District of Puerto Rico
Press releases recorded for this federal judicial district.
Us Postal Inspection Service Arrests Individual for Theft of Four Generators from the Us Postal ServiceRead the Press Release
SAN JUAN, Puerto Rico – United States Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint against Christian Joel Encarnación-Sandoval, charging him with theft of mail, said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The U.S. Postal Inspection Service in charge of the investigation.
According to the criminal complaint, on October 7, 2017 Postal Inspectors where informed by Postal Management that at Cargo Force (a facility at San Juan Airport that unloads US mail from incoming planes) an individual, later identified as Encarnación-Sandoval was found to be in possession of four power generators stolen from the mail stream.
Postal Inspectors were notified that there was suspicious activity in the loading dock. When the officials arrived, found Encarnación-Sandoval shirtless, acting suspiciously and with nervous behavior. The officials observed one generator on the front passenger of the defendant’s car and two generators on the rear passenger seat of the vehicle. The generators were in sealed boxes that had US Postage Validated Imprint indicating that they are US mail. There was another parcel containing a generator in the trunk of the car.
If convicted defendant faces up to five years of imprisonment and a $250,000 fine, as well as a period of supervised release of not more than three years. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty. Assistant U.S. Attorney Marc S. Chattah has been assigned to prosecute this case.
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Diplomatic Security Services Arrests Individual for Impersonating a Federal Officer at the International Luis Muñoz Marin AirportRead the Press Release
On Thursday, The U.S. Attorney’s Office for the District of Puerto Rico announced the formation of a Task Force that will be working against fraud related to Hurricane Irma recovery efforts and the following day they announced what appears to be the first case in the District of Puerto Rico related to Hurricane Irma’s relief efforts.
U.S. Magistrate Judge Camille Vélez-Rivé authorized a criminal complaint against Philip Freed, charging him with impersonation of a federal law enforcement officer, entering an airport in violation of security requirements and false statements. The U.S. State Department, Diplomatic Security Services (DSS), with the collaboration of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the U.S. Department of Health and Human Services are in charge of the investigation.
According to the criminal complaint, on Sept. 12, Philip Freed falsely pretended to be a law enforcement officer acting under the authority of the United States. Freed gained access to a federally restricted area of the Puerto Rico Airport and made materially false, fictitious, or fraudulent statements or representations to DSS special agents during the course of the investigation, all while portraying to be a federal law enforcement officer helping with Hurricane Irma’s relief efforts.
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office to investigate this crime,” said Resident Agent in Charge Richard Hays of the DSS San Juan Resident Office. “Impersonating a federal law enforcement officer while our nation reels from the recent natural disasters is especially concerning. Our special agents – many of whom still do not have power in their homes – showed exceptional professionalism and dedication as they pursued this case.”
If convicted, Freed faces up to three years of in prison. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty. Assistant U.S. Attorney Marc S. Chattah has been assigned to prosecute this case.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud.
Diplomatic Security Services Arrests Individual for Impersonating A Federal Officer at the International Luis Muñoz Marin AirportRead the Press Release
SAN JUAN, Puerto Rico – “Yesterday we announced the Task Force that will be working against the fraud related to Hurricane Irma recovery efforts, and today we are announcing what appears to be the first case in the District of Puerto Rico related to Hurricane Irma’s relief efforts,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico.
United States Magistrate Judge Camille Vélez-Rivé authorized a criminal complaint against Philip Freed, charging him with impersonation of a federal law enforcement officer, entering an airport in violation of security requirements, and false statements. The U.S. State Department, Diplomatic Security Services (DSS), with the collaboration of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the U.S. Department of Health and Human Services are in charge of the investigation.
According to the criminal complaint, on September 12, 2017, Philip Freed falsely pretended to be a law enforcement officer acting under the authority of the United States. Freed gained access to a federally restricted area of the Airport and made materially false, fictitious, or fraudulent statements or representations to DSS special agents during the course of the investigation, all while portraying to be a federal law enforcement officer helping with Hurricane Irma’s relief efforts.
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office to investigate this crime,” said Richard Hays, Resident Agent in Charge of the DSS San Juan Resident Office. “Impersonating a federal law enforcement officer while our nation reels from the recent natural disasters is especially concerning. Our special agents – many of whom still do not have power in their homes – showed exceptional professionalism and dedication as they pursued this case.”
If convicted defendant faces up to 3 years of imprisonment. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty. Assistant U.S. Attorney Marc S. Chattah has been assigned to prosecute this case.
Again, members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims.
The United States Attorney’s Office Announces Formation of A Task Force to Fight Hurricane Irma-Related Illegal ActivityRead the Press Release
SAN JUAN, P.R. – United States Attorney Rosa Emilia Rodríguez-Vélez is urging Puerto Rico residents and businesses to be aware of and report suspected fraudulent activity related to disaster relief operations and federal funding for victims. The USAO for the District of Puerto Rico, in coordination with the Federal Bureau of Investigations (FBI), the U.S. Department of Homeland Security-Office of Inspector General (DHS OIG), the Puerto Rico Department of Public Safety, and the Puerto Rico Department of Justice have formed a task force to investigate and prosecute illegal activity stemming from Hurricane Irma.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of typical illegal activity under the jurisdiction of each of the agencies in the working group include:
• Impersonation of federal law enforcement officials
• Identity theft
• Fraudulent submission of claims to insurance companies and the federal government
• Fraudulent activity related to solicitations for donations and charitable giving
• Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts
• Price gouging
• Theft, looting, and other violent crime
“Our efforts are directed at enforcing a zero tolerance policy,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “In the midst of the distress and losses caused by Hurricane Irma and the attending need for recovery and rebuilding, there can be no place for fraud and abuse.”
“With our federal and state partners, we have a long history of tracking down and prosecuting those who attempt to defraud the government of monies that have been set aside to help victims of natural disasters,” said Special Agent in Charge Douglas A. Leff of the FBI, San Juan Field Office. “The FBI will do everything in its power to protect taxpayer funded relief programs that have been created to help people who have suffered actual losses.”
“The DHS OIG takes any and all allegations of fraudulent activity seriously and intends to hold accountable those who try to use this disaster to take advantage of others,” said Special Agent in Charge Jay H. Donly of the DHS OIG Miami Field Office. “The DHS OIG will use all of its investigative resources to stop those who use this unfortunate situation for personal and illegal gain.”
Hector Pesquera, Secretary of the Puerto Rico Department of Public Safety, assured that “his department has been tasked by the Governor of Puerto Rico to join these efforts to investigate and process any individual that engages in fraud or acts of corruption as related to hurricane victims. For those purposes, we have made available to the Task Force all of our resources.”
The Puerto Rico Disaster Fraud Task Force will be in close collaboration with the Justice Department’s National Center for Disaster Fraud (NCDF). The NCDF receives from members of the public reports of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations. It has been fully operational since its inception following Hurricane Katrina and is specifically designed to be ready for situations like Harvey and Irma. NCDF has an excellent staff of investigators, analysts, call center operators, and managers preparing to handle the anticipated volume. Since 2005, the NCDF has processed over 70,000 complaints. NCDF operates a call center 24 hours a day, 7 days a week, to take disaster fraud complaints through a national hotline number (1-866-720-5721) and via email ([email protected]). This hotline serves, in essence, as a national 911 for disaster fraud. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud. Tips on avoiding fraudulent charitable contribution schemes are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.
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Seven Individuals Arrested for Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On August 30, 2017, a federal grand jury returned a three-count indictment against seven individuals for conspiracy to engage in firearms trafficking without a license, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The agencies in charge of the investigation are the Bureau of Alcohol, Tobbaco, Firearms and Explosives (ATF), the US Postal Inspector Service and the Puerto Rico Police Department.
The object of the conspiracy was to purchase firearms in the states of Georgia and Florida, transport them to Puerto Rico, and sell them to other individuals in Puerto Rico, for profit. The defendants purchased firearms and sent them to Puerto Rico using the mail. Other defendants would receive, store and deliver the firearms in exchange for money. During the course of the investigation law enforcement agents seized numerous rifles and handguns that this organization shipped to Puerto Rico.
The defendants are: Jeffrie Rivera-Santiago, aka “LaJ/Menor J;” Luis R. Martínez-Rivera, aka “Luis Ra;” Osvaldo L. Colón-Paulok Keyshla M. Disdier-Velázquez, aka “Keilita/Keyla;” Julio C. Morales-Vicente, aka “Pi/Junito Pi;” Glorianne T. López-Cortez; and Julissa Carrasquillo-Baldomero.
Assistant U.S. Attorney Victor O. Acevedo-Hernández is in charge of the prosecution of the case. If convicted, the defendants face up to five years in prison and a fine of up to $250,000. 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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Sally López Martínez Sentenced to 9 Years in Prison for Wire Fraud, Bribery and ExtortionRead the Press Release
SAN JUAN, Puerto Rico–Today, U.S. District Court Judge Pedro A. Delgado-Hernández sentenced former Administrator of the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Workforce Development Administration) Sally López-Martínez to 9 years of imprisonment and 2 years of supervised release for committing offenses against the US government, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez- Vélez. The investigation was led by the Federal Bureau of Investigation’s (FBI) Public Corruption Squad.
López-Martínez was found guilty on October 7, 2016, after a 25-day jury trial. She was originally indicted in December 2015 along with nine other defendants, on charges of conspiracy to commit federal programs bribery and honest services wire fraud, wire fraud, federal program bribery, extortion through fear of economic harm, money laundering, false declarations before a grand jury, and obstruction of justice. A jury found López-Martínez guilty of Count One, Conspiracy to Commit Federal Programs Fraud and Wire Fraud; Count Two, Conspiracy to Commit Honest Services Wire Fraud; Counts Three to Five, Honest Services Wire Fraud; and Count Eleven, Receipt of a Bribe by Agent of an Organization Receiving Federal Funds.
In the same trial, Ivonne M. Falcón Nieves, her sister Marielis Falcón Nieves, and Glenn O. Rivera Pizarro were found guilty of all charges and are awaiting sentencing. Prior to the trial, six other defendants had pleaded guilty.
At trial co-defendant Anaudi Hernández-Pérez testified that he and his co-conspirators utilized their government influence to receive an unfair competitive advantage over their competitors, obtained many contracts with different entities from the Government of Puerto Rico, and enriched themselves.
“Today, a former public servant was sentenced to prison for using her position of power in government for unjust enrichment,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “This defendant was entrusted with performing her duties honestly and ethically. While hundreds of government employees live up to that important duty every day, we will hold accountable those few who run afoul of the law.”
The case was investigated by the FBI’s San Juan Division. The case was prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó Iriarte, Chief of the Criminal Division and Assistant US Attorney Susan Z. Jorgensen.
Man Sentenced to Life in Prison for Four Carjackings and MurderRead the Press Release
SAN JUAN, P.R. – U.S. District Court Senior Judge Daniel R. Domínguez sentenced Carmelo Velázquez-Aponte a.k.a. “Boty,” to two terms of life in prison for one carjacking and murder of Richardson Mieses-Pimentel, and a consecutive 130-year imprisonment term for the other three carjacking counts, carrying a firearm during and in relation to a crime of violence (carjacking), and possession of a stolen firearm, announced United States Attorney Rosa Emilia Rodríguez-Vélez.
On July 19, 2016, Velázquez-Aponte was found guilty by a jury of four counts of carjacking, one including the murder of Richardson Mieses-Pimentel, four counts of using and carrying a firearm during and in relation to a crime of violence, and two counts of possession of a stolen firearm.
During the 14-day trial, the government presented pictures and witness testimony that narrated the criminal incidents of carjacking and robbery that the defendant perpetrated against innocent victims. According to the testimony, on June 18, 2011, the defendant stole the licensed firearm belonging to Richardson Mieses-Pimental and his vehicle, and then executed him. After that event, Velázquez-Aponte committed other carjackings. During his attempt to escape his arrest on June 20, 2011, he also stole a police officer’s gun and shot a Police officer. The defendant also stole a police cruiser and engaged in two other shootouts with police officers, before he was arrested. The defendant fired the stolen weapons at the police officers.
“I hope that these life sentences help the victims to find closure and continue the healing process,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend the prosecution team, the FBI, the Carolina Municipal Police and the Puerto Rico Police Department for their excellent work in bringing this defendant to justice. We will continue to work diligently to prosecute violent criminals to the fullest extent of the law.”
The case was prosecuted by Assistant United States Attorney Edward Veronda.
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Owner of Arecibo Aquarium Business Pleads Guilty to Two Federal Lacey Act Felonies for Illicit Trafficking of Protected CoralsRead the Press Release
guilty_plea_coral_reefs_8-23-17_0.pdf WASHINGTON – Aristides Sánchez, a resident of Arecibo, Puerto Rico, pleaded guilty today to two felony violations of the federal 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.Sánchez was the owner of the Arecibo-based saltwater aquarium business, Wonders of the Reef Aquarium. 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. Sanchez sent live specimens to customers in the mainland United States and foreign countries by commercial courier services. One of the most popular items that Sanchez 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.
“Coral reefs surrounding the island of Puerto Rico are some of the most valued and fragile natural resources in the region,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “The Division will continue to work with its enforcement partners to prosecute those who illegally harm the marine environment for commercial gain.”
“We will continue to prosecute those who exploit our protected marine life for financial gain,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “We appreciate the support of U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration agents in this investigation.”
“This investigation, serves as a fine example of ongoing joint investigative efforts related to the entire span of the marine life trade,” said Resident Agent in Charge David Pharo of the U.S. Fish and Wildlife Service. “Whether responsibility lies as the initial harvester, wholesaler, retailer or a public aquarium, the USFWS and partner agencies stand ready to investigate the matter and bring those responsible for poaching our nation’s sensitive marine life resources to justice.”
“Our partnerships are vital to helping ensure the protection and sustainability of living marine resources. This investigation is another great example of how successful partnerships lead to effective results,” said Deputy Director Logan Gregory of National Oceanic and Atmospheric Administration’s Office of Law Enforcement. “Investigating and bringing to justice those who exploit protected marine life is vital in helping to ensure a healthy ocean.”
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. Sanchez personally collected some of the Ricordea and other reef creatures that he sold off-island. On multiple occasions, he would accompany another person and they would snorkel from the shoreline in search of Ricordea. Because Ricordea are attached to the reef substrate, Sanchez would utilize a chisel to break off the animals, and in doing so, take chunks of the reef with him. At other times, Sanchez would purchase the Ricordea from other sources, knowing or suspecting that the specimens had been harvested illegally.
In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, Sanchez would falsely label each shipment. The false labeling was one of identification whereby Sanchez would refer to living marine organisms as “pet supplies,” “aquarium supplies,” “LED lights,” or similar inanimate objects on shipping labels and invoices. At times, he used a fake name to cover his actions.
From January 2013 to March 2016, Sanchez sent or caused to be sent at least 130 shipments of falsely labeled 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 retail value of Ricordea shipped by Sanchez typically ranges from $25 to $50 per item. From on or about January 7, 2013, through on or about March 16, 2016, the retail value of the falsely labeled and/or unlawfully harvested marine invertebrates shipped personally by Sanchez, or on his behalf with his knowledge, was between $800,000 and $1,200,000.
Sanchez is scheduled to be sentenced on December 20, 2017.
