected officials whose criminal conduct enriches themselves at the expense of the government and their constituents,” said U.S. Attorney Muldrow for the District of Puerto Rico. “I commend our partners from the FBI for their tremendous efforts investigating this matter, particularly during the pandemic. I would also like to recognize the Public Integrity Section attorneys who supported this investigation and traveled to Puerto Rico in order to work with our District to present this case to the Grand Jury.”
“Most of the work we do takes place behind the scenes. Quality investigative work requires time and patience,” said Special Agent in Charge Rafael Riviere Vázquez of the FBI’s San Juan Field Office. “It is my hope that the people of Puerto Rico never doubt that we are doing the work that we have been entrusted to do. Public Corruption is FBI San Juan's priority and it will continue to be a priority. Puerto Rico belongs to each and every one of us, and together we can take it back.”
The indictment further alleges that the defendants used a variety of means to transfer the kickbacks from Acevedo to Charbonier and her family. Allegedly, Acevedo would sometimes transfer cash by hand to Montes, Montes-Charbonier, and other individuals connected to Charbonier; Acevedo would sometimes transfer kickbacks in approximately $500 increments to Montes or to Montes-Charbonier using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones; and, at times, Acevedo left cash kickbacks in a pre-determined location, such as Charbonier’s purse or inside of a vehicle, for Charbonier to later collect.
The money laundering counts against Charbonier, her husband and son involve the secretive maneuvers that the Charbonier family used to move their illegally derived cash among themselves in a manner designed to conceal and disguise the nature, location, source, ownership, and control of that cash.
The indictment also charges Charbonier with obstruction of justice. After learning of the existence of the investigation into illegal activities in her office and after learning that a warrant had been obtained for one of her phones, Charbonier allegedly proceeded to delete certain data on the phone. In particular, Charbonier deleted nearly the entire call log, nearly all WhatsApp messages, and nearly all iMessages associated with this phone, the indictment alleges.
The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney María L. Montañez Concepción from the U.S. Attorney’s Office for the District of Puerto Rico.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Puerto Rico Legislator Indicted for Theft, Bribery, and FraudRead the Press Release
WASHINGTON – A federal grand jury in the District of Puerto Rico returned a 13-count indictment against legislator María Milagros Charbonier-Laureano (Charbonier), aka “Tata,” a member of the Puerto Rico House of Representatives, as well as her husband Orlando Montes-Rivera (Montes), their son Orlando Gabriel Montes-Charbonier, and her assistant Frances Acevedo-Ceballos (Acevedo), for their alleged participation in a years-long theft, bribery, and kickback conspiracy.
The indictment charges Charbonier, Montes, Montes-Charbonier, and Acevedo with conspiracy; theft, bribery, and kickbacks concerning programs receiving federal funds; and honest services wire fraud. Charbonier, Montes, and Montes-Charbonier are facing two counts of money laundering. The indictment also charges Charbonier with obstruction of justice for destroying data on her cell phone.
According to the allegations in the indictment, from early 2017 until July 2020, Charbonier, Montes, Montes-Charbonier, and Acevedo executed a scheme to defraud the Commonwealth of Puerto Rico by engaging in a theft, bribery, and kickback scheme. In early 2017, Charbonier inflated her assistant Acevedo’s salary from $800 on a bi-weekly, after-tax basis to $2,100; this amount increased to nearly $2,900 by September 2019. Out of every inflated paycheck, it was agreed that Acevedo would keep a portion, and kick back between $1,000 and $1,500 to Charbonier, Montes, and Montes-Charbonier.
“Puerto Rico legislator María Milagros Charbonier-Laureano, her family, and her associates allegedly carried out a brazen scheme to defraud the Commonwealth of Puerto Rico through bribery, kickbacks, theft, and fraud,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “When elected officials betray the people's trust in order to enrich themselves at the public’s expense, the Justice Department will hold them accountable.”
