District of Puerto Rico
Press releases recorded for this federal judicial district.
Federal Authorities Seize $5.7 Million in Cocaine, Detain Two SmugglersRead the Press Release
SAN JUAN, Puerto Rico –U.S. Magistrate Marcos E. López authorized a complaint charging Raddif Tapia-Rivera and Estevan DeCarlos with conspiracy to import 242 kilograms of cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Coast Guard, U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) seized a 469 pound cocaine shipment, a go-fast vessel, and apprehended two men following an at-sea interdiction 22 nautical miles southeast of Vieques, Puerto Rico Sunday morning. Federal law enforcement authorities involved in the interdiction were working in support of the Caribbean Border Interagency Group's (CBIG) Operation Caribbean Guard and the Caribbean Corridor Strike Force. The seized cocaine shipment was estimated to have a street value of approximately $5.7 million dollars, while the men detained claimed to be U.S. citizens from Puerto Rico.
“The US Attorney’s Office and our law enforcement counterparts remain committed to using every law enforcement tool available to attack these criminal organizations and ensure that drug traffickers and their associates are brought to justice for the damage they inflict on our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“Our effective interagency coordination efforts and aggressive patrolling of international and jurisdictional waters around Puerto Rico and the U.S. Virgin Islands allow us to successfully interdict these shipments at sea and bring those responsible to justice,” said Capt. Drew W. Pearson, Commander, Coast Guard Sector San Juan. “Our resolve and commitment are unwavering as we stand watch twenty-four seven to protect the safety and security of the citizens of Puerto Rico and the U.S. Virgin Islands from the threats delivered by the sea.”
While on a routine patrol in the Caribbean Sea late Saturday night, the crew of a U.S. Coast Guard HC-144 Ocean Sentry Maritime Patrol Aircraft (MPA) from Air Station Miami detected a 25-foot go-fast vessel, with two outboard engines and two subjects onboard, traveling northwest without any navigation lights, approximately 115 nautical miles southeast of Vieques. Coast Guard Sector San Juan Watchstanders, notified of the developing situation, diverted the Coast Guard Cutter Reef Shark to interdict the suspect vessel. A CBP Office of Air and Marine operations marine unit, with an Immigration and Customs Enforcement special agent onboard also responded, while Puerto Rico Police Joint Force for Rapid Actions, along the east coast of Puerto Rico, were alerted and ready to respond in the case the go-fast vessel entered Puerto Rico jurisdictional waters.
The Coast Guard MPA maintained constant surveillance as the Coast Guard Cutter Reef Shark arrived on scene and intercepted the go-fast vessel, approximately 22 nautical miles southeast of Vieques. The crew of the Reef Shark located the suspected illegal drug shipment in plain sight, a total of seven bales, and detained Tapia-Rivera y DeCarlos. A further inspection and testing of the suspected drug shipment revealed the contraband to be cocaine.
Custody of the two defendants, the narcotics, and the go-fast vessel were transferred by the Reef Shark to Special Agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) for further investigation and prosecution.
The Reef Shark is an 87-foot coastal patrol boat homeported in San Juan, Puerto Rico.If convicted, the defendants could face from 10 years up to life in prison. A criminal complaint contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Two Individuals Arrested for Firearm ViolationsRead the Press Release
SAN JUAN, Puerto Rico – Today, U.S. Magistrate Judges Bruce McGiverin and Silvia Carreño-Coll authorized two separate criminal complaints charging Efrain Rivera-Ramos and Jancarlos Velàzquez-Vàzquez for firearms violations, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Today, US Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint against Efrain Rivera-Ramos for violations of Title 18 U.S.C. Section 922(o) (possession of a machine gun) and Section 922(g)(1) (aiding and abetting a felon). The affidavit submitted with the complaint alleges that on or about March 14, 2013, the Puerto Rico Police Department (PRPD) along with the Caguas Special Arrest Units and members of the United States Marshals Service Puerto Rico Violent Offender Task Force executed an outstanding arrest warrant for violations of Puerto Rico weapons law against Efrain Rivera-Ramos in Juncos, PR. The Officers had received information of Rivera-Ramos’ whereabouts from the Bonds Company that had posted his bail for the pending local weapons case. Once the Officers gained entrance to the apartment at Colinas de Magnolias Public Housing Project, Rivera-Ramos was found hiding under a bed of one of the rooms. Inside the room where the defendant was arrested, a fully automatic Glock pistol, caliber .40, was seized.
Although the underlying facts from the March 14, 2013 incident described above served as the basis for a criminal state prosecution, the same did not result in either a conviction or acquittal, as the charges were dismissed for procedural reasons.
In a separate incident, on March 11, 2014, Rivera-Ramos was arrested by PRPD officers following a shooting between PRPD and some individuals on March 10, 2014, where PRPD agent Joaquin Correa-Ortega was murdered. According to the affidavit, on the night of March 10, 2014, Rivera-Ramos was with Jancarlos Velàzquez-Vàzquez and Rafael Rodríguez-Carrasquillo (deceased). They were at the “Plaza de Caballos” in Humacao, PR in order to conduct a weapons transaction.
The affidavit further alleges that each of the defendants possessed a “corta” (hand gun) and they also possessed two “palos” meaning long weapons that were in the center of the vehicle available for whoever needed them.
Following the shooting of PRPD agent Joaquin Correa-Ortega, defendants Rivera-Ramos, Velàzquez-Vàzquez and Rodríguez-Carrasquillo ran into the woods. According to the affidavit, Rivera-Ramos and Velàzquez-Vàzquez knew that Rodríguez-Carrasquillo was serving a ten year probation sentence for committing a murder in Juncos, PR.
At the site of the shooting officers recovered the following weapons: one empty 9 mm Glock handgun; one .40 caliber Glock handgun, Model 22, loaded with 20 rounds of ammunition; one .223 caliber, M-16 rifle, which had two magazines attached to it, one of the magazines was loaded with 30 rounds of ammunition and the other magazine was loaded with 14 rounds of ammunition; and one AK-47 rifle, that had two magazines attached to it. One of the magazines had 30 rounds of ammunition and the other had 40 rounds of ammunition.
The second complaint is against Jancarlos Velàzquez-Vàzquez, who was arrested on March 11, 2014, after another incident where he, together with others, interfered with federal law enforcement personnel while in performance of their official duties. He had in his possession one .40 caliber Glock handgun. He is charged with violations of Title 18 U.S.C. Section 111 (assaulting, resisting, or impeding a federal officer), Section 924(c) (possession of a firearm in furtherance of a crime of violence), and Section 2 (aiding and abetting).
If convicted, the defendants could face from 10 years up to life in prison. A criminal complaint contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
63 Individuals Indicted for Drug Trafficking in the Municipality of PonceRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 63 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances. Today, DEA agents and officers of the Puerto Rico Police Department (PRPD), the agencies in charge of the investigation, executed the arrest warrants with assistance from ATF, FBI, the Puerto Rico Bureau of Special Investigations and the Department of Corrections and Rehabilitation.
The indictment, handed down March 6, 2014 by a federal grand jury and unsealed in federal court today, charges 63 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the La Ceiba Public Housing Project and other areas nearby in the Municipality of Ponce, Puerto Rico, all for significant financial gain and profit.
The indictment alleges that beginning in 2003, the organization operated several drug points located within La Ceiba Housing Project. Some of the defendants would routinely possess, carry, brandish and use firearms to protect themselves and the drug trafficking organization from rival gangs. The leaders would supply the firearms to their coconspirators.The 63 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: two leaders; four drug point owners; six enforcers; five administrators; 12 runners; 26 sellers; and 11 facilitators. All defendants are facing a forfeiture allegation of ten million dollars.
It was further part of the manner and means of the conspiracy that facilitators would act as intermediaries in drug sale transactions when clients did not want to go into the housing project. At times, taxi cabs would be used to transport organization members, narcotics and firearms to and from the La Ceiba Public Housing Project.
As part of the manner and means of the conspiracy: armed individuals that were not residents of La Ceiba were brought into La Ceiba by the leaders, administrators and drug point owners to provide security and protection from rival gangs.
“Violent drug trafficking gangs should know that we are determined to break their grip on communities, and that they will face severe penalties for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, and to reduce gang violence and bring narcotics and firearms violators to justice.”
“DEA and the Police of Puerto Rico again join forces in support of the US Attorney’s Office Violent Crime Initiative to help eradicate violent drug trafficking organizations intimidating and affecting the quality of life of the law abiding citizens of the City of Ponce,” said Vito Salvatore Guarino, Special Agent in Charge of the Drug Enforcement Administration (DEA), DEA Caribbean Division. “Our joint efforts with the Police of Puerto Rico Strike Forces and the U.S. Attorney’s Office will continue across the Island as we continue bringing to justice other violent drug trafficking organizations regardless in what part of the island they operate.”
Assistant U.S. Attorney Teresa Zapata is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Four Individuals Indicted and Arrested for Health Care FraudRead the Press Release
SAN JUAN, P.R. – Yesterday, February 26, a Federal grand jury returned a fourteen count-indictment against four individuals for health care fraud and causing the misbranding and adulteration of prescription medications with intent to mislead and defraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendants are facing a forfeiture allegation of $225,929.21.
According to the indictment, from on or about January 1, 2010 through on or about September 24, 2011, Family Pharmacy submitted at least 554 false and fraudulent claims to Medicare, through MCS, totaling approximately $309,456.81, seeking reimbursement for adulterated/misbranded Levalbuterol and Budesonide, causing Medicare, through MCS, to disburse approximately $225,929.21.