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.
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Woman Pleads Guilty to Theft Concerning Programs Receiving Federal FundsRead the Press Release
SAN JUAN, P.R. – Zoraida Velázquez-Bracero plead guilty to an information charging her with theft concerning programs receiving federal funds, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The U.S. Department of Education, Office of Inspector General was in charge of the investigation.
From June 2005 until July, 2015, Velázquez-Bracero was the Purchasing Director at Pontifical Catholic University of Puerto Rico, an entity that receives in excess of $10,000.00 in federal funding in a one year period. In this position, Defendant was issued a University corporate credit card for purchasing goods and supplies for the University as well as arranging official travel for University professors. However, in 2008 Defendant started using this corporate credit card for personal expenses not authorized by the University.
Through direct charges and cash advances, Velázquez-Bracero used this corporate credit card to pay for school tuition, household utility bills and other items, and vacations to Disney World, New York City, Atlanta, Indianapolis, Canada, and France. Defendant concealed the use of this corporate credit card by altering and/or creating fictitious credit card statements wherein she hid the charges by increasing the amounts of other legitimate charges to the card, or by deleting the charges altogether before submitting the statement to the finance department for payment.
Although the original limit on this corporate credit card was $80,000.00, Velázquez-Bracero obtained numerous credit limit increases by forging her supervisor’s signature on letters to the credit card company requesting said increases. Defendant knew that she was affecting federal grants when she illegally used this corporate credit card. The total amount of unauthorized charges by Velázquez-Bracero was $655,432.00.
“The defendant misappropriated funds intended to aid University students, for her illegal personal gain,” said US Attorney Rosa Emilia Rodríguez-Vélez. “At the U.S. Attorney’s Office we will continue to aggressively investigate and prosecute financial crimes. This arrest should discourage those who get involved in these types of schemes before it’s too late, because we will continue investigating and prosecuting these offenses.”
“Federal education funds exist to provide students with educational opportunities and help students make their dreams of higher education a reality, it’s not a personal slush fund,” said Yessyka Santana, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Southeast Regional Office. “I’m proud of the work of OIG special agents, our law enforcement partners, and the PCUPR staff for holding Ms. Velázquez accountable for her alleged criminal actions.”
As a result of the guilty plea, the defendant may be sentenced to a term of eight to fourteen months in prison, a fine not to exceed two hundred fifty thousand dollars ($250,000.00), and/or a term of supervised release of not more than three (3) years. Assistant United States Attorney Scott H. Anderson is in charge of the prosecution of the case.
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Three Former Police Officers and A Police Officer Charged with Conspiracy to Interfere with Commerce by Robbery and Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On July 20, 2017, a federal grand jury in the District of Puerto Rico returned an indictment against four defendants charged with conspiracy to interfere with commerce by robbery, brandishing firearms during and in relation to a crime of violence, and conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The FBI is in charge of the investigation.
The indictment alleges that on or about September 6, 2013, in the District of Puerto Rico the defendants Manuel Grego-López, José A. López-Sierra, and Christian Valles-Collazo, former police officers and Police Officer Alex Candelaria-Jurado did knowingly and intentionally, combine, conspire, and agree with each other and with diverse other persons known and unknown to the Grand Jury, to commit an offense against the United States, that is, robbery. The defendants robbed more than five kilograms of cocaine from an individual in the presence of his family.
The defendants used an official vehicle and an unmarked vehicle to commit the robbery. They also used their service firearms and represented to have a search warrant and to be acting in an official capacity in order to gain control over the victims. Subsequently, the defendants sold the cocaine they had robbed for personal financial gain.
“Law enforcement officers who use their badges to commit criminal acts disregard their oath to protect and promote the rule of law,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These defendants acted like the same drug traffickers they were supposed to arrest and investigate, and they chose to become criminals themselves. The U.S. Attorney’s Office will continue to aggressively prosecute individuals who abuse their power to commit federal offenses.”
FBI will continue to dedicate significant resources to ensure that any law enforcement officer who violates their oath and disgraces their badge will be apprehended and dealt with as the criminals they have become. Along with our partners at the U.S. Attorney's Office and the Puerto Rico Police Department, we will do everything in our power to protect the proud history of this department, and to honor the long list of women and men who have dedicated their lives to the service of the people of Puerto Rico." Douglas A. Leff - FBI SAC
Assistant U.S. Attorneys Victor O. Acevedo-Hernández and Max J. Pérez-Bouret are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 17 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.
27 Individuals Charged with Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On July 13, 2017, a federal grand jury in the District of Puerto Rico returned an indictment against 27 defendants charged with conspiracy to distribute controlled substances in the municipality of Utuado, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The DEA and the Puerto Rico Police Department (PRPD), Ponce Strike Force Unit, are in charge of the investigation, with the collaboration of the Special Investigations Bureau (Negociado de Investigaciones Especiales) and the Utuado District Attorney’s Office.
The indictment alleges that beginning in or about the year 2007, the organization distributed heroin, crack, cocaine, and marihuana, at the Fernando Luis García and the Jardines de Utuado Public Housing Projects in Utuado; and in other areas of southern Puerto Rico, including Ponce, all for significant financial gain and profit. The drug distribution points were located at the staircases of the public housing project buildings or at the central plaza of the public housing projects.
The 27 defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, enforcers, runners, sellers, and facilitators. Four defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime. According to the indictment, defendants and their co-conspirators obtained state weapon licenses to facilitate the acquisition of firearms and ammunition that would ultimately be used by the members of the organization or sold illegally.
The defendants are: Hernán Cuevas-Olivero, a.k.a. “Gordo”; Jesús D. Benito-López, a.k.a “David/Benito”; Jonathan Tejada-Escobar, a.k.a. “Cuba/El Cubano”; Pierre M. Tejada-Escobar, a.k.a. “Pierre/El Cubano”; Alan J. Diaz-Feliciano; Myrelis Cuevas-Olivero, a.k.a. “Lela/La Gorda”; Jonathan González-Iguina, a.k.a. “Chupi”; Liboel Negrón-Diaz, a.k.a. “Libo”; Giovanny Acevedo-Maestre, a.k.a. “Mapen”; Reynaldo Vélez-Natal, a.k.a. “Rey Marcao”; Juan O. López-Collazo, a.k.a. “Orlandito”; Luis Méndez-Quiñones, a.k.a. “Méndez”; Christian H. Rivera-Rivera, a.k.a. “Albino”; Juan M. Rivera-Rivera, a.k.a. “Chilo”; Ángel D. González-Bauzá, a.k.a. “Guito”; Ángel M. Benítez-Perosa, a.k.a. “Negro”; Joshua Santiago-Maestre; Alejandro Guilbes-Nieves, a.k.a. “Jayu/Jayuya”; Ángel J. Alicea-Viruet, a.k.a. “APS”; Josué Candelario-Ramos, a.k.a. “Pocho”; José Franceschini-Lajara, a.k.a. “Pepe Franceschini”; José Reyes-Correa, a.k.a. “Bondo”; José A. Natal-Rodríguez, a.k.a. “Bimbi”; Frankie J. Afanador; Félix Ramos-Montes a.k.a. “Felo”; Reynaldo Cosme-Cordero, a.k.a. “Bebo Trinidad”; and Yolanda Olivero-Diaz.
The defendants and their co-conspirators provided shelter and protection to known fugitives in order to prevent their apprehension by law enforcement. They would often pay attorney’s fees and bail money for lower level members of the organization to prevent cooperation with law enforcement. Some defendants would conceal narcotics in packages that would be sent to the continental United States. They would also cash money orders received as payment for the controlled substances sold.
“One of our top priorities continues to be the disruption and dismantling of drug trafficking organizations, at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this joint operation, with the collaboration of our state counterparts, shows our commitment to keep drugs out of our neighborhoods.”
DEA Special Agent in Charge, Matthew Donahue, stated: “We will not let our guard down and we, as Federal law Enforcement officers, will continue to use all available resources and cooperation among the state and local police agencies to identify, investigate, and dismantle these criminal organizations. Violent drug trafficking organizations as this one threaten and affect our quality of life as residents of Puerto Rico. It's DEA’s mission to track these organizations both domestically and internationally, identify their members and Source of Supply and dismantle them. It’s never about the drugs alone; dirty money, firearms, violence, corruption and death are intricate to the presence of drug trafficking organizations in our society. DEA, along with ATF, FBI, HSI, PRPD and the Strike Forces, the USAO and any other pertinent agency, will continue to aggressively pursue these organizations and bring them to justice.”
“The Puerto Rico Department of Justice will continue its collaboration with federal law enforcement agencies and the U.S. Attorney’s Office in the investigation and prosecution of drug trafficking organizations. I commend the efforts of the agents in the Special Investigations Bureau (NIE) and the prosecutors in the Utuado District Attorney’s Office who participated in this investigation,” said Secretary of Justice Wanda Vázquez Garced.
“The Puerto Rico Police Department will continue to work with the federal authorities to achieve positive results like today. Our efforts will be redoubled to combat drug trafficking and those who want to continue polluting our youth; we will fight them with all the tools we have available,” said Police Superintendent Michelle Hernández de Fraley. “Congratulations to all state agents who collaborated in this operation, in conjunction with the DEA officers.”
Assistant U.S. Attorney María L. Montañez-Concepción 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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Attorney Sentenced to 18 Months in Prison for Concealing A Fugitive from Arrest, Obstruction of Justice and Tampering with Judicial ProceedingsRead the Press Release
SAN JUAN, Puerto Rico– Today, U.S. District Court Senior Judge Daniel R. Domínguez sentenced state criminal defense attorney Lemuel Velilla-Reyes to 18 months of imprisonment, one year of supervised release and a $20,000 fine for concealing a fugitive from arrest, endeavoring to obstruct, influence and impede the due administration of justice, and tampering with official proceedings, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The investigation was led by the Federal Bureau of Investigation’s (FBI) Public Corruption Squad.
Velilla-Reyes was found guilty on October 12, 2016, after a 20-day jury trial. He was originally indicted on September 16, 2014, on charges of harboring and concealing from detection a person for whose arrest a warrant had been issued under the provisions of a law of the United States on a charge of felony. On July 9, 2015, a second indictment was returned against Velilla-Reyes and Wilfredo Rodríguez-Rodríguez, on charges of endeavoring to obstruct, influence, and impede the due administration of justice, and tampering with official proceedings.
The facts proven at trial showed that on July 14, 2011, Velilla-Reyes represented federal fugitive Wilfredo Rodríguez- Rodríguez, aka “Fredo,” aka “Cape,” aka “Capellán,” under the false name of “Felix Otero-Torres” on local drug and weapon charges in state court. At that time, Wilfredo Rodríguez-Rodríguez had an outstanding arrest warrant since July 14, 2010, in federal case U.S. v. José Colón-de Jesus, et. al. Crim. No. 10-251 (JAF), where he was listed as the fifth individual in the 110-defendant indictment. He was charged with participating as a leader in a drug trafficking conspiracy to distribute controlled substances at the Virgilio Dávila, Las Gardenias, Brisas de Bayamón, and Falin Torrech housing projects, and other areas within the Bayamón Municipality. Velilla-Reyes was the attorney for many of the members of the drug trafficking organization which Rodríguez-Rodríguez was a part of, and had legally represented him in a prior criminal state case in 2006.
In the early morning hours of July 14, 2011, Police of Puerto Rico officers arrested Rodríguez-Rodríguez in Toa Baja while they were executing state arrest warrants. Upon his arrest, he provided the false name of Felix Otero-Torres, and did not provide or have on his person any identification documents.
Attorney Velilla-Reyes arrived at the police station to provide legal representation for Rodríguez-Rodríguez under the false name he had provided. Velilla-Reyes stood by while the charges against his client where filed under the false name. He then appeared in court during the probable cause proceedings and falsely represented to the court that his client Felix Otero-Torres could not recall his social security number or his full address. Velilla-Reyes requested that bail be set without electronic monitoring and told the court he would continue to represent his client throughout all the proceedings. He also vouched for his client’s fulfillment of pre-trial release conditions and his appearance in court. Rodríguez-Rodríguez, who was affirmatively identified during the days that followed, did not show up at the police station for booking and did not return to any court proceeding. Velilla-Reyes continued as the attorney of record, but failed to appear in any of the subsequent court hearings. As a consequence of the above actions, the bond was ordered forfeited and the bond company had to pay $24,000.
“The actions committed by this attorney and his efforts to conceal a federal fugitive from arrest through illegal conduct, undermined the public’s trust in the judicial system. The public’s trust in the integrity of the criminal justice system and those who work within that system is paramount to preserve law and order in our society. We will continue to work with local, state and other federal law enforcement agencies to strengthen the public’s trust in our justice system,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“As the evidence in this case demonstrated, this defendant abused his status as a trusted officer of the court to corrupt the judicial system, and in doing so, endangered the public by setting a fugitive free,” said Douglas Leff, Special Agent in Charge of the FBI. “The FBI thanks its partners at the U.S. Attorney's Office for their diligence in obtaining this conviction.”
Senior Litigation Counsel José Ruiz Santiago, Assistant U.S. Attorney Jenifer Y. Hernández, and Victor O. Acevedo-Hernández were in charge of the prosecution of the case.
National Health Care Fraud Takedown Results in Charges Against over 412 Individuals Responsible for $1.3 Billion in Fraud LossesRead the Press Release
WASHINGTON – Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Tom Price, M.D., announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists.
Attorney General Sessions and Secretary Price were joined in the announcement by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting Director Andrew McCabe of the FBI, Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA), Inspector General Daniel Levinson of the HHS Office of Inspector General (OIG), Chief Don Fort of IRS Criminal Investigation, Administrator Seema Verma of the Centers for Medicare and Medicaid Services (CMS), and Deputy Director Kelly P. Mayo of the Defense Criminal Investigative Service (DCIS).
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 91 Americans die every day of an opioid related overdose.
“Too many trusted medical professionals like doctors, nurses, and pharmacists have chosen to violate their oaths and put greed ahead of their patients,” said Attorney General Sessions. “Amazingly, some have made their practices into multimillion dollar criminal enterprises. They seem oblivious to the disastrous consequences of their greed. Their actions not only enrich themselves often at the expense of taxpayers but also feed addictions and cause addictions to start. The consequences are real: emergency rooms, jail cells, futures lost, and graveyards. While today is a historic day, the Department's work is not finished. In fact, it is just beginning. We will continue to find, arrest, prosecute, convict, and incarcerate fraudsters and drug dealers wherever they are.”
“Today’s announcement demonstrates the Department of Justice’s commitment to focus investigative resources on individuals who choose to pursue profit over public health. Ultimately, health care fraud deprives the elderly and disabled from benefits they are entitled to receive,” said US Attorney Rosa Emilia Rodríguez-Vélez. “We will continue to aggressively pursue and prosecute those who commit fraud against our nation’s federal healthcare programs.”