“I encourage those who have information of public officials involved in criminal acts to come forward. We will continue investigating and prosecuting elected officials whose criminal conduct enriches themselves at the expense of the government and their constituents,” said U.S. Attorney Muldrow for the District of Puerto Rico. “I commend our partners from the FBI for their tremendous efforts investigating this matter, particularly during the pandemic. I would also like to recognize the Public Integrity Section attorneys who supported this investigation and traveled to Puerto Rico in order to work with our District to present this case to the Grand Jury.”
“Most of the work we do takes place behind the scenes. Quality investigative work requires time and patience,” said Special Agent in Charge Rafael Riviere Vázquez of the FBI’s San Juan Field Office. “It is my hope that the people of Puerto Rico never doubt that we are doing the work that we have been entrusted to do. Public Corruption is FBI San Juan's priority and it will continue to be a priority. Puerto Rico belongs to each and every one of us, and together we can take it back.”
The indictment further alleges that the defendants used a variety of means to transfer the kickbacks from Acevedo to Charbonier and her family. Allegedly, Acevedo would sometimes transfer cash by hand to Montes, Montes-Charbonier, and other individuals connected to Charbonier; Acevedo would sometimes transfer kickbacks in approximately $500 increments to Montes or to Montes-Charbonier using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones; and, at times, Acevedo left cash kickbacks in a pre-determined location, such as Charbonier’s purse or inside of a vehicle, for Charbonier to later collect.
The money laundering counts against Charbonier, her husband and son involve the secretive maneuvers that the Charbonier family used to move their illegally derived cash among themselves in a manner designed to conceal and disguise the nature, location, source, ownership, and control of that cash.
The indictment also charges Charbonier with obstruction of justice. After learning of the existence of the investigation into illegal activities in her office and after learning that a warrant had been obtained for one of her phones, Charbonier allegedly proceeded to delete certain data on the phone. In particular, Charbonier deleted nearly the entire call log, nearly all WhatsApp messages, and nearly all iMessages associated with this phone, the indictment alleges.
The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney María L. Montañez Concepción from the U.S. Attorney’s Office for the District of Puerto Rico.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Río Grande Man Sentenced to 17 Years in Prison for Production of Child PornographyRead the Press Release
SAN JUAN, P.R. – United States District Court Chief Judge Gustavo A. Gelpí sentenced Enrique Sánchez Hernández to 210 months (17 years and six months) in prison followed by a supervised release term of 30 years for Production of Child Pornography, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
On November 20, 2019, Sánchez Hernández pleaded guilty to the sole count in the indictment, one count of Production of Child Pornography. According to the government’s evidence, Sánchez Hernández had made a recording of his sexual abuse of an 8 year-old minor, utilizing his cellular phone. A civilian discovered the recording in June of 2018, when the abandoned phone was found in Río Grande, Puerto Rico. Police of Puerto Rico referred the case to Homeland Security Investigations (HSI) agents, who were able to identify Mr. Sánchez Hernández from the video and arrested him shortly thereafter.
“The U.S. Attorney’s Office for the District of Puerto Rico will continue to protect and defend our children from those who seek to prey upon them and steal their innocence,” said U.S. Attorney W. Stephen Muldrow. “We will continue to work with our law enforcement partners to investigate and prosecute these crimes, using all available resources to ensure that additional vulnerable victims aren’t abused.”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.
The Department of Homeland Security was in charge of the investigation of the case and the criminal prosecution was handled by Assistant U.S. Attorney Nicholas W. Cannon.
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Rafael Pina-Nieves Indicted for Firearms ViolationsRead the Press Release
SAN JUAN, Puerto Rico – Today, a federal grand jury returned an indictment charging Rafael Pina-Nieves, a convicted felon and person prohibited from possessing or carrying firearms, with firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation, were in charge of the investigation of the case.