Defendant Francisco A. Rivera-Gonzàlez was the President and owner of Family Pharmacy, located in the Municipality of Añasco, PR. As part of the business activities of Family Pharmacy he submitted claims to Medicare, through MCS Classicare. Rivera-Gonzàlez caused the adulteration/misbranding of Levalbuterol and Budesonide provided to Medicare beneficiaries and subsequently billed to Medicare. Luis Roberto Jiménez-Feliciano was the owner and president of RJ Medcare, Inc. He facilitated and caused the adulteration/misbranding of Levalbuterol and Budesonide provided to Medicare beneficiaries.
Defendant Francisco J. Cintrón-Acevedo was a licensed pharmacist and owner of Farmacia Cintrón, located in the municipality of Utuado, PR., and the Resident Agent in Charge of Franseb Inc. Cintrón-Acevedo facilitated and caused the adulteration/misbranding of Levalbuterol and Budesonide provided to the Medicare beneficiaries which were subsequently billed to Medicare. Defendant Derilyn Serrano-Bernacet was a pharmacy technician at Farmacia Cintrón. She illegally compounded Levalbuterol and Budesonide provided to Medicare beneficiaries, which were subsequently billed to Medicare.
“As part of the nation’s health care system, Medicare serves vulnerable citizens, specifically our elderly,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “Today’s arrests show that we will not tolerate criminals who engage in fraudulent schemes which threaten and harm people’s lives and deplete the Medicare program of funds which are destined for our senior citizens, in order to enrich themselves.”
“The Food and Drug Administration, Office of Criminal Investigations will continue to vigorously protect the health and safety of consumers from misbranded or adulterated drugs,” said Ralph Culkin, Resident Agent in Charge of FDA, Office of Criminal Investigations in Puerto Rico.
“HHS-OIG will continue to support these types of investigations, especially when misbranded and adulterated drugs pose a threat to the public and are billed to the Medicare program”, said Thomas O'Donnell, Special Agent in Charge of the Office of Inspector General's New York Regional Office which also covers Puerto Rico.
The investigation was led by the Food and Drug Administration-Office of Criminal Investigations, with the collaboration of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG).The case is being prosecuted by Special Assistant U.S. Attorney Wallace A. Bustelo. If found guilty, the defendants could face a possible sentence of (10) years in prison for the Health Care Fraud offense and fines of up to $250,000. A criminal indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
20 Individuals Indicted and Arrested for False Statements in Loan Applications and Bank FraudRead the Press Release
San Juan, Puerto Rico –Twenty individuals, including ringleaders, straw buyers, sellers, real estate agents, and an accountant have been charged in a 11-count indictment unsealed today and returned by a grand jury in San Juan, Puerto Rico on February 12, 2014, 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), along with Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) and the Housing and Urban Development- Office of Inspector General (HUD-OIG).
The defendants are charged with bank fraud and making false statements in loan applications. The investigation revealed that as part of the scheme and artifice to defraud, the defendants, through straw buyers, would purchase properties by obtaining mortgage loans from federally insured financial institutions in amounts substantially exceeding the selling price of the properties. The excess amount of the loans would be “kickbacked” to the defendants, and then they would default on payment of the monthly mortgage premiums.
In order to ensure the approval of the loans, the participants would create and submit false supporting documentation along with the loan application, i.e.: financial statements, bank statements, employment verification letters, tax returns, among others.
According to the indictment, the defendants aiding and abetting each other, knowingly made or caused to be made material false statements to various financial institutions for the purpose of influencing the action of other financial institutions, in connection with a loan application to obtain mortgage loans. The financial institutions are: Banco Santander de PR, Doral Bank, Banco Bilbao Vizcaya Argentaria of PR, and RG Premier Bank of PR.
The defendants are: Lina Prestol-Rodríguez, José Santana-Aponte, Carlos Vélez-De Jesús, Ángel Torres-Maymi, Brenda Mercado-Rodríguez, Marilyn Meléndez-Prestol, Johanna Rivera-Benítez, Carlos Solis-Guzmàn, José Luis Negrón-Molina, Alexander Cifuentes-Ramos, Carlos Ortiz-Dàvila, Eduardo Cora-Colón, Gabriel Branda-Collazo, Ricardo Santiago-Verdecía, Marco Antonio Ambert-Torres, José Rafael Mora-Nazario, Angélica Álvarez-Castañeda, Sheila Benabe-Gonzàlez, Adelinzy Grace-Vàzquez, and Awilda Díaz-Cabrera.
Defendant Lina Prestol-Rodríguez, the leader of the fraudulent schemes, is also charged with conspiracy to commit money laundering. It was the object of the conspiracy that Prestol-Rodríguez and her co-defendants would engage in a series of financial and monetary transactions, some in excess of $10,000.00 in criminally derived property, in order to promote the carrying-on and concealment of the bank fraud and false statements in loan applications in order to unjustly enrich themselves and eliminate existing debt obligations.
“This indictment demonstrates the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to ensure the integrity of the financial and banking system,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The investigation and prosecution of financial crimes is one of the top priorities of the U.S. Department of Justice. Mortgage fraud is a serious issue for the banking industry and for homeowners who helplessly watch as their property values decrease, and foreclosure signs and abandoned properties take over their neighborhoods.”
“These arrests are a reflection of the success that comes when federal, state and local law enforcement agencies work together to target criminal organizations and individuals in Puerto Rico,” said Ángel Meléndez, special agent in charge of HSI San Juan. “At HSI, we follow the money trail to identify, disrupt and dismantle the most complicated financial schemes and seize criminal assets. We will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system and are often a gateway to further criminal activity.”
Lester Fernàndez, Special Agent in Charge of this Region for the US Department of Housing and Urban Development – Office of Inspector General stated: “It is always disturbing when industry professionals who have fiduciary responsibilities and are expected to act as honest brokers exploit federally funded programs. HUD-OIG will continue to partner with prosecutors, law enforcement and audit agencies to aggressively pursue those engaged in activities that harm federal housing programs.”Carlos Cases, Special Agent in Charge of the FBI said: “Mortgage fraud isn’t a victimless crime. It threatens the financial health of our communities, and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property. FBI will continue to utilize its financial investigative expertise to aggressively investigate criminal activities that attack our financial system.”
IRS Special Agent in Charge José A. Gonzàlez stated, “The IRS Criminal Investigation is committed to employing its financial expertise to investigate and trace the flow of the monies derived from financial violations including Mortgage Fraud. Rest assured that those willing to participate and profit from these illegal activities will be deprived of their ill-gotten gains and brought to justice.”
This case is being prosecuted by Senior Litigation Counsel Scott Anderson. The case was investigated by ICE-HSI, HUD-OIG, FBI, and IRS.
The maximum penalties for these offenses are 30 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.
Playa Anasco Man Sentenced to Jail for Illegal Sale of Sea Turtle MeatRead the Press Release
SAN JUAN, Puerto Rico – Manuel Garcia-Figueroa, a resident of Playa Añasco, Puerto Rico, was sentenced to 15 days in jail, 150 hours of community service, and three years of supervised release for the illegal sale of sea turtle meat in violation of the Lacey Act, the U.S. Attorney's Office announced today.
On November 18, 2013, Garcia-Figueroa pleaded guilty to knowingly selling more than $350 of meat and carapaces from endangered hawksbill sea turtles (Eretmochelys imbricata) and meat from a threatened green sea turtle (Chelonia mydas), while knowing that the sea turtles had been taken in violation of the Endangered Species Act (ESA). The illegal sales took place on or about Dec.11, 2009, to on or about Jan. 4, 2010, in and around Playa Añasco. The case resulted from a joint-undercover operation by the National Oceanic and Atmospheric Administration Office of Law Enforcement (NOAA-OLE) and the FBI.
All species of sea turtles found in the Gulf of Mexico, Atlantic Ocean, Caribbean Sea and waters adjacent to the United States are protected by the ESA. Sea turtles are long-lived and slow to reach maturity. Pressures from habitat loss, fishing operations, pollution, illegal harvesting of eggs, and poaching of adults exacerbate the extinction risk faced by these animals. In addition to being important to tourism, sea turtles play a key role in the maintenance of marine ecosystems through their selective consumption of sea grasses, jellyfish, and sponges. In Puerto Rico, the green sea turtle (Chelonia mydas) is listed as “threatened” under the ESA; the hawksbill sea turtle (Eretmochelys imbricata) is listed as “endangered.”
The Lacey Act is the principal U.S. statute designed to reduce the role that wildlife poaching, selling, and smuggling plays in depleting protected species. Once an ESA-listed wildlife species is taken or possessed illegally, it is unlawful to “import, export, transport, sell, receive, acquire, or purchase” that species. A person commits a criminal violation of the Lacey Act if the illegal conduct involves the sale or purchase of wildlife with a market value in excess of $350, while knowing that the wildlife was taken in violation of or in a manner unlawful under, any underlying law, treaty, or regulation.
The waters around Puerto Rico are designated as a critical habitat for the hawksbill and the green sea turtle. The most significant nesting for the hawksbill within the U.S. occurs in Puerto Rico and the U.S. Virgin Islands. Each year, about 500-1,000 hawksbill nests are laid on Mona Island, Puerto Rico. The green sea turtle population has declined by 48-65 percent over the past century. Puerto Rico is also home to nesting sites for the endangered leatherback sea turtle, the largest species of turtle in the world.In 2013, the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office in Puerto Rico announced the formation of the Puerto Rico Environmental Crimes Task Force to investigate and prosecute environmental crimes on the island. Under the task force, federal investigative agencies are coordinating their efforts to investigate and prosecute those responsible for committing serious environmental crimes.