“Healthcare fraud is not only a criminal act that costs billions of taxpayer dollars - it is an affront to all Americans who rely on our national healthcare programs for access to critical healthcare services and a violation of trust,” said Secretary Price. “The United States is home to the world’s best medical professionals, but their ability to provide affordable, high-quality care to their patients is jeopardized every time a criminal commits healthcare fraud. That is why this Administration is committed to bringing these criminals to justice, as President Trump demonstrated in his 2017 budget request calling for a new $70 million investment in the Health Care Fraud and Abuse Control Program. The historic results of this year’s national takedown represent significant progress toward protecting the integrity and sustainability of Medicare and Medicaid, which we will continue to build upon in the years to come.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid and TRICARE for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
As part of this national effort, the District of Puerto Rico charged 13 individuals in six separate indictments, including three physicians and two pharmacists, in four schemes involving drug diversion, Medicaid fraud, and the theft of funds from a health care program. Defendants Miguel Hernández-Marquez, owner of Farmacia Condado Moderno in Caguas; Guillermo Tirado-Menéndez, a physician specialized in internal medicine with offices located in Caguas and Cidra; Gilberto Figueroa-Trinidad, aka “Chino;” Rebecca Sierra-López, aka “Rebe,” a nurse; William Vélez-Montes, a pharmacist; and Myrna Nevares-Sobrino, a pharmacist, are charged for their participation in a conspiracy to manufacture, distribute and dispense - outside the scope of professional practice and not for a legitimate medical purpose - a controlled substance, that is, at least 70,000 units of Oxycodone (commonly known as Percocet), and at least 40,000 units of Alprazolam (commonly known as Xanax).
In a separate indictment, defendants Hernández-Marquez, Figueroa-Trinidad, Vélez-Montes and Nevares-Sobrino; along with Luis Vélez-Quiñones, a physician specialized in internal medicine with office located in Guánica; and Laura López-Rolón are charged with conspiracy to manufacture, distribute and dispense - outside the scope of professional practice and not for a legitimate medical purpose - a controlled substance, that is, at least 77,000 units of Oxycodone, at least 47,000 units of Alprazolam, and at least 40,000 units of Tramadol.
In a third indictment, Ivette Caraballo-Pérez, aka “Tita” and Steven Velázquez-Pérez are charged with conspiracy to possess with intent to distribute Oxycodone. The fourth indictment charges José Vega-Emmanuelli, a DEA registrant with the authorization to dispense controlled substances, with possession with intent to dispense, outside the scope of professional practice and not for a legitimate medical purpose, Oxycodone and Alprazolam.
Defendant Luz De Alba Quezada-De Jesús, a Postal Service employee, is charged with health care fraud and false statements relating to health care matters. Quezada-De Jesús certified that she was unemployed in order to receive Medicaid benefits, also known as Mi Salud, through First Medical Health Plan Inc. In a separate indictment, Yalixa Flores-Fuentes, employed by MMM Healthcare, LLC is charged with bank fraud, aggravated identity theft, and embezzlement in connection with health care. Flores-Fuentes submitted false invoices for catering services and, using her status as an employee of MMM, caused checks to be drawn which she later cashed for herself.
The cases are being handled by Assistant U.S. Attorneys Teresa Zapata-Valladares, and Susan Z. Jorgensen, and Special Assistant U.S. Attorney Amanda C. Soto-Ortega.
“The arrests conducted in Puerto Rico last Monday as part of the nationwide “Diversion and Health Care Takedown” shed some light to the communities in the island that DEA, other federal and state agencies will target any kind of illicit drug trafficking activity threatening our communities,” stated DEA Special Agent in Charge Matthew G. Donahue. “The opioid addiction issue in the United States has become a national crisis, for this reason we are working hard and proactively to keep our neighborhoods and communities safe and to protect the lives of our citizens. This enforcement operation sends a message to the medical professionals that once they dishonor their Hippocratic Oath, DEA will investigate them and bring any physician or pharmacist to justice that violates federal narcotics laws and regulations. Law enforcement agencies/departments in Puerto Rico are part of our communities support networks and our goals and mandates are to prevent the individuals responsible who are dealing and trafficking in these opioid substances from killing our families and friends selling one baggy, one deck, capsule, and one pill. DEA will stay here, and we will prevail.”
“This indictment is another reminder that the misappropriation of federal funds is illegal and unacceptable,” said Scott J. Lampert, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services. “HHS-OIG, along with our law enforcement partners, will not tolerate this behavior and will remain vigilant in our efforts to protect the integrity of our federal health care programs.”
Eileen Neff, Special Agent-in-Charge, U.S. Postal Service Office of Inspector General stated: “The U.S. Postal Service Office of Inspector General investigates those who would defraud the Postal Service as well as Postal Service employees alleged to commit fraud against other government programs. We will continue to work closely with our law enforcement partners in investigations such as this and we thank the U.S. Attorney’s Office and HHS-OIG for their assistance with our investigations.”
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
This operation also highlights the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2.5 billion in judgements and settlements related to matters alleging health care fraud.
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Former Psychiatrist Sentenced for Social Security FraudRead the Press Release
SAN JUAN, P.R. – Psychiatrist Luis Escabi-Pérez was sentenced to five years of probation, 500 hours of community service and ordered to pay a restitution of $230,244, for fraud in the application process for Social Security Administration (SSA) disability insurance benefits in Puerto Rico, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez.
Escabi-Pérez had plead guilty on July 29, 2015 to committing fraud to the Social Security Administration. Escabi-Pérez’ DEA and medical license were revoked without contest.
Defendant Luis Escabi-Pérez submitted Psychiatric Medical Reports to the SSA in support of applications for disability insurance benefits submitted by his patients. Escabi-Pérez charged a fee for the medical visits, typically in the amount of $100.00. In addition, the defendant typically charged a fee in the amount of $500.00, for the preparation and submittal of a Psychiatric Medical Report to the SSA. He would at times also charge additional fees of up to $5,000 to backdate medical records in order to create the appearance of a longer history of medical treatment.
The case was investigated by the Social Security-OIG with the collaboration of the FBI and the Puerto Rico Police Department. Special Assistant United States Attorney Vanessa D. Bonano-Rodríguez prosecuted the case.
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Five Individuals Indicted for Using the U.S. Mail to Commit Several Federal OffensesRead the Press Release
SAN JUAN, P.R. - On June 27, 2017, a Federal Grand Jury in the District of Puerto Rico returned four separate indictments charging five individuals with several offenses against the United States by using the U.S. Mail, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez. These cases were investigated by the U.S. Postal Service Office of Inspector General (USPS-OIG) with the collaboration of the Drug Enforcement Administration (DEA) and the Puerto Rico Police Department (PRPD).
The defendants and the charges they are facing are the following:
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Mary T. Rivera-Rivera, U.S. Postal Service employee, two counts for theft of mail and two counts for delay of mail.
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Yoel A. Escobales-Ramos, U. S. Postal Service Contractor, two counts for theft of mail and one count for obstruction of correspondence.
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Orlando Sánchez-Abreu, U.S. Postal Service employee, one count for possession with the intent to distribute controlled substances, one count for using the USPS Mail facilities to commit a felony, and one count for delay of mail.
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Ismael Berríos-Berríos, U.S. Postal Service employee, two counts for delay of mail; and Nicolás Padilla-Baez, facing one count for obstruction of correspondence.
“The US Attorney’s Office will continue to vigorously pursue those who utilize the U.S. Mail to commit federal offenses and steal other people’s mail,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “Hopefully, the defendants recognize the severity of their actions and others will be discouraged from getting involved in these types of schemes, because we will continue prosecuting these crimes.”
Eileen Neff, Special Agent-in-Charge, U.S. Postal Service Office of Inspector General said: “Special Agents of the U.S. Postal Service Office of Inspector General vigorously investigate and pursue the criminal prosecution of U.S. Postal Service employees and others who would defraud the U.S. Postal Service or utilize its services in their criminal schemes. We thank the U.S. Attorney’s Office and the Drug Enforcement Agency for their assistance with our investigations.”
Special Assistant United States Attorney Amanda C. Soto-Ortega is in charge of the prosecution of these cases. If convicted, the defendants could face a maximum penalty of 5 years of imprisonment and/or fines of up to $250,000.00. 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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Thirteen Individuals Indicted for Social Security FraudRead the Press Release
SAN JUAN, P.R. - On June 23, 2017, a Federal Grand Jury in the District of Puerto Rico returned nine separate indictments charging 13 individuals with fraud against the Social Security Administration (SSA) disability insurance benefits in Puerto Rico, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez. These cases were investigated by the Social Security-Office of Inspector General (SS-OIG) with the collaboration of Health and Human Services-Office of Inspector General, and the Puerto Rico Police Department.
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 would then be 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 nine indictments charge thirteen individuals of theft of government property, concealment or failure to disclose work activity to SSA and false statements or representations to the SSA. These defendants knowingly and willfully embezzled, stole, and converted to their own use the Social Security Disability Insurance Benefit payments to which the defendants knew that they were not entitled.
The defendants and the Social Security Disability Insurance Benefit payments to which they knew they were not entitled to are: Damaris Marrero-Santiago and Isaias Diaz-Torres $254,100.90; Mariluz Rodríguez-Rodríguez and Juan C. Rodríguez-Miranda $82,700.90; Roberto Padilla and Ednali Ramirez-Maldonado $317,083.40; Nancy Serrano-Picón $130,493.20; Edwin Maldonado-Burgos and Consuelo Nuñez-Serrano $72,235.30; Elson Fernández $77,647.50; Arnaldo Ramos-Martir $142,096.40; Minerva Carro-Rivera $311,976.10; and Luis Álvarez-Ramos, a.k.a. “Wichy” $56,207.20. They reported during a Continuing Disability Review (CDR) that the disability beneficiary had not been able to work due to different health conditions, when in truth they were working.
Defendant Nancy Serrano-Picón was also charged with healthcare fraud. As part of her SSA disability benefits, Serrano-Picón became eligible, applied for and received benefits under the Medicare Program. Once a person is receiving SSA disability benefits for 24 months he/she automatically starts receiving Part A of the Medicare Program (hospitalizations) and they become eligible to apply for Part B and C of the Medicare Program. If they decide to apply for Part B and/or C of the Medicare Program, the monthly premium is deducted from their monthly disability benefits.
“This is a great example of ongoing efforts by the Government to deter fraud against the social security programs,” said United States Attorney Rosa Emilia Rodríguez-Vélez. The Department of Justice is committed to investigate and prosecute those who engage in fraudulent schemes. Hopefully this round of arrests will discourage more people from getting involved in these types of schemes, because we will continue investigating these crimes.”
SSA-OIG Special Agent-in-Charge John Grasso said: “Today’s arrests are the latest in our continued and ongoing effort to bring to justice all individuals who commit Social Security Disability Fraud. I am very grateful for the efforts of our law enforcement partners involved in this investigation, and for the continued commitment from the United States Attorney’s Office for the Commonwealth of Puerto Rico to aggressively pursue these important cases. I strongly encourage the public to report suspected instances of Social Security fraud to the OIG’s Fraud Hotline at 1-800-269-0271 or https://oig.ssa.gov/report.”
Special Assistant United States Attorney Vanessa D. Bonano-Rodríguez is in charge of the prosecution of these cases. If convicted, the defendants could face a maximum penalty of 10 years of imprisonment and/or fines of up to $250,000.00. 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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Two Individuals Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
SAN JUAN, P.R. - On June 20, 2017, a federal Grand Jury returned a 35-count indictment charging José Andrés Colón-Santos and Erika Yazmin Rosado-Matías with conspiracy to commit bank fraud, sixteen substantive counts of bank fraud, twelve counts of aggravated identity theft, and three counts of mail fraud. The indictment also includes two charges against Colón-Santos for extortion and one charge for tampering with a witness by intimidation, threats, corrupt persuasion, or misleading conduct. The United States Postal Inspection Service is in charge of the investigation.
According to the indictment, the purpose of the conspiracy was for the defendants to unlawfully enrich themselves by obtaining bank account information and personal identifying information (social security number, date of birth, address as well as credit/debit card and PIN numbers), and using that information to withdraw funds from the victims’ accounts for their own benefit and use. The ages of the victims range from 69 to 83 years old.
The indictment alleges that José Andrés Colón-Santos would obtain the names and telephone numbers of his victims from the telephone book. He identified himself as a bank fraud investigator and would then indicate to the victims that he was conducting an investigation into a suspected illegal purchase conducted at a local hardware store in excess of $1,500.00 using the victim’s bank account and bank account access devices. He would then request that the victim confirm the victim’s bank account number and personal identification information alleging that he needed that information to reverse or invalidate the suspect illegal transaction at the hardware store.
In several instances, Colón-Santos would then contact the bank to request a change of address in the victim’s account and that replacement cards be mailed to addresses controlled by him or his associates. Once Colón-Santos had received the replacement cards he would make ATM withdrawals, wire transfers, credit card payments, purchases and other transactions against the victims’ accounts. Whenever the bank account owner was a female, defendant Rosado-Matías would impersonate the bank account owner to request the change of address and replacement cards.
In other instances, Colón-Santos would instruct the victim to mail the alleged compromised credit and debit cards to addresses controlled by him or his associates, or to hand-deliver the cards to a messenger sent to the victim’s residence to pick up the card.
“Law enforcement will not stand by as criminals attempt to fleece a very vulnerable group of our community, our elders. These criminals are disrupting their lives by stealing their savings and destroying their credit through calculated and pervasive fraud schemes,” stated U.S. Attorney Rosa Emilia Rodríguez-Vélez. “I urge everyone to take steps to protect their personally identifiable information (PII) from criminals who seek illicit profits through stolen identity fraud.”
“The U.S. Postal Inspection Service has always being a strong defender of our most vulnerable citizens. We put a lot effort into fraud prevention measures; and when these criminals take advantage of our people, we work tirelessly to uncover them and bring them to justice, stated Raimundo Marrero, Postal Inspector Team Leader, Newark Division, San Juan Field Office.
If convicted, the defendants face a maximum possible sentence of incarceration of 30 years for bank fraud, and a consecutive two-year mandatory minimum sentence for aggravated identity theft. If convicted, Colón-Santos faces a maximum possible sentence of 20 years each for both the extortion and tampering with a witness charges.
The investigation was conducted by the United States Postal Inspection Service with the assistance of Puerto Rico Police Department and Homeland Security Investigations. The case is being prosecuted by AUSA Dennise N. Longo-Quiñones.
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Ex Secretary of Puerto Rico Department of Sports and Recreation Indicted for Receiving Kickbacks, Fraud, and Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico– Ramón Orta, former Secretary of the Department of Sports and Recreation (PR DRD), his Special Assistant Edgardo Vazquez-Morales, and four other individuals have been indicted and arrested for their participation in a conspiracy to steal federal funds involving fraudulently obtained contracts from the PR Department of Education (PR DOE) and the PR Public Housing Authority (PR PHA), announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. Orta and Vázquez-Morales were also charged for soliciting and receiving multiple kickback payments from a seventh defendant pertaining to DRD’s lease of a facility in Guayama, Puerto Rico. The United States Department of Education, Office of Inspector General, is handling the investigation with the Federal Bureau of Investigation and the United States Department of Housing and Urban Development, Office of Inspector General.