According to the indictment, on or about April 1, 2020, in the District of Puerto Rico, defendant Rafael Pina-Nieves, knowing that he had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed: one Glock pistol, Model 19, 9mm caliber; one Smith & Wesson, Model SD40, .40 caliber, and 526 total rounds of live ammunition, including 148 rounds of .40 caliber handgun ammunition, 123 rounds of .357 caliber handgun ammunition, 3 rounds of .45 caliber handgun ammunition, 170 rounds of .25 caliber handgun ammunition, 3 rounds of 5.7 caliber handgun ammunition, 35 rounds of 7.62 caliber rifle ammunition, 18 rounds of 7.92 caliber rifle ammunition, 1 round of 12 gauge shotgun ammunition, and 25 rounds of 9mm caliber handgun ammunition.
The Glock pistol, Model 19, 9mm caliber possessed by Pina-Nieves was a machine gun, as it was modified to shoot more than one shot, without manual reloading, by a single function of the trigger.
Pina-Nieves has agreed that he shall surrender to federal authorities in Puerto Rico on August 14, 2020.
Assistant U.S. Attorney Edward G. Veronda is in charge of the prosecution of the case. If convicted, the defendant faces up to 10 years’ imprisonment for each count.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Supplier to Puerto Rican Aquarium Business Pleads Guilty to Two Lacey Act Felonies for Illicit Trafficking of Protected Reef CreaturesRead the Press Release
A resident of Juncos, Puerto Rico, pleaded guilty today to two felony violations of the Lacey Act for collecting, falsely labeling, and shipping protected marine invertebrate species as part of an effort to subvert Puerto Rican law designed to protect corals and other reef species, the Department of Justice announced.
In 2015 and 2016, Juan Pablo Castro-Torres, aka Paoly, supplied marine invertebrates, such as Ricordea, to an Arecibo-based aquarium store known as “Wonders of the Reef.” The business would sell these coral-like organisms to customers in the mainland United States and foreign countries for use in high-end saltwater aquariums, even though it is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are going to be sent off-island or otherwise sold commercially. Castro-Torres personally collected many of the Ricordea and other reef creatures that were sold off-island. Because Ricordea are attached to the reef substrate, the defendant would utilize a chisel to break off the animals, and in doing so, take chunks of the reef with him, which caused habitat damage in addition to removing the individual creatures.
The Arecibo store was run by Aristides Sanchez. Castro-Torres began supplying Sanchez’s business with Ricordea after Puerto Rican law enforcement seized one of Sanchez’s illegal shipments of marine invertebrates in March 2015. Sanchez pleaded guilty to related Lacey Act violations in August 2017 and is awaiting sentencing.
In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, Castro-Torres also falsely labeled live shipments as inanimate objects. While there is some variation in the price of Ricordea depending on coloration, size, and other factors, Castro-Torres admitted that the value of the illegal marine life directly attributable to him was worth approximately $15,000.
Castro-Torres will be sentenced at a later date.
This case was investigated as part of Operation Rock Bottom and Operation Borinquen Chisel by Special Agents of the U.S. Fish and Wildlife Service (USFWS) and the National Oceanic and Atmospheric Administration with support from the USFWS Inspectors. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section along with Assistant U.S. Attorney Carmen Marquez of the U.S. Attorney’s Office for the District of Puerto Rico.
Woman Indicted and Arrested for Bank FraudRead the Press Release
SAN JUAN, P.R. - On July 10, FBI agents arrested Ana Luisa Martín-Alfaro who is facing 34 counts of bank fraud, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow. The Federal Bureau of Investigation was in charge of the investigation of the case.
The indictment alleges that, starting in or around the year 2013, defendant Martín-Alfaro did knowingly and with intent to defraud, devise a scheme and artifice to obtain monies under the custody and control of Banco Popular, Santander Bank, FirstBank Puerto Rico, TD Bank, Oriental Bank, and USAA Federal Savings Bank, all financial institutions whose deposits were insured by the Federal Deposit Insurance Corporation, by means of materially false and fraudulent pretenses, representations and promises, and by omission of material facts. Martin-Alfaro materially misrepresented the purpose of payments and required monies be paid by various clients through their financial institutions to corporate accounts she controlled.