The case was prosecuted by Trial Attorney Christopher Hale of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorneys Carmen Màrquez and Hector Ramirez of the District of Puerto Rico.
Man Arrested for Defrauding the United States Army ReserveRead the Press Release
SAN JUAN, Puerto Rico – On February 5, a federal grand jury in the District of Puerto Rico returned a seven count indictment against Pedro A. Rodríguez-Colondres for wire fraud, false statement in application and use of passport, identity theft, aggravated identity theft, and false statement to a Department or Agency of the United States, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
Beginning in or about May 1984 and continuing through in or about October 2011 the defendant devised a scheme and artifice to defraud and for obtaining money by means of false and fraudulent pretenses and representations, that is by knowingly enlisting in the United States Army Reserve under the assumed name of Pedro Colondres-Rosa and then being discharged under this name; and then applying for and receiving benefits granted under the assumed name.
Rodríguez-Colondres received veteran’s benefits from the Veteran’s Administration from 1984; until 2011 under an assumed identity. The defendant enlisted in the US Army Reserve on April 26, 1974, and was discharged from the US Army Reserve on November 20, 1974. His discharge letter dated November 20, 1974 states, “You lack the motivation to become a productive soldier. You speak no English and have a great deal of trouble adapting to the Army. You lack the stamina to complete road marches. You are requesting this discharge and this would be to your and the Army’s advantage.” The letter also informed him that he would be ineligible for reenlistment.
On September 14, 1977, the defendant fraudulently enlisted using the name Pedro Colondres-Rosa. He was subsequently medically discharged for temporary disability on May 17, 1978. On May 22, 1978, the defendant completed a VA FORM 21526E applying for disability benefits from the Veterans Administration.
Rodríguez-Colondres devised a scheme to defraud the Department of Veterans Affairs by claiming to be entitled to benefits that he was in fact not entitled to. The defendant claimed to be Pedro Colondres-Rosa, when in truth and in fact, he was Pedro A. Rodriguez-Colondres. He then enlisted in the United States Army under this assumed identity and completed eight months and two days of active service. After the defendant was medically discharged, he and his wife applied for veteran’s benefits listing his service under the assumed identity of Pedro Colondres-Rosa.
The indictment lists 169 payments, a portion of the benefits he received illegally between the years 1997 to 2011 totaling $424,281.36. Also, the indictment shows the medical benefits the defendant received illegally between the years 2000-2011 totaling $81,984.00, and dependent educational benefits totaling $44,584.56.
The defendant was arrested today by agents from the US Department of State, Bureau of Diplomatic Security, and the Veteran’s Administration, who are in charge of the investigation. Rodríguez-Colondres appeared before US Magistrate Judge Camille L. Vélez-Rivé and was granted bail until the arraignment.
If convicted, the defendant faces up to 20 years imprisonment, two consecutive years for the aggravated identity theft charge, three years of supervised release, and a $250,000 fine. The case is being prosecuted by Assistant U.S. Attorney Michael C. Baggé.Federal Authorities Sieze $3.5 Million in Cocaine, Detain Three Smugglers in CaribbeanRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, January 29, U.S. Magistrate Judge Marcos E. López authorized a complaint charging: Joselito Taveras, Miguel Jimenez, and Alberto Dominguez with conspiracy to possess and possession with intent to distribute controlled substances, and conspiracy to import and importation of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
The crew of the Coast Guard Cutter Farallon offloaded 136 kilograms (300 pounds) of cocaine Monday night, 60 nautical miles northwest of Aguadilla, Puerto Rico and transferred the custody of the defendants to Drug Enforcement Administration (DEA) special agents and Customs and Border Protection officers Wednesday at Coast Guard San Juan, Puerto Rico.
The interdiction was a result of U.S. Coast Guard, Customs Border Protection, Drug Enforcement Administration and Dominican Republic Navy coordinated efforts in support of Operation Unified Resolve, Operation Caribbean Guard, and the Caribbean Corridor Strike Force (CCSF) to interdict the illegal drug shipment consisting of nine bales of cocaine with an estimated street value of approximately $3.5 million dollars.
“These arrests and multi-kilogram seizure are a strong indication of the success of the Caribbean Corridor Strike Force Initiative,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The US Attorney’s Office and our law enforcement counterparts remain committed to using every law enforcement tool available to attack these criminal organizations and ensure that drug traffickers and their associates are brought to justice for the damage they inflict on our communities.”
“Our multiagency and international partnerships in the region continue to pay off as we continue to interdict major drug shipments and bring smugglers to justice,” said Capt. Drew W. Pearson, Commander, Coast Guard Sector San Juan. “Our resolve and commitment are unwavering as we stand watch twenty-four seven to protect the safety and security of the citizens of Puerto Rico and the U.S. Virgin Islands from the threats delivered by the sea.”
“Once more DEA's joint efforts with our counterparts to stop the flow of drugs through the Caribbean region paid off,” said Vito Salvatore Guarino, the Special Agent in Charge of the DEA Caribbean Division. “This successful interdiction operation is another example of the effectiveness of our coordinated teamwork approach to cut off the supply of drugs transiting our region.”
While on patrol, the crew of a Coast Guard Auxiliary fixed-wing patrol aircraft detected three men aboard a suspicious, eastbound 20-foot yola (boat) carrying a load of suspected contraband northwest of Aguadilla, Puerto Rico. When the vessel spotted the aircraft, it immediately turned west toward Dominican Republic.
The crew of the Coast Guard Auxiliary aircraft notified Coast Guard Sector San Juan Watchstanders of the developing situation, who in turn proceeded to divert the Coast Guard Cutter Farallon and launch Coast Guard aircraft, an MH-65 Dolphin helicopter from Air Station Borinquen and an HC-144 Ocean Sentry Maritime Patrol Aircraft deployed to Puerto Rico from Air Station Miami, to provide air support throughout the interdiction.
The suspected smugglers became compliant as the Coast Guard Cutter Farallon arrived on scene with the cutter small boat and came alongside the suspect vessel that was taking on water and sinking. The crew of Farallon’s small boat rescued the three men onboard, seized the nine bales of suspected contraband and transferred the men and seized contraband to the Farallon before the smuggler’s vessel completed sinking. A field test revealed the suspected contraband to be cocaine.
The Coast Guard's efforts under Operation Unified Resolve contribute to the interagency results being achieved each and every day locally under Operation Caribbean Guard, which coordinates efforts between the Coast Guard, its DHS, Commonwealth and Territorial law enforcement partners, who are working diligently to deter, detect and disrupt illicit maritime trafficking to Puerto Rico and the U.S. Virgin Islands.
The case is being prosecuted by Assistant U.S. Attorney José Contreras. If convicted, the defendants could face from 10 years up to life in prison.Man Arrested for Sending Threatening Interstate Communications via FacebookRead the Press Release
SAN JUAN, Puerto Rico – This morning FBI agents in the Tampa area arrested Jorge Jimenez for his violation of 18 U.S.C. section 875(c) for sending threatening interstate communications to J.P., an adult male residing in Puerto Rico, via Facebook, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
On December 5, 2013, a federal grand jury returned a true bill that charged Jorge Jimenez, a Florida resident, with making threatening interstate communications via Facebook to J.P., in violation of Title 18 of the United States Code, Section 875(c).
On August 3, 2013, Jimenez transmitted several threatening messages directly to J.P.’s Facebook inbox, as follows:
“Mr. Maurice Spagnoletti had a bachelor of Science (BS) from St. Peter’s (PIERLUISI) College … I WONDER WHO DID THAT HIT … HE WILL HAVE HIS REVENGE. Sincerely, William the Lion.”
“They are going to stick a screwdriver in both the eyes, then they will stick a hot bar in his ass… and to complete the job, they will proceed to cut with a lovely AXE.
after the deed is done, William the Lion asks, What You Gon Do?
The transmission sent to J.P. by Jorge Jimenez included pictures of a decapitated individual, an axe, pictures of eyes, a screwdriver, and made reference to a family member of J.P.If convicted, the defendant faces up to five years imprisonment, three years of supervised release, and a $250,000 fine. The case is being prosecuted by Assistant U.S. Attorney Luke Cass.
Former Member of Puerto Rico National Fencing Team Charged with 26 Additional Counts of Production of Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – In the first sexual extortion – or "sextortion" – case ever prosecuted in the District of Puerto Rico, a man charged with coercing female minors to engage in sexually explicit conduct was charged by a grand jury with 26 additional counts of production of child pornography, announced US Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Juan and Colorado and the Puerto Rico Crimes Against Children Task Force (PRCACTF) conducted the investigation that led to these subsequent charges.
On June 4, 2013, HSI special agents arrested Jimmy Caraballo-Colón, 25, at his place of residence, after an investigation that began in Colorado revealed he was blackmailing or “sextorting” a 17-year-old female from Colorado that he met in an anonymous Internet video chat website.
Caraballo-Colón offered the minor "game points" for removing her clothes. He then proceeded to blackmail the minor by threatening to post the nude recording on the Internet if she did not provide personal information such as her phone number, e-mail, Skype address and Facebook account information. Despite the fact that the minor complied with Caraballo-Colón’s request, the sextortion escalated as he demanded more sexually explicit acts during video chats, which he also recorded. Caraballo was then charged with 32 counts of production and one count each of possession and transportation of child pornography.
On Wednesday, January 15, 2014, a grand jury sitting in the District of Puerto Rico charged Caraballo-Colón with 26 additional charges of production of child pornography. According to the superseding indictment Caraballo-Colón induced, enticed and coerced female minors, identified as Jane Doe 1 through Jane Doe 58, with the intent that such minors engage in sexually explicit conduct to include the lascivious depiction of such conduct through videos that he allegedly used to sexually extort his victims. The 58 victims identified so far in the investigation are from several states: California, Texas, Colorado, New Hampshire, New Jersey, Oregon, Pennsylvania, North Carolina, Ohio, Vermont and New York; as well as foreign countries such as Australia, Canada and Finland.
