District of Puerto Rico
Press releases recorded for this federal judicial district.
Member of the Rompe Onu Sentenced to Life in Prison for Violating the Rico Act in Puerto Rico, Drug Charges and Violent ActsRead the Press Release
SAN JUAN, Puerto Rico– Pedro Vigio-Aponte, a/k/a “Pedrito/Pedrito He-Man/Pello/Pedrito Trauma” was sentenced to be in prison for the remainder of his natural life by the Honorable Judge Francisco A. Besosa for his participation in drug trafficking and violent acts, including a drive-by shooting murder, announced United States Attorney, Rosa Emilia Rodríguez-Vélez. After a nine-day jury trial that concluded on December 18, 2016, Vigio-Aponte was found guilty of a RICO conspiracy, a drug conspiracy, possession of a firearm in furtherance of drug trafficking, a drive-by shooting murder, and using and carrying a firearm during and in relation to a crime of violence to cause the death of three persons.
At trial, the United States presented numerous witnesses to establish Vigio-Aponte’s participation in drug trafficking and murder in furtherance of a criminal organization known as “La Rompe ONU.” Through its criminal activities “La Rompe ONU” enriched its members and maintained and increased the power of the organization. Members of “La Rompe ONU” would sell crack, cocaine, heroin, and marihuana in public housing projects, including: Jardines del Paraíso, Villa Andalucía, Alturas de Cupey, Jardines de Cupey, Brisas de Cupey, Los Claveles, Nuestra Señora de Covodonga, Los Lirios, Jardines de Monte Hatillo, Jardines de Campo Rico, Jardines de Berwind, San Martín, Monte Park, and Villa Lomas Verdes Public Housing Projects; as well as El Polvorín Ward, Mango Sector and other surrounding areas within the municipalities of San Juan, Trujillo Alto and Carolina, PR. Moreover, members of the organization used violence and intimidation, including murder, to increase the power, territory, and profits of “La Rompe ONU.” At trial, the United States presented evidence of Vigio-Aponte and other member’s participation in various murders, including the Los Paseos Massacre for which the jury found Vigio-Aponte guilty.
In the Los Paseos Massacre, members of La Rompe ONU murdered Santos Diaz-Camacho, a/k/a “Joel Bazooka” and his two body guards, Kevin Soto-Roman, a/k/a “El Gordo” and Juan Rosario-Mercado, a/k/a “Toñito” because Diaz-Camacho, who was a leader of La Rompe ONU, had allied himself with a rival drug trafficking organization. Because of this, the main leader of La Rompe ONU ordered his murder. On July 20, 2011, Vigio-Aponte and other members of La Rompe ONU drove in three separate vehicles to commit this murder. A member of La Rompe ONU provided the group with the location of Diaz-Camacho and informed them that he was driving a car and had an escort following him in another vehicle. When Diaz-Camacho stopped at a red light near Los Paseos Shopping Center in San Juan, Puerto Rico, Members of La Rompe ONU were ordered to take the lead and shoot Diaz-Camacho. Members of La Rompe ONU then fired at Diaz-Camacho’s vehicle and killed him. Vigio-Aponte and other members of La Rompe ONU shot and killed Diaz-Camacho’s bodyguards, Soto-Roman and Rosario-Mercado, who were escorting Diaz-Camacho using another vehicle.
Assistant U.S. Attorneys Alberto López-Rocafort and Victor O. Acevedo-Hernández were in charge of the prosecution of the case.
Puerto Rico Police Officers Indicted for Civil Rights Violations and Obstruction of JusticeRead the Press Release
A 12-count indictment was unsealed today charging four current and former Police of Puerto Rico (POPR) Caguas Drug Unit officers with civil rights violations and obstruction of justice arising out of a police operation conducted in Caguas, Puerto Rico, on Aug. 15, 2015. The indictment alleges that during the police operation, the officers used excessive force against two arrestees and that they unlawfully seized, concealed and destroyed evidence of their misconduct.
The indictment was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico.
According to the indictment, while acting under color of law, POPR Sergeant Maximo Cano Diaz physically struck an individual identified only as A.C.N., resulting in bodily injury. The indictment also alleges that while acting under color of law, POPR Agent Antonio Rodriguez Ortiz assaulted an individual, identified only as G.A.H., by deploying a taser onto G.A.H.’s body, which resulted in bodily injury. Cano, Rodriguez and former POPR Agent Javier Ortiz Gonzalez then commanded an individual, identified only as X.R.C., to stop recording video and surrender her cell phone while pointing a taser at her. The defendants allegedly then pursued X.R.C. to the gate of her home; seized her cell phone, which was used, in part, to record police conduct on or about Aug. 15, 2015; and erased the contents of the cell phone by resetting the phone to its factory settings. On the same day, Cano allegedly seized and kept a cell phone belonging to another individual, identified only as J.R.D., which was also used to record police conduct. According to the allegations, Cano, Ortiz and POPR Agent Iris Rivera Figueroa then made false statements to cover up the conduct.
Cano is charged with four counts of obstruction of justice, three counts of deprivation of rights under color of law and one count of making false statements. Ortiz is charged with one count of obstruction of justice, one count of deprivation of rights under color of law, one count of making false statements and one count of perjury. Rodriguez is charged with one count of obstruction of justice and one count of deprivation of rights under color of law. Rivera is charged with one count of making false statements.
If convicted, the defendants face a maximum sentence of 20 years in prison for each of the obstruction of justice charges and a maximum sentence of 10 years in prison for each of the civil rights violations. The false statements and perjury charges each carry a maximum sentence of five years in prison. The defendants also face a potential $250,000 fine for each count.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI’s San Juan Division. It is being prosecuted by Assistant U.S. Attorney José Contreras of the District of Puerto Rico and Special Litigation Counsel Gerard Hogan and Trial Attorney Julia Gegenheimer of the Civil Rights Division.
Cano Diaz et al Indictment
35 Individuals Charged with Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On June 23, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against 35 defendants charged with conspiracy to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration and the Puerto Rico Police Department (PRPD), Ponce Strike Force Unit, are in charge of the investigation.
The indictment alleges that beginning in 2012, the organization distributed heroin, crack, cocaine, and marihuana, at the Rafael López Nussa, Ernesto Ramos Antonini and the Dr. Manuel De La Pila Iglesias Public Housing Projects in Ponce; and the El Pino Ward in Villalba, Puerto Rico, all for significant financial gain and profit.
The thirty-five 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. Ten defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
The defendants are: Miguel A. Pacheco-Mejías, a.k.a. “El Blanco/Miguel Ratón”; Mark W. Torres-O’Conner, a.k.a “Mawi”; Ronald Aponte-Castillo; Freddy Ferrer-Crespo, a.k.a. “Maldito”; José M. Torres-Rodríguez, a.k.a. “Pollina/Polli”; Luis A. Archeval, a.k.a. “Archeval”; José A. Avilés-Gilbert, a.k.a. “Berto/Lolo”; José Ortiz-Cedeño, aka “Monchi”; Orlando Arroyo a.k.a. “Casper”; Christopher De Jesús, a.k.a. “Planetario”; Ángel Pérez-Cancel, a.k.a. “Yanyel”; Anthony B. Rivera-López, a.k.a. “La B”; Arnaldo J. Santana-Ramos, a.k.a. “Naldy”; Walter Hernández-Rivera, a.k.a. “Walter Cabeza”; Alexis Soto-Vargas, a.k.a. “Bolillo”; Luis A. Santiago-Irizarry, a.k.a. “Kikologo”; Joshua Ortiz-Archeval, a.k.a. “Kikito”; Christian X. Lugo-Sopena, a.k.a. “Tostón”; Jorge L. Maldonado-Pacheco, a.k.a. “Barber”; Geremid F. Pérez-Banchs, a.k.a. “Bebo”; Nelson Lacourt-Linares, a.k.a. “Blaki”; Luis A. Ayala-Vega, a.k.a. “Mellao”; Byan Ocasio-Martínez, a.k.a. “Cuajo”; Richard Santiago-Santiago, a.k.a. “Güimo”; Miguel A. Pérez, a.k.a. “Pucho”; Christopher J. Bracero-Román, a.k.a. “Mono”; Carlos Padilla-Pérez, a.k.a. “Luis Padilla”; Félix J. González-Torres, a.k.a. “El Gato”; Giovany Matos-Vicenti, a.k.a. “Mueca”; Alexis G. Mercado-Sánchez, a.k.a. “Macri”; Jean L. Domínguez-Soto, a.k.a. “Chino”; Jesús M. Daliot-Ríos, a.k.a. “Chuchu”; Wilbert Rosado-Pérez, a.k.a. “Bebo Federal”; Steven Quintana-Cedeño, a.k.a. “Problematic Quintana/Nesti”; and Elizardo Ruiz-Tirado, a.k.a. Tito Línea/TL”.
The defendants and their co-conspirators routinely possessed, carried, brandished and used firearms to protect themselves and their drug trafficking organization, maintain control of their drug points, intimidate and retaliate against other drug trafficking organizations and expand their drug trafficking activities. The sellers would use masks to cover their faces and avoid detection by law enforcement while selling drugs at the drug points. Some defendants tattooed themselves and wore clothing items with the logo of the organization.
“We will continue our joint efforts to dismantle violent drug trafficking organizations at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These arrests will keep the law abiding citizens of Ponce and Villalba safer from the inevitable violence that drug trafficking brings.”
“This DEA investigation and arrests have effectively dismantled the main drug trafficking organization in the Ponce area. DEA will continue its commitment to conduct high scale research to bring to justice these criminal organizations that strive to create violence and unrest in our communities and promote the use and abuse of controlled substances,” said Israel Alicea, Assistant Special Agent in Charge, DEA Caribbean Division.
Assistant U.S. Attorney María L. Montañez-Concepción and Assistant U.S. Attorney John A. Mathews II are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Individual Sentenced to 18 Years in Prison for His Participation in a Carjacking MurderRead the Press Release
SAN JUAN, P.R. –Luis Antonio Crespo-Santos was sentenced to 18 years in prison for his participation in the carjacking and murder of security guard Jorge R. De Jesús-Ayala, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Defendant Crespo-Santos pled guilty on January 21, 2016.
On June 9, 2012 the defendant and four others planned to assault the victim at his job located at Paseo del Rey Condominium Complex in Carolina, Puerto Rico. The four others were Ashdrian, Yankee, Gamalier and Mikey/Michael, who are still at large. Gamalier had sold the victim a laptop and he still owed money to Gamalier. The individuals planned to go see De Jesús-Ayala to charge him for the laptop but he didn’t have the money.
Gamalier pulled a gun, pointed it at De Jesús-Ayala and told him “you are coming with us.” Ashdrian, Yankee, and Gamalier covered the victim’s head with a t-shirt, bound his hands behind his back with an electrical cord, and forced him into the back seat of his red 2010 Toyota Yaris. They drove to a wooded area in Carolina and stabbed him in the back and slit his throat.
Later that night, the police received information that individuals were dismantling a vehicle fitting the description of De Jesús-Ayala’s vehicle. Police officers responded to the location and observed a minor and the defendant dismantling the vehicle. The body of De Jesús-Ayala was later found near Urbanization Metropolis in Carolina.
“Federal and local law enforcement officers will continue working together to fight violent crime in Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “We will not rest until we find the other co-conspirators involved in this vicious crime and prosecute them to the full extent of the law.”
The case was prosecuted by Assistant United States Attorney José Contreras.
Individual Arrested for Mail Fraud and Aggravated Identity TheftRead the Press Release
SAN JUAN, Puerto Rico– On Thursday, June 23, 2016, William Delgado-Torres, a resident of Ponce, Puerto Rico was arrested by agents of the United States Postal Inspectors Office pursuant to an arrest warrant issued by the Hon. Camille Vélez Rivé, Magistrate Judge for United States District Court for Puerto Rico under Crim. Case Number 16-395 (DRD). Delgado-Torres was charged with six counts of mail fraud and three counts of aggravated identity theft as a result of an investigation conducted by the United States Secret Service in Puerto Rico with the support and assistance of the Puerto Rico Police Department and the United States Postal Inspectors Office.
The Indictment alleges that while working as a Vehicle Inspections Maintenance Manager for Waste Management of Puerto Rico, Inc., Delgado-Torres devised a fraudulent scheme through which he submitted hundreds of false invoices to his employer from 2003 through 2012 in order to procure approximately $636,693.91 through false representations. The false invoices were submitted by Delgado-Torres after assuming the identity of a private individual. Once the checks issued to pay the false invoices were mailed from Waste Management’s headquarters in Texas to an address in Puerto Rico, Delgado Torres would take possession of the checks and cash them assuming the victim’s identity.
Delgado Torres is exposed to a sentence of imprisonment of not more than 20 years for the mail fraud charges and a mandatory consecutive sentence of at least two years for the aggravated identity theft charges. The case is being prosecuted by Assistant United States Attorney Dennise N. Longo Quiñones.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Seven Charged in Puerto Rico as part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
SAN JUAN, Puerto Rico – Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today an unprecedented nationwide sweep led by the Medicare Fraud Strike Force in 36 federal districts, resulting in criminal and civil charges against 301 individuals, including 61 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $900 million in false billings. Twenty-three state Medicaid Fraud Control Units also participated in today’s arrests. In addition, the HHS Centers for Medicare & Medicaid Services (CMS) is suspending payment to a number of providers using its suspension authority provided in the Affordable Care Act. This coordinated takedown is the largest in history, both in terms of the number of defendants charged and loss amount.
“As this takedown should make clear, health care fraud is not an abstract violation or benign offense – It is a serious crime,” said Attorney General Loretta Lynch. “The wrongdoers that we pursue in these operations seek to use public funds for private enrichment. They target real people – many of them in need of significant medical care. They promise effective cures and therapies, but they provide none. Above all, they abuse basic bonds of trust – between doctor and patient; between pharmacist and doctor; between taxpayer and government – and pervert them to their own ends. The Department of Justice is determined to continue working to ensure that the American people know that their health care system works for them – and them alone.”
“The defendants charged today received moneys from services that were not rendered or care that wasn’t needed,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “Our office will continue to work with our federal, state and local law enforcement partners and focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives.”
On June 15, 2016, a Federal grand jury returned an indictment charging Arlene Carlo-Montalvo with 48 counts of theft or embezzlement in connection with health care, 48 counts of wire fraud, two counts of misuse of social security number, and two counts of aggravated identity theft.
The charges stem from Carlo-Montalvo’s role in a scheme or artifice to defraud Medical Card System Inc., also known as MCS, in the amount of $219,508.56, by means of fraudulent pretenses and using social security numbers assigned to other persons. Carlo-Montalvo, as an employee of MCS, created a fictitious vendor and would manipulate the system to submit false invoices for services not rendered. The agencies in charge of the investigation are Social Security Administration- Office of Inspector General and Homeland Security Investigations.
Another six individuals are facing civil actions for fraudulently obtaining the benefits with the submission of false information and with salaries that exceeded $50,000.00. Specifically, during 2015, the individuals fraudulently enrolled in the Medicaid health care benefit program, by providing false statements and representations regarding eligibility criteria, such as income, among others. By misrepresenting core eligibility requirements during the enrollment process they were able to fraudulently obtain health care services for which they would otherwise be ineligible, and causing several unique premium payments to be submitted as false claims.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 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 and since its inception in March 2007 has charged over 2,900 defendants who collectively have falsely billed the Medicare program for over $8.9 billion.
Including today’s enforcement actions, nearly 1,200 individuals have been charged in national takedown operations, which have involved more than $3.4 billion in fraudulent billings. Today’s announcement marks the second time that districts outside of Strike Force locations participated in a national takedown, and they accounted for 82 defendants charged in this takedown.
The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices of the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois and the Middle District of Florida; and agents from the FBI, HHS-OIG, Drug Enforcement Administration, DCIS and state Medicaid Fraud Control Units.
A complaint or indictment is merely a charge, and all defendants are presumed innocent unless and until proven guilty.
The court documents for each case will posted online, as they become available, here: https://www.justice.gov/opa/documents-and-resources-june-22-2016-medicare-fraud-strike-force-press-conference.
Two United States Postal Service Employees and One Contractor ArrestedRead the Press Release
SAN JUAN, Puerto Rico– On June 15, 2016, a Federal grand jury returned three separate indictments charging Travis L. Wilkerson, Jean Ostolaza-Cruz and Rubén Bautista-Alcántara with theft of government property, among other charges, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The United States Postal Service, Office of Inspector General is in charge of the investigation with the collaboration of the Puerto Rico Police Department.
Former USPS employee City Carrier Travis L. Wilkerson was charged with two counts of false statements to the Department of Labor (DOL), Office of Workers Compensation Program (DOL OWCP), two counts of false statements and fraud to obtain federal employees’ compensation, and one count of theft of government property. Travis L. Wilkerson alleged that he suffered an on the job injury on September 27, 2010. After returning to work, on February 22, 2012, Wilkerson alleged that he suffered a recurrence of the 2010 injury. Since February 22, 2012, Wilkerson has been receiving OWCP compensation benefits. On February 1, 2016 and on April 3, 2016, Wilkerson certified in the annual DOL EN-1032 Form that he was not employed, self-employed or involved in a business enterprise. According to the investigation conducted by the United States Postal Service, Office of Inspector General (USPS OIG), while receiving OWCP benefits, Wilkerson has been actively engaged in Wilkerson-Farms, a business that he owns that is dedicated to the sales and distribution of coffee, fruits and vegetables to the United States. The amount of compensation benefits that Wilkerson received illegally is approximately $30,685.00.
USPS Sales and Service/Distribution Associate Jean Ostolaza-Cruz faces charges of theft of government property and theft of USPS property. Jean Ostolaza-Cruz stole money orders and Collect on Delivery (CODs) funds while working at the Sabana Hoyos Post Office and Florida Post Office. Ostolaza-Cruz took money orders that were accountable to him in Sabana Hoyos Post Office and fraudulently imprinted and cashed them at the Florida Post Office. As part of the scheme, Ostolaza-Cruz unlawfully used the personal identifiable information of Sabana Hoyos Post Office customers to cash the money orders for his own use. In addition, Ostolaza-Cruz stole money from the CODs payments made by USPS customers for his personal use. The amount of property stolen by Ostolaza-Cruz is approximately $11, 562.07.
USPS Contractor Rubén Bautista-Alcántara was charged with 33 counts of mail theft and 33 counts of obstruction of correspondence. Since May 2015, USPS OIG received numerous inbound greeting cards that appeared to be previously opened and resealed and that were destined to be processed at San Juan GPO. As part of the investigation, on December 23, 2015, a Puerto Rico Police Department Officer who assisted the USPS OIG, conducted surveillance at the Muñoz Rivera Avenue and Margarita Street in Río Piedras, PR and observed an individual depositing greeting cards, that seemed to be previously opened and resealed. Upon investigation, this subject was later identified as Rubén Bautista-Alcántara, a Contract Mail Handler employed by Cargo Force, Inc., a USPS authorized depository located in Carolina, PR.
These cases are being prosecuted by Special Assistant U.S. Attorney Amanda Soto. Wilkerson and Ostolaza-Cruz are facing up to 10 years in prison for the theft of government property charges. Ostolaza-Cruz is also facing a two-year mandatory sentence for charges of aggravated identity theft. Bautista-Alcántara is facing up to five years in prison for the charges of obstruction of correspondence and mail theft.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Individual Arrested for Malicious Use of ExplosivesRead the Press Release
SAN JUAN, P.R. – United States Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint charging Noel D. Cruz-Torres (“Cruz-Torres”) with malicious use of explosives. Cruz-Torres was arrested after throwing Molotov cocktails at the DuPont Pioneer building in Salinas, PR, and at PRPD officers who detained him, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation with the collaboration of the Puerto Rico Police Department.
According to the information contained in the criminal complaint and affidavit, on June 18, 2016, at approximately 3:30 am, someone called 911 to report an explosion near DuPont Pioneer. When police and firefighters arrived, they saw a vehicle burning nearby. A security guard reported that an individual was throwing Molotov cocktails at the building. The officers walked around the building and saw Cruz-Torres wearing a black t-shirt wrapped around his face and carrying a black backpack. While police pursued Cruz-Torres, he threw various Molotov cocktails at the officers. He also threw another lit Molotov at the fire truck.
Cruz-Torres had a flag with the words “LEVANTATE BORICUA Q HA LLEGADO EL MOMENTO DE DEFENDER NTRA PATRIA: VIVA P.R. Libre” (sic) (as translated in the criminal complaint, “Rise up Puerto Rican, the moment to defend our fatherland has arrived: long live free Puerto Rico.”)
DuPont Pioneer is an agricultural business that conducts crop-genetic research and development. It imports seed from Iowa for research purposes.