Martín-Alfaro promoted herself as someone who could assist individuals, entities, or non-profit organizations to navigate the process of securing federal grants to build assisted-living facilities and low-income housing in Puerto Rico. She falsely represented to potential clients that she was certified by federal government agencies to receive filing fees and disbursements required to complete grant applications and she would deposit these payments in accounts belonging to organizations under her custody and control, such as “Federal Funds Organization, Inc.,” “International Federal Faith Based Consultants” and “Educational Service Corp.,” “Federal Consulting Service Corp.,” and “Community Helpers, Inc.”
The defendant falsely represented to potential clients the fact that these organizations were not associated with her. She also made the following material omissions to potential clients who were unaware that: these organizations were created by her; that she had sole custody and control of the bank accounts belonging to these organizations; and that she would use these funds for transactions unrelated to the grant writing process.
Defendant Martín-Alfaro falsely represented that funds were deposited in federal government accounts, that the accounts that she had access to were audited by the federal government, and that the funds were to be used exclusively for the grant application process. Instead, Martín-Alfaro used funds from clients to support her personal lifestyle. She withdrew cash, and spent it on retail, food, travel, entertainment, and auto expenses. She also used funds from clients to promote and perpetuate the scheme to defraud by paying for office expenses, utilities, and a limited amount for project expenses to deceive her clients into believing that the grant application process would be ultimately successful.
Martín-Alfaro is facing a forfeiture allegation of $779,135.00. If convicted, Martín-Alfaro could face a maximum penalty of 30 years of imprisonment and a fine of $1,000,000. Assistant U.S. Attorney Edward G. Veronda is in charge of the prosecution of the case.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Puerto Rico U.S. Attorney’s Office and IRS-Criminal Investigation Remind Taxpayers of Upcoming Tax Filing Deadline; Urge Taxpayers to Remain Vigilant of ScamsRead the Press Release
SAN JUAN, PUERTO RICO – U.S. Attorney W. Stephen Muldrow and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement today in an effort to remind taxpayers of the July 15 filing and payment deadline and warned against an increase in tax and COVID-19 scams.
Due to COVID-19, the original filing deadline and tax payment due date for 2019 was postponed from April 15 to July 15. Taxpayers filing Form 1040 series returns must file Form 4868 by July 15 to obtain the automatic extension to Oct. 15.
Although the extension provides additional time to file the tax return – it is not an extension to pay any taxes due. For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the July 15 deadline.
As the filing deadline approaches, taxpayers should beware of tax and COVID-19 related scams. “We continue to work with our law enforcement partners to investigate and bring to justice those who exploit the ongoing public health crisis in order to enrich themselves. I urge citizens to remain vigilant and to be skeptical of any telephone calls, e-mails, or websites that request personal information or banking information, while promising money or services that seem too good to be true,” said U.S. Attorney W. Stephen Muldrow.
“Taxpayers should remain vigilant in the handling of their personal and financial information as criminals use this as an opportunity to take advantage of vulnerabilities,” said Michael J. De Palma, Special Agent in Charge of the IRS Criminal Investigation division in Florida. “IRS-CI will continue to pursue these crimes and the perpetrators will be brought to justice.”
In the last few months, the IRS Criminal Investigation division (CI) has continued to see a tremendous increase in a variety of Economic Impact Payment scams and other financial schemes. CI continues to work with its law enforcement partners to put a stop to these schemes and bring criminals to justice.
Taxpayers can report COVID-19 scams to the National Center for Disaster Fraud. Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Unsolicited (phishing) e-mails that appear to be from the IRS should be forwarded to [email protected].