“Predators, often disguised as peers and responsible adults, groom and befriend unsuspecting and innocent child victims to perform sexually explicit acts.” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “This superseding indictment is a strong and clear message to predators and criminals that we will not accept tolerate this conduct ways, and will hunt them down to make sure they face justice and respond for their criminal behavior. The Federal Law Enforcement Community and the U.S. Attorney’s Office will spare no resources to arrest and prosecute these predators. Nonetheless, the community, teachers and parents must be vigilant and proactive with our children and educate them on the modus operandi of these offenders.”“Child exploitation, in all its forms, must be among the most heinous crimes a person can commit, but when the element of sexual extortion or – sextortion – is part of this unspeakable abuse, the aberration is even more nauseating and the emotional pain inflicted on the victim is just overwhelming and hard to endure,” said Angel M. Melendez, special agent in charge of HSI San Juan. “Make no doubt, HSI will continue utilizing all its resources and, along with our federal, state and local partners, will continue identifying those who victimize the most vulnerable segment of our society – our children.”
The case is being prosecuted by Assistant U.S. Attorney Elba Gorbea.
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
This investigation was conducted under HSI’s Operation Predator, an international initiative to protect children from sexual predators. Since the launch of Operation Predator in 2003, HSI has arrested more than 10,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children. In fiscal year 2013, more than 2,000 individuals were arrested by HSI special agents under this initiative.Former Member of Puerto Rico National Fencing Team Charged with 26 Additional Counts of Production of Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – In the first sexual extortion – or "sextortion" – case ever prosecuted in the District of Puerto Rico, a man charged with coercing female minors to engage in sexually explicit conduct was charged by a grand jury with 26 additional counts of production of child pornography, announced US Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Juan and Colorado and the Puerto Rico Crimes Against Children Task Force (PRCACTF) conducted the investigation that led to these subsequent charges.
On June 4, 2013, HSI special agents arrested Jimmy Caraballo-Colón, 25, at his place of residence, after an investigation that began in Colorado revealed he was blackmailing or “sextorting” a 17-year-old female from Colorado that he met in an anonymous Internet video chat website.
Caraballo-Colón offered the minor "game points" for removing her clothes. He then proceeded to blackmail the minor by threatening to post the nude recording on the Internet if she did not provide personal information such as her phone number, e-mail, Skype address and Facebook account information. Despite the fact that the minor complied with Caraballo-Colón’s request, the sextortion escalated as he demanded more sexually explicit acts during video chats, which he also recorded. Caraballo was then charged with 32 counts of production and one count each of possession and transportation of child pornography.
On Wednesday, January 15, 2014, a grand jury sitting in the District of Puerto Rico charged Caraballo-Colón with 26 additional charges of production of child pornography. According to the superseding indictment Caraballo-Colón induced, enticed and coerced female minors, identified as Jane Doe 1 through Jane Doe 58, with the intent that such minors engage in sexually explicit conduct to include the lascivious depiction of such conduct through videos that he allegedly used to sexually extort his victims. The 58 victims identified so far in the investigation are from several states: California, Texas, Colorado, New Hampshire, New Jersey, Oregon, Pennsylvania, North Carolina, Ohio, Vermont and New York; as well as foreign countries such as Australia, Canada and Finland.
“Predators, often disguised as peers and responsible adults, groom and befriend unsuspecting and innocent child victims to perform sexually explicit acts.” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “This superseding indictment is a strong and clear message to predators and criminals that we will not accept tolerate this conduct ways, and will hunt them down to make sure they face justice and respond for their criminal behavior. The Federal Law Enforcement Community and the U.S. Attorney’s Office will spare no resources to arrest and prosecute these predators. Nonetheless, the community, teachers and parents must be vigilant and proactive with our children and educate them on the modus operandi of these offenders.”“Child exploitation, in all its forms, must be among the most heinous crimes a person can commit, but when the element of sexual extortion or – sextortion – is part of this unspeakable abuse, the aberration is even more nauseating and the emotional pain inflicted on the victim is just overwhelming and hard to endure,” said Angel M. Melendez, special agent in charge of HSI San Juan. “Make no doubt, HSI will continue utilizing all its resources and, along with our federal, state and local partners, will continue identifying those who victimize the most vulnerable segment of our society – our children.”
The case is being prosecuted by Assistant U.S. Attorney Elba Gorbea.
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
This investigation was conducted under HSI’s Operation Predator, an international initiative to protect children from sexual predators. Since the launch of Operation Predator in 2003, HSI has arrested more than 10,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children. In fiscal year 2013, more than 2,000 individuals were arrested by HSI special agents under this initiative.Four Active Police Officers and One Retired Sergeant of the Police of Puerto Rico Indicted and Arrested for Obstruction of JusticeRead the Press Release
SAN JUAN, Puerto Rico – On December 19, a federal grand jury in the District of Puerto Rico returned a 23-count indictment against five defendants charged with obstruction of justice, perjury and false statements, 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.
On February 1, 2010, police officers from the PRPD Caguas Drug Division arrested three males at a residence located in Juncos, PR. The police officers seized drugs, money and a weapon located inside the residence. The officers lied about material facts on what they saw, who they saw, and the actions the three individuals had undertaken.
According to the indictment, on or about February 2010, defendants Miguel Brenes-Concepción, Ángel A. Reyes-Agosto, Roberto Gonzàlez-Rivera, Juan Rivera-Ocasio, and Reimundo Quiñonez-Castro, police officers, engaged in misleading conduct toward DEA and FBI agents by providing false information concerning what occurred during the arrest and seizure of the three individuals. This misleading conduct was intended to hinder, delay, and prevent the communication to law enforcement officers and Judge of the United States of information relating to the commission and possible commission of a Federal offense, namely, the deprivation of constitutional rights.
The defendants also testified before the Grand Jury of the US District Court for the District of Puerto Rico and knowingly made false declarations in relation to the original investigation against the three individuals. As part of that investigation, the Grand Jury needed to know the circumstances surrounding the seizure of various items that day, the defendants’ interactions with the individuals arrested, and the observations concerning the interactions of other police officers with the individuals arrested.
The case is being prosecuted by Assistant U.S. Attorney José Contreras. If convicted, the defendants could face up to 20 years in prison.
“Law enforcement officers who use their badges as a shield to deprive citizens of their constitutional rights, and subsequently engage in misleading conduct to cover up their actions, are not protecting our citizens, they are abusing the trust of those they have sworn to serve,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “The Justice Department will continue to aggressively prosecute officers who abuse their power in this manner.”Two Individuals Indicted for Importation of Approximately 1,500 Kilograms of CocaineRead the Press Release
SAN JUAN, Puerto Rico – On December 18, a federal grand jury in the District of Puerto Rico returned an indictment against two defendants charged with conspiracy to possess and possession with intent to distribute controlled substances, and conspiracy to import and importation of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico and Vito Salvatore Guarino, Special Agent in Charge of the Drug Enforcement Administration (DEA), Caribbean Division.
On December 5, 2013, in the early morning hours, PRPD officers from the Fuerza Unida de Ràpida Acción Unit (FURA) detected a suspicious vessel traveling inbound towards the South East area of Puerto Rico, specifically in the area of Patillas, PR, without navigation lights. The vessel was a 33 feet long “Eduardoño.” The vessel contained 54 bales of cocaine, with a gross weight of approximately 1,500 kilograms. Food products from Venezuela were also located inside the vessel, alongside various electronic communication devices including a satellite telephone, cellular telephones and GPS devices. The defendants and the evidence were turned over to the DEA which initiated a joint investigation with the FBI.
On December 6, 2013 a criminal complaint authorized by US Magistrate Judge Silvia Careño-Coll charged Cepeda-Guzmàn and Acevedo-Suero with violations to the U.S. Controlled Substances Act and ordered their temporary detention pending trial. Today the defendants appeared before US District Judge José A. Fusté for the bail hearing and were detained pending trial.
The investigation is being conducted jointly by the Drug Enforcement Administration and the Federal Bureau of Investigation, with the collaboration of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Customs and Border Protection (CBP), US Coast Guard and the Puerto Rico Police Department (PRPD).
The case is being prosecuted by Assistant U.S. Attorney Elba Gorbea. If convicted, the defendants could face from 10 years up to life in prison.Attorney and Notary Public Antonio Peluzzo-Perotin Charged and Arrested for Causing More Than 100 Individuals to Obtain False Concealed Firearms’ Carrying Permits in the District of Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On December 18, 2013, a 300-count criminal complaint was authorized by US Magistrate Judge Bruce McGiverin charging attorney and notary public Antonio Peluzzo-Perotin with 100 violations of Title 18, United States Code, Section 505 (forgery of the signature of a judge, register, or officer of any court of the united States, or of any Territory thereof); 100 violations of Title 18, United States Code, Section 1028(a)(1) (causing the making of false identification documents); and 100 violations of Title 18, United States Code, Section 1028A (aggravated identity theft), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Peluzzo-Perotin caused 100 individuals to obtain false permits to carry concealed firearms within the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) are in charge of the investigation.
According to the criminal complaint and affidavit, in September of 2013, information was brought to the attention of the FBI that Peluzzo-Perotin was creating fraudulent court documents in order to assist individuals to obtain permits to carry concealed weapons. The defendant was introduced to individuals who wanted concealed weapon permits through his association with a gun shop in Bayamón, PR, or through a network of intermediaries or brokers who brought him his clients.