The case is being prosecuted by Assistant United States Attorney Alexander Alum. If convicted defendant faces a minimum penalty of five years and up to 20 years in prision. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
Six Individuals Arrested for Carjacking, Hobbs Act, and Firearms OffensesRead the Press Release
SAN JUAN, P.R. – On June 2, 2016, a federal grand jury returned a six-count indictment against six individuals for interference of commerce by threats of violence or Hobbs Act, use of firearms during and in relation to a crime of violence, and carjacking, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The indictment is the result of a joint effort between the United States Attorney’s Office (USAO), the Federal Bureau of Investigation’s Save Our Streets Initiative (SOS) and the Puerto Rico Police Department (PRPD). The FBI’s SOS is one of the various components of the USAO’s Illegal Firearms and Violent Crime Reduction Initiative.
The indictment alleges that on or about April 2, 2016, in the District of Puerto Rico, Joel Miranda-Figueroa, Richard Cruz-Monzón, Felix Tomás Cruz-Carrión, aka “Tomate,” and Jonathan Rodríguez-Díaz, aiding and abetting each other, robbed La Revolución Barber Shop in Arroyo, PR. The defendants, aided and abetted by each other, unlawfully took $705.00, cellular phones, purses and personal belongings threatening employees and clients with firearms in order to commit the robbery.
On April 11, 2016, defendants Miranda-Figueroa, Cruz-Monzón, Bryan Steven Ramos-Marrero, aka “Zurdo,” and Erick Álamo-Rodríguez, aiding and abetting each other, committed carjacking. These four defendants stole a 2000 red Jeep Compass, while using and brandishing a firearm, from the person N.M.M. by threats and violence. On that same day, three of the defendants robbed a Gulf Gas Station/store in Maunabo, PR. The defendants took approximately $3,200 to $3,600, and approximately $66.00 worth in Newport Cigarettes threatening the employees and clients with firearms.
“The investigations by the SOS team of FBI special agents and designated PRPD officers will continue into similar crimes in other areas of Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The collaboration and team work between state and federal law enforcement agencies in the investigation and prompt filing of charges show the immediate results we continue to obtain with this joint initiative.”
“Today’s successful operation should be attributed to the outstanding investigative skills of our partners, the Police of Puerto Rico. Their diligence in tracking down the alleged perpetrators comes not only from a sense of duty, but from their sincere desire to make Puerto Rico a safer place. Regrettably, while these arrests took place, new incidents of carjacking occurred in other parts of the island. Those responsible will soon be brought to justice in the same manner as today’s arrestees. Soon, it will become ever more clear that those who commit or assist in committing a carjacking will have their freedom replaced by a prison cell, for many years,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Field Office.
The case is being prosecuted by Special Assistant United States Attorney Daynelle M. Álvarez-Lora. If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Couple Arrested for CarjackingRead the Press Release
SAN JUAN, P.R. – Today, a federal grand jury returned a one-count indictment against two individuals for carjacking, 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 June 2, 2016, in the District of Puerto Rico, Bernard Díaz-Pérez and Jessenia Salgado-Ortiz, aiding and abetting each other, with the intent to cause death and serious bodily harm, did take a motor vehicle, to wit: a red 2008 Scion, model XD, that had been transported, shipped or received in interstate or foreign commerce, from the presence of F.N.R., by force, violence and intimidation, resulting in serious bodily injury, that is, sexually assaulting a female passenger, all while using a replica gun, in violation of Title 18, United States Code, Section 2119(2).
“Unfortunately, this carjacking resulted in more than the material loss of a car; a victim was sexually assaulted. This type of behavior is unconscionable and unacceptable. The U.S. Attorney’s Office will prosecute these defendants to the full extent of the law,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“This arrest was the result of a five-day manhunt, during which time numerous dedicated agents of the FBI and our law enforcement partners worked tirelessly to identify, locate, and apprehend the subject of these serious allegations. Violent crime, including carjacking, has skyrocketed in Puerto Rico. In recognition of this epidemic, FBI Headquarters will deploy additional resources to the San Juan Division. In the coming weeks, federal law enforcement will announce increased activity which is being undertaken to enable the citizens of Puerto Rico to be able to go about their lives without fear of violent robberies and attacks. 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, https://www.fbi.gov/,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Field Office.
The case is being prosecuted by Assistant United States Attorney Max Pérez Bouret. If convicted, the defendants face up to 25 years in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Government Reaches $2.5 Million Settlement in Healthcare Fraud MatterRead the Press Release
SAN JUAN, Puerto Rico – On May 18, 2016, the U.S. Government entered into an out of court settlement agreement with Hospicio La Paz, Inc., in connection with a False Claims Act investigation carried out by the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) and the U.S. Attorney’s Office, District of Puerto Rico. The investigation uncovered approximately $1,504,509.00 in questionable billings submitted for payment by Hospicio La Paz, Inc. to Medicare Program, Part A, from October 2011, through September 2012.
Under the False Claims Act, Title 31, United States Code, Sections 3729, et seq., the United States can recover up to three times the amount of loss and civil monetary penalties ranging from $5,500.00 to $11,000.00 per false claim. As part of the settlement negotiations, Hospicio La Paz, Inc. paid the United States Government the sum of $2,500,000.00, including excess damages and penalties. Furthermore, Hospicio La Paz will enter into a compliance agreement with HHS-OIG.
The United States Attorney’s Office will continue to investigate healthcare fraud matters, and will aggressively pursue civil and criminal actions against those who attempt to defraud the United States. The matter was prosecuted by Assistant U.S. Attorney Rafael J. López Rivera, Civil Health Care Fraud Coordinator, at the U.S. Attorney’s Office.
17 Individuals Charged with Drug Trafficking in the Municipalities of San Juan and CatañoRead the Press Release
SAN JUAN, Puerto Rico – On May 17, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against 17 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation and the Puerto Rico Police Department (PRPD), San Juan Strike Force are in charge of the investigation.
The indictment alleges that beginning in 2007, and continuing up to 2015 the organization distributed heroin, crack, cocaine, and marihuana, at Las Monjas Ward in San Juan, and Los Bultrones Alley, in Cataño, and other areas within and near the Municipalities of San Juan and Cataño, Puerto Rico, all for significant financial gain and profit.
The seventeen defendants acted in different roles in order to further the goals of their organization, to wit: leader, managers/drug owners, enforcers, runners, drug processors, facilitators, and sellers. Sixteen defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
The defendants are: Franklin A. Valdez-Marcelino, a.k.a. “Popeye”; Omar A. Mangual Lanause, a.k.a. “Omar”; Carlos E. Carrión-Nieves, a.k.a. “Negro”; Raymond Fuentes-Echevarría, a.k.a. “R”, “Raymond”, “Doble Cincuenta”; David Oliveras-Lugo, a.k.a. “Ardilla”; David Manuel Vélez-Torres, a.k.a. “Tripa”, “Tribi”; Orlando Martínez-Núñez, a.k.a. “Irving”, “Elvin”; Frajamilis Maldonado-Cruz, a.k.a. “Coquito”; Luis Manuel Resto-Reyes, a.k.a. “Guitarreño”, “Guitarra”; Emmanuel Mercedes-Morán, a.k.a. “Mono”; Jorge L. Martínez-Rodríguez, a.k.a. “Chito”; Edgardo Lamboy-Ruiz, a.k.a. “Galdo”, “Al-Qaeda”; Frankie Junior Cruz, a.k.a. “Papa”; Erick J. Ortiz-Colón, a.k.a. “Gringo”; Joel Rosa-Robles, a.k.a. “Bobmar”; Carlos A. Sánchez-Rivera, a.k.a. “Casper”; and Victor A. Martínez-Rodríguez, a.k.a. “Vitito”.
The defendants and their co-conspirators routinely possessed, carried, brandished and used firearms of different brands and calibers, including fully automatic weapons, to protect themselves, their drug trafficking organization, maintain control of their drug points, intimidate and retaliate against other drug trafficking organizations and to expand their drug trafficking activities. They used the cellular phones to take pictures of themselves in possession of firearms, and of the drugs that they distributed. They used social media to post pictures of co-conspirators in possession of firearms, to maintain contact with each other, to promote their drug trafficking activities, and to threaten other persons.
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this operation is nothing short of significant and it underscores law enforcement’s main goal: to keep drugs out of our neighborhoods. These arrests will keep the law abiding citizens of San Juan and Cataño safer from the inevitable violence that drug trafficking brings.”
“Over the course of three decades, the Los Lobos Gang controlled various communities in Puerto Rico, trafficking narcotics and weapons on a massive scale, while the honest residents of those communities suffered,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division. “Today, the long term investigation of this criminal enterprise culminated with its dismantlement, by arrests in Puerto Rico and throughout the continental United States. The FBI thanks the United States Attorney, Drug Enforcement Administration, Homeland Security Investigations, the Police of Puerto Rico, and the San Juan Municipal Police Department, for our continued partnership and mission, the goal of which remains the safety and security of Puerto Rico and its citizens.”
Assistant U.S. Attorney Cesar Rivera-Giraud 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.
17 Individuals Charged with Drug Trafficking in the Municipalities of San Juan and CatañoRead the Press Release
SAN JUAN, Puerto Rico – On May 17, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against 17 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation and the Puerto Rico Police Department (PRPD), San Juan Strike Force are in charge of the investigation.
The indictment alleges that beginning in 2007, and continuing up to 2015 the organization distributed heroin, crack, cocaine, and marihuana, at Las Monjas Ward in San Juan, and Los Bultrones Alley, in Cataño, and other areas within and near the Municipalities of San Juan and Cataño, Puerto Rico, all for significant financial gain and profit.
The seventeen defendants acted in different roles in order to further the goals of their organization, to wit: leader, managers/drug owners, enforcers, runners, drug processors, facilitators, and sellers. Sixteen defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
The defendants are: Franklin A. Valdez-Marcelino, a.k.a. “Popeye”; Omar A. Mangual Lanause, a.k.a. “Omar”; Carlos E. Carrión-Nieves, a.k.a. “Negro”; Raymond Fuentes-Echevarría, a.k.a. “R”, “Raymond”, “Doble Cincuenta”; David Oliveras-Lugo, a.k.a. “Ardilla”; David Manuel Vélez-Torres, a.k.a. “Tripa”, “Tribi”; Orlando Martínez-Núñez, a.k.a. “Irving”, “Elvin”; Frajamilis Maldonado-Cruz, a.k.a. “Coquito”; Luis Manuel Resto-Reyes, a.k.a. “Guitarreño”, “Guitarra”; Emmanuel Mercedes-Morán, a.k.a. “Mono”; Jorge L. Martínez-Rodríguez, a.k.a. “Chito”; Edgardo Lamboy-Ruiz, a.k.a. “Galdo”, “Al-Qaeda”; Frankie Junior Cruz, a.k.a. “Papa”; Erick J. Ortiz-Colón, a.k.a. “Gringo”; Joel Rosa-Robles, a.k.a. “Bobmar”; Carlos A. Sánchez-Rivera, a.k.a. “Casper”; and Victor A. Martínez-Rodríguez, a.k.a. “Vitito”.
The defendants and their co-conspirators routinely possessed, carried, brandished and used firearms of different brands and calibers, including fully automatic weapons, to protect themselves, their drug trafficking organization, maintain control of their drug points, intimidate and retaliate against other drug trafficking organizations and to expand their drug trafficking activities. They used the cellular phones to take pictures of themselves in possession of firearms, and of the drugs that they distributed. They used social media to post pictures of co-conspirators in possession of firearms, to maintain contact with each other, to promote their drug trafficking activities, and to threaten other persons.
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this operation is nothing short of significant and it underscores law enforcement’s main goal: to keep drugs out of our neighborhoods. These arrests will keep the law abiding citizens of San Juan and Cataño safer from the inevitable violence that drug trafficking brings.”
“Over the course of three decades, the Los Lobos Gang controlled various communities in Puerto Rico, trafficking narcotics and weapons on a massive scale, while the honest residents of those communities suffered,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division. “Today, the long term investigation of this criminal enterprise culminated with its dismantlement, by arrests in Puerto Rico and throughout the continental United States. The FBI thanks the United States Attorney, Drug Enforcement Administration, Homeland Security Investigations, the Police of Puerto Rico, and the San Juan Municipal Police Department, for our continued partnership and mission, the goal of which remains the safety and security of Puerto Rico and its citizens.”
Assistant U.S. Attorney Cesar Rivera-Giraud 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.
50 Members of La Asociación Ñeta Prison Gang Indicted for Violating the RICO Act in Puerto RicoRead the Press Release
A federal indictment was unsealed today in the District of Puerto Rico charging 50 members of La Asociación ÑETA with racketeering, drug trafficking and murder, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The defendants include the leadership of the enterprise, its drug trafficking network and members who perpetrated murders in furtherance of the enterprise. This prosecution is the product of an FBI investigation into the drug trafficking and violent activities perpetrated by members of the gang known as La Asociación ÑETA.
According to the indictment, the defendants are charged with being part of La Asociación ÑETA, a prison gang that operates in the prisons of the Puerto Rico Department of Corrections and Rehabilitation (PRDCR). La Asociación ÑETA is a criminal organization that engages in drug trafficking and murder. The main purpose of the organization is to make money. Inmates originally formed La Asociación ÑETA as a means to advocate for their rights within the PRDCR. The enterprise, however, evolved into a criminal organization that engaged in drug trafficking and murder within the prisons of the PRDCR. The enterprise makes money by introducing multi-kilogram quantities of drugs into the PRDCR prisons for profit and by engaging in murders for hire.
The indictment alleges that members and associates of La Asociación ÑETA introduced and distributed multi-kilograms of cocaine, marijuana and heroin into the prisons of the PRDCR. They were able to introduce this contraband into the prisons with the help of corrupt PRDCR Correctional Officers, civilians who worked inside of the prison system, people who visited inmates and persons who - from outside the prisons - threw drugs into the facilities ,known as pitcheos, which were caught by members of the enterprise. Members of the enterprise and their associates also introduced cellular telephones into the prisons and charged a fee to other inmates for using the same. Members of the enterprise would use cellular phones to engage in drug trafficking and murder.
Specifically, the indictment alleges that people who were not incarcerated would hire La Asociación ÑETA to kill persons who were serving time in the prisons of the PRDCR. La Asociación ÑETA participated in the murders for pecuniary gain. Murders perpetrated by the organization include those of Mario Montañez-Gómez aka Emme on Aug. 27, 2014, and Alexis Rodríguez-Rodríguez aka Alexis El Loco on Nov. 6, 2014.
The defendants are: Avelino Millán-Machuca aka Papito Machuca/El Fuerte/Viejo/Gordo; Fernando García-Marquez aka Fernan Sandwich/Emparedado/ Fernan/Carlos Vega; Cynthia González-Landrau aka La Cana/La Princesa/La Presidenta; Rolando Millán-Machuca aka Rolo; Alex Piñero-Sotomayor aka Cigüeña/Pájaro; Miguel Rivera-Calcaño aka Guelo/ Kikirimiau; Roberto Casado-Berríos aka Bobe/Bobel; Iván Ayala-Hernández aka Bambani/Bambo; Giordano Santana-Meléndez aka Viejo Ten; Carlos Báez-Figueroa aka Carlitos Guaynabo; José Trinidad-Jorge aka Trini; Ángel Bermúdez-Cartagena aka Apache/El Doctor; José Cintrón-Mojica aka Jowito; Victor Solano-Moreta aka Caballo; José Castoire-Sánchez; Luis Ayuso-Walker aka Buringo; Juan Lozada-Delgado aka Chino San Lorenzo; Aníbal Miranda-Montañez aka Jowy; Freddie Sánchez-Martínez aka Casco; Ángel Cruz-Barrientos aka Diego/Cloche; Alex Miguel Cruz-Santos aka Alex Cuquito; José J. Folch-Colón aka Joel Folch/Gordo Folch; Billy Andino-De Jesús aka Billy Cupey/Billy El Calvo; Luis Rojas-Llanos aka Cachorro/Kchorro; Juan J. Claudio-Morales aka Claudio Canales/Claudio El Gordo; Eduardo Rosario-Orangel aka Barba/Cholón; George Torres-Rodríguez aka Gordo Comerio; Luis H. Quiñonez-Santiago aka Hiram; Augusto Christopher-Lind aka Bengie Loiza; José L. Nieves-Torres; Luis D. Ramos-Báez aka Danny Power; Orlando Ruiz-Acevedo aka Gordo Ponce; Raul D. Rosario-Maldonado aka Davi/Davo; Juan R. Cruz-Santana aka Roldán; José Marrero-Figueroa aka Tito San José; Ramón Morales-Sáez aka Moncho/Monchi; Carlos Santiago-Rivera aka Black/Blacky/El Negro; David González-De León aka Bebe Cupey; José Díaz-López aka Culo De Pollo; Osvaldo Torres-Santiago aka Bombilla/Baldo/Baldito; José Velázquez-Maldonado aka Batata; Roberto Martínez-Rivera aka Matatan; José Sánchez-Laureano aka Veterano; José González-Gerena aka Perpetua; Francisco Torres-Rodríguez aka Kino; Andrés Del Valle-Ortega aka Randy/Andy Caimito; José R. Andino-Morales aka Gladiola; Jesús P. O’neill-Gómez aka Pastor; Ángel I. Díaz-Santiago; and Pedro Fontanez-Pérez.
Assistant U.S. Attorney Victor O. Acevedo-Hernández for the District of Puerto Rico is in charge of the prosecution of the case. The FBI and the Puerto Rico Department of Corrections collaborated during the investigation.
“I want to acknowledge the dedication and commitment of the FBI and the Department of Corrections agents and officials who participated in this substantial investigation which resulted in today’s arrests,” said U.S. Attorney Rodríguez-Vélez. “This success of this operation shows the continued teamwork of federal law enforcement and our state and local partners to reduce gang violence inside the prisons in Puerto Rico. The U.S. Attorney’s Office will zealously prosecute these defendants and bring them to justice.”
“Even prison walls were not enough to stop the brazen acts of this violent gang,” said Special Agent in Charge Douglas A. Leff of the FBI’s San Juan Division. “In reality, their conduct is more accurately described as that of an international mafia than a prison gang. Their network reached throughout Puerto Rico and the continental United States. This enabled them to order hits on rival gang members, corrupt two sworn officers and to move large quantities of drugs and other contraband, effectively turning their prison into a gang-controlled housing project. The dismantlement of this criminal enterprise was achieved through the tireless investigation of our case agents and partners with the U.S. Attorney’s Office, U.S. Marshals Service, Puerto Rico Department of Corrections and Rehabilitation and the Police of Puerto Rico.”
If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
50 Members of La Asociacion Ñeta Prison Gang Indicted for Violating the RICO Act in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – A federal indictment was unsealed today in the District of Puerto Rico charging fifty (50) members of La Asociación ÑETA with racketeering, drug trafficking, and murder, announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. The defendants include the leadership of the enterprise, its drug trafficking network, and members who perpetrated murders in furtherance of the enterprise. This prosecution is the product of an FBI investigation into the drug trafficking and violent activities perpetrated by members of the gang known as La Asociación ÑETA.
Pursuant to the indictment, the defendants are charged with being part of La Asociación ÑETA, a prison gang that operates in the prisons of the Puerto Rico Department of Corrections and Rehabilitation (“PRDCR”). La Asociación ÑETA is a criminal organization that engages in drug trafficking and murder. The main purpose of the organization is to make money. Inmates originally formed La Asociación ÑETA as a means to advocate for their rights within the PRDCR. The enterprise, however, evolved into a criminal organization that engaged in drug trafficking and murder within the prisons of the PRDCR. The enterprise makes money by introducing multi-kilogram quantities of drugs into the PRDCR prisons for profit, and by engaging in murders for hire.
The indictment alleges that members and associates of La Asociación ÑETA introduced and distributed multi-kilograms of cocaine, marijuana, and heroin into the prisons of the PRDCR. They were able to introduce this contraband into the prisons with the help of corrupt PRDCR Correctional Officers, civilians who worked inside of the prison system, people who visited inmates, and persons who - from outside the prisons - threw drugs into the facilities (known as “pitcheos”), which were caught by members of the enterprise. Members of the enterprise and their associates also introduced cellular telephones into the prisons and charged a fee to other inmates for using the same. Members of the enterprise would use cellular phones to engage in drug trafficking and murder.
Specifically, the indictment alleges that people who were not incarcerated would hire La Asociación ÑETA to kill persons who were serving time in the prisons of the PRDCR. La Asociación ÑETA participated in the murders for pecuniary gain. Murders perpetrated by the organization include those of Mario Montañez-Gómez, a/k/a “Emme” on August 27, 2014, and Alexis Rodríguez-Rodríguez, a/k/a “Alexis El Loco,” on November 6, 2014.