For the most up-to-date information about the tax filing deadline and IRS impersonation scams, taxpayers can visit IRS.gov.
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Individual Sentenced for Drug Trafficking at Villa Envangelina Public Housing Project in ManatíRead the Press Release
SAN JUAN, Puerto Rico – Today, U.S. District Court Judge Raúl M. Arias-Marxuach sentenced Juan Laureano-Miranda, a.k.a. “Juanchy” to 78 months imprisonment and 72 months of supervised release for his involvement in a drug trafficking conspiracy, announced United States Attorney W. Stephen Muldrow. Immigration and Customs Enforcement Homeland Security Investigations was in charge of the investigation, with the collaboration of and the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Puerto Rico Police Department, Arecibo Strike Force, and the Puerto Rico Bureau of Special Investigations.
On July 17, 2019, a federal grand jury in the District of Puerto Rico returned an indictment against 14 defendants for firearms and drug trafficking violations. Eleven other defendants already pleaded guilty and are awaiting sentencing, while two other defendants are pending trial.
On January 24, 2020, Laureano-Miranda had pled guilty to possessing firearms in furtherance of a drug trafficking crime and possessing with the intent to distribute crack cocaine. As noted above, the charged drug conspiracy included 14 defendants, who all possessed multiple firearms, in furtherance of the distribution of heroin, crack cocaine, cocaine, and marihuana at the Villa Evangelina Public Housing Project in Manatí, Puerto Rico. During their investigation, Homeland Security Investigations obtained surveillance video of the 14 defendants openly carrying multiple types of firearms, including high-capacity rifles and pistols, to take control over the public housing project and distribute narcotics in front of children and families. Assistant U.S. Attorney David T. Henek was in charge of the prosecution of the case and was assisted by Assistant U.S. Attorney Richard T. Passanisi.
This case is part of Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated in 2017, as part of the Department’s renewed focus on targeting each community’s most violent criminals. All U.S. Attorney’s Offices work in partnership with federal, state, and local law enforcement, as well as the local civilian community, to develop effective, targeted strategies to reduce violent crime. This case is a product of that collaborative effort.
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Government Reaches One Million Dollar Settlement in Healthcare Fraud MatterRead the Press Release
SAN JUAN, Puerto Rico – On Wednesday, July 1, 2020, the U.S. District Court entered a civil Consent Judgment against defendants William J. Cruz and Medscan, P.S.C. whereby the defendants agreed to pay one million dollars to the United States resulting from an investigation conducted by the Department of Health and Human Services, Office of Inspector General and the FBI, announced U.S. Attorney for the District of Puerto Rico, W. Stephen Muldrow.
The Consent Judgment follows the U.S. Attorney’s Office’s filing of a civil complaint in the United States District Court under the False Claims Act against Dr. William Cruz and Medscan, P.S.C. for allegations that the defendants submitted false claims to Medicare at times in which Dr. William Cruz’ Medicare billing privileges had been revoked. The False Claims Act allows the United States, in cases such as this, to obtain significant monetary recoveries in the form of restitution and penalties, while serving as a strong deterrent against fraud.
“This case underscores the collaborative efforts employed by the U.S. Attorney’s Office, in coordination with HHS-OIG and the FBI to hold corporate entities and individuals accountable and to protect the integrity of federal healthcare programs, specifically Medicare funds,” said U.S. Attorney Muldrow. “Our office will continue to investigate healthcare fraud matters, and will aggressively pursue those who attempt to defraud the United States.”
“The safeguarding of Medicare and Medicaid funds against fraud, waste, and abuse will continue to be a top priority of our agency,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Regional Office (HHS-OIG). “HHS-OIG and its law enforcement partners will continue to aggressively pursue those providers who submit false claims to taxpayer funded federal health care programs.”