The indictment returned yesterday, June 20, 2017, by a federal grand jury in the District of Puerto Rico, includes 50 counts against the following individuals:
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Ramón Orta-Rodríguez, the Secretary of the Puerto Rico Department of Sports and Recreation (PR DRD) from January 2013 until December 2016;
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Edgardo Vázquez-Morales, the Special Assistant to Ramón Orta-Rodríguez from January 2013 until December 2016;
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Oscar Rodríguez-Torres, President of Rosso Group, Inc.;
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Miguel Sosa-Suárez, owner of Global Sports Initiative, LLC (“Global”);
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Irving Riquel Torres-Rodríguez, President of Administrative, Environmental and Sports Consultants Corp. (“AESC”);
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Cecilia Amador-López, wife of defendant Riquiel-Torres; submitted proposals to PR DOE
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Juan Carlos Ortiz-Nieves, owner of Sports Consultants Inc.
The companies involved in the conspiracy are:
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Rosso Group Inc. (“Rosso”), created to fund projects awarded by Orta-Rodríguez as Secretary of the PR DRD. From 2013 to 2016, Rosso received approximately $8,767,446.52 from PR DRD.
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Global Sports Initiative, LLC (“Global”), was a domestic non-profit corporation managed by Sosa-Suárez; engaged in managing, organizing, and promoting boxing events in Puerto Rico and elsewhere. Global received approximately $500,000 during the conspiracy.
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Administrative, Environmental and Sports Consultants Corp. (“AESC”), a for-profit corporation. Irving Riquel Torres-Rodríguez was the president and treasurer of AESC from 2010 until 2012, and in 2015. AESC received $554,246.89 from Rosso.
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Sports Consultants Inc., a for-profit corporation incorporated by Juan Carlos Ortiz-Nieves; the company received in excess of $70,000 from Estate A to make kickback payments to Orta and Vázquez.
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Estate A (an estate with multiple members, including defendant Ortiz-Nieves) owns property in Guayama, Puerto Rico. In 2015, Ortiz-Nieves negotiated a lease agreement on behalf of Estate A for the PR DRD to utilize a portion of the land and building as a sports and recreation facility with a five-year term at $14,500 per month.
According to the indictment, the defendants used Orta-Rodríguez’ position as Secretary of PR DRD to benefit and enrich themselves and defraud the United States as follows:
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Orta-Rodríguez utilized his position as Secretary of PR DRD to solicit federal funds from the PR DOE and PR PHA based on material misrepresentations regarding PR DRD’s ability to perform the activities and the scope of the activities subject to the proposals. Orta-Rodríguez, as Secretary of PR DRD, entered into contracts with Rosso, for the administration of various projects funded with federal monies. Rosso did not participate in any competitive bidding or evaluation process for the award of these contracts, which totaled $10,510,460. The services were supposed to be rendered by PR DRD, pursuant to its contracts with the PR DOE and PR PHA.
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The PR DRD-Rosso contracts were inflated to provide net proceeds to Rosso, which were later distributed amongst co-conspirators. The co-conspirators split approximately $3.9 million in net profits from the PR DOE contracts. Orta-Rodríguez obtained net proceeds of approximately $799,740 for PR DRD on one education project. Orta-Rodríguez also disbursed $200,000 in discretionary funds to other co-conspirators to operate and promote boxing events through Global.
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DRD contracted the services of ROSSO to provide television programming services for one television show about public housing projects in Puerto Rico. SOSA agreed with the individual who provided the services, to inflate the invoices for those services and to produce a second television show, DRD.TV, for the DRD. In 2015, SOSA was paid the difference between the actual cost of the production of both shows and the inflated invoice cost, which was paid from HUD funds. In 2016, ROSSO was paid this difference. DRD was also able to use federal funding for the DRD.TV show, which was outside the scope of the federal funding. SOSA was paid $311,345.30 on the HUD contracts by the television producer. ROSSO was paid $237,609.12 by the producer on the HUD contracts. The total amount misapplied by ORTA and excessively paid on the HUD contract (including the DRD.TV show) was approximately $1,216,650. Federal funds fraudulently obtained by members of the conspiracy were utilized for business ventures, travel, and to make purchases for political campaigns and political parties.
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Orta-Rodríguez executed a five-year lease agreement with Estate A for $14,500 which was in excess of the $8,500 price proposed by Ortiz-Nieves. Ortiz-Nieves created Sports Consulting and caused the transfer of funds from Estate A to Sports Consulting so that cash withdrawals could be made to pay Orta-Rodríguez and Vázquez-Morales the kickback payments generated from the $6,000 difference of the lease agreement. Approximately $26,000 was paid, in cash, as kickbacks to Orta-Rodríguez and Vázquez-Morales.
The indictment also includes the following substantive charges: nine counts of wire fraud; two counts of mail fraud; five counts of aggravated identity theft; and twenty-seven counts of money laundering.
“Public corruption continues to erode the trust between government officials and our citizens. Defendant Ramón Orta, along with his coconspirators, exploited his government position to rob Puerto Rican taxpayers of more than $10 million,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “As Secretary of the DRD, Orta was entrusted with performing his duties honestly and ethically. The charged offenses are reprehensible, more so in light of Puerto Rico’s fiscal crisis. I commend the commitment of the agents, financial analysts, and prosecutors whose tireless work made these arrests possible.”
“These defendants knowingly and willfully abused their positions of trust for personal gain. That is unacceptable,” said Aaron Jordan, Assistant Inspector General for Investigations at the U.S. Department of Education. “I want to commend the OIG Special agents and our law enforcement colleagues whose efforts brought about today’s actions and helped stop such calculated plunder. The OIG will continue to aggressively pursue those who misappropriate Federal education funds for their own selfish purposes. Our students and taxpayers deserve nothing less.”
“The public must be able to trust the officials who are put in charge of government funds. Anyone who violates that trust will be brought to justice, because the citizens of Puerto Rico deserve no less. The FBI is proud to share this commitment with its partners from the United States Attorney's Office, and the Inspectors General for the Departments of Education and Housing and Urban Development,” stated Douglas Leff, Special Agent in Charge of FBI, San Juan.
“Our core mission is to investigate cases where there is evidence of waste, fraud and abuse involving H.U.D. programs. It is through the collective law enforcement effort present here today that we are able to ensure the integrity of those programs and to pursue those that would use them for personal gain,” stated Nicholas Padilla, Jr., Assistant Inspector General for Investigations, United States Department of Housing and Urban Development, Office of the Inspector General.
The case is being investigated by the United States Department of Education Office of Inspector General in conjunction with the FBI’s San Juan Division and the United States Department of House and Urban Development Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Seth Erbe. If found guilty, the defendants are facing possible sentences of up to 10 years for conspiracy, theft of government funds, and bribery, and up to 20 years for mail fraud, wire fraud and money laundering.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
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Seven Individuals Indicted and Arrested for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – On June 1 and 8, 2017, a federal grand jury in the District of Puerto Rico returned multiple indictments against 7 defendants charged with child pornography offenses, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) is in charge of the investigations.
The defendants and the charges they are facing are as follows:
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Gabriel Cañas-Guerrero- possession of child pornography; videos and images depicting actual minors engaging in sexually explicit conduct.
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Christian Joel Lorenzo-Feliciano- distribution and possession of child pornography. According to the indictment, Lorenzo-Feliciano distributed, via a file-sharing program with access to the internet, visual depictions of minors, including prepubescent minors, engaging in sexually explicit conduct.
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Victor Gadiel Reyes-Rodríguez- possession of child pornography; images depicting actual minors, including prepubescent minors, engaging in sexually explicit conduct.
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Ángel Luis Sepúlveda-Ramos- advertising and transportation of child pornography. Sepúlveda-Ramos knowingly used the Ares peer-to-peer software program to share one or more video and image files depicting minors, including prepubescent minors, engaging in sexually explicit conduct. The defendant also transported such child pornography material. On or about December 13, 2016, Sepúlveda-Ramos knowingly possessed at least 8 images and 17 videos depicting minors, including prepubescent minors, engaging in sexually explicit conduct.
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Vidal Berríos-Dávila- receipt and distribution of child pornography. The defendant shared with the HSI Forensic Lab one video depicting an approximately 9 year-old female minor exposing her genitals and engaging in sexually explicit conduct with an adult male.
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Francisco Javier Alicea-Báez- receipt and distribution of child pornography. On September 25, 2016, the defendant shared with the HSI Forensic Lab one video of an approximate duration of 5 minutes, depicting a male toddler approximately three to five years of age exposing his genitals and masturbating an adult male while sitting on his lap.
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Martín Suárez-Imbert- advertising child pornography. The defendant logged into WhatsApp chat rooms entitled “Ok Man,” “Sin Reglas,” and “Chat Hot” to offer, send and receive videos and images of minors engaging in sexually explicit conduct.
All defendants are facing a Forfeiture Allegation, which includes all materials or property used, or intended to be used in the possession of child pornography, such as computers, cellular phones, external hard drives and memory sticks. If found guilty, the defendants face potential sentences of up to 20 years in prison for possession of child pornography, a mandatory minimum of 5 years up to a maximum of 20 years for receipt and distribution of child pornography, and mandatory minimum of 15 years up to a statutory maximum of 30 years for advertising child pornography.
“These defendants, who advertise, participate, distribute or exploit children to access child pornography work hard to evade law enforcement and disguise what they are doing,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “Their sole purpose is to view children hurting for their own sexual satisfaction. We want them to know that they will face serious consequences for their actions. Our office will continue to vigorously prosecute this type of criminal activity to the fullest extent of the law.”
“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 Orlando Baez, deputy 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. These indictments represent a strong coordinated strike – by Homeland Security and the U. S. Attorney’s Office – 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.”
The cases are being prosecuted by Assistant U.S. Attorneys Elba Gorbea and Ginette Milanés, and Special Assistant U.S. Attorney Cristina Caraballo, under the supervision of AUSA Marshal Morgan, Chief of the Crimes Against Children and Human Trafficking Unit. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Individual Pleads Guilty to DogfightingRead the Press Release
SAN JUAN, P.R. – On the day jury selection was set to start, Ehbrin Castro-Correa, a.k.a. “Chino,” plead guilty to one count of animal abuse, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement- Homeland Security Investigation (ICE-HSI) handled the investigation.
Castro-Correa was facing trial on two counts of knowingly and unlawfully possessing and training an animal for purposes of having the animal participate in an animal fighting venture and one count for attempting to transport an animal for the purpose of having the animal participate in an animal fighting venture, specifically from Puerto Rico to the Dominican Republic.
On January 24, 2016, defendant used his cellphone to film his dog and another dog engaged in a brutal and bloody dogfight in Juncos. The video was discovered during a search of defendant’s cellphone at the Pan American dock when he attempted to transport six canines to the Dominican Republic for the purpose of dogfighting. The Dominican Republic is a notorious worldwide haven for dogfights. This discovery led to the execution of a search warrant at his residence, which resulted in the seizure of an additional 25 dogs, dogfighting training materials and instruments, and pharmaceuticals commonly used to condition dogs for dogfighting and treat their wounds.
“This is a bloody and brutal crime where dogs are trained and forced to tear each other apart for the amusement of sick and depraved individuals. It is important to inform the public that it is a violation of federal law to even attend a dogfight,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The protection of animals is a priority of the U.S. Attorney’s Office for the District of Puerto Rico. Today’s guilty plea demonstrates that individuals who attempt to profit from animal abuse crimes will be investigated, prosecuted and punished accordingly.”
As a result of the guilty plea, the defendant may be sentenced to a term of five (5) years in prison, a fine not to exceed two hundred fifty thousand dollars ($250,000.00), and/or a term of supervised release of not more than three (3) years. The sentencing hearing has been scheduled for October 16, 2017 by the presiding judge, U.S. Senior District Judge Juan Pérez-Giménez. Assistant United States Attorney Scott H. Anderson is in charge of the prosecution of the case.
US Attorney Hosts Meeting with Mexico’s Attorney GeneralRead the Press Release
SAN JUAN, P.R. – Today, Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, met with Raúl Cervantes Andrade, Attorney General for Mexico, Alberto Elías Beltrán, Head of the Deputy Attorney General’s Office for Legal and International Affairs, and Beatriz Navarro Parada, Appointed Consul from the Mexican General Consulate in San Juan, US Attorney’s Office announced. The following joint statement was issued after the meeting:
We, the Attorney General of México and the United States Department of Justice, having gathered in San Juan, Puerto Rico, this 6th of June 2017, intend to increase our efforts to combat jointly transnational organized crime through the strengthening of our justice institutions, including by:
• Recognizing that transnational criminal organizations and their illicit activities pose a common threat to the region;
• Implementing policies to increase the effectiveness and capacity of law enforcement, prosecuting agencies, and justice sector leadership, particularly as Mexico transitions to an accusatorial justice system; and
• Improving coordination and information sharing to more effectively dismantle transnational criminal organizations.
Raúl Cervantes Andrade, Mexico’s Attorney General and Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico.Man Sentenced to 18 Years in Prison and 10 Years of Supervised Release for Production of Child PornographyRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced that United States District Judge Pedro A. Delgado-Hernández sentenced 33-year-old Sergio Cintrón-Rivera, to serve a term of imprisonment of 18 years followed by 10 years of supervised release. On January 27, 2017, Cintrón-Rivera pled guilty to one count of production of child pornography involving a female minor, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Police Department.
According to the indictment, on or about August 2015, Cintrón-Rivera induced a 15-year-old female minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The charging document also alleges that on or about October 2015 Cintron-Rivera distributed five images of the minor engaging in sexually explicit conduct via the smartphone instant messaging application Whatsapp.
“This sentence sends a strong message to people who abuse children. They will pay a heavy price for their actions. My office, along with our federal, state and local partners, remains committed to protecting children by aggressively pursuing, prosecuting and punishing those who seek to exploit them,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.
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 criminal prosecution was handled by Assistant U.S. Attorney Ginette Milanés.
Individual Sentenced to 62 Years in Prison for Rico Act ViolationsRead the Press Release
SAN JUAN, P.R. –Carlos E. López-Soto, a.k.a. “Chemito” was sentenced to 744 months (62 years), in prison and 5 years of supervised release for his participation in a gang that committed fourteen (14) armed robberies in Puerto Rico announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On December 19, 2016, a jury convicted Carlos López-Soto of a RICO conspiracy, two Hobbs Act robberies and related firearm offenses for his role in this gang. The evidence at trial revealed that the purpose of the criminal enterprise was to enrich its members and associates. To accomplish this, the members of the organization would: (1) commit armed robberies during which, through the use of force, violence, and intimidation, they would take money, electronics, and other property from persons and businesses, (2) pool resources in order to accomplish the robberies, (3) use guns to commit the robberies, (4) have a getaway driver for the robberies, (5) sell the items that were obtained from the robberies, and (6) share the proceeds of the robberies. The members of this organization were responsible for fourteen (14) armed robberies to persons, businesses, and street vendors. Through these robberies, defendants were able to obtain at least eighty-thousand dollars ($80,000.00) in profits. The other members of the organization were convicted after pleading guilty to the charges filed against them.
United States District Court Judge Daniel Domínguez presided over the case, which was prosecuted by Assistant United States Attorneys Victor O. Acevedo-Hernández and Kelly Zenón-Matos. The FBI was in charge of the investigation.
Former U.S. Postal Service Employee Guilty of Workers’ Compensation FraudRead the Press Release
SAN JUAN, P.R. – Today, former U.S. Postal Service (USPS) employee Ricardo Rivera-Ortiz was found guilty on all counts of fraud associated with Department of Labor (DOL) Office of Workers’ Compensation Program (OWCP), announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez. United States District Court Judge Gustavo A. Gelpí presided over the trial.