So far, law enforcement has identified over 150 fraudulent petitions originated by Peluzzo-Perotin which have been filed in the Weapons Registry Section of PRPD in the municipalities of Caguas, Humacao, Bayamón, Aibonito and San Juan.
A review of court orders/resolutions authorizing the individuals to receive a concealed weapons permit has shown the following:
- The court filing number listed on the purported court document does not correspond to actual cases docketed within the Puerto Rico courts’ system, or does not match the names and numbers contained therein.
- The documents do not contain the actual name/s of the authorizing judicial officers as customary in all other court documents.
- All documents compared contain identical language, grammar and appearance; location of the Puerto Rico Superior Court’s Seal; location of the clerk’s office certificate of authentication; location of Internal Revenue Stamps (sellos) that partially cover the identifying judicial district.
- All documents contain similar hand written information within the clerk’s office certificate of authentication regardless of having been presumably prepared by different clerks of court.
Law enforcement has reviewed purported court orders/resolutions prepared and provided by the defendant which were then submitted to PRPD in order to cause the production of false PRPD identification cards, under true names. By perpetrating this scheme Antonio Peluzzo-Perotin entirely bypassed the judicial process, which had been legislatively established to properly adjudicate these Concealed Weapons permit applications.
“Today’s announcement exemplifies law enforcement agencies’ intense focus on the rigorous pursuit of criminals who bypass the judicial process using their positions as attorneys to defraud the government and endanger our communities,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico. “Peluzzo-Perotin perpetuated and financially benefitted from an elaborate scheme which demonstrated a blatant disregard for Puerto Rico’s firearms laws, and the security of all our citizens. The investigation continues.”
“The defendant engaged in forgery and aggravated identity theft for personal financial gain and put the security of Puerto Ricans at risk by providing false firearms carrying permits to more than 100 persons,” said Carlos Cases, Special Agent in Charge of FBI in Puerto Rico. “The FBI is committed to investigating corrupt lawyers who commit fraudulent practices.”
James Tuller-Cintrón, Superintendent of the PRPD stated: “The police officers who serve the Puerto Rico Police Department are committed to enforcing the law and ensuring the welfare of all Puerto Ricans. Those persons, who like Peluzzo-Perotin, wish to use their positions to infiltrate and manipulate the branches of government in favor of their own interests to harm the quality of life in Puerto Rico, should know that they will be arrested and shall face the full burden of the law. We will now investigate whether any crimes have been committed by those who Peluzzo-Perotin assisted. What we can point out is that we have taken him off the streets of Puerto Rico.”
The case is being prosecuted by Assistant U.S. Attorneys José Capó-Iriarte and Luke Cass. If convicted, the defendant could face up to 15 years in prison and a mandatory sentence of two consecutive years for the aggravated identity theft charges.
26 Individuals Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SAN JUAN, Puerto Rico – On December 12, 2013, a federal grand jury in the District of Puerto Rico returned an indictment against 26 defendants charged with conspiracy to possess with intent to distribute heroin, crack, cocaine and marihuana, and firearms offenses announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department were in charge of the investigation, in collaboration with the US Marshal Services and the Puerto Rico Department of Corrections.
The object of the conspiracy was to distribute controlled substances at the Francisco Figueroa Public Housing Project (PHP) located in the Municipality of Añasco, Puerto Rico, all for significant financial gain and profit. According to the indictment, beginning in 2010, as part of the manner and means of the conspiracy, the drug distribution points would be moved through different locations at the PHP to avoid detection by law enforcement. It was further part of the manner and means of the conspiracy that members of the drug trafficking organization would use force, violence, and intimidation in order to intimidate rival drug trafficking organizations and discipline members of their own drug trafficking organization.
The leader of the organization, Nestor Class-Hernàndez, aka “Papito,” had the final approving authority as to the discipline to be imposed upon residents of the PHP, members of the conspiracy, as well as its enemies and rivals. The other leaders/drug point owners are: Ángel A. Méndez-Gonzàlez, aka “Corina;” Amaury Balbino-Nazario, aka “Amaury;” and Carlos L. Carrero-Ramos, aka “Carlitos.”
The other co-conspirators are: Luis Fosse-Morales, aka “Pito,” Henry Rodríguez-López, aka “Moña;” Ovidio Datiz-Rodríguez; Francis H. Roman-Tavares, aka “Fanfi;” José J. López-Calero, aka “El Gordo;” Ana Hernàndez-Valentin, aka “La Tia;” Isoel Cuevas-Medina; Wilmy Pacheco-Ureña, aka “Caco;” Jorge Israel Bonilla-Irizarry; Wilson Quintana-Hernàndez, aka “Bimbo;” Joshua Class-Hernàndez; Mark Anthony Irizarry-Rivera, aka “Mikey;” Josue Class-Hernàndez, aka “Chino;” Ruben Alexis Ruiz-Vàzquez, aka “Mozan;” Johanna Irizarry-Rodríguez; Julio Ruiz-Mayo; Oniel J. Ruiz-Torres; Carlos Claudio-Aquino, aka “Carli Bemba;” Nelson Junio Ruiz-Justiniano, aka “Rockerito;” Annette Gaya-Concepción; Juan C. Bracero-Crespo, aka “Joaquin;” and Christopher Acevedo-Díaz, aka “Bocajo.”
According to the indictment, the 26 co-conspirators had many roles in order to further the goals of the conspiracy. These were: four (4) leaders/drug point owners; five (5) suppliers and facilitators; three (3) enforcers; five (5) runners; twelve (12) sellers; nine (9) drug processors and facilitators. Twenty-five of the twenty-six defendants face one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime.
“This drug trafficking organization has been identified as one of the major narcotic distribution organizations operating in the Western portion of Puerto Rico. Violent drug trafficking gangs should take note, and know that we are determined to break their grip on communities, while ensuring that they face justice for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, to reduce gang violence and to bring narcotics and firearms violators to justice.”
“Today DEA, with the support of our Commonwealth and Federal counterparts, neutralizes a violent drug trafficking organization terrorizing the law abiding citizens of the Francisco Figueroa Public Housing Project in Añasco and whose tentacles extended to the towns of San Sebastian and Mayagüez,” said Vito Salvatore Guarino, the Special Agent in Charge of the Drug Enforcement Administration in Puerto Rico and the Caribbean. “DEA will continue attacking the drug trafficking organizations in every corner of the Island as part of our commitment to help the Commonwealth authorities reduce the drug related violence affecting our communities.”
The case is being prosecuted by Assistant U.S. Attorney Dennise N. Longo. If convicted, the defendants could face from 10 years up to life in prison.
Valentin Valdes-Ayala Arrested for Bankruptcy FraudRead the Press Release
SAN JUAN, Puerto Rico – On November 26, 2013, a federal grand jury in the District of Puerto Rico returned a 31-count indictment against Valentin Valdés-Ayala, charging him with bankruptcy fraud, destruction, alteration or falsification of records in bankruptcy, 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, is in charge of the investigation.
According to the indictment, 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 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 coordinate a meeting with the individual subject to incarceration and/or his or her family member(s) and provide a receipt.
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.
It was further part of the scheme to defraud that Valdés-Ayala 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.
“The U.S. Attorney’s Office in Puerto Rico will continue to investigate and prosecute cases involving bankruptcy fraud”, said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The defendant defrauded not only his clients, but also child support beneficiaries and the government Puerto Rico, and he did so by using the United States Bankruptcy courts. Valdés-Ayala sought to obtain as much money as possible, for as long as possible, from his clients. When the fraudulent bankruptcy petitions ultimately were dismissed by the bankruptcy courts, the defendant ceased contact with his clients, who again faced imminent incarceration for past due child support payments.”
“The bankruptcy process is based on the honor system and when used appropriately allows many debtors to get a fresh start. However, when this trust is abused by debtors intentionally making false statements to the bankruptcy court, the FBI will work with the U.S. Attorney’s Office and Bankruptcy Trustee to hold them accountable to ensure the public’s continued trust in the bankruptcy process,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
The case is being prosecuted by Assistant U.S. Attorney Mariana Bauzà. If convicted, the defendant could face a maximum of 30 years in prison and a mandatory consecutive sentence of two years for each of the two aggravated identity theft charges. 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.
Leader of “La Onu” Found Guilty for Rico Act ConspiracyRead the Press Release
SAN JUAN, Puerto Rico – Today, after five days of jury trial, the leader of La ONU, Jean Carlos Ramos-Piñeiro, aka “Jincho”, “Janyi,” “Casper” was found guilty of drug trafficking and murder charges. Namely, violations to the Racketeer Influenced and Corrupt Organizations Act (RICO), Violent Crimes in Aid of Racketeering Activity (VICAR), use of firearms in furtherance of crimes of violence, conspiracy to possess with intent to distribute controlled substances, and possession of firearms by prohibited persons, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The United States District Court Judge José A. Fusté presided over the trial.
The indictment alleged that from in or around 2004, the leaders of different drug points operating in the metropolitan area formed an alliance. This alliance would help them resolve conflicts between the previously rival drug gangs in a way that would not bring about the attention of local and federal authorities, thus ensuring increased profits from drug sales for all and reducing the risk of charges. It is further alleged that the alliance initially worked, but weakened over time. Several housing project gangs became disgruntled with La ONU and sought to break away from the organization. After several conflicts, La ONU broke into two (2) separate rival factions, La ONU and La Rompe ONU (La Rompe). The housing project gangs were split between those belonging to La ONU and La Rompe.