“The FBI will work tirelessly and diligently with our partners to bring justice and reparations to those who have been wronged. Today’s results exemplify that ideal”, said Special Agent In-Charge of the Federal Bureau of Investigations (FBI) San Juan Field Office, Rafael A. Riviere Vázquez. President Harry S. Truman best described it when he said, “It is amazing what you can accomplish if you do not care who gets the credit.” SAC Riviere Vázquez also recognized and thanked its partners from our the USAO-PR and HHS-OIG, who worked hand in hand to bring this case to fruition, and reiterate FBI’s commitment to the collective effort in the fight against Fraud.
This case was prosecuted by Assistant U.S. Attorney Rafael J. López Rivera, Civil Health Care Fraud Coordinator, at the U.S. Attorney’s Office, in conjunction with HHS-OIG and the FBI.
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United States Attorney’s Office Indicts 6 Cases and 9 DefendantsRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned six indictments charging nine defendants during the past week. The indictments include charges of drug trafficking, sexual exploitation of minors, firearms offenses, obstruction of justice, and carjacking, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
The following defendants were indicted:
- Willmer Dimitri Escalona-Reid, Darwin Nemecio Britton-Humphries, and Richard Bernard were charged with conspiring to possess with intent to distribute five kilograms or more of cocaine aboard a vessel subject to U.S. jurisdiction. The three were on board a vessel identified and stopped in international waters between the Dominican Republic and Puerto Rico by a joint U.S. Coast Guard/Customs and Border Protection Office of Air and Marine team on June 9, 2020. In the early stage of the pursuit, officers reported seeing packages on the vessel’s deck; Coast Guard personnel subsequently recovered approximately 150 kilograms of a substance that field tested positive for cocaine from the waters nearby. Defendants could face up to life in prison. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) is in charge of the investigation of the case. Special Assistant United States Attorney Seth Tremble is in charge of the prosecution of the case.
This case is part of the Organized Crime Drug Enforcement Task Force (OCDETF) program and the Caribbean Corridor Strike Force (CCSF). The CCSF is a multi-agency OCDETF strike force comprised of federal and state law enforcement agencies, including the Drug Enforcement Administration (DEA), Department of Homeland Security, Immigration and Customs Enforcement (ICE), Federal Bureau of Investigation (FBI), United States Coast Guard, U.S. Marshals Service, Internal Revenue Service, and the Puerto Rico Department of Public Safety. - Isaac Lasalle Hernández was indicted and arrested for attempted coercion and enticement of a minor, attempted transfer of obscene material to a minor, distribution of child pornography, and possession of child pornography. The defendant attempted to engage in sexual activity with someone he believed to be a 13 year-old minor. If found guilty, Lasalle Hernández is facing a minimum of 10 years and up to life in prison. The FBI was in charge of the investigation of the case. Assistant U.S. Attorney Jenifer Y. Hernández-Vega is in charge of the prosecution of the case.
- Jeremi Martínez-León, a convicted felon serving a federal term of supervised release, was indicted on charges of being a felon in possession of a firearm. He was driving an All Terrain Vehicle in Cayey while carrying a loaded firearm. He faces a maximum penalty of 10 years and the revocation of his supervised release term. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was in charge of the investigation. Assistant U.S. Attorney Jeanette Collazo is in charge of the prosecution of the case.
- Cristian Ortiz-De La Rosa and Modesto Espinal-Luis were charged with possession with intent to distribute controlled substances. Ortiz-De La Rosa and Espinal-Luis were driving a vehicle that was towing a boat. When officers stopped the vehicle for a traffic infraction they asked for permission to search the boat. During the search of the boat law enforcement discovered approximately 110 kilograms of cocaine. Both defendants are currently detained pending trial. The DEA was in charge of the investigation of the case. The defendants are facing a minimum of 10 years and up to life in prison. Assistant U.S. Attorney John Hutchins is in charge of the prosecution of the case.