On August 30, 2013, Rivera-Ortiz was charged with three counts of false statements for lying to the U.S. Department of Labor, Office of Workers Compensation, one count of theft of government property for lying to the Social Security Administration Disability Benefits Program and a fifth count of concealing a material fact to the Social Security Administration for failing to disclose an improvement in his physical condition and capacity to work.
The defendant was found guilty on all counts. During trial, the government presented checks, invoices, vouchers, photos, videos and other documentary evidence and witness testimonies that proved that the defendant had been requesting and receiving unwarranted disability benefits from the OWCP and SSA while failing to report that he was working as a Union representative of the American Postal Workers Union.
“This conviction marks yet another victory in our fight against fraud in Puerto Rico. I thank our team of prosecutors and our federal law enforcement partners for the teamwork they showed in leading us to a successful outcome today,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The charges were prosecuted by Special Assistant United States Attorney Amanda C. Soto Ortega from the United States Postal Service-Office of the Inspector a General and Assistant United States Attorney Dennise N. Longo Quiñones. The defendant faces a sentence of imprisonment of at least 10 years for the theft of government property, at least 5 years of imprisonment for the false statement and concealment counts.
The case was investigated by the USPS-OIG with the collaboration of Social Security Administration - Office of Inspector General, the FBI, and the Puerto Rico Police Department.
The sentencing hearing was scheduled for October 10, 2017.
Identity Documents Broker Sentenced on Identification Fraud and Conspiracy ChargesRead the Press Release
A broker of identity documents who conspired with others to provide fraudulently-obtained Puerto Rican documents to customers was sentenced to prison today.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Acting Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Acting Director Christian J. Schurman of the U.S. Department of State’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Alejandro Tello-Rojas, 36, a Mexican citizen, formerly of Lawrenceville, Georgia, was sentenced to serve 51 months in prison and three years’ supervised release. The defendant was sentenced before U.S. District Judge Juan M. Perez-Gimenez in the District of Puerto Rico. The defendant pleaded guilty on Sept. 14, 2016, to conspiracy to commit identification fraud, to commit human smuggling for financial gain, and to possessing a means of identification of another person in relation to a felony.
According to admissions made in connection with the plea, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. As part of the scheme, individuals identified as document runners, located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators, identified as identity document suppliers and brokers, located in various cities throughout the United States allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1200 per set.
According to admissions in the plea agreement, Tello-Rojas’ role in the scheme was to act as an identity broker from his home in Georgia, where he usually conducted his business. Tello-Rojas admitted to making arrangements to purchase identity documents from other co-conspirators to facilitate their sale in Georgia. The defendant further admitted possessing and transferring these fraudulent documents to other individuals or “customers,” which were then illegally sold to other individuals living in the United States. The defendant admitted that he knew that these individuals would use these documents to commit Social Security fraud and to illegally impersonate United States citizens.
The Chicago offices of ICE-HSI, USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from HSI San Juan and the DSS San Juan Resident Office. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.
Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case, with the support of the U.S. Attorney’s Office for the District of Puerto Rico.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; www.ssa.gov/pubs/10064.html; www.fbi.gov/about-us/investigate/cyber/identity_theft; and www.irs.gov/privacy/article/0,,id=186436,00.html.
22 Individuals Charged with Conspiracy to Commit Id TheftRead the Press Release
SAN JUAN, P.R – On May 9, 2017, a federal grand jury in the District of Puerto Rico returned a 49-count superseding indictment charging 22 individuals with conspiracy to commit identity theft, aggravated identity theft, and counterfeit access device, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The United States Secret Service (USSS) and the U.S. Postal Inspectors are conducting the investigation.
According to the indictment, the object of the conspiracy was to steal the names, bank account numbers and debit or credit card numbers and other means of identification of customers at retail businesses located in and around San Juan, Puerto Rico to enrich themselves and for financial gain and profit. The members of the conspiracy acted as “card skimmers,” using a card skimming device to obtain the names, numbers, and any other identifying information necessary to further the conspiracy.
The defendants would use the skimmer to create fake debit, credit, bank, money, or gift cards to use for transactions for cash, goods, or services. Then they would use the fake debit, credit, bank, money, or gift cards to make cash withdrawals from Automatic Teller Machines (ATMs), purchase money orders, and purchase goods, and services. The loss to financial institutions affected is over $280,000.
The defendants are: Roy Moreno-Negrón, José Calderón-Campos, Edwin R. López-Colón, Miguel González-Marichal, A.K.A. “Kevin,” A.K.A. “Mecha Corta,” Luis Torres Cirilo, A.K.A. “Luis Piña,” A.K.A. “Luigi,” A.K.A. “Rosario,” A.K.A. “Aurelio Chacorta,” Juan Carlos Santiago-Calderón, Yadiely Vázquez-Medina, Adriana Calero-Estades, Edward Santiago-González, Ameliangie M. Graciani-Ramos, Ángel Yadier Esquilin-Cruz, Christopher Rivera-Pérez, Dijeiry Flores, Johana María Rivera-Aguayo, Jorge Luis Vaello-Marquez, Ángel Luna-Guerrero, A.K.A. “Angelito Barber,” Abraham Cruz-Semprit, A.K.A. “Bam Bam,” [18] Michael Soto-Rodríguez, A.K.A. “Chal Soto,” Gustavo Mojica-Moreno, Jean Carlos Lebrón-Falcón, Elvin José Castellano, A.K.A. “Enanito Antonio,” A.K.A. “Menor Cupey,” and Javier Delbrey Negrón. The leader of the conspiracy, Moreno-Negrón is also facing one count for possession of a firearm by a convicted felon.
“Law enforcement will not stand by as criminals attempt to disrupt our lives, steal our savings, and ravage our credit, said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I urge everyone to take steps to protect their personally identifiable information from criminals who seek illicit profits through stolen identity fraud.”
USSS Resident Agent in Charge Carlos Colón stated: “This case highlights the Secret Service’s investigative skills and our commitment to collaborate with our law enforcement partners in detecting and dismantling sophisticated criminal organizations. These crimes can have a detrimental impact to our nation’s critical financial infrastructure. Financial fraud is one of the largest challenges facing American citizens and businesses today. The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who commit this type of fraud.”
“Roy Moreno and his codefendants victimized the citizens of San Juan for their own personal financial gain. These arrests are a fitting end to their scheme. U.S. Postal Inspectors, and our law enforcement partners are sending a strong message that we will tirelessly work to protect the American public from predators like Moreno. Congratulations to the agents, detectives, and Inspectors who brought this group to justice,” said Jim Buthorn, Inspector in Charge, Newark Division/San Field Office.
If convicted, the defendants face maximum penalty of 15 years in prison for the conspiracy to commit identity theft, two years mandatory for the aggravated identity theft, and a maximum of 10 years for the counterfeit access device charge.
The case is being prosecuted by Assistant United States Attorney Edward Veronda. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Former Puerto Rico Police Officer Pleads Guilty to Civil Rights Violation for Assaulting JuvenileRead the Press Release
The Justice Department announced today that Shylene Lopez, former Police of Puerto Rico (POPR) officer with the Carolina Drug Unit, has pleaded guilty in federal court to violating the civil rights of a juvenile arrestee. According to an indictment unsealed in September 2016, Lopez and co-defendants Jose Cartagena, Carlos Nieves, and Jimmy Davis, all POPR officers, used excessive force against C.C., a minor arrested for drug possession, during a police operation on Nov. 15, 2014.
As a part of her guilty plea, Lopez admitted that on Nov. 15, 2014, while the defendants pursued C.C. from a police vehicle, and while C.C. fled from the defendants on his bicycle, co-defendant Nieves exited the police vehicle and shot C.C. in the back with his gun. The defendants eventually caught up with C.C., and C.C. complied with police commands to place his hands behind his back while lying face down on the ground. Lopez admitted that co-defendant Cartagena then held the victim’s hands together and struck the victim on the back of the head with a gun. The officers placed the victim in the rear of the police vehicle between co-defendant Nieves and Lopez. Lopez admitted that on the way to the police station, co-defendant Davis told the victim to talk or they would break his head open, and co-defendant Cartagena struck the victim with an open hand multiple times. Lopez admitted that she also struck the victim by using her open hand to slap the victim twice on the back of the head while he was handcuffed. Once they arrived at the police station, C.C. refused to answer questions. In response, co-defendant Davis took C.C. to a back room. While in the back room, co-defendant Davis struck the victim in the face while the victim sat in a chair. Lopez admitted that the defendants’ abuse caused C.C. extreme physical pain and required him to seek treatment at a local area hospital.
“Honorable law enforcement officers are the cornerstone of our system of Justice,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “When law enforcement officers fail to follow the laws they are sworn to uphold, they undermine their fellow officers and the rule of law. The Civil Rights Division will continue to vigorously prosecute those officers who violate their oaths by willfully using excessive force on persons in their custody.”
“Law enforcement officials are not above the law,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “When they abuse their authority by violating the civil rights of the citizens they are sworn to protect, they will be held accountable.”
At sentencing, Lopez faces a maximum of ten years in prison. Sentencing will be set by the court on a future date.
This case is being investigated by the FBI’s San Juan Division. It is being prosecuted by Assistant U.S. Attorneys José Contreras and Victor Acevedo of the District of Puerto Rico and Special Litigation Counsel Gerard Hogan and Trial Attorney Gabriel Davis of the Civil Rights Division’s Criminal Section.
Former Puerto Rico Police Officer Pleads Guilty to Civil Rights Violation for Assaulting JuvenileRead the Press Release
WASHINGTON – The Justice Department announced today that Shylene Lopez, former Police of Puerto Rico (POPR) officer with the Carolina Drug Unit, has pleaded guilty in federal court to violating the civil rights of a juvenile arrestee. According to an indictment unsealed in September 2016, Lopez and co-defendants Jose Cartagena, Carlos Nieves, and Jimmy Davis, all POPR officers, used excessive force against C.C., a minor arrested for drug possession, during a police operation on Nov. 15, 2014.
As a part of her guilty plea, Lopez admitted that on Nov. 15, 2014, while the defendants pursued C.C. from a police vehicle, and while C.C. fled from the defendants on his bicycle, co-defendant Nieves exited the police vehicle and shot C.C. in the back with his gun. The defendants eventually caught up with C.C., and C.C. complied with police commands to place his hands behind his back while lying face down on the ground. Lopez admitted that co-defendant Cartagena then held the victim’s hands together and struck the victim on the back of the head with a gun. The officers placed the victim in the rear of the police vehicle between co-defendant Nieves and Lopez. Lopez admitted that on the way to the police station, co-defendant Davis told the victim to talk or they would break his head open, and co-defendant Cartagena struck the victim with an open hand multiple times. Lopez admitted that she also struck the victim by using her open hand to slap the victim twice on the back of the head while he was handcuffed. Once they arrived at the police station, C.C. refused to answer questions. In response, co-defendant Davis took C.C. to a back room. While in the back room, co-defendant Davis struck the victim in the face while the victim sat in a chair. Lopez admitted that the defendants’ abuse caused C.C. extreme physical pain and required him to seek treatment at a local area hospital.
“Honorable law enforcement officers are the cornerstone of our system of Justice,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “When law enforcement officers fail to follow the laws they are sworn to uphold, they undermine their fellow officers and the rule of law. The Civil Rights Division will continue to vigorously prosecute those officers who violate their oaths by willfully using excessive force on persons in their custody.”
“Law enforcement officials are not above the law,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “When they abuse their authority by violating the civil rights of the citizens they are sworn to protect, they will be held accountable.”At sentencing, Lopez faces a maximum of ten years in prison. Sentencing will be set by the court on a future date.
This case is being investigated by the FBI’s San Juan Division. It is being prosecuted by Assistant U.S. Attorneys José Contreras and Victor Acevedo of the District of Puerto Rico and Special Litigation Counsel Gerard Hogan and Trial Attorney Gabriel Davis of the Civil Rights Division’s Criminal Section.
Two Individuals Arrested and Indicted for CarjackingRead the Press Release
SAN JUAN, P.R. – On May 4, 2017, a federal grand jury returned a three-count indictment against Nestor Morales-Cortijo, A.K.A. “Papum,” and José Vázquez-Millán for carjacking and using a firearm during a crime of violence, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Federal Bureau of Investigation is in charge of the investigation.
The indictment alleges that on or about April 27, 2017, in the District of Puerto Rico, Morales-Cortijo and Vázquez-Millán, while carrying and brandishing a firearm, did take a motor vehicle, to wit: a green, 2003 Mitsubishi Lancer, that had been transported, shipped or received in interstate or foreign commerce, from the presence of an adult female, by force, violence and intimidation, with the intent to cause death or serious bodily injury, in violation of Title 18, United States Code, Section 2119(1) and 2.
Defendant José Vázquez-Millán is facing one count for being felon in possession of ammunitions, having been convicted in court of a crime punishable by imprisonment for a term exceeding one year. Vázquez Millán did knowingly and unlawfully possess thirty-two (32) rounds of 9mm ammunition, said ammunition having been shipped and transported in interstate or foreign commerce.
In a separate criminal complaint authorized by US Magistrate Judge Bruce McGiverin, Jonathan Fuentes-Millán was charged for possession of a firearm in relation to a crime of violence and carjacking. On or about April 27, 2017, a female victim arrived to her residence, located at Loiza, Puerto Rico and parked her blue Toyota Prius in the driveway. Also at the residence was her husband, and two children. Shortly after, the victims heard gunshots outside. They attempted to close the front door when a male individual, accompanied by two others, demanded the car keys to the Prius, which they turned over. The males used the keys to start the vehicle, but then fled the area on foot.
Officers arrived at the scene and noticed bullet casings on the ground and blood stains along the exterior wall of the residence. Officers followed the blood stains and walked toward the adjacent property which is under construction and has open access. Inside the property they found Fuentes-Millán holding a black rifle loaded with a magazine, and two additional magazines in his waist band.
“These defendants planned and carjacked defenseless victims,” said US Attorney Rosa Emilia Rodríguez-Vélez. “These defendants will be brought to justice through the hard work of federal and state law enforcement agents and our prosecutors.”
“As always, the public’s help is essential to apprehending these violent criminals, and citizens with information are asked to call the FBI San Juan Field Office at 787-754-6000, or to use the tip line available at our website, http://www.fbi.gov,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Field Office.
The cases are being prosecuted by Special Assistant United States Attorney Ana M. Santiago-Ramírez. If convicted, the defendants face up to 15 years of imprisonment for the carjacking charge (Count One), and up to life imprisonment for the firearms charge (Count Two). Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Three Individuals Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
SAN JUAN, P.R. - On April 28, 2017, the Grand Jury returned a 23-count indictment charging Sheila Judith Quiñones-Santos, Edgardo “Gary” Luis Nazario-Montijo and Felipe Soto-González with conspiracy to commit bank fraud, substantive counts of bank fraud and aggravated identity theft. The Indictment also includes charges against Nazario-Montijo for theft of government funds, and fraud against the Social Security Disability Insurance Program by making false representations and concealing material information from the program.