The defendants are: Avelino Millán-Machuca, a.k.a. “Papito Machuca/El Fuerte/Viejo/Gordo;” Fernando García-Marquez, a.k.a. “Fernan Sandwich/Emparedado/ Fernan/Carlos Vega;” Cynthia González-Landrau, a.k.a. “La Cana/La Princesa/La Presidenta;” Rolando Millán-Machuca, a.k.a. “Rolo;” Alex Piñero-Sotomayor, a.k.a. “Cigüeña/Pájaro;” Miguel Rivera-Calcaño, a.k.a. “Guelo/ Kikirimiau;” Roberto Casado-Berríos, a.k.a. “Bobe/Bobel;” Iván Ayala-Hernández, a.k.a. “Bambani/Bambo;” Giordano Santana-Meléndez, a.k.a. “Viejo Ten;” Carlos Báez-Figueroa, a.k.a. “Carlitos Guaynabo;” José Trinidad-Jorge, a.k.a. “Trini;” Ángel Bermúdez-Cartagena, a.k.a. “Apache/El Doctor;” José Cintrón-Mojica, a.k.a. “Jowito;” Victor Solano-Moreta, a.k.a. “Caballo;” José Castoire-Sánchez; Luis Ayuso-Walker, a.k.a. “Buringo;” Juan Lozada-Delgado, a.k.a. “Chino San Lorenzo;” Aníbal Miranda-Montañez, a.k.a. “Jowy;” Freddie Sánchez-Martínez, a.k.a. “Casco;” Ángel Cruz-Barrientos, a.k.a. “Diego/Cloche;” Alex Miguel Cruz-Santos, a.k.a. “Alex Cuquito;” José J. Folch-Colón, a.k.a. “Joel Folch/Gordo Folch;” Billy Andino-De Jesús, a.k.a. “Billy Cupey/Billy El Calvo;” Luis Rojas-Llanos, a.k.a. “Cachorro/Kchorro;” Juan J. Claudio-Morales, a.k.a. “Claudio Canales/Claudio El Gordo;” Eduardo Rosario-Orangel, a.k.a. “Barba/Cholón;” George Torres-Rodríguez, a.k.a. “Gordo Comerio;” Luis H. Quiñonez-Santiago, a.k.a. “Hiram;” Augusto Christopher-Lind, a.k.a. “Bengie Loiza;” José L. Nieves-Torres; Luis D. Ramos-Báez, a.k.a. “Danny Power;” Orlando Ruiz-Acevedo, a.k.a. “Gordo Ponce;” Raul D. Rosario-Maldonado, a.k.a. “Davi/Davo;” Juan R. Cruz-Santana, a.k.a. “Roldán;” José Marrero-Figueroa, a.k.a. “Tito San José;” Ramón Morales-Sáez, a.k.a. “Moncho/Monchi;” Carlos Santiago-Rivera, a.k.a. “Black/Blacky/El Negro;” David González-De León, a.k.a. “Bebe Cupey;” José Díaz-López, a.k.a. “Culo De Pollo;” Osvaldo Torres-Santiago, a.k.a. “Bombilla/Baldo/Baldito;” José Velázquez-Maldonado, a.k.a. “Batata;” Roberto Martínez-Rivera, a.k.a. “Matatan;” José Sánchez-Laureano, a.k.a. “Veterano;” José González-Gerena, a.k.a. “Perpetua;” Francisco Torres-Rodríguez, a.k.a. “Kino;” Andrés Del Valle-Ortega, a.k.a. “Randy/Andy Caimito;” José R. Andino-Morales, a.k.a. “Gladiola;” Jesús P. O’neill-Gómez, a.k.a. “Pastor;” Ángel I. Díaz-Santiago; and Pedro Fontanez-Pérez.
Assistant U.S. Attorney Victor O. Acevedo-Hernández is in charge of the prosecution of the case. The Federal Bureau of Investigation (FBI) and the Puerto Rico Department of Corrections collaborated during the investigation.
“I want to acknowledge the dedication and commitment of the FBI and the Department of Corrections agents and officials who participated in this substantial investigation which resulted in today’s arrests,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This success of this operation shows the continued teamwork of federal law enforcement and our state and local partners to reduce gang violence inside the prisons in Puerto Rico. The United States Attorney’s Office will zealously prosecute these defendants and bring them to justice.”
“Even prison walls were not enough to stop the brazen acts of this violent gang,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division. “In reality, their conduct is more accurately described as that of an international mafia than a prison gang. Their network reached throughout Puerto Rico and the continental United States. This enabled them to order hits on rival gang members, corrupt two sworn officers, and to move large quantities of drugs and other contraband, effectively turning their prison into a gang-controlled housing project. The dismantlement of this criminal enterprise was achieved through the tireless investigation of our case agents and partners with the United States Attorney’s Office, United States Marshals Service, Puerto Rico Department of Corrections and Rehabilitation, and the Police of Puerto Rico.”
If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
21 Individuals Indicted for Violating the Rico Act in Puerto RicoRead the Press Release
The Defendants Are Part of a Bank/ATM Robbery Gang from the Campanilla and Candelaria Wards in the Municipality of Toa Baja, Puerto Rico
A 17 count federal indictment was unsealed today in the District of Puerto Rico charging 21 defendants with racketeering, conspiracy to commit bank robbery, burglary and larceny, interference with commerce by robbery, carjacking, conspiracy to possess with the intent to distribute controlled substances and related firearm offenses, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The FBI and the Puerto Rico Police Department, Bank Robbery Division, are in charge of the investigation.
The defendants are: Alfredo Umpierre-Santiago aka Freddie; Luis Ángel Guerrido-Medina aka Viejo; Juan Rosario-Marrero aka Vaquerito; Steven Tapia-Morales aka El Gordo; Elvin Morales-Ramírez aka Chino; Obrayan Hernández-López aka Oby; Luis R. Cotto-Rivera aka Dico; Ivan Martínez-Torres; Enrique Pérez-Rivera aka Henry; David Vargas-Santiago aka Davo; Jahn M. Fermin-Cortés aka Jan; Carlos Fidian Jiménez-Feliz, aka Picachu; José Reyes-Neváres aka Piti; Gabriel Vélez aka Avatar; Yarelis E. García-Ruiz; Javier Ortiz-Nieves aka Javo; Stephanie Herrera-Montañez aka Guri; Karina Alamo-Marrero; Yeisha M. Pedraza-Santiago; Jimmy Molina-Otero aka Tío Jimmy; and Edmanuel Laureano-Spanoz, aka Emma.
The indictment charges robberies to four banks, two credit unions and a gas station. According to the indictment, as part of the racketeering and bank robbery conspiracies, the organization committed the following violent acts:
- On Nov. 25, 2010, seven defendants travelled to COOPACA, a state insured credit union in Levittown, Toa Baja, assaulted and abducted a security officer at gun point and stole approximately $45,220 from an ATM machine and they also abducted and robbed other civilians.
- On Dec. 29, 2014, 11 of the defendants travelled to Colmadito Encantado at Plaza Encantada in Trujillo Alto, assaulted and abducted a security officer at gun point and stole approximately $53,960 from an ATM belonging to Scotiabank.
- On Jan. 5, 2015, 11 of the defendants travelled to the Doral Bank in Vega Baja, burglarized the bank, stole the security recording system, computer equipment and approximately $228,800 from the ATMs.
- On Jan. 28, 2015, nine of the defendants travelled to the Oriental Bank in Cagüitas Mall in Caguas, abducted and robbed a security guard at gun point, breached the bank, and attempted to steal money from the ATM.
- On Feb. 11, 2015, seven of the defendants travelled to the Doral Bank at Plaza Dorada in Dorado with the intent of burglarizing that bank. In their attempt, they abducted one security guard and fatally shot a second security guard.
- On March 28, 2015, five of the defendants travelled to Plaza Morovis and stole $30,330 from an off-premises ATM belonging to COOPERATIVA Moroveña. In order to commit the offense, they abducted and robbed a security guard at gun point and also carjacked his vehicle.
- On Aug. 18, 2015, six of the defendants robbed the Gulf Gas Station Convenience Store located in Ciales and stole $61,480 from an ATM belonging to Banco Popular of Puerto Rico. They also stole $879 from the cash register, 50 cigarette cartons worth over $3,000 and threatened the clerk with a sledgehammer and restrained the clerk in the bathroom.
Defendants Guerrido-Medina and Laureano-Spanoz are facing one charge of conspiracy to possess with intent to distribute heroin, cocaine and marihuana. All defendants are facing a RICO forfeiture allegation of at least $190,900 and a bank robbery forfeiture allegation of $344,240.
“The U.S. Attorney’s Office will continue its prosecution of organized gangs and their members who engage in senseless acts of violence to wreak havoc in our communities,” said U.S. Attorney Rodríguez-Vélez. “Those who choose to become involved in such a lifestyle should know that law enforcement at every level will work together tirelessly to bring them to justice.”
“Today's operations addressed some of the most violent gang activity in the United States,” said Special Agent in Charge Douglas A. Leff for the FBI’s San Juan Division. “The acts of violence that accompanied the alleged robberies were premeditated and utilized sophisticated techniques to defeat alarms and video surveillance systems. The dedicated prosecutors and investigators went to great lengths to identify and apprehend those responsible, and their efforts will significantly increase the safety of our citizens and financial institutions.”
Assistant U.S. Attorney Max Pérez-Bouret and Special Assistant U.S. Attorney Normary Figueroa are in charge of the prosecution of the case. If convicted, the defendants face up to life in prison. Seven of the defendants who participated in the murder included in the indictment are eligible for the death penalty. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
21 Individuals Indicted for Violating the RICO Act in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – A seventeen (17)-count federal indictment was unsealed today in the District of Puerto Rico charging twenty-one (21) defendants with racketeering, conspiracy to commit bank robbery, burglary and larceny, interference with commerce by robbery (Hobbs Act), carjacking, conspiracy to possess with the intent to distribute controlled substances, and related firearm offenses, announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. The FBI and the Puerto Rico Police Department, Bank Robbery Division, are in charge of the investigation.
The defendants are: Alfredo Umpierre-Santiago, aka “Freddie;” Luis Ángel Guerrido-Medina, aka “Viejo;” Juan Rosario-Marrero, aka “Vaquerito;” Steven Tapia-Morales, aka “El Gordo;” Elvin Morales-Ramírez, aka “Chino;” Obrayan Hernández-López, aka “Oby;” Luis R. Cotto-Rivera, aka “Dico;” Ivan Martínez-Torres; Enrique Pérez-Rivera, aka “Henry;” David Vargas-Santiago, aka “Davo;” Jahn M. Fermin-Cortés, aka “Jan;” Carlos Fidian Jiménez-Feliz, aka “Picachu;” José Reyes-Neváres, aka “Piti;” Gabriel Vélez, aka “Avatar;” Yarelis E. García-Ruiz; Javier Ortiz-Nieves, aka “Javo;” Stephanie Herrera-Montañez, aka “Guri;” Karina Alamo-Marrero; Yeisha M. Pedraza-Santiago; Jimmy Molina-Otero, aka “Tío Jimmy;” and Edmanuel Laureano-Spanoz, aka “Emma.”
The indictment charges robberies to four banks, two credit unions, and a gas station. According to the indictment, as part of the racketeering and bank robbery conspiracies, the organization committed the following violent acts:
-
On November 25, 2010, seven defendants travelled to COOPACA, a state insured credit union in Levittown, Toa Baja, assaulted and abducted a security officer at gun point and stole approximately $45,220 from an ATM machine, and they also abducted and robbed other civilians.
-
On December 29, 2014, eleven of the defendants travelled to Colmadito Encantado at Plaza Encantada in Trujillo Alto, assaulted and abducted a security officer at gun point, and stole approximately $53,960 from an ATM belonging to Scotiabank.
-
On January 5, 2015, eleven of the defendants travelled to the Doral Bank in Vega Baja, burglarized the bank, stole the security recording system, computer equipment and approximately $228,800 from the ATMs.
-
On January 28, 2015, nine of the defendants travelled to the Oriental Bank in Cagüitas Mall in Caguas, abducted and robbed a security guard at gun point, breached the bank, and attempted to steal money from the ATM.
-
On February 11, 2015, seven of the defendants travelled to the Doral Bank at Plaza Dorada in Dorado with the intent of burglarizing that bank. In their attempt, they abducted one security guard and fatally shot a second security guard.
-
On March 28, 2015, five of the defendants travelled to Plaza Morovis and stole $30,330 from an off-premises ATM belonging to COOPERATIVA Moroveña. In order to commit the offense, they abducted and robbed a security guard at gun point and also carjacked his vehicle.
-
On August 18, 2015, six of the defendants robbed the Gulf Gas Station Convenience Store located in Ciales and stole $61,480 from an ATM belonging to Banco Popular of Puerto Rico. They also stole $879 from the cash register, 50 cigarette cartons worth over $3,000, and threatened the clerk with a sledgehammer and restrained the clerk in the bathroom.
Defendants Guerrido-Medina and Laureano-Spanoz are facing one charge of conspiracy to possess with intent to distribute heroin, cocaine and marihuana. All defendants are facing a RICO forfeiture allegation of at least $190,900, and a bank robbery forfeiture allegation of $344,240.
“The United States Attorney’s Office will continue its prosecution of organized gangs and their members who engage in senseless acts of violence to wreak havoc in our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Those who choose to become involved in such a lifestyle should know that law enforcement at every level will work together tirelessly to bring them to justice.”
“Today's operations addressed some of the most violent gang activity in the United States. The acts of violence that accompanied the alleged robberies were premeditated and utilized sophisticated techniques to defeat alarms and video surveillance systems,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division. “The dedicated prosecutors and investigators went to great lengths to identify and apprehend those responsible, and their efforts will significantly increase the safety of our citizens and financial institutions.”
Assistant U.S. Attorney Max Pérez-Bouret and Special Assistant U.S. Attorney Normary Figueroa are in charge of the prosecution of the case. If convicted, the defendants face up to life in prison. Seven of the defendants who participated in the murder included in the indictment are eligible for the death penalty. 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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Man Sentenced to 365 Months in Prison for Carjacking That Resulted in Murder in October of 2010Read the Press Release
SAN JUAN, Puerto Rico – Kenneth Ubiles-Rosario was sentenced to 365 months in prison for a carjacking that resulted in death, announced United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez. Ubiles-Rosario pleaded guilty on January 13, 2015 before U.S. Magistrate Judge Bruce McGiverin.
The indictment, filed on November 6, 2013, charged Ubiles-Rosario and a coconspirator with carjacking and possession of a firearm during the commission of a crime of violence. According to the statement of facts in the plea agreement, defendant Ubiles Rosario and his co-defendant met on October 21, 2010 and agreed to commit a robbery. The next day they intercepted the victim, Luis Anibal Torres-González, a local businessman, as he drove along his customary route. The defendants forced the victim to a stop and Ubiles exited his own car and forced the victim at gunpoint into the passenger seat. Ubiles and his co-defendant took the victim to a secluded spot by the side of a cliff near the Lago Dos Bocas in Arecibo, PR and forced the victim out of the car at gunpoint. Ubiles shot the victim once in the back of the head with a revolver and left the victim at the bottom of a cliff. Afterwards the defendants abandoned the victim’s car in an urbanization in Arecibo.
The case was investigated by FBI and the Puerto Rico Police Department and was prosecuted by Assistant US Attorney Nicholas Cannon.
10 Year Sentence for Doctor Who Defrauded AFLACRead the Press Release
SAN JUAN, P.R. – On Monday, March 21, 2016, the Hon. Gustavo Gelpí sentenced Aníbal Pagan-Romero, a general practitioner with a clinic in Quebradillas, Puerto Rico, to a term of imprisonment of 120 months and a term of supervised release of five (5) years in the criminal case for mail fraud prosecuted against Pagan-Romero in federal court. Pagan-Romero was also ordered to pay $2,056,503.32 in restitution to the American Life Assurance Company (“AFLAC”) of Columbus, Georgia. This sentence is the result of a lengthy investigation undertaken by the Federal Bureau of Investigations into multiple insurance fraud schemes in the Western region of Puerto Rico which resulted in the arrest and prosecution of hundreds of individuals.
On October 5, 2015, Aníbal Pagan-Romero had been found guilty by a jury of his peers on all counts of an 82 count indictment charging 21 conspiracies and 61 individual counts of mail fraud. Pagan-Romero was charged with 35 patients for orchestrating a large-scale fraudulent scheme where he fraudulently signed AFLAC accidental insurance claim forms without examining the patients. The evidence presented at trial showed that Pagan-Romero caused a loss to AFLAC in excess of $6,000,000. The 35 patients who were charged alongside Pagan-Romero pled guilty to the charges prior to the trial.
The three-week trial before the Hon. Gustavo Gelpi included the testimony of three of the doctor’s employees and four patients who indicated that Pagan-Romero personally instructed them to submit the documents for his signature without examination. The evidence also showed that the scheme had grown so large and lucrative that Pagan-Romero had to hire two employees to do data entry full time in order to generate the thousands of AFLAC claim forms submitted for reimbursement under his signature.
The case was prosecuted by Assistant United States Attorneys Dennise N. Longo and Julia Díaz-Rex.
Woman Sentenced to Prison for Defrauding the IRSRead the Press Release
SAN JUAN, P.R. – Today, March 16, 2016, defendant Mariely Malavet-Rivera was sentenced by United States District Court Judge Francisco A. Besosa to serve a term of imprisonment of 34 months and was ordered to pay restitution in the amount of $103,632.10 for defrauding the Internal Revenue Service (IRS), announced Rosa Emilia Rodríguez-Vélez, United States.
Malavet-Rivera pled guilty on October 2, 2015, to twenty-four counts of wire fraud, one count of theft of public money, and one count of aggravated identity theft. These charges stemmed from a scheme utilized by Malavet-Rivera from 2010 until 2013 to submit false Federal tax returns seeking the additional child tax credit (ACTC) in order to obtain fraudulent tax refunds from the IRS via check and direct deposit. Personal identification information including individuals’ names, dates of birth, and social security numbers were utilized without the knowledge or consent of the individual in order to request and obtain the fraudulent tax refunds.
The false Federal tax returns contained defendant’s own postal address and bank account information so that the fraudulent refunds would be deposited via wire transfer to bank accounts Malavet-Rivera controlled and the physical checks would be mailed to her postal address. The defendant then used a fraudulent driver’s license or voter registration identification to cash the fraudulent refund checks through an intermediary company.
The fraudulent tax refund scheme had a total value of approximately $227,653.22.
The case was prosecuted by Assistant United States Attorney Seth A. Erbe and investigated by the Internal Revenue Service, Criminal Investigation (IRS-CI).
40 Individuals Charged with Drug Trafficking ConspiracyRead the Press Release
SAN JUAN, Puerto Rico – Today federal authorities arrested 34 members of a drug trafficking organization which operated in the Santiago Iglesias Public Housing Project, in the municipality of Ponce, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Police of Puerto Rico Ponce Strike Force are in charge of the investigation.
On March 3, 2016, a federal grand jury in the District of Puerto Rico returned a six-count indictment against 40 defendants charged with conspiracy to possess with intent to distribute controlled substances, aiding and abetting in the possession /distribution of heroin, cocaine base, cocaine and marijuana, and conspiracy to possess firearm in furtherance of a drug trafficking crime.
The indictment charges 40 individuals for their participation in a conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), heroin, cocaine and marihuana all within 1,000 feet of the real property comprising the Santiago Iglesias Public Housing Project, a housing facility owned by a public housing authority, and other areas nearby and within the Municipality of Ponce, Puerto Rico.
During the span of the conspiracy, in order to be able to operate a drug point at Santiago Iglesias Public Housing Project, “rent” would be paid to the leaders of the drug trafficking organization and their family members. As part of the manner and means of the conspiracy, control of the drug points at Santiago Iglesias was obtained and maintained by the use of force, violence, and intimidation. The drug points operated twenty-four (24) hours a day, in 2 shifts per day.
The indictment also alleges that the co-conspirators had many roles in order to further the goals of the conspiracy. Narcotics belonging to members of the Santiago Iglesias drug trafficking organization were being sold in other areas of Ponce, including but not limited to the Aristides Chavier Public Housing Project, the Gandara Public Housing Project, and the Portugues Public Housing Project. As part of the conspiracy, armed individuals would get paid by the drug trafficking organization to provide security at the Santiago Iglesias Public Housing Project. Members of the drug trafficking organization would forcibly evict individuals from their apartments if they were perceived to be cooperators or if they were unwilling to abide by the rules set by the organization.
The defendants are: Goodwin Vargas-Gonzalez, Robert J. Guzman-Cruz, Miguel A. Rosario-Lugo, Gabriel Confesor Martinez-Cruz, Steven J. Ayala-Martinez, Geraldo Rivera-Lugo, Steven Echevarria-Medina, Jonathan Rodriguez, Christopher Jusino Rodriguez, Juan Gabriel Vega-Madera, Santiago Delgado-Marquez, Pedro L. Lugo-Santiago, Jan C. Camacho-Perez, Hector Montes-Rodriguez, Leonel Sujeil Quiñones-Cruz, Gerardo Rivera-Feliciano, Jose E. Moreau-Rosado, Alexander Ramirez-León, Josue Jorge Rodriguez, Luis A. Rivera-Quiñones, Anthony Zorilla-Figueroa, Angel G. Delgado-Velazquez, Alcides Yamsell-Garcia, Kenneth Mayol-Torres, Francisco Ortiz-Torres, Hector Cintrón- Rodriguez, Eddie J. Vidal-Moran, Luis A. Rivera-Class, Athos Vega-Vidal, Dimari Cardona-Antonetti, Ismael Aponte-Santos, Reynaldo Colon-Natal, Richard Ortiz-Nieves, Luz Maria Santiago, Natasha Colon-Natal, Jose A. Nieves-Echevarria, Yoshua D. Roman-Quiñones, Arquelio Gonzalez-Negron, Jose I. Aponte-Santos, Carlos J. Santiago-Rivera. The defendants are facing a forfeiture allegation of ten million dollars.