From the time of the split, the goal of La ONU was to maintain control through the use of force over the drug points in their members’ housing projects, and to kill La Rompe members and leaders in order to expand. Members of La ONU who committed murders and other violent acts were given benefits, including weapons, money and the ability to advance within the criminal enterprise. Though unwritten, the general rules followed by members of La ONU included, but were not limited to: 1) no associating with La Rompe members; 2) kill La Rompe members on sight; 3) no killing of other members of La ONU without leadership authorization; 4) no overtaking housing projects/drug points owned by other members of La ONU; and 5) no cooperating with law enforcement. Any violation of these rules was punishable by death of the violator and/or his/her family members.
During the trial, evidence was presented relating to the defendant’s participation in nine (9) murders, all committed in furtherance of the activities of La ONU. These acts are as follows:
- On or about November 12, 2007, in Puerto Rico, defendant Jean Carlos Ramos-Piñeiro aka “Jincho”, “Janyi,” “Casper” and other ONU members shot and killed Orlando Medina-Serrano.
- In October 2008, Jean Carlos Ramos-Piñeiro aka “Jincho”, “Janyi,” “Casper” tortured and killed Isaac Nair Ortiz-Rivera aka Kiki.
- On or about February 19, 2009, in Puerto Rico, defendant Jean Carlos Ramos-Piñeiro aka “Jincho”, “Janyi,” “Casper” and other ONU members killed Ángel Gonzàlez-Villanueva, aka “Chaple.”
- On or about January 5, 2010, in Puerto Rico, defendants Jean Carlos Ramos-Piñeiro aka “Jincho”, “Janyi,” “Casper”, and others killed Luis Antonio De-Jesús-Pérez.
- On April 2, 2010 Jean Carlos Ramos-Piñeiro aka “Jincho”, “Janyi,” “Casper” participated with ONU members in a drive-by shooting against Puerto Rico Police officers.
- On or about April 8, 2010, in Puerto Rico, Jean Carlos Ramos-Piñeiro aka “Jincho”, “Janyi,” “Casper” ordered ONU members toshoot and killed Victor Vega-Ortega, aka “Victor El Nazi.”
- On or about July 7, 2010, in Puerto Rico, defendant Jean Carlos Ramos-Piñeiro aka “Jincho”, “Janyi,” “Casper” and others shot and killed Puerto Rico Police Officer Blanca De Los Santos-Barbosa and Manuel Medina-Rivera.
- On or about August 8, 2010, in Puerto Rico, defendant Jean Carlos Ramos-Piñeiro aka “Jincho”, “Janyi,” “Casper” and others killed Christian Toledo-Sànchez, aka “Pekeke.” During the course of the murder, Luis Gallardo-Rivera, aka “El Tuerto,” was shot and killed by the rival drug gang.
- On December 6, 2010 Jean Carlos Ramos-Piñeiro aka “Jincho”, “Janyi,” “Casper” ordered the murder of Jose Alberto Casanova aka “Picnic,” “Pata Palo,” and ONU member, because he was believed to have become a rival.
“This conviction demonstrates the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to eradicate drug trafficking and violent crimes in Puerto Rico. For many years members of LA ONU intimidated the citizens of the metropolitan area with their violence and drug trafficking,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We are pleased with the jury’s verdict. We will use all the tools at our disposal to take dangerous criminals off the streets of Puerto Rico, until we break their grip on our communities and bring them to justice.”
The case was prosecuted by Assistant United States Attorney Jenifer Y. Hernàndez-Vega and Special Assistant US Attorney Victor Acevedo-Hernàndez.
The defendant is facing a sentence of life in prison. The sentencing hearing was scheduled for February 2014.
Individual Indicted for Hobbs Act and CarjackingRead the Press Release
SAN JUAN, Puerto Rico — Today, William Santiago-Reyes was arrested for carjacking, possession of a firearm during and in relation to a crime of violence, and two Hobbs Act violations, one which resulted in murder, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. William Santiago-Reyes was indicted on November 5, 2013.
On or about May 5, 2012, the defendant did unlawfully take approximately $18,970.07 from the Plaza Loíza Supermarket, located in Carolina, PR, from the person and presence of employees and representatives of Plaza Loíza, by threatening the employees and representative victims with a firearm, that is a Colt revolver 38 caliber, and shooting and killing a security guard referred to as NMB, who had been contracted to pick up the money that was the object of the robbery at Plaza Loíza, and safely deliver it to its destination.
According to the information contained in the indictment that was unsealed today, on May 3, 2012, Santiago-Reyes, with the intent to cause death or serious bodily harm, did intentionally take a motor vehicle from the victim TRR, that is, a 2003 Mitsubishi Lancer, which had been transported, shipped or received in interstate commerce, by force, violence and intimidation with a gray revolver of unknown make and caliber.
On May 4, 2012, Santiago-Reyes did unlawfully take approximately $397.00 from Island Finance, located in Trujillo Alto by threatening the employees at gunpoint.
“This defendant carried out two Hobbs Act violations, one which resulted in the death of an innocent security guard, and a carjacking against a defenseless victim,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend our law enforcement partners who tirelessly investigated this matter, for their persistence and dedication to the cause of justice. This individual will no longer have the ability to terrorize the law-abiding citizens of Puerto Rico and will be prosecuted to the full extent of the law.”
Former Puerto Rico Police Officers Sentenced for Roles in Scheme to Extort A State Defendant for $50,000Read the Press Release
WASHINGTON – Two former police officers with the Police of Puerto Rico were sentenced to serve 63 and 60 months in prison for attempting to extort a defendant and soliciting bribe payments of $50,000.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodriguez of the District of Puerto Rico made the announcement.
Abimael Arroyo-Cruz, 30, of Rio Grande, Puerto Rico, was convicted by a jury on May 29, 2013, of conspiracy to commit federal programs bribery, bribery, conspiracy to commit extortion and attempted extortion. Josue Becerril-Ramos, 36, of Carolina, Puerto Rico, pleaded guilty to all four counts on May 17, 2013, midway through his trial. Arroyo was sentenced to serve 63 months in prison, and Becerril was sentenced to serve 60 months in prison.
Arroyo and Becerril arrested eight individuals for possessing unregistered firearms and marijuana on Aug. 2, 2012. The officers then solicited from one defendant a bribe payment of $50,000 to have his case dismissed. Beginning on Sep. 11, 2012, both officers spoke with the defendant multiple times over the telephone, discussing payment details and strategies for dismissing the defendant’s case.
Arroyo and Becerril collected approximately $35,000 of the $50,000 demanded from the defendant in two different payment installments. Unbeknownst to the officers, however, the individuals who dropped off the payments were cooperating with federal law enforcement.
In exchange for the bribes, Arroyo and Becerril devised a plan whereby the officers would misidentify a co-defendant in court, leading to the dismissal of the defendant’s case. When asked under oath at the preliminary hearing to identify the defendant, Arroyo instead identified a co-defendant. Arroyo confirmed to the defendant following the hearing that he deliberately misidentified the co-defendant as part of the plan to have the defendant’s case dismissed.
The case was investigated by the FBI’s San Juan field office. The case was prosecuted by Trial Attorneys Menaka Kalaskar and Marquest J. Meeks of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Timothy Henwood of the District of Puerto Rico.
Three Members of “La Onu” Found Guilty for Rico Act ConspiracyRead the Press Release
SAN JUAN, Puerto Rico – Today, after 12 days of jury trial, three members of La ONU, Edwin Bernard Astacio-Espino aka Bernard, Luis D. Rivera-Carrasquillo aka Danny KX, Danny Vorki and Ramón Lanza-Vàzquez aka Ramoncito, were found guilty of drug trafficking and murder charges. Namely, violations to the Racketeer Influenced and Corrupt Organizations Act (RICO), Violent Crimes in Aid of Racketeering Activity (VICAR), use of firearms in furtherance of crimes of violence, conspiracy to possess with intent to distribute controlled substances, and possession of firearms by prohibited persons, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The United States District Court Judge José A. Fusté presided over the trial.
The indictment alleged that from in or around 2004, the leaders of different drug points operating in the metropolitan area formed an alliance. This alliance would help them resolve conflicts between the previously rival drug gangs in a way that would not bring about the attention of local and federal authorities, thus ensuring increased profits from drug sales for all and reducing the risk of charges. It is further alleged that the alliance initially worked, but weakened over time. Several housing project gangs became disgruntled with La ONU and sought to break away from the organization. After several conflicts, La ONU broke into two (2) separate rival factions, La ONU and La Rompe ONU (La Rompe). The housing project gangs were split between those belonging to La ONU and La Rompe.
From the time of the split, the goal of La ONU was to maintain control through the use of force over the drug points in their members’ housing projects, and to kill La Rompe members and leaders in order to expand. Members of La ONU who committed murders and other violent acts were given benefits, including weapons, money and the ability to advance within the criminal enterprise. Though unwritten, the general rules followed by members of La ONU included, but were not limited to: 1) no associating with La Rompe members; 2) kill La Rompe members on sight; 3) no killing of other members of La ONU without leadership authorization; 4) no overtaking housing projects/drug points owned by other members of La ONU; and 5) no cooperating with law enforcement. Any violation of these rules was punishable by death of the violator and/or his/her family members.During the trial, evidence was presented relating to defendants’ participation in eleven (11) murders and three (3) attempted murders, all committed in furtherance of the activities of La ONU. These acts are as follows:
- On or about November 12, 2007, in Puerto Rico, defendant Ramón Lanza-Vàzquez, aka “Ramoncito” and other ONU members shot and killed Orlando Medina-Serrano.