The indictment alleges that the operations manager for Magritte, Inc., Sheila Judith Quiñones-Santos, created and printed checks against the subsidiaries’ bank accounts for services never rendered. Quiñones-Santos also created fraudulent invoices using the identity of legitimate Magritte suppliers and made fraudulent entries in the electronic accounting system of Magritte, Inc., and its subsidiaries to justify the fraudulent expenditures in the corporate books and records.
These fraudulent checks are alleged to have been cashed between May 2, 2012 and September 16, 2014, by either “Gary” Nazario-Montijo, Quiñones-Santos’ consensual partner, or Felipe Soto-González. The allegations are based on evidence recovered in the investigation that indicates that Nazario-Montijo cashed the checks at several locations in the metropolitan area, including a check cashing service in Bayamón, Puerto Rico, while Soto-González cashed checks at a local bank. The 244 checks fraudulently cashed account for a total misappropriation of approximately $731,827.62 from Magritte, Inc. or its subsidiaries “Ponte Fresco,” “Passion,” “Que Pasta,” and “Under the Trees.”
Nazario-Montijo is charged with defrauding the Social Security Disability Insurance Program. The indictment alleges that he provided false information on his application for benefits under the program claiming that he could not work despite the fact that he continued to work without reporting his earnings.
If convicted, the defendants face a maximum possible sentence of incarceration of 30 years for bank fraud, and a two-year mandatory minimum sentence for aggravated identity theft. If convicted, Nazario-Montijo faces a maximum possible sentence of 10 years for the social security fraud.
The investigation was conducted by the Federal Bureau of Investigation with the assistance of the Social Security Administration, Office of Inspector General. The case is being prosecuted by AUSA Dennise N. Longo-Quiñones and SAUSA Vanessa D. Bonano-Rodríguez.
Woman Arrested for Use of Arson or ExplosivesRead the Press Release
SAN JUAN, Puerto Rico– Today, United States Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint against Nina Droz Franco, charging her for damaging or attempting to damage by means of fire a building engaged in activity affecting interstate commerce, in violation of Title 18, United States Code, Section 844(i), announced United States Attorney Rosa Emilia Rodríguez-Vélez. ATF is in charge of the investigation.
According to the information contained in the complaint, yesterday there were numerous protests in the San Juan Metro area, including on Ponce de Leon Street in Hato Rey-- San Juan, Puerto Rico. During the course of the protest on Ponce de Leon Street, numerous individuals vandalized the Popular Center building. This building houses various commercial establishments engaged in interstate commerce, including a bank and food establishments. After several individuals broke windows of the building, two individuals approached one of the broken windows and attempted to light a fire. Specifically, a female and a male approached one of the broken windows and lit a flame. All of these events were captured on video.
A while after this incident, agents of the Puerto Rico Police Department (“PRPD”) arrested the female depicted in the video for lying on a public road, refusing to comply with agents’ instructions, and then assaulting one of the agents. PRPD agents ultimately identified this female as Nina Alejandra Droz-Franco. At the time she was arrested, Droz-Franco was wearing clothing matching the description of the clothing she wore while lighting the flame at the Popular Center building.
“Yesterday, what was planned as a lawful and peaceful demonstration and protest took an unfortunate turn. In collaboration with our state and federal partners we will continue to investigate and prosecute these violent crimes. We cannot, and will not, tolerate these actions to go on in a civilized society,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“The deplorable, reprehensible, and shameful acts of vandalism committed yesterday shall be thoroughly investigated and prosecuted to the full extent of the law. We warned that this administration would guarantee the rights of freedom of expression of all citizens, however those who violate the law shall not go unpunished,” said Wanda Vázquez-Garced, Secretary of the Puerto Rico Department of Justice.
“We want to call on people who can identify the demonstrators who used violence against law enforcement and damage to public and private buildings. Here we have a photo of one of the alleged people who thanks to the media could see his face. You can help us by calling 7873432020 confidentially or at policia.pr.gov,” said Henry Escalera, Deputy Superintendent of the Puerto Rico Police Department.
Assistant United States Attorney Alexander Alum is in charge of the prosecution of the case. If convicted, the penalties Droz-Franco is facing are a minimum term of imprisonment of five years, and a maximum term of 20 years, a supervised release term of not more than 3 years, and a fine not to exceed $250,000.
Individual Arrested for Threatening to Bomb El CapitolioRead the Press Release
SAN JUAN, Puerto Rico– Today, United States Magistrate Judge Sivlia Carreño-Coll authorized a criminal complaint against Ivan Zayd Guillama-Rosario, charging him for threatening to damage or destroy a building, to wit the Capitolio, by means of use of an explosive, in violation of Title 18, United States Code, Section 844(e), announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation.
According to the information contained in the complaint, the bomb threat was posted on April 28, 2017 on Facebook. The name on the account from which the threat was posted is “Ivan Zayd Guillama Rosario.” The post contained the following text: “¡VAMOS A BOMBARDEAR EL CAPITOLIO Y QUE EN PAZ DESCANSEN NUESTRAS CONCIENCIAS!” Translated from the Spanish language to the English language, the post states: “We are going to bomb the Capitol, and may our consciences rest in peace.”
On April 28, 2017, law enforcement officers located the defendant at his place of employment. Guillama-Rosario confirmed that he is the owner of the Facebook account Ivan Zayd Guillama Rosario and that he posted “!VAMOS A BOMBARDEAR EL CAPITOLIO Y QUE EN PAZ DESCANSEN NUESTRAS CONCIENCAS!” on Facebook on the same day.
“There is a fine line between free speech and incitement to violence. When that line is crossed, speech is no longer protected because it becomes criminal conduct,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal authorities and local law enforcement will closely monitor the protests that will be held on Monday, May 1st. Although we believe that a large majority of the protesters will abide by the law, we will prosecute those who use social media and peaceful demonstrations to threaten, promote violence or incite violent acts.”
Assistant United States Attorney Alexander Alum is in charge of the prosecution of the case. If convicted, Guillama-Rosario faces a maximum term of imprisonment of 10 years, a term of supervised release of up to three years, and a fine of up to $250,000.
California Man Sentenced to 15 Years in Prison for Attempted Sex Trafficking of ChildrenRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that United States District Judge Francisco A. Besosa sentenced 38-year-old Shane R. Yoder of Fairfield, CA, to serve a term of imprisonment of fifteen years followed by 20 years of supervised release. On December 16, 2016, Yoder pled guilty to one count of attempted sex trafficking of children, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In March 2016, the defendant traveled from California to Puerto Rico in order to pay for sex with multiple girls between the ages of 8-11 years of age.
“This case should send a message that human trafficking does, in fact, exist in Puerto Rico,” said U.S. Attorney Rodríguez. “Given the fact that human trafficking is a modern form of slavery, we must educate ourselves to protect our children from suffering from this vile form of exploitation”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the sexual exploitation of children.
The criminal prosecution was handled by Special Assistant U.S. Attorney Cristina Caraballo-Colón.
Individual Found Guilty of Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, after a two day trial, a jury found Luciano Mendoza-Garcia guilty of drug trafficking charges, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Chief Judge Aida Delgado presided over the trial.
On October 13, 2016, the defendant Luciano Mendoza-Garcia and Jorge Balbuena-Peguero were arrested in the high seas during a high speed maritime interdiction were 56 kilograms of cocaine were recovered. On October 19, 2016 a federal grand jury indicted Mendoza-Garcia and Balbuena-Peguero charging them with conspiracy to import controlled substances, conspiracy to possess a controlled substance on board a vessel subject to the jurisdiction of the United States and possession of a controlled substance on board a vessel subject to the jurisdiction of the United States, aiding and abetting each other.
Assistant U.S. Attorney Laura Montes and Special Assistant U.S. Attorney Nicholas Smith were in charge of the prosecution of the case. The defendant faces a minimum mandatory term of imprisonment of 10 years.
Man Sentenced to 10 Years in Prison for Enticement of A Minor for Unlawful Sexual ActivityRead the Press Release
SAN JUAN, P.R. – On Tuesday, April 18, 2017, United States District Court Juan Pérez-Giménez sentenced thirty-eight (38) year-old Edison José Díaz-Carreras, to ten (10) years in prison for attempting to coerce and entice an individual whom he believed to be a thirteen (13) year-old female minor but was in fact an undercover agent.
The events occurred in December 2015, when Díaz-Carreras sent the minor sexually explicit videos and images, through electronic communications, and stated his desire to take the minor to a motel to engage in sexual activity. As part of the conversations, Díaz-Carreras described in detail the sexually explicit acts that he wanted to perform with the minor.
On April 15, 2016, Homeland Security Investigations Agents arrested defendant Díaz-Carreras, on an arranged location where Díaz-Carreras was going to pick up the minor to take her to the motel.
“We will continue our ongoing efforts to investigate and prosecute those use electronic communications to entice minors to engage in illegal sexual acts,” said U.S. Attorney Rosa E. Rodriguez-Velez.
Assistant United States Attorney Elba Gorbea handled the criminal prosecution.
Individual Sentenced for His Participation in Extortion SchemeRead the Press Release
SAN JUAN, P.R. – On April 20, 2017, defendant Xavier González-Calderon was sentenced by United States District Court Judge Pedro A. Delgado-Hernández to serve a term of imprisonment of 41 months as to counts 24 and 25 of the indictment to be served concurrently with each other, 3 years of supervised released as to each count to be served concurrently with each other and a restitution in the amount of $408,208.42 for his participation in an extortion scheme, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Defendant Xavier González-Calderon was indicted on December 2, 2015 along with 9 other co-conspirators including Anaudi Hernandez-Perez. González-Calderon was the Administrator for the House of Representatives for the Commonwealth of Puerto Rico and as the administrator, he had the authority to enter binding contracts on behalf of the House of Representatives.
On August 9, 2016, defendant Xavier González-Calderon plead guilty to Conspiracy to Commit Wire Fraud (Count 24 of the indictment) and Intentional Misapplication of Property by Agent of an Organization Receiving Federal Funds (Count 25 of the indictment).
The case was investigated by the FBI’s San Juan Division and prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó Iriarte, Chief of the Criminal Division.
Double A Baseball Player Hector Jomar Ponce- Rijo Arrested on Child Pornography ChargesRead the Press Release
SAN JUAN, Puerto Rico – Today federal authorities arrested Héctor Jomar Ponce-Rijos charging him with child pornography, announced United States Attorney Rosa Emilia Rodríguez-Vélez. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) conducted the investigation that led to the arrest.
A federal grand jury in the District of Puerto Rico returned a six count indictment against baseball player Héctor Jomar Ponce-Rijos charging him with production of child pornography, sexual enticement of a minor, transportation of a minor with intent to engage in criminal sexual activity and forfeiture allegation related to production of child pornography and sexual enticement and transportation of a minor. Ponce-Rijos was arrested at his residence in Toa Baja by HSI special agents. According to the charging documents, Ponce-Rijos transported a 13-year-old female minor with the intent to engage in sexual activity, made sexually explicit approaches and requested sexually explicit images and videos from the minor. According to the investigation on May 30, 2016, the defendant transported the female minor to a desolated baseball field and had sexual relations with the minor. On two other occassions Ponce-Rijos transported the minor to a motel in the Municipality of Utuado to have sexual relations with her.
“Child pornography will not be tolerated. Our prosecutors and law enforcement partners will continue vigorously investigate and prosecute the abuse that these victims suffer at the hands of these criminals,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
Héctor Jomar Ponce-Rijos is scheduled to appear before U.S. Magistrate Judge Silvia Carreño today for his initial appearance, after which he will be transferred to the Guaynabo Metropolitan Detention Center awaiting a detention hearing.
Assistant U.S. Attorney Elba Gorbea is prosecuting the case. If convicted defendant faces a mandatory minimum term of 15 years in prison. An indictment contains only charges and is not evidence of guilt. Defendant is presumed to be innocent until and unless proven guilty.
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 12,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app (link is external) or visit the online suspect alerts page. HSI is a founding member and current chair of the Virtual Global Taskforce (link is external), an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.
26 Individuals Indicted for Smuggling Cocaine Through the Luis Muñoz Marín International AirportRead the Press Release
SAN JUAN, Puerto Rico – On April 10, 2017, a federal grand jury in the District of Puerto Rico returned an indictment against twenty-six defendants charged with conspiracy to possess with intent to distribute cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
The indictment alleges that beginning on a date unknown, and continuing up to and until the return of the indictment, the defendants smuggled multi-kilogram quantities of cocaine through the Luis Muñoz Marín International Airport (LMMIA) to the Continental United States. The smuggled cocaine was destined to major cities in the Eastern coast. The defendants charged in the indictment had several different roles.
The lead defendant [1] Humberto Concepción-Andrades was identified as the leader and supplier of a Drug Trafficking Organization (DTO) that smuggled multi-kilogram quantities of cocaine through the LMMIA in Carolina, Puerto Rico. The facilitators were identified as: [2] Jose Colón-Guzmán, [3] Miguel García-Blasco (an employee for JetBlue Airlines at LMMIA and currently a Southwest Airlines employee at the Orlando International Airport), [4] Tito Diaz-Serrano (an employee for Antilles Services, an airport services company at LMMIA), [5] Tomás Domínguez-Rohena (an employee of American Airlines at LMMIA and Miami International Airport), [6] Alexander Gazmey-Santiago (an employee of the International Meal Company who worked at the Air Margaritaville restaurant in LMMIA); and [10] Danel González-González, who smuggled multi-kilogram quantities of cocaine through DHL and through employees of Perfect Cleaning Services Inc., a company that provides cleaning service at LMMIA.
Defendants in the indictment include employees of Air Margaritaville (a restaurant located beyond the TSA security check point at LMMIA): [7] Harold Oliveras-Landrau, [8] Rodney Pérez-Ortega, [11] Michael Danet-Delgado, [12] Jose Paris-Romero, [13] Jean Ocasio-Castro, [14] Orbi Villar-Enriquez, [15] Héctor Ortiz-Brignoni, [16] Edwin Rosario-Rosario and [17] Rafael Coriano-Sierra.
Additional defendants included current and former employees of American Airlines at LMMIA cargo department: [18] Luis Diaz-Colón, [19] Miguel Ruiz-Delgado, [20] Daniel Vélez-Sanjurjo, [21] Marcos González-Figueroa and [22] Brian Otero.
Defendant [24] Aimee Monegro-Polanco is the wife of defendant [1] Humberto Concepción-Andrades. Along with [1] Humberto Concepción-Andrades, [24] Aimee Monegro-Polanco funneled narcotic proceeds through bank accounts of corporations they created to conceal the nature, source, location, ownership, or control of the narcotic proceeds.
Defendants were used as mules to carry the narcotics through LMMIA to its final destination in the Continental United States: [9] Ángel Almodovar-García, [25] Carl Frank Zubillaga and [26] David Figueroa-Colón.
[9] Ángel Almodovar-García also smuggled multi-kilogram quantities of cocaine through LMMIA with the help of UPS driver [23] Felix Rosado-Colón.