“Today’s arrests demonstrate our commitment to dismantle drug trafficking organizations whose members are affecting the quality of life of the law abiding citizens in our public housing projects,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and state law enforcement agencies will continue their hard work to maintain the peace in our neighborhoods.”
“This case involved the long-term victimization of entire communities, who were forced to live in fear due to the nearly incomprehensible level of violence and narcotics trafficking taking place around them. Sadly, housing projects that were designed to provide affordable living have instead become a breeding ground for violent gangs and criminal enterprises. The hearts of everyone in the FBI go out to those families who were denied their basic rights to a safe environment in which to raise children, enjoy retirement, or even to walk safely through the streets of their neighborhoods. As demonstrated today, the law enforcement community will continue to make a priority of targeting for federal investigation those individuals who join together to pray on the innocent,” said Douglas A. Leff, Special Agent in Charge, Federal Bureau of Investigation.
Assistant U.S. Attorney Teresa Zapata-Valladares 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.Arrest for Creation and Distribution of Animal Crushing Videos, Exhibition of Animals in Animal Fighting VenturesRead the Press Release
SAN JUAN, P.R. – On March 4, 2016, Ehbrin Castro-Correa (Castro-Correa) was arrested by Immigration and Customs Enforcement, Homeland Security Investigations (HSI) agents, for violations to 18 USC § 48(b)(1)(B) and (b)(2), the creation of an animal crush video and its distribution in interstate commerce; and 18 USC § 49(a), a violation of 7 USC § 2156(a)(1), which prohibits the sponsoring and exhibiting of an animal in an animal fighting venture, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The arrest warrant was issued by US Magistrate Judge Bruce McGiverin based on a Complaint and affidavit presented on March 5, 2016. This is the first case of this nature presented in the District of Puerto Rico.
The sworn affidavit attached to the Complaint alleges that on March 4, 2016, at approximately 4:48 p.m., Castro-Correa arrived at the Pan American Dock (PAD), in San Juan, Puerto Rico in a 2005 white Dodge Dakota pickup truck. Federal agents observed several canines being transported inside crates located within the pickup truck’s bed area. At approximately 5:45 p.m., HSI Agents then observed when Castro-Correa placed six (6) crates – each containing a canine - in the luggage drop off area before he went to present his boarding pass to board the Caribbean Fantasy Ferry. Castro-Correa presented documentation showing he was the owner of the six (6) canines, Spanish Alano (Spanish Bulldog) breed dogs, 4 male and 2 female. He then went to check in to board the ferry at where he showed the CBP Officers a boarding pass. The boarding pass indicated that Castro-Correa was traveling to the Dominican Republic along with pets. The CBP officers referred Castro-Correa to a secondary inspection in which he was subject to a more thorough search of his belongings. All passengers travelling with canines were submitted to secondary inspection.
During the secondary inspection, Castro-Correa was interviewed by HSI Agents. Castro-Correa indicated that he was transporting the canines to the Dominican Republic, that he was paid $800.00 to do so, and that the canines belonged to someone else. Agents were able to inspect Castro-Correa’s cellular phone. The cellular phone contained three videos, an original six-minute video of a dog fight, and two shorter clips made of that same video. The six-minute video depicts a fight between two pit bull female dogs, and two men are overheard encouraging the canines to fight. Castro-Correa admitted that he filmed the video recording. The two clips of the original video were transmitted in interstate and foreign commerce using a communications application known as WhatsApp.
The affidavit further alleges that a search of Castro-Correa’s residence in Rio Piedras, Puerto Rico, was conducted during the evening of March 4, 2016. A preliminary search of the residence revealed several man-made structures made either of concrete or wood with chicken wire that were used as cages. Other structures were simply made-man pits that did not have any overhead cover exposing the dogs to the elements. The dogs inside the cages appeared to be adult dogs that could barely fit inside the cages. Agents observed a total of twenty-five (25) dogs in back area of the residence. There were approximately nine (9) puppies out of the twenty-five (25) found. The conditions in which the dogs were found were deplorable. Some were chained or tied to a structure, or a cement cylinder block or palet, while others were caged, and/or exposed to the elements. The water containers from the dogs were expected to drink from were dirty. Most of the dogs appeared to be pit bulls, and some of them had scars in their muzzle areas and faces. Inside the residence, agents found a man-made treadmill designed for training dogs, old newspaper articles of dog fights, a bag containing what appeared to be medications such as antibiotics, iron and calcium supplements for dogs and dressing compounds, among other evidence. Also seized was what appeared to be medication that requires the use of syringes, along with an open bag containing several syringes.
“This is the first case investigated and prosecuted in this District involving the promotion of dog fights and the creation and distribution of dog fighting videos. The cruelty to which these animals have been submitted is appalling, and this case should put everyone on notice that we will not tolerate this type of inhumane treatment of animals,” said United States Attorney Rodriguez-Velez.
"One does not have to be a pet lover to condemn animal cruelty," said Ricardo Mayoral, acting special agent in charge of HSI San Juan. "HSI has distinguished itself for protecting our children from online predators and those who exploit the most vulnerable segment of our society but it's also important to let people know that we will not tolerate animal cruelty as well. We will continue identifying, investigating, and with the help of our partners, prosecuting those who show total disregard for animals. It is despicable, it is inhumane and it is against the law."
The case was investigated by Immigrations and Customs Enforcement, Homeland Security Investigations, with the collaboration of U.S. Customs and Border Protection (CBP). The dogs have been seized and will be under the custody and care of the U.S. Marshals Service. The case will be prosecuted by Assistant U.S. Attorney Mariana Bauzá, Deputy Chief of the Narcotics Unit and Assistant U.S. Attorney Dina Avila-Jiménez. The defendant faces a maximum penalty of up to seven years in prison for the violations to 18 USC § 48(b)(1)(B) and (b)(2); and up to five years in prison for the violations to 18 USC § 49(a) and 7 USC § 2156(a)(1). The Complaint contains allegations and is not evidence of guilt, the defendant is presumed innocent until his guilt is proven by the government beyond a reasonable doubt.
Individual Sentenced for His Participation in Extortion SchemeRead the Press Release
SAN JUAN, P.R. – On March 1, 2016, defendant Diomedes Joshua Alcantara-Troche was sentenced by United States District Court Judge Jay A. Garcia-Gregory to serve a term of imprisonment of 2 years, and 3 years of supervised released, for his participation in an extortion scheme, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On December 1, 2014, the victim received a telephone call from two unidentified males. The individuals, who were later identified as inmates currently incarcerated in a state prison, advised the victim that they had kidnapped her son, and would harm him unless the victim provided them with $6,000.00 US Dollars (USD). The inmates later agreed to lower the request to $1,000. The inmates also warned the victim not to contact the police or they would harm her son. Upon receiving the initial extortion telephone call from the inmates, the victim went to withdraw the money and with the assistance of a bank employee she managed to contact her son, who is a federal agent. Her son confirmed that he had not been kidnapped. The victim agreed to assist federal law enforcement agents and proceeded to comply with the instructions provided by the inmates to make the payment of $1,000.00 USD.
The inmates instructed the victim to bring $1,000.00 USD, to an area in Carolina. Upon receiving the money, the inmates stated that they would release her son without incident. After arriving at the location the federal agents spotted Alcantara-Troche driving a car that belonged to his girlfriend, Lorenly Garcia-Echevarria. Alcantara-Troche was detained by federal agents. Alcantara-Troche indicated that his girlfriend, Lorenly Garcia-Echevarria provided him the cellular telephone and the vehicle used to pick up the extortion money. Alcantara-Troche and Garcia-Echevarria were going to earn approximately $300.00 USD for their participation in the extortion scheme.
Co-defendant Lorenly Garcia was also sentenced to 2 years for her participation.
“This is a very common extortion scheme used by inmates in state prison in order to make some easy money from victims who fear their loved ones are in danger. We urge the public to contact law enforcement if they receive threats similar to this one,” said U.S Attorney Rosa Emilia Rodríguez-Vélez.
The case was investigated by HSI and the FBI and prosecuted by Special Assistant United States Attorney Normary Figueroa.
Former Puerto Rico Police Officer Found Guilty by A Jury for Conspiracy to Deprive A Person of Civil RightsRead the Press Release
SAN JUAN, P.R. – On February 26, 2016, former Puerto Rico Police Officer Francisco Martinez-Mercado was found guilty of Conspiracy to Deprive a Person of his Civil Rights, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Judge Francisco A. Besosa presided over the trial.
On September 15, 2015 a federal grand jury returned a one-count indictment charging Martinez-Mercado for the offense committed on or about September 23, 2010, when the defendant did conspire, combine, confederate and agree to injure, oppress, threaten and intimidate a known individual in the exercise of a right, secure and protected by the Constitution of the United States, to be free from unreasonable searches and seizures by those acting under color of law, by agreeing to unreasonably search and seize property of the known individual located in Puerto Rico. At the time of the offense, Francisco Martinez-Mercado was a police officer with the Police of Puerto Rico (POPR) assigned as a Task Force Officer to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
During the five-day trial, the government presented evidence proving that on September 23, 2010, defendant hired corrupt police officers and other individuals to break into a home and steal property.
“Corrupt public employees undermine the fabric of our nation’s security, our overall safety, the public trust and confidence in those chosen to protect and serve,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The corruption and negligence uncovered in this case cannot and will not be tolerated. We will continue to investigate and prosecute these types of schemes.”
The case was prosecuted by Assistant U.S. Attorney Mariana Bauzá, Deputy Chief of the Narcotics Unit and Assistant U.S. Attorney Teresa Zapata. The defendant faces a maximum penalty of up to 10 years in prison. The sentencing hearing was scheduled for May 26, 2016. The case was investigated by the FBI’s San Juan Division with the assistance of the U.S. Department of Justice Office of the Inspector General Miami Field Office.Eight Individuals Arrested for Bribery, Conspiracy, Health Care and Mail FraudRead the Press Release
Yesterday, a federal grand jury returned a 14 count indictment against eight individuals for bribery, conspiracy to commit health care fraud, conspiracy to commit an offense against the United States, mail fraud and aggravated identity theft, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The investigation was led by the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), with the collaboration of the Federal Bureau of Investigation, U.S. Secret Service, U.S. Postal Inspection Service and the Puerto Rico Department of Health Medicaid Anti-Fraud Unit.
The Medicaid Program (Medicaid) is a federal health benefit program intended to provide benefits to low-income individuals and families. Medicaid is monitored and funded by the U.S. Department of Health and Human Services (HHS) through its agency, the Centers for Medicare and Medicaid Services (CMS). In the Commonwealth of Puerto Rico, Medicaid is referred to in Spanish as “Mi Salud,” or “Plan de Salud del Gobierno” (PSG). Mi Salud beneficiaries included Medicaid participants and “state only funded health care recipients,” commonly referred to as “Commonwealth participants.” An individual’s eligibility for Medicaid or Commonwealth health care benefits depends on certain eligibility requirements.
Although Medicaid is federally-funded, it is administered by the states and/or United States territories, including the Commonwealth of Puerto Rico. HHS provided the Puerto Rico Department of Health (PR-DOH) approximately $1 billion annually to fund and/or reimburse the costs of Medicaid.
Within the PR-DOH, the Office of the Medicaid Program, also known in Spanish as “Programa De Asistencia Médica,” or “Programa De Medicaid,” was responsible for handling applications for Medicaid as well as the Commonwealth health plan eligibility, certification and recertification process. Medicaid and the Commonwealth health plan eligibility was determined by a Program Technician, a government employee from the Programa de Asistencia Medica.
The indictment charges three agents of the Programa de Asistencia Medica Santurce Office with receiving monetary bribes in exchange for certifying individuals as eligible to receive Medicaid health care benefits. The charged agents the Programa de Asistencia Medica are:Luis González-Cordova, a clerk in the Santurce office who dealt with Mi Salud participant files and individual applicants that sought Mi Salud benefits; Karen Curet-Nieves, a program technician in the Santurce office who evaluated and determined the eligibility of Mi Salud applicants, input data in the MEDITI system and approved Mi Salud benefits for participants; and Orlando Negrón-Bonilla, a program technician in the Santurce office who evaluated and determined eligibility of Mi Salud applicants, input data in the MEDITI system and approved Mi Salud benefits for participants.
The indictment alleges that from on or about July 9, 2014, through on or about Oct. 10, 2015, González-Cordova, Curet-Nieves and Negrón-Bonilla aiding and abetting one another, did corruptly solicit, demand, accept and agree to accept a thing of value from a person, to wit, cash payments, intending to be influenced and rewarded in connection with a transaction and series of transactions of Programa De Asistencia Médica involving $5,000 or more. Rather, than abiding by their duties to ensure participants were in fact low-income and eligible for Medicaid, defendants abdicated those responsibilities in exchange for cash. Those defendants and various “runners” are also charged with conspiracy to commit an offense against the United States, conspiracy to commit health care fraud, mail fraud and aggravated identity theft .
During the course of the conspiracy and scheme, defendants Ruben Escalera-Rivera, Perfecto De Leon-Toribio, Luis Caceres-De Leon, Luis Angel Garcia-Rosa and Andrea Jimenez-De Jesús, acted as “runners,” soliciting and referring individuals to defendant Luis González-Cordova for their fraudulent entry into the Medicaid health care benefit programs. The runners would recruit individuals to be fraudulently enrolled into the Medicaid health care benefits programs in exchange for cash bribes and monetary payments without personally meeting with the individuals to determine their eligibility as required by PR-DOH procedures. The runners delivered cash bribes to González-Cordova and upon receiving the personal identification information, including names, social security numbers, dates of birth and addresses, from the runners, González-Cordova would provide it to Curet-Nieves or Negrón-Bonilla by text or handwritten note for entry into the MEDITI database. Curet-Nieves and Negrón-Bonilla fraudulently certified the participants as eligible to receive Medicaid health care benefits.
Curet-Nieves approved 20 to 30 unqualified individuals per week into the Mi Salud program for a fee of $10 each and Negrón-Bonilla approved 20 to 30 unqualified individuals per week into the Mi Salud program for a fee of $10 to $30 each.
The individually identifiable information for eligible participants was transferred daily to the Puerto Rico Health Insurance Administration, known in Spanish as Administración de Seguros de Salud de Puerto Rico (ASES), in order to complete the enrollment process with the various contracted Managed Care Organizations (MCO’s). Medicaid health insurance cards for the MCO’s were then sent via regular mail to the participant.
ASES paid monthly premiums to the MCOs for the purposes of providing Medicaid health care benefits. Monthly premiums were paid to MCO’s regardless of whether the participant required medical care services. MCO’s also received federal monies for utilization of the health care plan. As a result, each participant fraudulently certified as eligible for Medicaid health care benefits would result in the fraudulent payment of federal Medicaid funds to MCO’s. This amount could range from hundreds to thousands of dollars per participant depending on the corresponding premiums and utilization.
In conjunction with this investigation, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit is sending approximately 6,000 notification letters to participants whose eligibility has been identified as suspicious. Over 130 participants have been mailed notifications already.
“Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate the improper use of health care program funds such as Medicaid which are essential to the welfare of low-income families in our community,” said U.S. Attorney Rodríguez-Vélez. “The U.S. Attorney’s Office and federal law enforcement agencies will continue to investigate, charge and prosecute those who corruptly enrich themselves at the expense of the Medicaid program.
The Medicaid program provides health care benefits to low-income individuals and families, and the fraudulent enrollment of individuals into the program is unacceptable,” said Special Agent in Charge Scott Lampert of HHS-OIG New York Regional Office. HHS-OIG and its law enforcement partners will continue to aggressively pursue to the fullest extent of the law those who seek to unlawfully enrich themselves by defrauding Medicaid.”
The case is being prosecuted by Assistant U.S. Attorney Luke Cass and Assistant U.S. Attorney Seth Erbe. The case was investigated by U.S. Department of Health and Human Services-Office of Inspector General, with the collaboration of the Federal Bureau of Investigation, U.S. Secret Service, U.S. Postal Inspection Service, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit and the Puerto Rico Police Department.
If convicted, the defendants face a sentence of up to twenty years of imprisonment plus a mandatory two year term of imprisonment for aggravated identity theft. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Eight Individuals Arrested for Bribery, Conspiracy, Health Care and Mail FraudRead the Press Release
SAN JUAN, P.R. – On February 24, 2016, a Federal grand jury returned a fourteen count indictment against eight individuals for bribery, conspiracy to commit health care fraud, conspiracy to commit an offense against the United States, mail fraud, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the U.S. Department of Health and Human Services-Office of Inspector General, with the collaboration of the Federal Bureau of Investigation, United States Secret Service, United States Postal Inspection Service, and the Puerto Rico Department of Health Medicaid Anti-Fraud Unit.
The Medicaid Program (“Medicaid”) is a federal health benefit program intended to provide benefits to low-income individuals and families. Medicaid is monitored and funded by the United States Department of Health and Human Services (“HHS”) through its agency, the Centers for Medicare and Medicaid Services (“CMS”). In the Commonwealth of Puerto Rico, Medicaid is referred to in Spanish as “Mi Salud,” or “Plan de Salud del Gobierno” (PSG). Mi Salud beneficiaries included Medicaid participants and “state only funded health care recipients,” commonly referred to as “Commonwealth participants.” An individual’s eligibility for Medicaid or Commonwealth health care benefits depends on certain eligibility requirements.
Although Medicaid is federally-funded, it is administered by the states and/or United States territories, including the Commonwealth of Puerto Rico. HHS provided the Puerto Rico Department of Health (PR-DOH) approximately $1 billion annually to fund and/or reimburse the costs of Medicaid.
Within the PR-DOH, the Office of the Medicaid Program, also known in Spanish as “Programa De Asistencia Médica,” or “Programa De Medicaid,” was responsible for handling applications for Medicaid as well as the Commonwealth health plan eligibility, certification and recertification process. Medicaid and the Commonwealth health plan eligibility was determined by a Program Technician, a government employee from the Programa de Asistencia Medica.
The indictment charges three agents of the Programa de Asistencia Medica Santurce Office with receiving monetary bribes in exchange for certifying individuals as eligible to receive Medicaid health care benefits. The charged agents the Programa de Asistencia Medica are (1) Defendant Luis González-Cordova, a clerk in the Santurce office who dealt with Mi Salud participant files and individual applicants that sought Mi Salud benefits; (2) Defendant Karen Curet-Nieves, a program technician in the Santurce office who evaluated and determined the eligibility of Mi Salud applicants, input data in the MEDITI system, and approved Mi Salud benefits for participants; and (3) Defendant Orlando Negrón-Bonilla, a program technician in the Santurce office who evaluated and determined eligibility of Mi Salud applicants, input data in the MEDITI system, and approved Mi Salud benefits for participants.
The indictment alleges that from on or about July 9, 2014, through on or about October 10, 2015, Luis González-Cordova, Karen Curet-Nieves, and Orlando Negrón-Bonilla aiding and abetting one another, did corruptly solicit, demand, accept, and agree to accept a thing of value from a person, to wit, cash payments, intending to be influenced and rewarded in connection with a transaction and series of transactions of Programa De Asistencia Médica involving $5,000 or more. All in violation of Title 18, United States Code, Sections 666(a)(1)(B), 2(a), and 2(b). Rather, than abiding by their duties to ensure participants were in fact low-income and eligible for Medicaid, defendants abdicated those responsibilities in exchange for cash. Those defendants and various “runners” are also charged with conspiracy to commit an offense against the United States in violation of Title 18, United States Code, Section 371, conspiracy to commit health care fraud in violation of Title 18, United States Code, Sections 1347 and 1349, mail fraud in violation of Title 18, United States Code, Section 1341, and aggravated identity theft in violation of Title 18, United States Code, Section 1028A.
During the course of the conspiracy and scheme, defendants Ruben Escalera-Rivera, Perfecto De Leon-Toribio, Luis Caceres-De Leon, Luis Angel Garcia-Rosa, and Andrea Jimenez-De Jesús, acted as “runners,” soliciting and referring individuals to defendant Luis González-Cordova for their fraudulent entry into the Medicaid health care benefit programs. The runners would recruit individuals to be fraudulently enrolled into the Medicaid health care benefits programs in exchange for cash bribes and monetary payments without personally meeting with the individuals to determine their eligibility as required by PR-DOH procedures. The runners delivered cash bribes to defendant Luis González-Cordova and upon receiving the personal identification information, including names, social security numbers, dates of birth, and addresses, from the runners, Luis González-Cordova would provide it to Karen Curet-Nieves or Orlando Negrón-Bonilla by text or handwritten note for entry into the MEDITI database. Karen Curet-Nieves and Orlando Negrón-Bonilla fraudulently certified the participants as eligible to receive Medicaid health care benefits.