- In October 2008, Luis D. Rivera-Carrasquillo, aka “Danny KX” or “Danny Vorki,” tortured and killed Isaac Nair Ortiz-Rivera aka Kiki.
- On or about February 19, 2009, in Puerto Rico, defendant Luis D. Rivera-Carrasquillo, aka “Danny KX” or “Danny Vorki,” and other ONU members killed Ángel Gonzàlez-Villanueva, aka “Chaple.”
- In July 2009, Luis D. Rivera-Carrasquillo, aka “Danny KX” or “Danny Vorki,” killed Jayson Rivera Rivera, Camilo Ruiz Concepcion and Juan Pagan Lopez in what was known as the Cocobongo Massacre.
- On or about January 5, 2010, in Puerto Rico, defendants Luis D. Rivera-Carrasquillo, and others killed Luis Antonio De-Jesús-Pérez.
- On or about April 8, 2010, in Puerto Rico, ONU membersshot and killed Victor Vega-Ortega, aka “Victor El Nazi.”
- On or about May 4, 2010, in Puerto Rico, defendant Edwin Bernard Astacio-Espino, aka “Bernard” shot into a patrolling police helicopter and killed Jesús Quiñones-Santiago, and attempted to kill José Rivera-Quinoñes, Eduardo Alvelo-Meléndez, and Shakira Vàzquez-Nieves.
- On or about July 7, 2010, in Puerto Rico, defendant Edwin Bernard Astacio-Espino and others shot and killed Puerto Rico Police Officer Blanca De Los Santos-Barbosa and Manuel Medina-Rivera.
- On or about August 8, 2010, in Puerto Rico, defendant Edwin Bernard Astacio-Espino, and Luis D. Rivera-Carrasquillo and others killed Christian Toledo-Sànchez, aka “Pekeke.” During the course of the murder, Luis Gallardo-Rivera, aka “El Tuerto,” was shot and killed by the rival drug gang.
“These convictions demonstrate the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to eradicate drug trafficking and violent crimes in Puerto Rico. For many years these individuals intimidated the citizens of the metropolitan area with their violence and drug trafficking,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We are pleased with the jury’s verdict. “The jury trial which led to today’s conviction was one of the first ever RICO Act prosecutions of its nature in the District of Puerto Rico. We will use all the tools at our disposal to take dangerous criminals off the streets of Puerto Rico, until we break their grip on our communities and bring them to justice.”
The case was prosecuted by Assistant United States Attorney Jenifer Y. Hernàndez-Vega and Special Assistant US Attorney Victor Acevedo-Hernàndez.
The defendants face up to life imprisonment. The sentencing hearings were scheduled for February 10, 2014.
Assistant Church Pastor Arrested for Sexually Enticing A MinorRead the Press Release
The Vega Baja resident faces a sentence of up to life in prison
SAN JUAN, Puerto Rico — On Friday evening, November 8, 2013, Dolores Pagàn-Lozada, 54, was arrested at his place of residence after an HSI investigation, which stemmed from a referral by the Puerto Rico Police Department, revealed that he engaged in sexually explicit conversations with a 16-year-old female minor identified as Jane Doe, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
A criminal complaint was authorized by US Magistrate Judge Sylvia Carreño-Coll charging Pagàn-Lozada sexually enticing a minor. According to the criminal complaint, HSI special agents reviewed an Oct. 9 Facebook chat between Pagàn-Lozada and the minor. During the conversation, Pagàn-Lozada wrote that he was out of place for touching Jane Doe but that he wanted to touch her more. He added that he was excited when Jane Doe arrived to his residence where he kissed and touched her. The complaint also alleges that Pagàn-Lozada constantly reminded Jane Doe to delete their conversations and to be smart.
Pagàn-Lozada had his initial hearing before magistrate judge Camille Vélez-Rivé today and was transferred to the Metropolitan Detention Center in Guaynabo awaiting the outcome of his case. The case is being prosecuted by Assistant U.S. Attorney Mariana Bauzà.
“The USAO for the District of Puerto Rico is committed to investigating and prosecuting individuals who feel they can take advantage of their positions of trust and abuse our children,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
“Sexually exploiting children is despicable,” said Ángel M. Meléndez, special agent in charge of HSI San Juan. “ICE HSI will go the extra mile to catch those individuals who prey on these innocent victims. Identifying and investigating those who victimize children, especially those who hold positions of public trust as in the case of Mr. Pagàn-Lozada, is one of the most important responsibilities ICE HSI has.”
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
HSI is a founding member and current chair of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.
Alexis Amador-Huggins Sentenced to Life in Prison for Carjacking-Murder of Stefano StenbakkersRead the Press Release
SAN JUAN, P.R. – Today, Alexis Amador-Huggins was sentenced to life in prison for his participation in the attempted carjacking and murder of Stefano Steenbakkers, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Defendant Alexis Amador-Huggins was found guilty of all charges pending against him after a two week trial.
On or about June 24, 2012, Amador-Huggins and John Anthony Morales-López, aiding and abetting each other, with the intent to cause death and serious bodily harm, attempted to take a motor vehicle, that is, a Lexus SUV, that had been transported, shipped, and received in interstate commerce, from 17 year-old Stefano Steenbakkers, by force, violence and intimidation, resulting in his death. In addition to the carjacking charge, the defendants were charged with knowingly possessing a firearm, that is, a black pistol of unknown model and caliber, in furtherance of a carjacking.
Amador-Huggins was driving a 2009 white Jeep Compass, followed Steenbakkers and started rear-ending his vehicle to force him to stop. The victim refused to stop and called his mother and informed her of the situation, vehicle description and license plate. Steenbakkers was found shot inside his vehicle by his mother.
“Federal and local law enforcement officers will continue working together to fight violent crime in Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The teamwork between state and federal law enforcement agencies in the investigation of this case was instrumental in the prompt filing of charges against these two individuals for this vicious crime.”
The case was prosecuted by First Assistant United States Attorney María Dominguez and Assistant United States Attorney Jacqueline D. Novas.
Guilty Verdict in Firearms CaseRead the Press Release
SAN JUAN, PR – After a two-hour jury deliberation, yesterday evening, defendants Edwin Otero-Marquez, Isaias Mendoza-Ortega, Rafael Martínez-Trinidad, Edwin Otero-Díaz, Brian Pérez-Torres, Ángel Fernàndez-Orge and José A. De la Cruz-Vàzquez were found guilty for possession of a firearm in a School Zone, and aiding and abetting, announced today United States Attorney Rosa Emilia Rodríguez-Vélez. Defendants Otero-Marquez and Mendoza-Ortega were also found guilty of being felons in possession of firearms and ammunition.
On February 16, 2012, a shootout took place at the Jardines de Oriente Public Housing Project in Humacao, PR, during which two individuals were killed. Puerto Rico Police Department Officers arrived at the scene and observed several individuals run into a sewage tunnel. When the officers arrived at the tunnel, they found the seven defendants, along with various items, including: black gloves, ski masks, winter caps, jackets and seven firearms.
The firearms found were: three Springfield Armory pistols, two Glock pistols, one Smith & Wesson pistol and a revolver; six Glock magazines, one long Glock magazine, one Pro Way magazine, four Springfield Armory magazines, one Smith & Wesson magazine and 10 loose rounds.
“We congratulate the agents who investigated this case, and our attorneys for the successful prosecution of this case,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico.
The case was investigated by the FBI and the Puerto Rico Police Department and prosecuted by Assistant United States Attorneys Cesar S. Rivera-Giraud and Alberto López-Rocafort. Defendants are scheduled to be sentenced in March 2014, and are facing a possible sentence of five years in prison. Otero-Marquez and Mendoza-Ortega are facing up to 15 years in prison.
Luz M. Vega, Accountant, Found Guilty of Health Care FraudRead the Press Release
SAN JUAN, Puerto Rico –Today, after 15 days of jury trial before U.S. District Court Judge Gustavo A. Gelpi, Luz M. Vega, Certified Public Accountant, president of Preferred Medical Equipment (PME) and professor at the Interamerican University in Arecibo, PR, was found guilty of conspiracy to commit health care fraud, 24 counts of health care fraud, three counts of Aggravated Identity Theft, 28 counts of payments of kickbacks, and two charges of money laundering, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
The health care fraud scheme involved Luz M. Vega, Doctor Francisco Garrastegui, Lissette Acevedo, Luisa Nieves and María Elisa Pérez. According to the sixty-count indictment, from on or about April 2010, until on or about March 2011, PME submitted false claims to Medicare, seeking reimbursement for not medically necessary Durable Medical Equipment including: power wheelchairs, power pressure reducing air mattresses, wheelchair accessories, lumbar-sacral orthosis, knee orthosis and hospital beds. PME submitted at least 95 fraudulent claims totaling approximately $210,223.47, causing Medicare to disburse approximately $107,876.73. Defendants Garrastegui, Acevedo and Nieves pled guilty previously. The government will forfeit $107,876.73 and one bank account.
“As part of the nation’s health care system, Medicare serves vulnerable populations,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “Today’s verdict shows that we will not tolerate criminals who engage in fraudulent schemes which deplete the Medicare program of funds destined for our elderly population, in order to enrich themselves.”The case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General, with the assistance of the U.S. Secret Service and the Federal Bureau of Investigation. The prosecution was assigned to Assistant U.S. Attorney Héctor Ramírez-Carbó and Special Assistant US Attorney Wallace Bustelo. The defendant could face a possible sentence of up to 10 years in prison for the health care fraud, and a 24 months statutory term for the aggravated identity theft charges consecutive to any other counts of conviction.