The indictment sets forth various methods used by the co-conspirators to smuggle the drugs:
Bathroom Smuggling Method at LMMIA
Defendant [1] Concepción-Andrades, leader drug supplier, provided multi-kilogram quantities of cocaine to a facilitator who supplied the cocaine to defendant [3] García-Blasco. [3] García-Blasco. [3] García-Blasco would then smuggle the kilograms of cocaine past security at LMMIA into the secured area of LMMIA. Defendants [9] Almodovar-García, [25] Zubillaga and [26] Figueroa-Colón worked as mules for the DTO. The mules would arrive at LMMIA, pass through a TSA security checkpoint and contacted [3] García-Blasco or another facilitator. The facilitators indicated the specific bathroom where the mule would meet [3] García-Blasco and receive the kilograms of cocaine. Once the mules had obtained the kilograms they placed them into their carry-on luggage and boarded flights to the Continental United States.
American Airlines Smuggling Method
Defendant [1] Concepción-Andrades, leader drug supplier, provided multi-kilogram quantities of cocaine to a facilitator who supplied the cocaine to defendant [3] García-Blasco. [3] García-Blasco, then provided the cocaine to another facilitator, [4] Díaz-Serrano. [4] Díaz-Serrano then contacted American Airlines employees, who were previously indicted in 2015, who worked for the drug trafficking organization (DTO).
The mules would enter the airport and hand their checked luggage containing multi-kilogram quantities of cocaine to member(s) of the DTO who were working at the American Airlines counter. The American Airlines DTO member(s) would place a sticker onto the checked luggage indicating that it had been cleared by TSA, when in fact the luggage had not been cleared by TSA. The American Airlines employees would then place the checked luggage with other luggage, which had been previously cleared by TSA, and would load them onto commercial airlines headed to the Continental United States.
Air Margaritaville Restaurant Smuggling Method
Defendant [1] Concepción-Andrades, leader drug supplier, provided multi-kilogram quantities of cocaine to a facilitator who supplied the cocaine to defendant [6] Gazmey-Santiago, who would contact members of the DTO employed at the Air Margaritaville restaurant inside LMMIA.
Defendant [12] Paris-Romero, among others, received the cocaine and would place it into the Black Coffee garbage chute at LMMIA, thereby moving the cocaine past the security checkpoint and into the secure area of the airport. Once the cocaine was removed from the trash chute, defendants [8] Pérez-Ortega and [13] Ocasio-Castro would remove the cocaine and store it inside lockers in the Air Margaritaville employee locker room.
Defendants [15] Ortiz-Brignoni, [17] Coriano-Sierra, and other members of the DTO, would move the cocaine from the lockers into the dishwashing area of the Air Margaritaville restaurant. Defendants [16] Rosario-Rosario, [12] Paris-Romero were waiters at the restaurant. They delivered the cocaine inside five pound bags of Gustos Coffee Company coffee bags to defendants [9] Almodovar-García, [25] Zubillaga and [26] Figueroa-Colón. After receiving the coffee bags with the cocaine, the mules boarded flights to the Continental United States. Each Gustos Coffee Company coffee bag contained approximately three to four kilograms of cocaine.
Perfect Cleaning Services Inc. Smuggling Method
Defendant [1] Concepción-Andrades supplied multi-kilogram quantities of cocaine to a DTO facilitator who provided the cocaine to defendant [10] González-González. Gonzalez-Gonzalez ultimately supplied the cocaine to an employee(s) of Perfect Cleaning Services Inc., one of these employees was previously indicted in 2015. The mule(s) would arrive at LMMIA, go through a TSA security checkpoint and contact an employee of Perfect Cleaning Services Inc. The Perfect Cleaning Services Inc. employee would then meet the mule inside a bathroom at LMMIA. The Perfect Cleaning Services Inc. employee would then slide a backpack or piece of luggage containing multi-kilogram quantities of cocaine to the mule under the center divider of the stalls. The mule would then board a flight to the Continental United States.
American Airlines Cargo Smuggling Method
According to the Indictment, defendant [4] Diaz-Serrano facilitated a smuggling venture utilizing American Airlines cargo employees. The employees who participated in this smuggling method were: [18] Díaz-Colón, [19] Ruiz-Delgado, [20] Vélez-Sanjurjo, [21] González-Figueroa, and [22] Brian Otero. As American Airlines employees, they could ship goods free of charge on American Airlines flights. They would obtain multi-kilogram shipments of cocaine in boxed goods, and use American Airlines employee IDs at the American Airlines cargo counter at the airport. The employee would then fill out the proper cargo paperwork and take the shipment through security inspection. DTO members would then clear the shipment and place it on a flight to the Continental United States.
DHL Smuggling Method
Defendant [1] Concepción-Andrades supplied multi-kilogram quantities of cocaine to a DTO facilitator who provided the cocaine to defendant [10] González-González, who smuggled the multi-kilogram quantities of cocaine onto cargo planes headed to the Continental United States.
“These individuals developed numerous smuggling lines to transport cocaine through the LMMIA in Puerto Rico to the Continental United States. Today we have brought their operations to a grinding halt,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The members of our AirTAT initiative will continue to work together to ensure that our airports are not used to smuggle contraband into the United States mainland.”
Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) is in charge of the investigation with the collaboration of the Federal Bureau of Investigation (FBI), Drug Enforcement Agency (DEA), the U.S. Marshals and the Police of Puerto Rico.
Assistant U.S. Attorney Stuart J. Zander is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years 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.
This case is part of the ongoing efforts of the Airport Investigations and Tactical Team (AirTAT). Originating in January 2015, AirTAT is a multi-agency initiative created to identify, locate, disrupt, dismantle, and prosecute Domestic and Transnational Criminal Organizations (DTCOs) and its operatives using the LMMIA, the Fernando Luis Rivas Dominicci Airport (the Isla Grande airport), and peripheral airports as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents and illicit proceeds. These airports play a strategic role for DTCOs to conduct contraband smuggling activities inbound and outbound to the continental United States as well as international destinations.
Individual Sentenced to 21 Months in Prison for Mortgage FraudRead the Press Release
SAN JUAN, P.R. – Alejandro E. Mayendía-Blanco was sentenced by United States District Court Judge Francisco A. Besosa to serve 21 months of imprisonment for mortgage fraud, five years of supervised release, a fine of $50,000, and an order for restitution of $98,666, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Mayendía-Blanco had plead guilty on August 12, 2016.
Alejandro E. Mayendía-Blanco was arrested on May 29, 2015, on charges of defrauding First Equity Mortgage Bankers, Inc. (FEBMI) in connection with a loan application. On October 3, 2008, the defendant participated in a real estate transaction as the seller of real property located in San Juan, PR. As part of the transaction, the defendant, along with co-defendant Orlando Mayendía represented that Orlando Mayendía was going to contribute $48,381.10 towards the purchase of the property. At the time that the defendant and Orlando Mayendía made this representation to FEBMI they knew it to be false, since the defendant had agreed to contribute the $48,381.10 to the purchaser, Orlando Mayendía, after the sale. Thus, the proceeds of the contribution from the borrower, Orlando Mayendía were the sales proceeds provided to Alejandro Mayendía.
“We are committed to bringing to justice those involved in federal financial crimes in Puerto Rico,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “The US Attorney’s Office will continue to investigate and prosecute financial crimes and ensure just and effective punishment for those who perpetrate them, and recover proceeds for victims of financial crimes.”
Assistant U.S. Attorneys Nicholas Cannon and Mariana E. Bauzá prosecuted the case.
Man Sentenced to 5 Years in Prison and 15 Years of Supervised Release for Possession of Child PornographyRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that United States District Judge Jay A. García-Gregory sentenced 21-year-old Carlos Rafael Ocasio-Febres, to serve a term of imprisonment of five years followed by 15 years of supervised release. On June 16, 2016, Ocasio-Febres pled guilty to one count of possession of child pornography involving prepubescent minors, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In September 2015, the defendant knowingly possessed child pornography material depicting prepubescent minors engaging in sexually explicit conduct. After executing a search warrant, and seizing his electronic devices, HSI agents discovered over 400 videos and, at least 72 images, of child pornography. The defendant had downloaded and shared child pornography images and videos using his laptop and cellphones.
“The public has to understand that possession of child pornography is a very serious offense that victimizes and re-victimizes children every time and image is viewed, downloaded or shared,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The US Attorney’s Office is fully committed to identifying and prosecuting anyone who searches for, downloads or possesses such contraband images or videos.”
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 criminal prosecution was handled by Special Assistant U.S. Attorney Cristina Caraballo-Colón.
Fraticelli Trucking Company Inc. Guilty of Illegally Transporting Radioactive MaterialRead the Press Release
SAN JUAN, P.R. – On April 4, 2017, Fraticelli Trucking Company Inc. entered a guilty plea to one count of illegally transporting certain highly radioactive material in violation of Title 49, United States Code, Sections 5105(d), 5124(a) and (c), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The guilty plea was entered pursuant to a Plea Agreement reached with the United States. The United States Department of Transportation Office of Inspector General handled the investigation.
The criminal violation, included in an Information filed today with the United States District Court for the District of Puerto Rico, pertains to Fraticelli Trucking Company Inc.’s willful transportation of Cobalt 60, a Class 7 radioactive material, on March 7, 2014, between San Juan and Vega Alta, Puerto Rico via commercial highway without conducting the required pre-trip inspection for such material.
As a part of the Plea Agreement, Fraticelli Trucking Company Inc., a domestic for-profit corporation, stipulated that it contracted to transport a Highway Route Controlled Quantity (HRCQ) of the Class 7 radioactive material (Cobalt 60), within Puerto Rico. Further, at all relevant times, Fraticelli Trucking Company Inc. was aware of the requirement to obtain pre-trip inspections for the delivery and transportation of Cobalt 60 pursuant to Title 49, Code of Federal Regulations, Section 385.415(b)(1).
Specifically, Eduardo Fraticelli Alvarado, acting as an employee and authorized agent of Fraticelli Trucking Company Inc., completed, signed, and submitted US DOT, FMCSA, Combined Motor Carrier Identification Report and HAZMAT Permit Application Form MCS 150B to the Federal Motor Carrier Safety Administration (FMSCA) in or about August 2011, September 2013, and August, 2015. On each date, he certified knowledge of the Federal Motor Carrier Safety Regulations and Federal Hazardous Materials Regulations.
Despite knowledge of the required inspections for radioactive material, Fraticelli Trucking Company Inc. willfully transported Cobalt 60 without conducting the pre-trip inspection on four separate dates: December 7, 2011, July 11, 2012, February 19, 2013, and March 7, 2014.
No hazardous materials were released and no deaths nor bodily injuries were suffered.
“Safety inspections involving toxic or hazardous materials are mandatory and vital to the safety of workers and the surrounding communities,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “Non-performance is unacceptable and will not be tolerated, and offenders will be prosecuted.”
“As evidenced by the guilty plea entered into today by Fraticelli Trucking Company related to transporting radioactive materials illegally on public highways, maintaining the safety and integrity of our public highways remains a top priority for both the Office of Inspector General and the Department of Transportation,” said Marlies T. González, U.S. Department of Transportation Office of Inspector General Regional Special Agent-in-Charge. “Working with our Federal Motor Carrier Safety Administration and prosecutorial colleagues, we will continue to enforce the hazardous materials laws against those who would seek to compromise the integrity of DOT's HAZMAT safety program.”
As a result of the guilty plea, Fraticelli Trucking Company Inc. may be sentenced to a term of one (1) to five (5) years of probation, a fine not to exceed five hundred thousand dollars ($500,000.00), and/or a term of supervised release of not more than three (3) years. The sentencing hearing has not yet been scheduled by the presiding judge, U.S. District Judge Francisco A. Besosa. Assistant United States Attorney Seth Erbe is in charge of the prosecution of the case.
One Individual Charged with Making False Statements in A Reverse Mortgage Loan ApplicationRead the Press Release
SAN JUAN, P.R – On March 29, 2017, a federal grand jury in the District of Puerto Rico returned a one count indictment charging Tommy Rudy Habibe-Arias with making false statements in an application for a Home Equity Conversion Mortgage loan (commonly known as a “Reverse Mortgage”), announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The U.S. Department Housing & Urban Development- Office of Inspector General (HUD-OIG) is conducting the investigation.
According to the indictment, from on or about September 2009 until on or about November 2009, defendant Tommy Rudy Habibe-Arias knowingly made or caused to be made material false statements to a mortgage lending institution named Master Mortgage Corporation, for the purpose of influencing the Federal Housing Administration (FHA) to insure a Reverse Mortgage loan. Specifically, the false and fraudulent information indicated that said property was the defendant’s principal residence, when at no time since September of 2009, or at any other time, the defendant occupied the property as his “primary residence.” The defendant procured $203,605.55 from a Home Equity Conversion Mortgage loan, which he received illegally.
“Mortgage fraud is a serious issue that affects not just financial institutions but ordinary citizens who may have invested in such financial institutions or who hope to purchase, sell or refinance a home by honestly setting forth their finances,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Mortgage lenders provide capital so people can purchase homes, not enrich themselves illegally.”
“The FHA reverse mortgage program enables elderly people to withdraw some of their home's equity to give them greater financial security and allow them to afford to stay in their home,” said Nadine Gurley, HUD-OIG’s Special Agent-in-Charge for the Atlanta Region. “However, the public needs to be aware that to be eligible for these reverse loans, homeowners must be at least 62 years of age or older; own the property outright or have paid down a considerable amount; and must occupy the property as a principal residence. Our agency encourages anyone with information about waste, fraud or abuse against this program to confidentially report it by calling our San Juan Field Office at (787) 766-5868 or via e-mail at [email protected] ”
If convicted, the defendant faces a possible penalty of 30 years in prison and/or a fine of $1,000,000. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Scott H. Anderson.
Individual Sentenced to 12 Years in Prison for Drug Trafficking and Firearm ViolationsRead the Press Release
SAN JUAN, Puerto Rico– Yesterday, defendant José Centeno-González was sentenced by Honorable Judge Francisco Besosa to 12 years of imprisonment and 3 years of Supervised Release, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
José Centeno-González was arrested by the Police of Puerto Rico on May 6, 2015 while driving a Toyota Tundra. A search warrant was obtained for the Toyota Tundra and during the execution of the search police officers discovered a firearm, a Glock .40, 84 rounds of ammunition, and 113 grams of crack-cocaine inside a hidden compartment. At the time of Centeno’s arrest, he was on supervised release for a priory felony firearms offense. Following a jury trial, on September 21, 2016, Centeno was convicted of possessing a firearm after having been convicted of a felony.
Yesterday, March 29, 2017, during the sentencing hearing the Court found by a preponderance of the evidence that Centeno possessed with intent to distribute 113 grams of crack-cocaine and that he possessed the firearm in furtherance of this offense. Consequently, Centeno was sentenced to the statutory maximum term of imprisonment of 120 months followed by a three-year term of supervised release. In addition, the Court revoked Centeno’s supervision for having engaged in new criminal conduct and sentenced him to serve a consecutive 24-month term of imprisonment for a total sentence of 12 years.
The case was prosecuted by Assistant United States Attorneys Alexander Alum and Marie Christine Amy from the U.S. Attorney’s Violent Crimes Unit.
Man Sentenced to 17 Years in Prison for Sex Trafficking of ChildrenRead the Press Release
SAN JUAN, P.R. – United States District Court Judge Francisco A. Besosa sentenced José Luis Otero-Otero to 210 months (17 years and 6 months) in prison followed by 10 years of supervised release for sex trafficking of children, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Otero-Otero had plead guilty on November 4, 2016.