Defendant Karen Curet-Nieves approved twenty to thirty unqualified individuals per week into the Mi Salud program for a fee of $10.00 each and Orlando Negrón-Bonilla approved twenty to thirty unqualified individuals per week into the Mi Salud program for a fee of $10.00 to $30.00 each.
The individually identifiable information for eligible participants was transferred daily to the Puerto Rico Health Insurance Administration, known in Spanish as “Administración de Seguros de Salud de Puerto Rico” (“ASES”), in order to complete the enrollment process with the various contracted “Managed Care Organizations” (“MCO’s”). Medicaid health insurance cards for the MCO’s were then sent via regular mail to the participant.
ASES paid monthly premiums to the MCOs for the purposes of providing Medicaid health care benefits. Monthly premiums were paid to MCO’s regardless of whether the participant required medical care services. MCO’s also received federal monies for utilization of the health care plan. As a result, each participant fraudulently certified as eligible for Medicaid health care benefits would result in the fraudulent payment of federal Medicaid funds to MCO’s. This amount could range from hundreds to thousands of dollars per participant depending on the corresponding premiums and utilization.
In conjunction with this investigation, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit is sending approximately 6,000 notification letters to participants whose eligibility has been identified as suspicious. Over 130 participants have been mailed notifications already.
“Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate the improper use of health care program funds such as Medicaid which are essential to the welfare of low-income families in our community. The U.S. Attorney’s Office and federal law enforcement agencies will continue to investigate, charge and prosecute those who corruptly enrich themselves at the expense of the Medicaid program,” said United States Attorney, Rosa Emilia Rodríguez-Vélez.
“The Medicaid program provides health care benefits to low-income individuals and families, and the fraudulent enrollment of individuals into the program is unacceptable. HHS-OIG and its law enforcement partners will continue to aggressively pursue to the fullest extent of the law those who seek to unlawfully enrich themselves by defrauding Medicaid,” said Scott Lampert, Special Agent in Charge of HHS-OIG New York Regional Office.The case is being prosecuted by Assistant U.S. Attorney Luke Cass and Assistant U.S. Attorney Seth Erbe. The case was investigated by U.S. Department of Health and Human Services, Office of Inspector General, with the collaboration of the Federal Bureau of Investigation, United States Secret Service, United States Postal Inspection Service, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit and the Puerto Rico Police Department.
If convicted, the defendants face a sentence of up to twenty years of imprisonment plus a mandatory two year term of imprisonment for aggravated identity theft. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
20 Individuals Indicted and Arrested for Defrauding the Department of EducationRead the Press Release
SAN JUAN, P.R. – On February 17, 2016, a Federal grand jury returned a ninety-three count superseding indictment charging a total of 52 defendants, including 20 additional employees of Rocket Learning, LLC with conspiracy to commit mail fraud, mail fraud, theft of government money and property, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Department of Education-Office of Inspector General, the FBI and ICE-HSI are in charge of the investigation. The superseding indictment was unsealed earlier today.
As part of the conspiracy in the superseding indictment, the additional individuals indicted are either “teacher leaders” or “teachers” who provided tutoring services as employees of Rocket Learning, LLC. They participated in the scheme to submit fraudulent attendance information for payment by supervising, or participating in fraudulent biometric attendance entries, signing blank or false manual attendance forms, and/or signing false post-test forms indicating that students received the services when they did not.
The superseding indictment alleges one count of conspiracy to commit mail fraud, a violation of Title 18 United States Code, Sections 1349 and 1341 and twenty-six counts of mail fraud, a violation of Title 18, United States Code, Section 1341, related to payments caused to be made via the U.S. Mail to Rocket Learning, Inc., for twenty six fraudulent invoices submitted from 2011 - 2013 to the Puerto Rico Department of Education; one count of theft of public money, a violation of Title 18, United States Code, Section 641, related to the approximately $954,297.00 in Title I Federal Funds unlawfully received; and sixty-five counts of aggravated identity theft, a violation of Title 18, United States Code, Section 1028A(a)(1), related to the use of means of identification of another person by using the name and signature of real students, in relation to the theft of public money charged in the indictment.
“The U.S. Attorney’s Office will continue its efforts to investigate and prosecute those who abuse their access to government funds, and fraudulently obtain moneys destined to help children in our communities,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
“This case reveals once again that there will always be those among us who will endeavor to steal money from even the most vulnerable of populations; in this case, our community’s children. Regrettably, nearly one million dollars in taxpayer funds was lost to a scheme by people willing to sacrifice the futures of the children this federal program was intended to benefit. The FBI and its law enforcement partners recognize the harm caused to Puerto Rico by those who divert public monies to their own use, and will continue to prioritize the investigation and prosecution of these crimes,” said Douglas A. Leff, Special Agent in Charge, Federal Bureau of Investigation.
The defendants are:
- Maria Plaza- Teacher Leader at Hector I. Rivera School
- Wanda Figueroa Figueroa- Teacher Leader at Antonio Serrano Gonzalez School
- Aracelis Rivera Rivera- Teacher at Hector I. Rivera School
- Annette Coppin Bald- Teacher at Ines Maria Mendoza School
- Idalis Torres Torres Torres- Teacher at Nueva Superior de Loiza School
- Jessica Marrero Santana- Teacher at Eugenio Maria de Hostos School
- Keila Silva Sanchez - Teacher at Jesus T. Pinero School
- Monica Ortiz Alicea- Teacher at Antonia Saez Irizarry School
- Nayda Torres De Leon-Teacher at Maria Dolores Faria School
- Guillermo Morales Muñiz- Teacher at Francisco Matias Lugo School
- Raquel Roman Bonilla- Teacher at Joaquin Vazquez School
- Joel Torres Beltran- Teacher at Manuel Mendez Liciaga School
- Laurie Baerga Castro- Teacher at Adrin Torres Torres School
- Angel Velez Rosa- Teacher at Berwind Intermedia School
- Florentino Perez Gonzalez- Teacher at Berwind Intermedia School
- Ivelisse Vazquez Garcia- Teacher at Dr. Ramon Tellado School
- Maritza Rosario Medina- Teacher at Antonia Serrano Gonzalez School
- Ana Oben- Teacher at Luis Munoz Rivera School
- Mariam Candelaria- Teacher at Antonia Serrano Gonzalez School
- Margarita Arroyo Heredia- Teacher at Antonia Serrano Gonzalez School
The case is being prosecuted by Assistant United States Attorney Seth A. Erbe. If found guilty, defendants are facing a maximum penalty of 20 years in prison and two additional years for each corresponding aggravated identity theft count. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Former Army Reserve Staff Sergeant Sentenced to 21 Months in Prison for Bulk Cash Smuggling and Theft of Government Property while Serving in AfghanistanRead the Press Release
A Fort Buchanan Army Reserve Staff Sergeant was sentenced today to 21 months in prison for bulk cash smuggling of $113,050 and theft of government property worth $6,302.69 while serving in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico, Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico, Division, Acting Special Agent in Charge James M. Gibbons of the U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Chicago Field Office, Special Inspector General for Afghanistan Reconstruction John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office made the announcement.
On July 15, Luis Ramon Casellas, 42, of Canóvanas, Puerto Rico, pleaded guilty before U.S. Magistrate Judge Camille L. Velez-Rive of the District of Puerto Rico to three counts of bulk cash smuggling and one count of theft of government property. In addition to imposing the prison term, U.S. District Judge Carmen Consuelo Cerezo of the District of Puerto Rico ordered Casellas to forfeit $113,050.
Casellas was an Army Reservist Staff Sergeant on active status based at Fort Buchanan in Guaynabo, Puerto Rico. In April 2013, Casellas was deployed by the Army to Kandahar Airfield in Afghanistan. As part of his duties, Casellas was responsible for helping to break down smaller bases in preparation for the withdrawal of U.S. military forces from Afghanistan. These duties included retrieving U.S. government property for future use and selling as scrap to Afghan contractors.
Between June 17 and Aug. 9, 2013, Casellas was the leader of the three-person Army team that went to a Forward Operating Base (FOB) in Afghanistan to help break down that base. In connection with his guilty plea, Casellas admitted that while this team was at the FOB, he stole tools and equipment, including laptops, belonging to the U.S. Department of Defense. Casellas also admitted that, in July 2013, he sent approximately eight boxes from the FOB through the U.S. Postal Service addressed to his wife in Puerto Rico, and that the boxes contained some of the government property and undeclared U.S. currency totaling $50,500.
In addition, in August 2013, Casellas sent two boxes from Kandahar Airfield through UPS, again addressed to his wife in Puerto Rico, that were marked as “gifts for family.” In connection with his plea, Casellas admitted that, although he declared that the items inside the boxes were valued at $700 and $400, respectively, one box contained some of the stolen government property as well as $41,750 in U.S. currency, and the other box contained $20,800 in U.S. currency. These boxes were intercepted by U.S. Customs in Louisville, Kentucky.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, ICE-HSI, Army CID and DCIS, with assistance from the Defense Contract Audit Agency. This case was prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Julia M. Meconiates and Myriam Fernandez of the District of Puerto Rico.
Attorney Charged with Forgery of Federal Bankruptcy Court Orders, Wire Fraud and Obstruction of JusticeRead the Press Release
SAN JUAN, P.R. – A federal grand jury in the District of Puerto Rico returned a ten- count indictment against attorney Luis R. Santos-Baez, charging him with Forgery of a Federal Bankruptcy Court Judge’s signature, obstruction of justice and wire fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Santos-Baez was arrested earlier today by agents from Homeland Security Investigations.
The indictment alleges that Luis R. Santos-Baez forged and concurred in the use of a purported legal documents bearing the false signatures of Hon. Mildred Caban-Flores and Hon. Edward A. Godoy, both Judges of the United States Bankruptcy Court for the District of Puerto Rico, for the purpose of authenticating said documents for the bankruptcy proceedings, to wit: documents that appeared to be court orders signed by the Honorable Judges, had in fact never been entered by the bankruptcy court nor signed by any judge.
The indictment also alleges that the defendant unlawfully enriched himself by obtaining money and property from individuals under the false and fraudulent pretenses and representations that defendant had filed on their behalf, bankruptcy petitions under the United States Bankruptcy Code. During the course of the scheme, Santos-Baez filed on behalf of Debtor #1, Debtor #2 and Debtor #3, various bankruptcy petitions in the United States Bankruptcy Court for the District of Puerto Rico. Santos Baez received payments from the debtors for filing and attorney’s fees. However, the bankruptcy petitions filed by Santos-Baez were later dismissed by the Court for failure to pay the corresponding filing fees and/or failure to provide required information to the Court. Furthermore, Santos-Baez made a series of false and fraudulent statements and representations to convince the debtors that he was working on their cases, and that they were under bankruptcy protection, when in fact their cases had been dismissed. Defendant Santos-Baez also sent e-mail communications attaching fraudulent court documents purportedly filed in the debtors’ bankruptcy cases and signed by United States Bankruptcy Court Judges, when in fact these documents were not signed by, or consented to by the Judges.
In order to carry out the objects of the scheme and artifice to defraud, Santos-Baez sent e-mail communications in furtherance of the scheme to defraud. In these communications Santos-Baez made a series of false statements and provided false documents in order to induce his clients into believing that they were under bankruptcy protection, when in fact their cases had been dismissed. The defendant knew the signatures and the orders provided in these wire communications were fraudulent and false.
“Today’s arrest demonstrates our commitment to prosecute those who maliciously seek to enrich themselves at the expense of vulnerable victims who have sought the protection and relief under our bankruptcy laws.” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.
“This man took advantage of people who deposited their trust in his profession and alleged expertise with the sole intent to line his own pockets,” said Ricardo Mayoral, acting special agent in charge of HSI San Juan. “HSI's special agents are constantly vigilant against those who attempt to feed off the vulnerable and will continue to pursue those who think they can game the system.”
“I am grateful to U.S. Attorney Rosa Emilia Rodriguez and to Immigration and Customs Enforcement-Homeland Security Investigations for joining the U.S. Trustee Program’s efforts to combat bankruptcy fraud and abuse,” stated Guy G. Gebhardt, Acting U.S. Trustee for Puerto Rico, Florida, Georgia, and the U.S. Virgin Islands (Region 21). The U.S. Trustee Program is the component of the U.S. Department of Justice that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
Assistant U.S. Attorney Olga Castellón is in charge of the prosecution of the case. If convicted, the defendant faces a sentence of up to twenty-nine years of imprisonment. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
2 Individuals Indicted for Mail FraudRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, January 26, 2016, a Federal grand jury in the District of Puerto Rico returned a twenty-three count indictment against Oscar Ferrer (“Ferrer”) and Jonathan A. Rivera-Padilla (“Rivera-Padilla”) charging them with conspiracy to commit mail fraud, mail fraud, and monetary transactions in property derived from specified unlawful activity announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The United States Postal Inspection Service (“USPIS”) and Federal Bureau of Investigation (“FBI”) are in charge of the investigation. The indictment was unsealed today following the arrest of Ferrer in Florida and Rivera-Padilla in Puerto Rico.
These charges resulted from a Ponzi scheme originating in the Cabo Rojo area of Puerto Rico and involving the payment of approximately $5.7 million to corporations operated by Ferrer in Puerto Rico and Florida. The corporations, including Reco Financial, Inc., National Western HIA, Inc., and CGB Financial, Inc., were utilized to receive victim’s purported investment deposits and to disburse the funds to Ferrer and Rivera-Padilla for their own personal use.
Ferrer and Padilla used their connections and referrals in the Cabo Rojo area to meet potential investors. In order to obtain purported investments, misrepresentations were made that the principal and interest on the investment would be guaranteed. Investors were then directed to make their payment to one of the corporations operated by Ferrer. Once deposited, the funds were not invested. Instead, they were withdrawn by Ferrer or transferred to personal bank accounts belonging to Ferrer, Rivera-Padilla, or others.
As a lulling tactic to avoid detection, some interest payments were made and false investment statements were created and mailed to the investors/victims. The investment statements misrepresented the state of their investment. Specifically, the investment statements misrepresented that the funds had been invested and/or that the principal and/or interest were guaranteed.
From 2011 to the present, approximately $5.7 million was invested in this scheme and approximately $1.6 million was paid to investors. The total amount netted in this scheme was approximately $4.1 million.
If found guilty, Ferrer and Rivera-Padilla face a maximum penalty of twenty years in prison for mail fraud and conspiracy to commit mail fraud, and ten years in prison for monetary transactions in property derived from specified unlawful activity.
Assistant U.S. Attorney Seth A. Erbe is prosecuting the case. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Individual Sentenced to Life in Prison for Drug TraffickingRead the Press Release
SAN JUAN, P.R. – Delfin Robles-Alvarez was sentenced to life in prison for his participation in a conspiracy to distribute cocaine for the purpose of unlawful importation, conspiracy to import cocaine, and conspiracy to commit money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendant went to trial and was found guilty by a federal jury on August 18, 2015.
Seven other co-conspirators had already pled guilty, two are awaiting sentence and one other defendant recently extradited is pending trial.
According to the indictment, throughout the year of 2005 and continuing up to 2014, the defendant, along with others, intentionally combined, conspired and agreed to possess with intent to import and distribute more than 5 kilograms of cocaine from Saint Martin, Netherlands Antilles into Puerto Rico.
During trial, the government presented video, audio, and telephone recordings of a Drug Enforcement Administration investigation into a drug trafficking organization responsible for importing over 2,000 kilograms of cocaine from Saint Martin, Netherlands Antilles, to Puerto Rico for distribution and sale as well as the laundering of funds in excess of 12 million U.S. dollars. The complex conspiracy involved numerous players with various roles, the smuggling of money and drugs both by sea and by air, and various methods to launder the proceeds from these illegal activities, including through the Puerto Rico Lottery System.
The case was prosecuted by Assistant United States Attorney Mariana Bauzá and Special Assistant United States Attorney Glenn Goetchius.
Two Individuals Indicted and Arrested for False Statements in Loan ApplicationsRead the Press Release
San Juan, Puerto Rico – Two individuals have been charged in a one-count indictment unsealed today and returned by a grand jury in San Juan, Puerto Rico on December 22, 2015, said U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico announced today. These charges stem from a scheme used by the defendants to obtain money from mortgage lending institutions. The investigation was conducted by the Department of Homeland Security (HSI), with the collaboration of the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) and the Housing and Urban Development-Office of Inspector General (HUD-OIG).
Defendants Edgar A. Reyes-Colón and Francisco Quintero-Peña are charged with making false statements in loan applications. The investigation revealed that as part of the scheme and artifice to defraud, the defendants, through straw buyers, purchased a property by obtaining mortgage loans from a federally insured financial institution in amounts substantially exceeding the selling price of the property. The excess amount of the loan was “kickbacked” to the defendants, and then they would default on payment of the monthly mortgage premiums. In order to ensure the approval of the loan, the participants created and submitted false supporting documentation along with the loan application, i.e.: financial statements, bank statements, employment verification letters, tax returns, among others.
The defendants, aiding and abetting each other, knowingly made or caused to be made, material false statements to Doral Bank for the purposes of obtaining mortgage loan numbers 3006810889 & 3006804465 for a total amount of $560,000.00 for the purchase of property located at 131 Fairway Street, Palmas Plantation Development, Humacao, P.R. 00791. The false statements included, but are not limited to, the following: (i) in the final Uniform Residential Loan Applications for both loans that an individual had a bank account at Santander Bank ending in 8132 with a balance of $33,892.11, when in truth and in fact, as the defendants well knew, this bank account did not exist; (ii) in the final Uniform Residential Loan Application for both loans that the individual had a monthly bas income of $18,818.00 from a business she owned called K’ricias Boutique, when in truth and fact, as the defendants well knew, these statements were false; (iii) in the HUD-1 for loan #3006810889 that the individual paid closing costs of $4,114.57 when in truth and in fact, as the defendants well knew, this statement was false; and (iv) in the HUD-1 for loan #3006804465 that the individual paid the closing costs of $22,166.48, when in truth and in fact, as the defendants well knew, this statement was false.
The defendants also supplied false and fraudulent account statements, financial statements, and a letter indicating that the individual’s then existing primary residence was producing rental income, when in truth and fact, as the defendants well knew, this was false.
This case is being prosecuted by Assistant US Attorney Nicholas Cannon. The maximum penalties for these offenses are 20 years of imprisonment, and fines up to $1 million. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Two Individuals Indicted for Bank and Wire FraudRead the Press Release
SAN JUAN, Puerto Rico– On December 9, 2015, a Federal grand jury returned a seventy-nine count indictment charging Miosotis Ribot-Figueroa (Ribot) with bank fraud, wire fraud, and aggravated identity theft and charging Ribot and José F. González-Guzmán (González) with a total of four counts of monetary transactions in property derived from specified unlawful activity, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) is in charge of the investigation. The indictment was unsealed today upon the arrest of both defendants.
These charges stem from a scheme utilized by Ribot from approximately May to October 2014 to make thirty four unauthorized bank transfers from the bank account of her employer to bank accounts controlled by Ribot and/or González totaling approximately $490,165.42. Ribot was employed as an assistant controller for a Puerto Rico company that sold, distributed, and provided service for medical equipment. As a part of the scheme, Ribot logged into her employer’s computer network and accessed their bank’s system for processing payments and bank transfers to vendors and customers. Ribot then processed thirty-four unauthorized bank transfers to herself and González. Ribot submitted false and fraudulent invoices to correspond to the fraudulent bank transfers. Ribot also submitted false information into a journal voucher system to reflect that the bank transfer had been authorized by a supervisor. In doing so, Ribot utilized the names and signature of others to further the scheme to defraud.
Ribot and González are also charged with a total of four counts of monetary transactions in property derived from specified unlawful activity related to transactions in excess of $10,000 utilizing the stolen funds. Those four transactions have a total value of approximately $75,406.82.
The indictment alleges thirty-four counts of bank fraud, a violation of Title 18, United States Code, Sections 1344, thirty-four counts of wire fraud, a violation of Title 18, United States Code, Section 1343, seven counts of aggravated identity theft, of a violation of Title 18, United States Code, Section 1028A(a)(1), related to the possession and use without lawful authority of a means of identification in relation to bank fraud and wire fraud charged in the indictment, and four counts of monetary transactions in property derived from specified unlawful activity, a violation of Title 18, United States Code, Section 1957, related to monetary transactions in excess of $10,000 using the stolen funds. The total value of the fraud was approximately $490,165.42. Defendants are facing a money judgment of $490,165.42, a forfeiture allegation of a lot of land located in the Municipality of Gurabo with a surface of 509,000 acre, equivalent to 2,003.92 square meters, and a Vessel, a 2002 Doral International Model 360SE named Cizañas.
If found guilty, Ribot faces a maximum penalty of thirty years in prison for bank and wire fraud, ten years in prison for monetary transactions in property derived from specified unlawful activity, and a mandatory two year consecutive term in prison for aggravated identity theft. If found guilty, González faces a maximum penalty of ten years in prison for monetary transactions in property derived from specified unlawful activity.