- Wilfred Lozada-Chévere was indicted on charges of carjacking and use of a firearm during the commission of a violent crime. On December 26, 2019 the defendant committed a carjacking at La Placita in Santurce using a firearm. If found guilty Lozada-Chévere is facing a minimum of seven years and up to life imprisonment for the carjacking charge; and 15 years of imprisonment for the firearms violation. The FBI was in charge of the investigation of the case. Special Assistant U.S. Attorney Obdulio Meléndez is in charge of the prosecution of the case.
“The U.S. Attorney’s Office remains steadfastly committed to prosecuting those who violate federal law and affect our communities,” said U.S. Attorney Muldrow. “We look forward to continuing our work with state and federal law enforcement partners to ensure that we comply with our public safety mission, notwithstanding the current COVID-19 pandemic.”
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty beyond a reasonable doubt.
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- Willmer Dimitri Escalona-Reid, Darwin Nemecio Britton-Humphries, and Richard Bernard were charged with conspiring to possess with intent to distribute five kilograms or more of cocaine aboard a vessel subject to U.S. jurisdiction. The three were on board a vessel identified and stopped in international waters between the Dominican Republic and Puerto Rico by a joint U.S. Coast Guard/Customs and Border Protection Office of Air and Marine team on June 9, 2020. In the early stage of the pursuit, officers reported seeing packages on the vessel’s deck; Coast Guard personnel subsequently recovered approximately 150 kilograms of a substance that field tested positive for cocaine from the waters nearby. Defendants could face up to life in prison. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) is in charge of the investigation of the case. Special Assistant United States Attorney Seth Tremble is in charge of the prosecution of the case.
Three Individuals Indicted & Arrested for Health Care FraudRead the Press Release
SAN JUAN, Puerto Rico – On June 17, 2020, a Federal Grand Jury in the District of Puerto Rico returned a 43-count indictment charging Sophia Piñeiro-Ruscalleda, Dr. Alice Ruscalleda-Lebrón and Juan José Ruscalleda, former officials of New Health Med Group, Inc. (NHMG), with health care fraud, aggravated identity theft, conspiracy to commit health care fraud and obstruction of a criminal investigation related to health care offenses. The defendants were arrested today, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Office of Inspector General for the United States Department of Health and Human Services (HHS-OIG) was in charge of the investigation. The indictment was unsealed today upon the arrest of the three defendants by HHS-OIG agents.
According to the indictment, from in or about July 2015 through in or about March 2017, Sophia Piñeiro-Ruscalleda, Dr. Alice Ruscalleda-Lebrón and Juan José Ruscalleda enriched themselves by submitting or causing to be submitted false and fraudulent claims to the Medicare program. The claims submitted by the defendants were for services purportedly rendered by various providers on behalf of NHMG, when said providers did not render any such services and never worked for NHMG on the dates of service listed on the claims submitted.
Defendants submitted and/or caused to be submitted to Medicare a total of 2,711 claims using various rendering providers’ identifiers totaling $194,960. The defendants are facing a health care fraud forfeiture allegation of $85,422, which constitutes the amount of money Medicare paid the defendants.
“Defrauding the Medicare program by submitting false claims will not be tolerated and we will continue to work with our law enforcement partners to hold those responsible for their criminal actions,” said U.S. Attorney Muldrow. “Medical professionals who steal federal health care funds divert scarce resources that are needed to deliver essential services to beneficiaries. This case demonstrates our resolve in attacking fraud and restoring confidence in federal programs intended to benefit the citizens of Puerto Rico.”
If found guilty, the defendants face maximum sentences of: (a) up to ten years in prison for charges relating to health care fraud and conspiracy to commit health care fraud; (b) up to five years’ imprisonment for the obstruction of a criminal investigation related to health care offenses; and (c) a mandatory two-year consecutive term in prison for aggravated identity theft.
The case was investigated by the HHS-OIG and was prosecuted by Assistant U.S. Attorney José Ruiz Santiago, Criminal Health Care Fraud Coordinator at the United States Attorney’s Office.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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