According to the Plea Agreement filed on November of 2016, the defendant sexually abused and/or engaged in illicit sexually explicit conduct with at least four male minors. Otero-Otero knowingly recruited, enticed, harbored, transported, provided, obtained, advertised, maintained, patronized and solicited by any means two 12 year-olds, one thirteen and one fourteen year-old male minors, knowing and in reckless disregard of the fact that they were minors and caused them to engage in commercial sex act.
The Government’s version of facts states that the defendant paid the male minors between twenty and eighty dollars to engage in sexual acts. Otero-Otero paid the victims in order for them to allow him to perform oral sex on them and also for the minor males to penetrate Otero-Otero anally.
“Justice was done today. This sentence should serve to reassure the public that we are paying close attention to the well-being of our children, and that we will spare no expense to take child predators off the streets,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “All child sexual predators will be held accountable for the unspeakable crimes they commit and the harm they cause to their victims and their families.”
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 criminal prosecution was handled by Assistant U.S. Attorney Elba Gorbea. ICE-HSI was in charge of the investigation with the collaboration of the Puerto Rico Police Department.
Caribbean Corridor Strike Force Arrests Four Individuals and Seizes 1,608 Kilograms of CocaineRead the Press Release
SAN JUAN, PR – On March 27, 2017, federal officers assigned to the Caribbean Corridor Strike Force (CCSF) arrested four individuals while attempting to smuggle 1,608 kilograms of cocaine into Puerto Rico, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. A Glock 9mm pistol and 18 rounds of 9mm ammunition were also seized during the arrests. U.S. Magistrate Judge Camille L. Vélez-Rivé authorized a complaint charging Wilson Cuevas-Alcántara, Evelio Rivera-Jiménez, Tairo Martínez-De Rosario and Juan C. Rodríguez with Conspiracy to Possess with Intent to Distribute Cocaine and Possession of Cocaine.
On Monday, at approximately 12:00am, a United States Customs and Border Protection Marine Patrol Aircraft detected a vessel traveling southbound without navigation lights at approximately 40 nautical miles (NM) north of Dorado, Puerto Rico. The aircraft coordinated with the CBP Interceptor Unit and the United States Coast Guard to intercept the vessel. The CBP Interceptor Unit came to a short distance of the vessel at approximately four nautical miles north of the coast of Río Grande, PR, and initiated the interdiction of the vessel by energizing its blue lights, siren and verbal commands, but the vessel did not stop and continued at a high rate of speed of approximately 30-35knots.
The CBP Interceptor Unit fired two warning shots, but the vessel did not stop so they fired six disabling rounds to the vessel engines. Two individuals were arrested onboard and the other two who had jumped overboard during the pursuit were also apprehended by members of the United States Coast Guard and Puerto Rico Police Maritime Unit.
Forty-eight bales containing 1,449 bricks of cocaine weighing approximately 1,608 kilograms were field tested and yielded positive results to cocaine.
“These arrests are a clear indication of the continued success of the Caribbean Corridor Strike Force” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This is just another example of the fine work our State and Federal law enforcement partners accomplish every day. With the continued collaboration and assistance of our law enforcement partners, we will continue our efforts to bring the most powerful and prolific drug organizations to justice.”
“This is another example of how our anti-crime plan, which establishes a close collaboration with the federal agencies, is producing great dividends,” said Puerto Rico Police Department Superintendent Michelle Hernandez. “We congratulate all PRPD police officers who participated in this effort and the Caribbean Corridor officers and special agents for keeping our borders safe. Drug traffickers should know that we are working as a team to stop the flow of drugs on the Island.”
The case is being investigated by agents from the Caribbean Corridor Strike Force (CCSF). The CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.
The case is being prosecuted by Assistant United States Attorney Carlos R. Cardona.
The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Thirty-Seven Year-Old Man Found Guilty of Possession of Child PornographyRead the Press Release
SAN JUAN, P.R. – After a three-day jury trial and four hours of deliberation, Joed Torres-Monge was found guilty of one count of possession of child pornography, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Senior Judge Juan Pérez-Giménez presided over the trial.
According to the Indictment, from on or about March 16, 2015 through May 6, 2015, the defendant knowingly possessed materials, which contained images of child pornography, where the production of such visual images involved the use of a minor engaging in sexually explicit conduct.
During trial, the government presented evidence that Torres-Monge downloaded numerous pictures and videos from the Internet depicting minors, in some cases infants, engaging in sexually explicit conduct.
“The conviction of Torres-Monge shows the commitment of our state and federal law enforcement agencies to apprehend and prosecute criminals whose crimes victimize children,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The U.S. Attorney’s Office for the District of Puerto Rico will continue to prosecute sexual predators in order to protect the vulnerable victims of these crimes, our children.”
The case was prosecuted by Assistant United States Attorney Ginette Milanes. The now convicted defendant faces a maximum penalty of twenty (20) years in prison. The sentencing is scheduled for July 21, 2017.
Individual Sentenced to Six Years in Prison for Firearm ViolationsRead the Press Release
SAN JUAN, Puerto Rico– Josué Marrero was sentenced to 72 months in prison for being a prohibited person in possession of a firearm, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Marrero had plead guilty on November 28, 2016.
United States District Court Judge Francisco A. Besosa sentenced Josue Marrero to 72 months of imprisonment, which is 26 months higher than the upper end of the applicable guideline range. Marrero fled from the state of Delaware after an arrest warrant for Controlled Substances violations was issued; he was hiding in a house in the municipality of Toa Alta, PR.
The arresting officers executing the arrest warrant found him in possession of two (2) firearms; one (1) Glock pistol, .40 caliber, loaded with nine (9) rounds of ammunition and an extra Glock magazine with nine (9) rounds of .40 caliber ammunition, in addition to one (1) Smith & Wesson pistol, 9MM caliber, loaded with sixteen (16) rounds of 9MM caliber ammunition and an extra magazine with fifteen rounds of 9MM caliber ammunition. In addition, a box with 41 rounds of .40 caliber ammunition were also seized. His term of imprisonment is followed by a three year of supervised release.
The case was prosecuted by Assistant United States Attorney Max Pérez-Bouret. The FBI was in charge of the investigation with the collaboration of the Puerto Rico Police Department.
Doctor Sentenced to Seven Years in Prison for Health Care FraudRead the Press Release
SAN JUAN, P.R. – Doctor Juan José Tull-Abreu was sentenced to serve 63 months of imprisonment for health care fraud, and a consecutive term of 24 months for aggravated identity theft, for a total term of imprisonment of 87 months, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
Doctor Tull-Abreu was arrested on July 17, 2014, on charges of defrauding Medicare by submitting claims to Medicare Advantage health insurance plans for medical services never rendered. The evidence presented at trial showed that Tull-Abreu submitted thousands of false and fraudulent claims for services allegedly performed by the defendant at his Arecibo and Utuado, Puerto Rico, offices, which were, in fact, never performed. As explained by the witnesses from Medicare and the insurance carriers, Tull-Abreu submitted invoices for face-to-face office visits and face-to-face home visits on days when his office remained closed to the public or the defendant was travelling out of the country. The defendant was convicted on April 15, 2016, after a fourteen-day jury trial.
The evidence presented at trial demonstrated that Tull-Abreu caused a loss of over $1,200,000.00 to Medicare. Consequently, at sentencing, U.S. District Judge Jay García-Gregory ordered the defendant to pay a total of $509,775.20 in restitution to the six Medicare Advantage insurance carriers affected by the fraudulent scheme.
“We are pleased with the sentence imposed by the Court in this case,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “This prosecution and sentence should serve as clear message to those few dishonest members of the medical community in Puerto Rico of the stern consequences they will face for defrauding the Medicare program. We will not sit idly and allow doctors to illegally enrich themselves by engaging in fraudulent schemes that deplete the Medicare program of funds destined to assist and protect the elderly.”
The Department of Health and Human Services, Office of Inspector General was in charge of the investigation with the collaboration of the DEA. The case was prosecuted by Assistant U.S. Attorney Dennise N. Longo Quiñones.
Two Identity Document Suppliers Sentenced for Roles in Identity Trafficking SchemeRead the Press Release
Two identity document suppliers were sentenced to prison today for their role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Executive Associate Director Peter T. Edge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Acting Director Christian J. Schurman of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Francisco Matos-Beltre, 43, a Dominican national who became a U.S. citizen in 2013, formerly of Philadelphia, was sentenced to serve 51 months in prison and three years’ supervised release. Isaias Beltre-Matos, 46, a Dominican national and legal permanent resident formerly of Providence, Rhode Island, was sentenced to serve 51 months in prison and three years’ supervised release. Both defendants were sentenced before U.S. District Judge Juan M. Perez-Gimenez of the District of Puerto Rico. Beltre-Matos pleaded guilty on Aug. 10, 2016, to conspiracy to commit identification fraud and commit human smuggling for financial gain. Matos-Beltre pleaded guilty on Sept. 14, 2016, to conspiracy to commit identification fraud and commit human smuggling for financial gain.
According to admissions made in connection with the pleas, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators, identified as identity document suppliers and brokers, located in various cities throughout the United States allegedly solicited customers for the sale of social security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1,200 per set. The defendants also admitted that the conspirators used the U.S. mail to complete their illicit transactions.
According to the pleas, Beltre-Matos admitted that he sold identity documents to customers, who generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport, according to the plea agreement. Matos-Beltre also admitted to being a document supplier and that he bought and transferred identity documents belonging to real people to document brokers. Matos-Beltre admitted that he knew his customers would fraudulently use the documents that he provided.
The Chicago offices of ICE-HSI, USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from HSI San Juan and the DSS Resident Office in Puerto Rico. The HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.
Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in the matter.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; www.ssa.gov/pubs/10064.html; www.fbi.gov/about-us/investigate/cyber/identity_theft; and www.irs.gov/privacy/article/0,,id=186436,00.html.
Criminal Organization Indicted and Arrested for Narcotics, Aggravated Identity Theft and Money Laundering ChargesRead the Press Release
SAN JUAN, Puerto Rico – On March 6, 2017, a federal grand jury in the District of Puerto Rico returned a superseding indictment against twelve defendants charged with various federal offenses, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation with the collaboration of the Federal Bureau of Investigation and the Puerto Rico Police Department.
This criminal organization led by Alex Baez-Espinal participated in different illegal schemes which are detailed in the superseding indictment. Defendants Baez-Espinal, Norman Guzmán-Ramos, Kelvin Hernández and Bryan Santiago are charged in a conspiracy to possess with intent to distribute cocaine. Defendant Kelvin Hernández is facing one count of possession with intent to distribute cocaine. Baez-Espinal, Hernández, and Guzmán-Ramos are facing charges for use of a communication facility in the commission of felonies under the Controlled Substances Act. That is, using a cellular telephone, in facilitating the commission of a felony under Title 21, United States Code, Sections 841 and 846, offenses set forth in the superseding indictment.
Defendants Baez-Espinal and Hernández were the leaders of the Drug Trafficking Organization and the Cellphone and Rental Car Fraud Schemes, described below. Baez-Espinal and Hernández obtained personal individual information (including but not limited to Social Security Numbers and Dates of Birth) of unsuspecting victims from defendants Melton Pinilla and Luis Roberto Dávila. During the conspiracy, after receiving the victim’s personal information, Baez-Espinal and Hernández checked each victim’s personal credit rating. If the victim possessed a good credit rating, Baez-Espinal and Hernández then contacted credit card companies utilizing the fraudulently obtained personal information and applied for credit cards in the victim’s name. These credit cards were then sent via the mail to Puerto Rico by the credit card companies.
According to the indictment, Baez-Espinal and Hernández would provide the fraudulently obtained personal information to Luis Roberto Rivera-Ortiz, who created fraudulent Puerto Rican driver’s licenses in the victim’s names with the photos of the “runners” or “jockeys” and other members of the conspiracy. Ultimo Carrera-Rosario also made fraudulent documents such as fraudulent social security cards and fake utility bills in the victims’ names.
Defendants Bryan Santiago-Rivera, José Vásquez-Rodríguez, Leidy Baez-Espinal and Veronica Sierra-Pabón, acted as runners or jockeys for the organization. The different fraud schemes charged are as follows:
Mail fraud conspiracy:
According to the indictment, defendants Baez-Espinal, Hernández, Santiago-Rivera, Michael Alicea, Luis Roberto Rivera-Ortiz, Ultimo Carrera, Luis Roberto Dávila, José Vázquez, Kathya Andino-Aragonés, Leidy Bez-Espinal, and Verónica Sierra-Pabón utilized the U.S. mails to obtain fraudulent credit cards in victims’ names and then use those fraudulent credit cards, along with other fraudulent documents, to purchase goods and services.
Cellphone fraud conspiracy:
During the conspiracy, Baez-Espinal, Hernández and Alicea (after obtaining fraudulent credit cards and driver’s licenses and/or social security and utility bills), paid runners or jockeys to make purchases of cellphones at retail outlets in Puerto Rico. The runners or jockeys, utilizing the fraudulent identifications, would then purchase as many cellphones as allowed by the retail outlet using the victim’s information. The runners or jockeys would make a cash down payment on the cellphone(s), and finance the remaining portion of the cost of the cellphone on the victim’s credit.
The leaders of the conspiracy, Baez-Espinal and Hernández then sold the cellphones via the internet through AMBE Group Inc., to individuals in the United States, Italy, Peru, Canada, and Mexico. From on or about 2012 until 2016, the conspiracy made approximately $3,000,000.00 from the sale of the fraudulently obtained cellphones and other electronic devices.
Rental car fraud scheme:
Baez-Espinal and Hernández also used the fraudulent credit cards and driver’s license and/or social security and utility bills to rent vehicles at car rental outlets. They paid runners or jockeys to rent automobiles from car rental outlets in Puerto Rico using the victim’s identification. The runners or jockeys made these rentals knowing that the runner and/or members of the conspiracy were not going to return the rental vehicle to the car rental outlet. Baez-Espinal and Hernández and other members of the conspiracy would then utilize the fraudulently obtained vehicle, before selling it.
In Counts 6 through 9, Alex Baez-Espinal, Hernández and Leidy Baez-Espinal are charged with wire fraud, for transmitting illegal moneys in interstate and foreign commerce by means of wire communications. In Count 10 members of the conspiracy are charged with conspiracy to commit access device fraud. The defendants listed in Count 10, used other persons’ Social Security Number and Date of Birth to open and utilize fraudulent credit cards affecting interstate and foreign commerce. Counts 11, 12 and 13 detail the aggravated identity theft these defendants committed including but not limited to eight victims. Counts 14, 15 and 16 are money laundering counts derived from specified unlawful activities, which were the different schemes explained above.
“These individuals were involved in different criminal schemes in which they violated several federal statutes, defrauded and stole the identity of many individuals simply to enrich themselves quickly and illegally,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The US Attorney’s Office will work with our law enforcement partners to vigorously pursue and hold accountable those who perpetrate these schemes to enrich themselves at the expense of honest people.”
Assistant U.S. Attorney Stuart J. Zander is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison in Counts 1-2. If convicted of the aggravated identity theft charges, the defendants face a minimum sentence of two years in addition to the sentence imposed for the underlying felony. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The case was investigated by agents from the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney’s Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.