The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Seth Erbe.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Ten Individuals Indicted for Conspiracy to Commit Federal Programs Bribery, Honest Services Wire Fraud and ExtortionRead the Press Release
Ten Puerto Rico businessmen and government officials have been indicted for their alleged participation in several schemes to corruptly give things of value to public officials within the government of the Commonwealth of Puerto Rico in exchange for favorable treatment and awarding of government contracts to various corporations. The 25-count indictment includes 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, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The FBI is in charge of the investigation.
A federal grand jury in the District of Puerto Rico returned the indictment on Dec. 2, 2015, which includes 25 charges against the following individuals:
- 1.Anaudi Hernández Pérez, businessman and political fund raiser. Although not named in official corporate records, he exercised de facto control over numerous companies doing business with agencies and public corporations of the Commonwealth of Puerto Rico.
- 2.Sally López Martínez, administrator of the Commonwealth of Puerto Rico’s Administración de Desarrollo Laboral (Workforce Development Administration, hereinafter ADL).
- 3.Sonia M. Barreto Colón, purchasing director of the Commonwealth of Puerto Rico’s Autoridad de Acueductos y Alcantarillados (Puerto Rico Aqueduct and Sewer Authority, hereinafter AAA).
- 4.Ivonne M. Falcón Nieves, vice president of AAA. Prior to her position as vice president, Ivonne M. Falcón Nieves served as treasurer of AAA.
- 5.Javier A. Muñiz Álvarez, businessman. Utilized the Company JM Profesional (sic) & Training Group Inc. to secure contracts from the Commonwealth of Puerto Rico.
- Carlos F. Luna Cruz, businessman. Worked for JM Profesional (sic) & Training Group Inc.
- Xavier González Calderón, Administrator for the House of Representatives of the Commonwealth of Puerto Rico.
- Victor R. Burgos Cotto, Director of Technology for the House of Representatives.
- Marielis Falcón Nieves, sister of Ivonne M. Falcón Nieves.
10. Glenn O. Rivera Pizarro, special assistant for administration at the House of Representatives of Puerto Rico.
According to the indictment, Hernández Pérez utilized his political and personal connections with high ranking members of the current government in order to have “his people” appointed in critical government positions within the new administration which took over after the November 2012 elections. He also provided those individuals with things of value in exchange for government contracts, benefits and preferential treatment for several of his corporations. The indictment focuses on benefits Hernández Pérez, his co-conspirators and corporate entities, obtained from the Commonwealth of Puerto Rico’s ADL, the Commonwealth of Puerto Rico’s AAA and the Puerto Rico House of Representatives. The three schemes detailed in the indictment essentially followed the same modus operandi.
The indictment alleges that beginning in or about late 2012 and continuing in or about early 2013, Hernández Pérez and several unindicted co-conspirators formalized their plans to obtain government contracts with numerous governmental entities. Hernández Pérez utilized his personal friendship with Person B (brother of the governor of Puerto Rico, identified as Person A in the indictment), and the good will generated by his substantial fundraising activities during the 2012 election cycle, to position himself to successfully make recommendations on behalf of individuals seeking government appointments and employment after the election.
Hernández Pérez received numerous emails and resumes from individuals seeking his assistance in obtaining positions within the newly elected government. Hernández Pérez, in turn, forwarded many of those emails to government officials, and to the governor’s brother, Person B. Many of these individuals ultimately received government employment. Hernández Pérez and his co-conspirators then set out to form and make alliances with various corporations and limited liability companies that would be used to obtain government contracts, proposals and purchase orders. These companies included: 3 Comm Global Inc., Links Group LLC, EKO Technologies LLC, JM Profesional (sic) & Training Group Inc. and Waffler Avenue LLC. Some of these corporations were formed immediately prior to, or after, the general elections of November 2012.
Hernández Pérez and his co-conspirators were careful to ensure that his name did not appear on any official documentation regarding the formation of the corporations, or on any formal request for government contracts, proposals or purchase orders. Hernández Pérez, however, was present in numerous meetings where the proposals were discussed, was included in internal electronic and oral communications regarding these matters, and received payment from the contracts into corporate bank accounts and other suspicious transactions.
Many of the individuals recommended by Hernández Pérez whom obtained the jobs, ultimately had the authority to approve or authorize contracts, purchase orders, and other financial obligations on behalf of their respective agencies, departments or public corporations, and in return for the recommendations for employment, and/or other things of value, authorized contracts, purchase orders, proposals and payments on behalf of the co-conspirators and their corporations.
Hernández Pérez and his co-conspirators offered and gave, and the public officials solicited and accepted from Hernández Pérez and his co-conspirators, things of value, including expensive meals, personal gifts, expensive fountain pens, purses, bags, concert tickets and the payment of certain accrued debts. Hernández Pérez allegedly kept written electronic records regarding the purpose of his government related business meetings, and the things of value provided to each of these individuals.
Hernández Pérez and his co-conspirators utilized their government influence to receive an unfair competitive advantage over their competitors, in that they: a) received preferred opportunities on certain government “request for proposals” (RFPs); b) received guidance from agency employees on the proper format and content of proposals and bids for government contracts; c) had access to speak and meet with critical employees in decision making positions within the agencies, departments and government corporations; d) received guidance on how to structure bids and proposals in order to avoid the formal bidding process required by law; e) demanded and were provided with explanations from agency employees when their proposals or bids were not selected.
Once awarded the government contracts, Hernández Pérez and his co-conspirators would utilize, often without proper contractual authority, subcontractors who would perform the work defined in the contracts. On many occasions, Hernández Pérez and his co-conspirators provided substandard work on their contractual obligations in that they: failed to make the required payments to suppliers, subcontractors and creditors; failed to abide by the terms of the contract regarding performance results/follow up as required under the contract; failed to competently provide the services they were contracted to perform.
Hernández Pérez is also charged, along with defendants Ivonne Falcón and Marielis Falcón, with Hobbs Act extortion under fear of economic harm. Hernández Pérez and unindicted co-conspirators would utilize their contacts and influence within at least one government dependency (the AAA) to secure, for a fee, the release of legitimate payments due to other corporations, which lacked the current connections within the government. In particular, Hernández Pérez and his associates, obtained property not due to them, specifically, $100,000.00 from Contractor A, in exchange for utilizing his connections within AAA in order to secure a portion of the money owed (approximately $1 million) to Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss. Moreover, the Falcón sisters aided and abetted each other to commit extortion. Defendant Ivonne M. Falcón Nieves utilized her position at AAA in order to enable her sister, defendant Marielis Falcón Nieves, to obtain property not due to her, specifically, cash payments, check payments, payments to contractors, and the performance of residential tree trimming, from Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss.
The 25 counts detailed in the indictment are as follows:
- Count 1: 18 U.S.C. § 371, Conspiracy to Commit Federal Programs Fraud and Honest Services Wire Fraud regarding contracts with ADL and AAA.
- Count 2: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud for scheme with ADL.
- Counts 3-5: 18 U.S.C. § 343, substantive Wire Fraud counts for emails related to the scheme with ADL.
- Count 6: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud for the scheme with AAA.
- Counts 7-9: 18 U.S.C. § 1343, substantive Wire Fraud counts for emails related to the scheme with AAA.
- Count 10: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with ADL (Sally López Martínez).
- Count 11: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with ADL.
- Count 12: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with AAA (Ivonne Falcón).
- Count 13: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with AAA (Ivonne Falcón).
- Count 14: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with AAA (Sonia Barreto).
- Count 15: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with AAA (Sonia Barreto).
- Count 16: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm (Hernandez Perez).
- Count 17: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm (Ivonne & Marielis Falcón Nieves).
- Count 18: 18 U.S.C. § 1956(h), Conspiracy to Commit Money Laundering (Hernandez Perez and Muñiz Alvarez).
- Count 19: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos F. Luna Cruz).
- Count 20: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos F. Luna Cruz).
- Count 21: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F. Luna Cruz).
- Count 22: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F. Luna Cruz).
- Count 23: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F. Luna Cruz and Javier A. Muñiz Álvarez (computer)).
- Count 24: 18 U.S.C. § 1346, Conspiracy to Commit Wire Fraud (money and property) for scheme with PR House of Representatives.
- Count 25: 18 U.S.C. § 666(a)(1)(A), Intentional misapplication of funds by an agent of an organization receiving federal funds for the scheme with House of Representatives (González Calderón, Burgos Cotto and Rivera Pizarro).
“For decades now, political cronyism, favoritism and corruption have robbed the people of Puerto Rico of the right to decent services and unbiased representation, including legally awarded government contracts,” said U.S. Attorney Rodríguez Vélez. “The people of Puerto Rico foot the bill for the underhanded dealings detailed in the indictment. The time for government cronyism that allows some to line their pockets with ill-gotten contracts at the expense of the many, is over. The time for public servants who trade their duty to represent the people of Puerto Rico in exchange for political appointments and gifts, is also over. The people of Puerto Rico deserve the honest services of, not only those in their government, but those who choose to do business with the government. Their violations of the public trust will be prosecuted to the full extent of the law.”
“Unfortunately, this is one more case of graft, greed and corruption that over the last 20 years have contributed to the government of Puerto Rico’s fragile financial condition and on the brink of bankruptcy,” said Special Agent in Charge Carlos Cases of the FBI’s San Juan Division. “It is the responsibility of the leaders of the government of Puerto Rico to ensure this type of reprehensible and corrupt behavior does not occur. The FBI, along with the United States Attorney’s Office, District of Puerto Rico, will always remain vigilant and attack the corruption threat with undeniable and fervent passion. Let there be no doubt this is only the beginning and the investigation will continue. There will be no stone left unturned.”
The case is being investigated by the FBI’s San Juan Division. The case is being prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó Iriarte of the District of Puerto Rico, Deputy Chief of the Financial Fraud and Corruption Unit. If found guilty, the defendants are facing possible sentences of up to five years for the conspiracy to commit federal programs fraud and wire fraud, up to 10 years for honest services fraud, up to 20 years for money laundering, Hobbs Act, obstruction of justice and conspiracy to commit honest services fraud.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Ten Individuals Indicted for Conspiracy to Commit Federal Programs Bribery, Honest Services Wire Fraud and ExtortionRead the Press Release
SAN JUAN, Puerto Rico– Ten Puerto Rico businessmen and government officials have been indicted for their alleged participation in several schemes to corruptly give things of value to public officials within the government of the Commonwealth of Puerto Rico in exchange for favorable treatment and awarding of government contracts to various corporations. The 25-count indictment includes 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, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The Federal Bureau of Investigation is in charge of the investigation.
The indictment, returned on December 2, 2015, by a federal grand jury in the District of Puerto Rico, includes twenty-five charges against the following individuals:
- Anaudi Hernández Pérez, businessman and political fund raiser. Although not named in official corporate records, he exercised de facto control over numerous companies doing business with agencies and public corporations of the Commonwealth of Puerto Rico.
- Sally López Martínez, Administrator of the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Workforce Development Administration) (hereinafter “ADL”).
- Sonia M. Barreto Colón, Purchasing Director of the Commonwealth of Puerto Rico’s “Autoridad de Acueductos y Alcantarillados” (Puerto Rico Aqueduct and Sewer Authority) (hereinafter “AAA”).
- Ivonne M. Falcón Nieves, Vice President of AAA.Prior to her position as Vice President, Ivonne M. Falcón Nieves served as Treasurer of AAA.
- Javier A. Muñiz Álvarez, businessman. Utilized the Company JM Profesional (sic) & Training Group, Inc. to secure contracts from the Commonwealth of Puerto Rico.
- Carlos F. Luna Cruz, businessman. Worked for JM Profesional (sic) & Training Group, Inc.
- Xavier González Calderón, Administrator for the House of Representatives of the Commonwealth of Puerto Rico.
- Victor R. Burgos Cotto, Director of Technology for the House of Representatives.
- Marielis Falcón Nieves, sister of Ivonne M. Falcón Nieves.
- Glenn O. Rivera Pizarro, Special Assistant for Administration at the House of Representatives of Puerto Rico.
According to the indictment, Hernández Pérez utilized his political and personal connections with high ranking members of the current government in order to have “his people” appointed in critical government positions within the new administration which took over after the November 2012 elections. He also provided those individuals with things of value in exchange for government contracts, benefits and preferential treatment for several of his corporations. The indictment focuses on benefits Hernández Pérez, his co-conspirators, and corporate entities, obtained from the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Workforce Development Administration) (hereinafter “ADL”), the Commonwealth of Puerto Rico’s “Autoridad de Acueductos y Alcantarillados” (Puerto Rico Aqueduct and Sewer Authority) (hereinafter “AAA”), and the Puerto Rico House of Representatives. The three schemes detailed in the indictment essentially followed the same modus operandi.
The indictment alleges that beginning in or about late 2012, and continuing in or about early 2013, Hernández Pérez and several unindicted co-conspirators formalized their plans to obtain government contracts with numerous governmental entities. Hernández Pérez utilized his personal friendship with Person B (brother of the Governor of Puerto Rico, identified as Person A in the Indictment), and the good will generated by his substantial fundraising activities during the 2012 election cycle, to position himself to successfully make recommendations on behalf of individuals seeking government appointments and employment after the election.
Hernández Pérez received numerous emails and resumes from individuals seeking his assistance in obtaining positions within the newly elected government. Hernández Pérez, in turn, forwarded many of those emails to government officials, and to the governor’s brother, Person B. Many of these individuals ultimately received government employment. Hernández Pérez and his co-conspirators then set out to form and make alliances with various corporations and limited liability companies that would be used to obtain government contracts, proposals and purchase orders. These companies included: 3 Comm Global, Inc., Links Group, LLC, EKO Technologies, LLC, JM Profesional (sic) & Training Group, Inc., and Waffler Avenue, LLC. Some of these corporations were formed immediately prior to, or after, the general elections of November 2012.
Hernández Pérez and his co-conspirators were careful to ensure that his name did not appear on any official documentation regarding the formation of the corporations, or on any formal request for government contracts, proposals, or purchase orders. Hernández Pérez, however, was present in numerous meetings where the proposals were discussed, was included in internal electronic and oral communications regarding these matters, and received payment from the contracts into corporate bank accounts and other suspicious transactions.
Many of the individuals recommended by Hernández Pérez whom obtained the jobs, ultimately had the authority to approve or authorize contracts, purchase orders, and other financial obligations on behalf of their respective agencies, departments or public corporations, and in return for the recommendations for employment, and/or other things of value, authorized contracts, purchase orders, proposals and payments on behalf of the co-conspirators and their corporations.
Hernández Pérez and his co-conspirators offered and gave, and the public officials solicited and accepted from Hernández Pérez and his co-conspirators, things of value, including expensive meals, personal gifts, expensive fountain pens, purses, bags, concert tickets, and the payment of certain accrued debts. Hernandez Perez allegedly kept written electronic records regarding the purpose of his government related business meetings, and the things of value provided to each of these individuals.
Hernández Pérez and his co-conspirators utilized their government influence to receive an unfair competitive advantage over their competitors, in that they: a) received preferred opportunities on certain government “request for proposals” (“RFPs”); b) received guidance from agency employees on the proper format and content of proposals and bids for government contracts; c) had access to speak and meet with critical employees in decision making positions within the agencies, departments and government corporations; d) received guidance on how to structure bids and proposals in order to avoid the formal bidding process required by law; e) demanded and were provided with explanations from agency employees when their proposals or bids were not selected.
Once awarded the government contracts, Hernández Pérez and his co-conspirators would utilize, often without proper contractual authority, subcontractors who would perform the work defined in the contracts. On many occasions, Hernández Pérez and his co-conspirators provided substandard work on their contractual obligations in that they: a) failed to make the required payments to suppliers, subcontractors and creditors; b) failed to abide by the terms of the contract regarding performance results/follow up as required under the contract; c) failed to competently provide the services they were contracted to perform.
Hernández Pérez is also charged, along with defendants Ivonne Falcón and Marielis Falcón, with Hobbs Act extortion under fear of economic harm. Hernández Pérez and unindicted co-conspirators would utilize their contacts and influence within at least one government dependency (the AAA) to secure, for a fee, the release of legitimate payments due to other corporations, which lacked the current connections within the government. In particular, Hernández Pérez and his associates, obtained property not due to them, specifically, $100,000.00 from Contractor A, in exchange for utilizing his connections within AAA in order to secure a portion of the money owed (approximately $1,000,000) to Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss. Moreover, the Falcón sisters, aided and abetted each other to commit extortion. Defendant Ivonne M. Falcón Nieves utilized her position at AAA in order to enable her sister, defendant Marielis Falcón Nieves, to obtain property not due to her, specifically, cash payments, check payments, payments to contractors, and the performance of residential tree trimming, from Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss.
The 25 counts detailed in the Indictment are as follows:
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Count 1: 18 U.S.C. § 371, Conspiracy to Commit Federal Programs Fraud and Honest Services Wire Fraud regarding contracts with ADL and AAA.
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Count 2: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud for scheme with ADL.
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Counts 3-5: 18 U.S.C. § 343, substantive Wire Fraud counts for emails related to the scheme with ADL.
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Count 6: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud for the scheme with AAA.
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Counts 7-9: 18 U.S.C. § 1343, substantive Wire Fraud counts for emails related to the scheme with AAA.
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Count 10: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with ADL (Sally López Martínez).
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Count 11: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with ADL.
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Count 12: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with AAA (Ivonne Falcón).
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Count 13: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with AAA (Ivonne Falcón).
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Count 14: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with AAA (Sonia Barreto).
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Count 15: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with AAA (Sonia Barreto).
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Count 16: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm (Hernandez Perez).
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Count 17: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm (Ivonne & Marielis Falcón Nieves).
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Count 18: 18 U.S.C. § 1956(h), Conspiracy to Commit Money Laundering (Hernandez Perez and Muñiz Alvarez).
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Count 19: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos F. Luna Cruz).
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Count 20: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos F.Luna Cruz).
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Count 21: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna Cruz).
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Count 22: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna Cruz).
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Count 23: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna Cruz and Javier A. Muñiz Álvarez (computer)).
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Count 24: 18 U.S.C. § 1346, Conspiracy to Commit Wire Fraud (money and property) for scheme with PR House of Representatives.
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Count 25: 18 U.S.C. § 666(a)(1)(A), Intentional misapplication of funds by an agent of an organization receiving federal funds for the scheme with House of Representatives (González Calderón, Burgos Cotto and Rivera Pizarro).
“For decades now, political cronyism, favoritism, and corruption have robbed the people of Puerto Rico of the right to decent services and unbiased representation, including legally awarded government contracts. The people of Puerto Rico foot the bill for the underhanded dealings detailed in the indictment. The time for government cronyism that allows some to line their pockets with ill-gotten contracts at the expense of the many, is over. The time for public servants who trade their duty to represent the people of Puerto Rico in exchange for political appointments and gifts, is also over. The people of Puerto Rico deserve the honest services of, not only those in their government, but those who choose to do business with the government. Their violations of the public trust will be prosecuted to the full extent of the law,” stated Rosa Emilia Rodríguez Vélez, US Attorney for the District of Puerto Rico.
“Unfortunately, this is one more case of graft, greed, and corruption that over the last 20 years have contributed to the Government of Puerto Rico’s fragile financial condition and on the brink of bankruptcy. It is the responsibility of the leaders of the Government of Puerto Rico to ensure this type of reprehensible and corrupt behavior does not occur. The FBI along with the United States Attorney’s Office, District of Puerto Rico will always remain vigilant and attack the corruption threat with undeniable and fervent passion. Let there be no doubt this is only the beginning and the investigation will continue. There will be no stone left unturned,” said Carlos Cases, Special Agent in Charge of the FBI, San Juan Division.
The case is being investigated by the FBI’s San Juan Division. The case is being prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó Iriarte, Deputy Chief of the Financial Fraud and Corruption Unit. If found guilty, the defendants are facing possible sentences of up to five years for the conspiracy to commit federal programs fraud and wire fraud, up to 10 years for honest services fraud, up to 20 years for money laundering, Hobbs act, obstruction of justice, and conspiracy to commit honest services fraud.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Valentin Valdés-Ayala Sentenced to 134 Months in Prison for Bankruptcy FraudRead the Press Release
SAN JUAN, Puerto Rico – Yesterday evening, Valentín Valdés-Ayala was sentenced to 134 months (11 years and two months) in prison by United States District Court Chief Judge Aida Delgado-Colón. On April 16, 2015, Valdés-Ayala was found guilty of twenty-nine counts of bankruptcy fraud, falsification of bankruptcy records, wire fraud, aggravated identity theft and contempt of court, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigations, in collaboration with the US Trustee, was in charge of the investigation.
During the course of the trial the evidence proved that the purpose of the fraudulent scheme was to obtain financial gain and to hinder, delay, and obstruct collection efforts by the Commonwealth of Puerto Rico, through ASUME, and/or by child support pension beneficiaries against child support debtors who had failed to comply with their child support obligations.
Valdés-Ayala incorporated a non-profit organization called Fundacion Lucha Pro-Padres Convictos por Pencion, Corp. [sic] with the alleged purpose of defending the principles and dignity of every father convicted for failure to make child support payments and obtaining and promoting the release of all inmates as well as defending father-child relationships. He also created Tears in Prison, Inc., a for-profit corporation that was incorporated with the stated purpose of preparing bankruptcy petitions.
The defendant, through Fundacion Lucha Pro-Padres Convictos por Pencion, Corp. [sic], solicited individuals who were incarcerated or facing incarceration for failure to comply with their child support payments, promising those individuals that - in exchange for fees paid to him and/or his entity - they would be released from prison and/or avoid imprisonment without first having to make any payments towards their child support debt. Valdés-Ayala at times also promised that he would obtain the elimination and/or reduction of the underlying child support debt.
The defendant would then file or cause to be filed Chapter 13 bankruptcy petitions which allowed the debtors to be released from prison without first having to pay overdue child support to ASUME due to the operation of bankruptcy’s automatic stay against collection actions.
With respect to his fees, Valdés-Ayala indicated to his prospective clients that his fee included legal representation (even though he is not a lawyer), filing fees, and a term membership in his entity, which would guarantee them legal representation in their child support case throughout the duration of their term membership. Upon receipt of payment the defendant would provide a receipt stating that the payment was a donation.
The defendant prepared and filed and/or caused to be filed Chapter 13 bankruptcy petitions in the clients’ names. The Chapter 13 petitions were not filed for the purpose of having the clients engage Chapter 13 reorganization of their debts, but for the improper purpose of using the United States bankruptcy laws to collect fees by promising relief from incarceration.
As part of the scheme to defraud devised by Valdés-Ayala, he assisted hundreds of debtors with the filing of false and fraudulent Chapter 13 bankruptcy petitions. From August 2010, up to November 2013, 412 applications for credit counseling certificates were processed through Valdés-Ayala’s account with the Credit Advisors Foundation. These certificates were then included along with the bankruptcy petition.
The case was prosecuted by Assistant U.S. Attorneys Mariana Bauzá and John A. Mathews II.
Individual Sentenced to 89 Months in Prison for Bank FraudRead the Press Release
SAN JUAN, P.R. – Yesterday evening, Kelvin García-Oquendo was sentenced to 89 months in prison (seven years and five months), $114,000 of restitution and three years of supervised release by United States District Court Chief Judge Aida Delgado-Colón, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On August 28, 2013, García-Oquendo plead guilty of bank fraud, credit card fraud and identity theft. Between February and March of 2015, García-Oquendo, while on bond, was also charged with credit card fraud of approximately $41,111.62. For this case García-Oquendo pleaded guilty on August 17, 2015.
On May 22, 2013, a federal grand jury indicted 42 individuals as a result of an investigation led by the Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS), United States Postal Inspection Service (USPIS), the Puerto Rico Police Department (PRPD) and the Puerto Rico Treasury Department. The defendants were charged with conspiracy to commit bank fraud, bank fraud, aggravated identity theft and one count of a forfeiture allegation of $580,089.51. All the defendants pleaded guilty.
The USPIS and ICE-HSI conducted a Bank Fraud investigation involving 42 individuals from the Humacao, Puerto Rico area. Since 2010, the organization headed by named Kelvin García-Oquendo engaged in bank fraud, causing losses to several financial institutions in approximately $580,089.51. The intended loss amounts to approximately $1,205,834.15.
The organization had individuals performing different roles in furtherance of the conspiracy, such as: 1) leaders and organizers; 2) recruiters; 3) facilitators who would either open bank accounts or lend existing bank accounts for the deposit of false and fraudulent checks; 4) purchasers who would use ATM cards of the facilitators to purchase Money Gram Money Orders and Postal Money Orders with the proceeds of the bank fraud scheme; and 5) cashers who would go to different post offices to cash the money orders purchased by others.
“The egregious behavior of those who would exploit our banking system for personal and criminal gain will not be tolerated. We remain committed to investigating and apprehending those who cheat the system,” said US Attorney Rosa Emilia Rodríguez-Vélez. “We are committed to ensuring the integrity of the banking system and to prosecuting those who would undermine it for their personal gain.”
The case was prosecuted by Assistant United States Attorney Héctor Ramírez-Carbó.
Doral Bank Executive Assistant Indicted and Arrested for Several Perjury and Obstruction of Justice ChargesRead the Press Release
SAN JUAN, Puerto Rico– Nancy Vélez-Arroyo, Senior Executive Assistant to the Chief Executive Officer and Board of Directors of Doral Bank was indicted on November 18, 2015, for obstruction of justice and knowingly making false statements while under oath and testifying before a federal grand jury, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
The indictment includes three perjury charges and two obstruction of justice charges. During her testimony before the grand jury, Nancy Vélez-Arroyo disavowed her involvement in a vendor’s contract with Doral Bank, its terms, payment schedule, and the participants involved in a scheme to defraud. However, e-mails, telephone records, and other evidence showed that Vélez-Arroyo had, not only knowledge, but played an active role and participated in those dealings. Rather than provide complete and truthful testimony before the grand jury, Vélez-Arroyo endeavored to corruptly influence, obstruct, and impede the federal investigation.
“It is alleged that the defendant concealed information regarding an investigation about bank fraud, embezzlement, wire fraud, and money laundering, by making false statements under oath during grand jury proceedings,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “Lying to the grand jury, concealing information, and obstructing a federal investigation undermine the public’s trust in the criminal justice system and will not be tolerated. The Department will aggressively investigate and prosecute those who seek to cover up or obstruct a federal investigation.”
The case is being investigated by the FBI’s San Juan Division and is being prosecuted by Assistant U.S. Attorneys Luke Cass, Héctor Ramírez-Carbó and George A. Massucco.
The charges contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty by a jury of her peers.
23 Individuals Charged with Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On November 16, 2015, a federal grand jury in the District of Puerto Rico returned an indictment against 23 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigations and the Puerto Rico Police Department (PRPD), Fajardo and Humacao Strike Forces, are in charge of the investigation.
The indictment alleges that beginning in November 2009, and continuing up to January 2012 the organization distributed heroin, crack, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Los Jardines de Oriente (also known as Los Condos) Public Housing Project, and within 1,000 feet of the Rufino Vigo Elementary School located in the Municipality of Humacao, Puerto Rico, all for financial gain and profit.
The 23 defendants acted in different roles in order to further the goals of their organization, to wit: leader/drug owners, enforcers, runners, sellers, and facilitators. Eleven defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime: Alex O. Santos-Luyando, aka “Alex El Gordo;” Edsel Pedraza-Santiago, aka “Edsela;” Carlos Montes-Acosta, aka “Pepito;” Joseph Flores-Hernández, aka “Peke;” William Sierra-Cruz, aka “W;” Vincent Otero-Alicea, aka “Vicentito;” Jorge O. Arroyo-Ríos, aka “Rambo;” José L. Robles-Hernández, aka “Chespi;” Rafael Santiago-Díaz, aka “Coyote;” José R. Flores-Hernández, aka “Joseph;” and Lorenzo Sanjurjo-Estrella, aka “Magayo”.
The other defendants are: Franchesca M. Peña-Guzmán, aka “Chezca;” Magaly Hernández-Cruz; Minerva Cruz-Figueroa, aka “Chula;” Madeline Sánchez-Pagán, aka “La Vizca;” Victor M. Mojica-Medina, aka “Cocotero;” Rubén Ramos-Cruz, aka “Ito;” Carlos Rivera-Rivera, aka “Gringo;” Damaris Montes-Acosta; Grey Z. Burgos-Sánchez, aka “Greyskull;” Luis Gómez-Arroyo, aka “Coco;” Melvin Hernández-Castro, aka “Boquilla;” and Carlos A. Morales-Senquiz.
The co-conspirators operated the drug points twenty-four (24) hours a day, seven days a week, at various locations that rotated and varied throughout the span of the conspiracy. The defendants stored weapons, drugs, and the drug trafficking proceeds in different locations within and outside the Los Jardines del Oriente Housing Project. The leaders of the organization divided among themselves and their subordinates the proceeds of the drug trafficking sales.
Assistant U.S. Attorney Dina Ávila-Jiménez 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.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
13 Individuals Charged with Drug Trafficking in the Municipalities of Aguadilla and QuebradillasRead the Press Release
SAN JUAN, Puerto Rico – On November 12, 2015, a federal grand jury in the District of Puerto Rico returned an indictment charging 13 individuals with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration and the Puerto Rico Police Department (PRPD), Aguadilla Strike Force, are in charge of the investigation with the collaboration of the FBI.
The indictment alleges that beginning in 2009, the organization distributed heroin, crack, cocaine, and marihuana within 1,000 feet of a real property comprising the Cuesta Vieja Public Housing Project in Aguadilla and the Guarionex Public Housing Project in Quebradillas, all for financial gain and profit.
The 13 defendants are: Ariel Echevarría-Irizarry, aka “Gongo;” Ángel Ramón Serrano-Carmona, aka “Buggy;” Natanael Gómez-Willis, aka “Naty;” Pedro Bonilla-Espinosa, aka “Peter;” Jorge L. Soberal-Mercado, aka “Soberal;” Luis O. Rivera-Méndez, aka “Coco;” Mariela González-Román; Christian Jonás Acevedo-Román, aka “Pirata;” Waleska T. De Jesús, aka “Wally;” José Colón De Jesús, aka “Gandul;” Xiomara Mendoza-Canaca, aka “Xiomy;” Raymond Vega-Flores, aka “Kile;” and Walter Ferrer-Merrit.
The 13 defendants acted in different roles in order to further the goals of their organizations, to wit: leaders, drug point owners, suppliers, runners, enforcers, sellers, facilitators, and look-outs. Some defendants possessed firearms to protect the members of the drug trafficking organizations, the narcotics, the proceeds derived from the sales, and to further accomplish the goals of the conspiracies. Some of the defendants and their co-conspirators would tattoo themselves and wear clothing items with the logo of the organization.
Assistant U.S. Attorney María L. Montañez 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.
Criminal Defense Attorney Ramón Negrón-Colón Sentenced to 71 Months in Prison for Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico – Today, Ramón M. Negrón-Colón, aka “Monchito,” was sentenced to 71 months (five years and eleven months) in prison for conspiracy to commit money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. On April 4, 2014, the defendant pled guilty before United States District Court Senior Judge Juan Pérez-Giménez.
Ramón M. Negrón-Colón is an attorney licensed to practice law in Puerto Rico. Negrón-Colón represented José D. Figueroa-Agosto, aka “Junior Cápsula,” in judicial proceedings in Commonwealth courts. During the Fall of 1995, Figueroa-Agosto was convicted and sentenced to a prison term of 208 years in the Court of First Instance, San Juan, Puerto Rico. On November of 1999, Figueroa-Agosto utilized false documents to escape from a Commonwealth of Puerto Rico correctional facility. He remained a fugitive for over a decade until he was arrested on federal drug trafficking charges on July 18, 2010.
The indictment alleged that the object of the conspiracy was to nullify Figueroa-Agosto’s 208-year Commonwealth of Puerto Rico imprisonment term through illegal payments made with the proceeds of Figueroa-Agosto’s narcotics trafficking.
The indictment further alleged that beginning on a date unknown, but not later than 2007, until August 2013, Negrón-Colón and co-defendant Barreto-Ortiz, knowingly conducted and attempted to conduct financial transactions affecting interstate commerce, which transactions involved the proceeds of drug trafficking.
In late 2007, defendant Negrón-Colón indicated that the total cost of obtaining the nullification of Figueroa Agosto’s conviction and sentence would be between $2,500,000.00 and $3,000,000.00 in order to funnel illegal payments to public officials of the Commonwealth of Puerto Rico. Negrón-Colón received a few payments from individuals on different occasions in order to further the goals of the conspiracy.
The case was investigated by the Federal Bureau of Investigations (FBI) and Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI). The case was prosecuted by First Assistant U.S. Attorney Timothy Henwood.
22 Individuals Charged with Drug Trafficking in the Municipality of PeñuelasRead the Press Release
SAN JUAN, Puerto Rico – On November 5, 2015, a federal grand jury in the District of Puerto Rico returned two separate indictments against thirteen and nine defendants respectively charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigations and the Puerto Rico Police Department (PRPD), Ponce Strike Force, are in charge of the investigation.
The first indictment alleges that beginning in 2009, the organization distributed cocaine, heroin, crack, and marihuana at the Caracoles III Ward, located in the Municipality of Peñuelas, Puerto Rico, all for financial gain and profit.
The 13 defendants are: Victor A. Serna-González, aka “Bebe;” Victor Daniel Serna-González, aka “Danny;” Rubén Figueroa-Santiago; José L. Ríos-Martínez, aka “Olivo;” Fred Bernard Rodríguez, aka “Gordo;” Victor Ramos-González, aka “Burrin;” Luis M. Ramos-González, aka “Chino;” José Pérez-Santiago, aka “Orejas;” Carlos Ramos-González, aka “Colorao;” Rafael J. Quiros-Morales, aka “Menor;” Erick Tomás García-Ramos, aka “Tito;” Julio Araud-Figueroa, aka “Julito;” and FNU LNU, aka “Wilfred”.
The second indictment alleges that beginning in 2007, the organization distributed cocaine and heroin at the Caracoles II Ward, located in Peñuelas, PR, for significant financial gain and profit. The nine defendants are: Victor Candelario-Santiago, aka “El Loco;” Elliot Lucca-Nieves, aka “Luquita;” Luis Rosario-Tellado, aka “Javier Tellado;” Aixsa L. Morales-Figueroa; Juan Ramos-Rodríguez, aka “Flaco;” Miguel Rivera-Galarza, aka “Valdo;” Ángel L. Alvarado-Pérez, aka “Cacu;” Julio E. Feliciano-Quiñonez, aka “Caballito;” and José Figueroa-Segarra, aka “El Menor”.
The 22 defendants acted in different roles in order to further the goals of their organizations, to wit: leader, drug point owners, runners, drug processors, sellers, and facilitators. Some defendants possessed firearms to protect the members of the drug trafficking organizations, the narcotics, the proceeds derived from the sales, and to further accomplish the goals of the conspiracies.
Assistant U.S. Attorney Myriam Fernández, supervisor of the Narcotics Unit, and Assistant U.S. Attorney John Mathews are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
33 Individuals Charged with Drug Trafficking in the Municipality of CayeyRead the Press Release
SAN JUAN, Puerto Rico – On November 9, 2015, a federal grand jury in the District of Puerto Rico returned a six-count indictment against 33 defendants charged with conspiracy to possess with intent to distribute, and distribution of, controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement- Homeland Security Investigations (ICE-HSI) and the Puerto Rico Police Department (PRPD), Guayama Strike Force, are in charge of the investigation.
The indictment alleges that beginning in 2008, the organization distributed heroin, crack, cocaine, marihuana, Oxycodone (commonly known as Percocet), and Alprazolam (commonly known as Xanax) within 1,000 feet of a real property comprising Luis Muñoz Morales and Brisas de Cayey Public Housing Projects, San Tomás and Canteras Wards, and other areas nearby and within the Municipality of Cayey, Puerto Rico, all for financial gain and profit.
The 33 defendants are: Edgardo Ramos-Vicente, aka “Galdo;” Jean Carlos Ramos-Vicente, aka “Masimbo;” Ángel M. Meléndez-Mercado, aka “Cachete;” Héctor Luis Malavé-Guzmán, aka “Flaco;” Jean Carlos Vázquez, aka “Yankee;” Ismael Rivera-Torres, aka “Momo;” Carlos J. Ríos-Santos, aka “Charlie Ceja;” Carlos Salvania-Bonilla, aka “Charlito;” Erick X. Vázquez-Vicente, aka “Erick Chino;” Jayson Vázquez-Vicente, aka “Simbad;” Francisco Xavier Vázquez-Alvarado, aka “Guacharito;” Oscar Luis Mendoza-Flroes, aka “Luiggi;” Brian González, aka “Tetin;” John C. Suárez-Martínez, aka “Jota;” Pedro L. Kuilan-Álvarez, aka “Café;” Victor J. Veguilla-Martínez, aka “Javier El Gordo;” Victor M. Rodríguez-Ayala, aka “Matatán;” Christian Reyes-Llera, aka “Finqui;” Juan C. Muller-Vázquez, aka “Muller;” Jonathan Alvarado-Vega, aka “Transfor;” Gerardo Bonilla-Suárez, aka “El Vizco;” José D. Suárez-Martínez, aka “Spider;” Humberto Rivera-López, aka “Chono;” Joseph Díaz-Morales; Christian Rivera-Rivera, aka “Alfalfa;” Gerome Malavé-Guzmán, aka “7 Pisos;” Luis A. López-Torres, aka “Pinguita;” Arnaldo Lleras-Corredor, aka “Chata;” Edgardo Ramos-meléndez, aka “Galdito;” Yeexsaira Malavé-Rodríguez, aka La China;” Louis A. Pabón-Meléndez, aka “Chava;” and Mercedes Vega-Vázquez, aka “Cede & Chichi.”
The 33 co-conspirators acted in different roles in order to further the goals of the conspiracy, to wit: leader, managers/drug owners, enforcers, runners, drug processors, sellers, and lookouts. Thirty-one of the defendants are facing one count of possession of firearms of different brands and calibers, including fully automatic weapons, in furtherance of drug trafficking crimes.
The indictment alleges that, as part of the manner and means of the conspiracy, some of the defendants and their co-conspirators would use social media to post pictures of co-conspirators in possession of firearms, to promote their drug trafficking activities, and to threaten witnesses. The defendants would take pictures of themselves with cellular phones, in possession of firearms and the drugs that they distributed.
Assistant U.S. Attorney César Rivera-Giraud 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.
Individual Sentenced to 14 Years in Prison for His Participation in A Drug Trafficking Organization That Operated at the Luis Muñoz Marín International AirportRead the Press Release
SAN JUAN, Puerto Rico – Today, Carlos I. Arce-López, aka “Ferretero,” was sentenced to 14 years in prison for conspiracy to possess with intent to distribute cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. On April 23, 2015, the defendant pled guilty to three counts from two separate indictments, charging conspiracy to possess with intent to distribute controlled substances. He also pled guilty to money laundering in relation to a drug trafficking crime.
In the first indictment, Criminal Case 12-413(FAB), 20 individuals were charged for aiding and abetting each other, and conspiring to possess with intent to distribute in excess of 9,000 kilograms of cocaine, aboard American Airlines commercial flights. At times pertinent to this indictment, convicted felon Wilfredo Rodríguez-Rosado, aka “Mogoyo” recruited and organized a group of individuals to package, transport and deliver suitcases loaded with kilograms of cocaine to the American Airlines cargo area at the Luis Muñoz Marin International Airport. Moreover, he recruited and organized a group of American Airlines employees to ensure that those suitcases were smuggled into American Airlines flights destined to Miami and Orlando, Florida and Newark, NJ.
In the second indictment, Criminal Case 13-148(FAB), Arce-López participated in a conspiracy in which $800,000 of illegal proceeds were going to be used to purchase over 150 kilos of cocaine in the Dominican Republic to import into Puerto Rico. The defendant’s role was to provide the money and to coordinate with other coconspirators the importation of multi-kilogram quantities of cocaine from the Dominican Republic to Puerto Rico. Arce-López also traveled to the Dominican Republic from Puerto Rico to meet with other co-conspirators to plan and coordinate the transportation of multi-kilogram loads of cocaine by boat.
The cases were investigated by the DEA, the PRPD, and the FBI, with the collaboration of the San Juan Municipal Police. The defendant was sentenced by United States District Court Judge Francisco A. Besosa. The case was prosecuted by Assistant U.S. Attorney Olga Castellón-Miranda.
Twenty-Five Individuals Indicted for Wire FraudRead the Press Release
Defendants Defrauded the U.S. Army National Guard Recruiting Assistance Program
Twenty-five individuals have been charged in 14 separate indictments for their alleged participation in a conspiracy to defraud the United States and the National Guard Bureau of money and property, wire fraud and aggravated identity theft, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The U.S. Secret Service is in charge of the investigation, with the collaboration of the U.S. Army Criminal Investigation Command, the U.S. Postal Service Office of Inspector General, the Department of Defense-Defense Criminal Investigative Service and the Puerto Rico Police Department. The indictments were unsealed today upon the arrest of the defendants.
A federal grand jury in the District of Puerto Rico returned the indictments yesterday, Oct. 21, 2015, which include the following individuals: recruiters Cristobal Colón-Colón, Ángel D. Rivera-Rodríguez, Enrique Costas-Torres, Gregorio Quiñones-Pacheco, Guillermo Cruz-García, Edwin Izquierdo-Montañez, Luis De Jesús-Negrón, Gabriel González-Franco, Gilberto Rivera-Quiñones, Juan Rivera-Rivera and Héctor Rodríguez-Colón; and recruiter assistants Axel Aponte-García, Gilberto Gierbolini-Emanuelli, Freddie García-Ruiz, Félix González-Rodríguez, Radamés Robles-Meléndez, Emilio Rivera-Maldonado, Carlos Meléndez-González, Natalio Soto-Rivera, José Rivera-Pereles, Félix Lasen-Nieves, Ángel Perales-Muñoz, Alexis Betancourt-Jiménez, José Velázquez-Lugo and Garby Ruiz-Rosado.
These charges stem from a scheme utilized by the defendants from 2007 through 2011. In or about September 2005, the National Guard Bureau, located in Arlington, Virginia, entered into a contract with Document and Packaging Broker Inc. (Docupak), located in Pelham, Alabama, to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program designed to offer referral bonus payments to Army National Guard soldiers to recruit civilians to serve in the Army National Guard. As part of the G-RAP, the National Guard Bureau reimbursed Docupak for the recruiting referral bonus payments that Docupak paid to participating soldiers. The National Guard Bureau also paid Docupak an administrative fee for disbursing each of the referral bonus payments.
The program had two primary participants: recruiters, whose job it was to assist the Docupak subcontractors in enlisting new members into the Army National Guard; and recruiter assistants, who were Docupak subcontractors, whose job it was to identify and assist recruit new potential members into the Army National Guard and assist recruiters with other related duties. Under the contract specifications of the program, only recruiter assistants were eligible for recruiting referral bonuses.
The program required recruiter assistants to establish an online account in their name to record their referral and recruitment efforts. The recruiter assistant would input the personal identifying information of each recruit into the account. A recruiter assistant could receive a bonus between $500 and $1,000 for every referred soldier that enlisted in the Army National Guard, and an additional bonus between $500 and $1,000 once the referred soldier was sent to basic training. If the referred soldier had previously served in a different military branch, did not need to attend basic training or joined the Army National Guard as an officer, the recruiter assistant could receive a bonus between $2,000 and $8,500. The recruiter assistant could receive the referral bonus payments either through direct deposit in a bank account or a VISA account.
It was the goal of the conspiracy for the recruiters to unlawfully enrich themselves by defrauding the United States and performing acts in violation of their official duties, in exchange for things of value. The recruiter assistants provided things of value to the recruiters in exchange for their assistance in defrauding the U.S. National Guard.
The defendants’ scheme knowingly caused the transfer, possession and use without lawful authority of a means of identification of another person, which contained the name, date of birth and social security number of potential soldiers; and by submitting the personal identifying information (PII) for unauthorized purposes, they generated a fraudulent referral bonus of the G-RAP program that would then create an interstate wire transfer to the co-conspirator’s different bank accounts.
An example of the scheme, as alleged in one of the indictments, is as follows: the defendants allegedly cheated the program, known as G-RAP, by having the recruiter assistants create a G-RAP account and or allow the recruiters to use the recruiter assistants’ G-RAP account to enter all information necessary to claim recruiting bonuses that the recruiter assistants had not earned. The defendants applied for the G-RAP bonuses using PII given to the recruiters by enlistees who would go to the recruitment office seeking orientation to enlist in the Puerto Rico Army National Guard (PRANG). The recruiters would obtain the PII in their official capacity as a recruiter and would use the recruiter assistants’ G-RAP accounts to apply for fraudulent recruiting bonuses. The recruiter assistants were paid bonuses that would be deposited by Docupak in their personal bank accounts or a VISA Card that was given to them by Docupak, based on the misrepresentations made by the defendants of the recruitment process. Some recruiter assistants withdrew a cash amount from each bonus and paid a kickback of approximately half of the bonus to the recruiters, and in some cases the recruiters kept the bonuses for themselves.
“These charges clearly demonstrate that we will take firm action against those who choose to exploit our military system for personal and criminal gain,” said U.S. Attorney Rodríguez-Vélez. “We remain committed to investigating and apprehending those who cheat the system for personal gain, and will continue to work towards the eradication of this type of fraud in Puerto Rico.”
“The U.S. Secret Service will continue to aggressively pursue those that commit fraud and identity theft for their own enrichment,” said Resident Agent in Charge Carlos Colón of the U.S. Secret Service Office in Puerto Rico. “These crimes remain a top investigative priority for our agency.”
“We should expect honesty and integrity from our military personnel,” said Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service. “This case demonstrates the commitment of DCIS, along with our investigative partners, to relentlessly pursue and bring to justice those who commit fraud and violate positions of trust for personal enrichment.”
“The conduct alleged in the criminal Indictments is beyond disgraceful,” said Special Agent in Charge Eileen Neff of the USPS Office of Inspector General (OIG). “The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who seek to defraud our government programs.”
If found guilty, the defendants face a maximum penalty of 10 years in prison for the conspiracy, 20 years in prison for wire fraud and a mandatory two-year consecutive term in prison for aggravated identity theft.
The case is being investigated by the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda and Special Assistant U.S. Attorney Amanda C. Soto-Ortega of the District of Puerto Rico.
Indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Twenty-Five Individuals Indicted for Wire FraudRead the Press Release
SAN JUAN, Puerto Rico – Twenty-five individuals have been charged in fourteen separate indictments for their alleged participation in a conspiracy to defraud the United States and the National Guard Bureau of money and property, wire fraud, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The United States Secret Service is in charge of the investigation with the collaboration of the U.S. Army Criminal Investigation Command, the U.S. Postal Service Office of Inspector General, the Department of Defense- Defense Criminal Investigative Service, and the Puerto Rico Police Department. The indictments were unsealed today upon the arrest of the defendants.
The indictments, returned yesterday, October 21, 2015, by a federal grand jury in the District of Puerto Rico, include the following individuals: Recruiters Cristobal Colón-Colón; Ángel D. Rivera-Rodríguez; Enrique Costas-Torres; Gregorio Quiñones-Pacheco; Guillermo Cruz-García; Edwin Izquierdo-Montañez; Luis De Jesús-Negrón; Gabriel González-Franco; Gilberto Rivera-Quiñones; Juan Rivera-Rivera; and Héctor Rodríguez-Colón; and Recruiter Assistants Axel Aponte-García; Gilberto Gierbolini-Emanuelli; Freddie García-Ruiz; Félix González-Rodríguez; Radamés Robles-Meléndez; Emilio Rivera-Maldonado; Carlos Meléndez-González; Natalio Soto-Rivera; José Rivera-Pereles; Félix Lasen-Nieves; Ángel Perales-Muñoz; Alexis Betancourt-Jiménez; José Velázquez-Lugo and Garby Ruiz-Rosado.
These charges stem from a scheme utilized by the defendants from 2007 through 2011. In or about September 2005, the National Guard Bureau, located in Arlington, Virginia, entered into a contract with Document and Packaging Broker, Inc. (“Docupak”), located in Pelham, Alabama, to administer the G-RAP. The G-RAP was a recruiting program designed to offer referral bonus payments to Army National Guard soldiers to recruit civilians to serve in the Army National Guard. As part of the G-RAP, the National Guard Bureau reimbursed Docupak for the recruiting referral bonus payments that Docupak paid to participating soldiers. The National Guard Bureau also paid Docupak an administrative fee for disbursing each of the referral bonus payments.
The Program had two primary participants: (1) Recruiters: whose job it was to assist the Docupak subcontractors in enlisting new members into the Army National Guard; and (2) Recruiter Assistants, who were Docupak subcontractors: whose job it was to identify and assist recruit new potential members into the Army National Guard, and assist Recruiters with other related duties. Under the contract specifications of the Program, only Recruiter Assistants were eligible for recruiting referral bonuses.
The Program required Recruiter Assistants to establish an online account in their name to record their referral and recruitment efforts. The Recruiter Assistant would input the personal identifying information of each recruit into the account. A Recruiter Assistant could receive a bonus between $500 and $1,000 for every referred soldier that enlisted in the Army National Guard, and an additional bonus between $500 and $1,000 once the referred soldier was sent to Basic Training. If the referred soldier had previously served in a different military branch, did not need to attend Basic Training, or joined the Army National Guard as an officer, the Recruiter Assistant could receive a bonus between $2,000 and $8,500. The Recruiter Assistant could receive the referral bonus payments either through direct deposit in a bank account, or a VISA account.
It was the goal of the conspiracy for the Recruiters to enrich themselves unlawfully by defrauding the United States and performing acts in violation of their official duties, in exchange for things of value. The Recruiter Assistants provided things of value to the Recruiters, in exchange for their assistance in defrauding the U.S. National Guard.
Defendants’ scheme knowingly caused the transfer, possession, and use without lawful authority, of a means of identification of another person, which contained the name, date of birth and social security number of potential soldiers; and by submitting the Personal Identifying Information (PII) for unauthorized purposes, they generated a fraudulent referral bonus of the G-RAP program, that would then create an interstate wire transfer to the coconspirator’s different bank accounts.
An example of the scheme, as alleged in one of the indictments, is as follows: The defendants allegedly cheated the program, known as the U.S. Army National Guard Recruiting Assistance Program, or “G-RAP,” by having the Recruiter Assistants create a G-RAP account and or allow the Recruiters to use the RA’s G-RAP account to enter all information necessary to claim recruiting bonuses that the RA’s had not earned. Defendants applied for the G-RAP bonuses using personal identifying information (PII) given to the Recruiters by enlistees who would go to the recruitment office seeking orientation to enlist in the Puerto Rico Army National Guard (PRANG). The Recruiter’s would obtain the PII in their official capacity as a Guard recruiter and would use the RA’s G-RAP account to apply for fraudulent recruiting bonuses. The RA’s were paid bonuses that would be deposited by Docupak in their personal bank accounts or a VISA Card that was given to them by Docupak, based on the misrepresentations made by the defendants of the recruitment process. Some RA’s withdrew a cash amount from each bonus and paid a kick-back of approximately half of the bonus to the Recruiters and in some cases the Recruiter’s kept the bonuses for themselves.
“These charges clearly demonstrate that we will take firm action against those who choose to exploit our military system for personal and criminal gain. We remain committed to investigating and apprehending those who cheat the system for personal gain, and will continue to work towards the eradication of this type of fraud in Puerto Rico,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.
“The U.S. Secret Service will continue to aggressively pursue those that commit fraud and identity theft for their own enrichment. These crimes remain a top investigative priority for our agency,” said Carlos Colón, Resident Agent in Charge of the Secret Service Office in Puerto Rico.
“We should expect honesty and integrity from our military personnel,” said Defense Criminal Investigative Service Special Agent in Charge John F. Khin. “This case demonstrates the commitment of DCIS, along with our investigative partners, to relentlessly pursue and bring to justice those who commit fraud and violate positions of trust for personal enrichment.”
“The conduct alleged in the criminal Indictments is beyond disgraceful,” stated USPS-OIG Special Agent-in-Charge Eileen Neff. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who seek to defraud our government programs.”
If found guilty, defendants face a maximum penalty of ten years in prison for the conspiracy, 20 years in prison for wire fraud, and a mandatory two year consecutive term in prison for aggravated identity theft.
The case is being investigated by the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda and Special Assistant U.S. Attorney Amanda C. Soto-Ortega.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Four Individuals Indicted for Stealing 125 Firearms from the Puerto Rico Police Shooting Range at Isla De CabraRead the Press Release
SAN JUAN, PR – On October 14, a federal grand jury returned a five-count indictment charging four individuals with participating in a conspiracy to interfere with commerce by threats or violence, possession of a firearm in furtherance of a crime of violence, stealing firearms, and prohibited person in possession of a firearm, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is in charge of the investigation with the collaboration of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI).
The object of the conspiracy was to commit a robbery at the Police of Puerto Rico (POPR) Shooting Range. The robbery took place on October 26, 2010. The co-conspirators subdued the duty police officers and stole the POPR’s firearms stored in the vault to subsequently illegally sell them for significant pecuniary gain and profit. The co-conspirators are: José Padilla-Galarza, aka “Joey;” Gilberto Ramos-Quiñonez, aka “Bolillo;” Ramón Santiago-Ortega, aka “Pucho;” and Guill Reabing-Padilla, aka “Gil”. Padilla-Galarza was a police officer approximately 20 years ago. All defendants are convicted felons in possession of firearms.
According to the indictment the defendants used to visit the Isla de Cabra Shooting Range, in order to become familiar with the personnel, their shifts, and the layout of the facility. The defendants used a white Ford Crown Victoria or Mercury Grand Marquis attached with decals of the POPR to give it the appearance of an official POPR patrol car. Members of the conspiracy dressed as POPR police officers, some in regular police uniforms and others in tactical uniforms.
The 125 firearms stolen, including the two pistols taken from duty officers were: 40 AR-15 rifles, 24 shotguns, nine 9mm carbines, one MP3 rifle, and 49 pistols. This is the biggest firearms robbery in the history of Puerto Rico.
“The potential harm that can result from the movement of illegal firearms through Puerto Rico cannot be overstated. The unlawful trafficking in firearms is a serious crime that intensifies the violence that is plaguing so many communities around us. This investigation is a testament to the collective resolve of federal law enforcement to stem the flow of illegal firearms,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“I would like to recognize the commitment and hard work of the investigators and prosecutors who brought this case to a conclusion,” said ATF Miami Field Division Special Agent in Charge Carlos A. Canino. “We will never stop investigating these types of heinous crimes. Not for five days not for five years. ATF Puerto Rico is committed to the fight against violent crime and firearms trafficking.”
The case is being prosecuted by Assistant United States Attorney Max Pérez-Bouret.
If found guilty, the defendants are facing terms of imprisonment of up to 20 years for the Hobbs and a minimum of seven years up to life for Possession of a firearm in furtherance of a crime of violence (robbery) with brandishing enhancement. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Carjacking/Rapist Found Guilty by A JuryRead the Press Release
SAN JUAN, P.R. – Today, Carlos Cruz-Rivera, aka “Cano Llorens,” was found guilty on all counts of carrying a firearm during and in relation to a crime of violence (carjacking) and possession of a firearm by a convicted felon, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Judge José A. Fusté presided over the trial. The convict had pled guilty to three counts of carjacking in the same accusation on October 6, 2015.
On September 9, 2015, a federal grand jury returned a seven-count superseding indictment charging a Cruz-Rivera with three counts of carjacking, three counts of using and carrying a firearm during and in relation to a crime of violence, and one count possession of a firearm by a convicted felon.
During the three day trial, the government presented pictures and witness’ testimonies that narrated the criminal incidents of rape, kidnapping, carjacking, and robbery that that the defendant perpetrated against the innocent victims.
“I commend the victims who came forward in order to seek justice and hope that this conviction will help them to start the healing process,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “My office will continue to work diligently with our partners in law enforcement to track down and prosecute violent criminals to the fullest extent of the law.”
The case was prosecuted by Assistant United States Attorney Jenifer Hernández-Vega, Supervisor of the Violent Crimes Unit and Special Assistant United States Attorney Kelly Zenon. The defendant faces a maximum penalty of up life in prison. The sentence was scheduled for January 14, 2016.
Man Sentenced to 560 Months in Prison for Robbery and Murder of Two Department of Natural Resources Rangers in March of 2010Read the Press Release
SAN JUAN, Puerto Rico – Jonathan Ortiz-Torres was sentenced to 560 months in prison and five years of supervised release for interference of commerce by robbery, announced United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez. Ortiz-Torres pled guilty on May 27, 2014.
On February 9, 2011, Jonathan Ortiz-Torres was charged, along with Ángel Santana-Espinet and Leroy Santana-Rosado, with violations of Title 18, United States Code, Section 1951(b)(3) (interference of commerce by robbery); and Title 18, United States Code, Sections 922(j), 924(a)(2), and 2 (possession of a stolen firearm). Ortiz-Torres and Santana-Espinet were also charged with violations of Title 18, United States Code, Sections 924(c)(1)(A), 924 (j) and 2 (possession and use of a stolen firearm).
According to the superseding indictment, on March 23, 2010, the defendants, aiding and abetting each other, by force, violence and intimidation, did take one .9mm caliber Smith and Wesson Pistol from the person or presence of Rangers of the Department of Natural Resources Félix Rodríguez Gómez and Kenneth Omar Betancourt, then acting as security guards at Reparto Industrial in Río Piedras, PR, and shot and killed them. The defendants fled the scene but were later arrested by PRPD agents after a high speed chase.
Defendant Ángel Santana-Espinet pled guilty on August 21, 2012, to count two of the superseding indictment, Possession of a Stolen Firearm, and was sentenced to 380 months in prison and eight years of supervised release. Defendant Leroy Santana-Rosado plead guilty on March 24, 2014, to count one of the superseding indictment, Interference with Commerce by Threat of Violence, and was sentenced to 87 months in prison and three years of supervised release.
The case was investigated by the FBI and the Puerto Rico Police Department and was prosecuted by Assistant US Attorney Julia Díaz-Rex.
Businessman Arrested for Introducing Misbranded Drugs into Interstate Commerce, Conspiracy, Wire and Mail FraudRead the Press Release
SAN JUAN, P.R. – Yesterday, a Federal grand jury returned an indictment against Jorge L. Pagán Kortright and his companies AWD Group Inc. doing business as El Torito USA, Inc., Allied Worldwide Distributors Inc., and All Wheel Drive Corp., for introduction of misbranded drugs into interstate commerce, conspiracy to commit wire fraud, wire fraud, and mail fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), with the collaboration of the Puerto Rico Police Department, Guayama Municipal Police, and the Puerto Rico Treasury Department (Departamento de Hacienda).
The indictment alleges that the defendants, aiding and abetting each other, with the intent to defraud or mislead, introduced and delivered for introduction into interstate commerce drugs, namely, “El Torito Plus 1000 mg,” ‘El Torito Xtreme 500 mg,” and “El Torito Black Bull Power 500 mg” that were misbranded; the labeling of each drug was false and misleading. The drugs were sold on El Torito’s website, Amazon.com, eBay.com, and at gas stations throughout Puerto Rico.
“El Torito Plus 1000 mg,” “El Torito Xtreme 500 mg,” and “El Torito Black Bull Power 500 mg,” were capsules and pills sold over the counter and on the Internet that were labeled and marketed as “100% natural” dietary supplements and performance enhancers. The capsules and pills were marketed as “natural supplements for men and women” to “help” “achieve a pleasant and lasting sexual experience with all natural ingredients.” In fact, El Torito’s products contained sildenafil and tadalafil (the active ingredients in Viagra™ and Cialis™ respectively), and their synthetic analogs, including desmethyl-carbodenafil and dithiodesmethyl-carbodenafil. Sildenafil and tadalafil are the active ingredients of branded drugs approved by the FDA and are also “prescription drugs” that, because of their toxicity and other potential harmful effects, were not safe for use except under the supervision of a practitioner licensed by law to administer such drugs. These undeclared ingredients may interact with nitrates found in some prescription drugs such as nitroglycerin and may lower blood pressure to dangerous levels for individuals with diabetes, high blood pressure, high cholesterol, or heart disease.
It was the object of the conspiracy for defendants and their coconspirators to unlawfully enrich themselves by obtaining money and property from individuals under the false and fraudulent pretenses and representation that individuals were purchasing “100% natural” dietary supplements and performance enhancers when, in fact, defendants were selling misbranded prescription drugs.
During the course of the conspiracy, e-mail communications were sent by defendants to their manufacturers, distributors, and others in furtherance of the scheme to defraud and payments were received using PayPal. For example, one of the emails sent by an El Torito distributor to [email protected] under the name “Jorge Pagan” stated that: “you need to change the pictures of Torito chinese box from the website because the sheriff will probably look at the site for info and i told them that Torito is made in usa and i showed them the box without the chinese letters.”
Another email communication sent from [email protected] under the name “Jorge Pagan” to a manufacturing contact stated that he was “only worried about my investment and the loss of money if authorities find controlled ingredients. The authority will only get involve when the big pharmasuricals [sic] companies pressure them because they lose sales with these products.” “If Mr. Wangs product get problems, all he has to do is send me a new brand name box and just change the style of the packaging the capsule in the blister pack and we can do this for ten years. So the authorities will be fooled all the time.”
As part of the scheme to commit the mail fraud, the defendants knowingly placed in an authorized depository for mail, to be sent and delivered by the United States Postal Service, numerous El Torito products.
“The authorities were not fooled by these criminals who are now in federal custody,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “The law requires that drugs be produced and branded under the most rigorous of quality standards. When individuals and companies fail to exercise the vigilance that the law demands, they will held be accountable. Today’s arrest shows that we will not tolerate criminals who engage in fraudulent schemes in order to enrich themselves without considering how their actions may affect the health and well-being of others.”
“Distributing prescription drugs disguised as all-natural dietary supplements puts the health and safety of the American public at risk,” said Acting Special Agent in Charge Robert J. West, FDA Office of Criminal Investigations’ Miami Field Office. “We will continue to focus our resources on removing illegal products from the marketplace, as well as prosecuting those who attempt to evade FDA regulations.”
FDA-OCI was the lead agency which conducted the investigation, with the collaboration of PRPD, Hacienda and the Guayama Municipal Police. The case is being prosecuted by Assistant U.S. Attorney Luke Cass. Attorney Shannon M. Singleton from the FDA’s Office of Chief Counsel provided valuable assistance to this criminal investigation.
If found guilty, the defendant could face a possible sentence of up to 30 years in prison for the mail and wire fraud counts. Indictments contain only charges and are not evidence of guilt. Defendants are presumed innocent unless and until proven guilty by a unanimous jury.
If you have used El Torito products in the past and have questions you may call 1-888-INFO-FDA or contact the FDA online at www.fda.gov.