Drug Trafficking Organization Operating in the San Juan Seaport Indicted for Conspiracy to Import Controlled SubstancesRead the Press Release
SAN JUAN, Puerto Rico – On October 23, a federal grand jury indicted a group of longshoremen working at the seaport in San Juan, Puerto Rico, a co-owner of a company that provides freight transportation services and their associates, with conspiracy to import and conspiracy to possess with intent to distribute controlled substances, announced United States Attorney Rosa Emilia Rodríguez-Vélez.
The individuals charged conspired and coordinated the purchase of kilogram quantities of cocaine and heroin from sources in Colombia and Dominican Republic. The drugs were placed inside containerized cargo vessels that were scheduled to arrive in the seaport in San Juan, Puerto Rico. Once in Puerto Rico, longshoremen and other individuals working for private companies, providing services at the San Juan port, would use their employment credentials and privileges to gain access inside the containerized cargo vessels and secure areas inside the seaport to retrieve the controlled substances and deliver them to others waiting outside the seaport. Some of the drugs smuggled were distributed in Puerto Rico and some were further transported to the continental United States for eventual resale.
The defendants who work at the seaport in San Juan are: José E. Gonzàlez-Santiago, aka “Fanfa;” Jesús Negrón-Rossy, aka “Primo Tito;” Noralbert Martínez-López, aka “Norel;” Sergio Ferrer-Rivera, aka “Flaco;” José A. Ortiz-Soto, aka “Chelito;” and Nestor Prestamo-Torres aka “Mopa.” The other co-conspirators are: Rawel Encarnación-Cleto, aka “El Domi;” Carlos E. Acosta, aka “Carlitos;” José Israel Ruiz-Caceres, aka “El Viejo;” and Rodney Caceres-Valentin. The conspirators engaged in this scheme since late 2010.
“These arrests demonstrate the continued commitment of federal and local law enforcement agencies in the fight against drug,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The Organized Crime Drug Enforcement Task Force will continue maximizing all of its combined resources to investigate and prosecute those who disregard our laws and try to smuggle illegal contraband into our jurisdiction.”
The indictment is the result of a long term investigation led by special agents from Homeland Security Investigation (HSI) assigned to the Border Enforcement Security Task Force (BEST), a Department of Homeland Security (DHS) initiative to identify, disrupt, and dismantle criminal organizations that seek to exploit vulnerabilities along U.S. borders, in collaboration with the Puerto Rico Police Department (PRPD), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Coast Guard (USCG), U.S. Customs and Border Protection (CBP) and the Puerto Rico Port Authorities.
The case is being prosecuted by Assistant United States Attorney Carlos R. Cardona from the Organized Crime Drug Enforcement Task Force (OCDETF) program. The defendants are facing a minimum of 10 years up to life in prison.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Federal Autorities Sieze $34 Million in Cocaine, Detain Three Smugglers in CaribbeanRead the Press Release
SAN JUAN, Puerto Rico – The Coast Guard and U.S. law enforcement partners seized approximately 1,155 kilograms of cocaine (approximately 2,546 pounds), a go-fast vessel and detained three suspected smugglers, during an at-sea interdiction Friday in the Caribbean Sea south of St. Croix, U.S. Virgin Islands, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The drug shipment is estimated to have a wholesale value of more than $34 million dollars.
On Saturday, October 19, U.S. Magistrate Judge Camille Vélez-Rivé authorized a complaint charging: Allan Hasani Greenidge, Ángel Luis Rivera-Montañez and Ángel Ribot-Aguiar with possession with intent to distribute five or more kilograms of cocaine. The defendants remain in custody. Tomorrow they will have their detention hearing at 1:30 pm.
The interdiction was a result of a multi-agency law enforcement effort in support of the Coast Guard’s Operation Unified Resolve, the Caribbean Border Interagency Group’s (CBIG) Operation Caribbean Guard, and the U.S. Department of Justice Caribbean Corridor Strike Force (CCSF).
“These arrests and multi-kilogram seizure are a clear indication of the success of the Caribbean Corridor Strike Force Initiative,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The US Attorney’s Office and our law enforcement counterparts remain committed to using every law enforcement tool available to attack these criminal organizations and ensure that drug traffickers and their associates are brought to justice for the damage they inflict on our communities.”
“Interdicting drug smugglers at sea in the middle of the night is a complex and dangerous operation only possible through the resolve of federal and regional law enforcement authorities committed to safeguarding Puerto Rico and the U.S. Virgin Islands from the threats that come from the sea,” said Capt. Drew W. Pearson, commander of Coast Guard Sector San Juan. “We will continue our aggressive patrol efforts with our interagency partners to interdict these major drug shipments as far from shore as possible and bring those responsible to justice.”
The crew of a patrolling fixed-wing HC-144 Ocean Sentry maritime patrol aircraft from Air Station Miami detected a suspicious 30-foot go-fast vessel Thursday night. The vessel was spotted carrying three suspected smugglers and what appeared to be multiple bales of suspected contraband.
Coast Guard watchstanders at Sector San Juan diverted a Coast Guard 33-foot Special Purpose Craft Law Enforcement (SPC-LE) pursuit boat from Boat Station San Juan and the Coast Guard Cutter Drummond to interdict the suspect vessel. A Customs and Border Protection (CBP) marine unit also responded upon being alerted.
A CBP dash-8 marine surveillance aircraft relieved the Coast Guard HC-144 Ocean Sentry and vectored in the Coast Guard 33-foot SPC/LE to interdict the go-fast. The suspected smugglers became compliant as the Coast Guard pursuit boat came alongside the suspect vessel. The crew of the Coast Guard SPC-LE pursuit boat proceeded to board the suspect vessel, detain the three men onboard and seize 25 bales of suspected contraband. The Coast Guard Cutter Drummond arrived on scene shortly thereafter and embarked the detainees and suspected contraband for transport to Puerto Rico. A test revealed the suspected contraband to be cocaine.
The crew of the Drummond transferred the detainees and the cocaine to CBP officers, Immigrations and Customs Enforcement (ICE)-Homeland Security Investigations (HSI), and Drug Enforcement Administration (DEA) special agents in Ponce, Puerto Rico.
Since Sept. 2012, Coast Guard alongside CBIG law enforcement agencies under Operation Caribbean Guard have seized 27,650 kilograms of cocaine, in partnership with regional law enforcement authorities in the Caribbean. The wholesale value for these seizures is worth more than $829 million.
The Coast Guard’s efforts under Operation Unified Resolve contribute to the interagency results being achieved each and every day locally under Operation Caribbean Guard, which coordinates efforts between the Coast Guard, its DHS, Commonwealth and Territorial law enforcement partners, who are working diligently to deter, detect and disrupt illicit maritime trafficking to Puerto Rico and the U.S. Virgin Islands.
CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the High Intensity Drug Trafficking Area (HIDTA) and Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of HSI, the U.S. Attorney for the District of Puerto Rico, Drug Enforcement Administration, FBI, the Coast Guard, CBP and PRPD's Joint Forces for Rapid Action.
The CBIG was formally created to unify efforts of the U.S. Customs and Border Protection, the U.S. Coast Guard, U.S. Immigration and Customs Enforcement, the United States Attorney's Office for the District of Puerto Rico, and Puerto Rico Police Joint Forces of Rapid Action, in their common goal of securing the borders of Puerto Rico and the U.S. Virgin Islands against illegal migrant and drug smuggling.
The Coast Guard Cutter Drummond is a 110-foot island class patrol boat homeported in San Juan.
Convict Edison Burgos-Montes Sentenced to Life in Prison for the Murder of A WitnessRead the Press Release
SAN JUAN, PR – On October 2, 2013, Edison Burgos-Montes was sentenced to life in prison following his conviction of two capital murder counts, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced today.
On August 29, 2012, Burgos-Montes, 43, was convicted after a five month trial in U.S. District Court in San Juan of one count of conspiracy to possess with intent to distribute cocaine, one count of conspiracy to import cocaine, one count of murdering a witness to prevent testimony in an official proceeding, and one count of murdering a witness in retaliation for providing information to law enforcement.
The counts of conviction on capital murder charges necessitated a separate penalty phase of the trial. That phase of the trial began on September 10, 2012, and concluded after a week and a half of testimony on September 19, 2012. The jury began its deliberations on September 25, 2012, and concluded them after two and a half days without coming to a unanimous verdict. U.S. District Court Judge Jay García-Gregory presided over the trial. There is no parole in the federal system.
On or about July 4, 2005, Burgos-Montes killed Madelyn Semidey-Morales, a government witness and informant, to prevent her from further informing authorities about the defendant’s unlawful narcotics trafficking and to retaliate against her for providing information relating a law enforcement officer. To this day, her body has not been found. Burgos-Montes was Semidey-Morales’s consensual partner.
The trial was prosecuted by Trial Attorneys Julie Mosley and Jeffrey Kahan of the Justice Department Criminal Division’s Capital Case Section and Assistant United States Attorney Marcela Mateo of the District of Puerto Rico. The case was investigated by the Drug Enforcement Administration and the Puerto Rico Police Department, with assistance from the FBI’s San Juan Field Office Evidence Recovery Team.
27 Individuals Charged in A Superseding Indictment for Drug TraffickingRead the Press Release
Defendants face a narcotics forfeiture allegation of 100 million dollarsSAN JUAN, Puerto Rico – On September 18, 2013, a federal grand jury in the District of Puerto Rico returned a superseding indictment against 27 defendants charged with conspiracy to import cocaine into Puerto Rico from the Dominican Republic, conspiracy to possess with intent to distribute controlled substances and conspiracy to commit money laundering, 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 were in charge of the investigation.
The indictment alleges that beginning in March 2005 until in or about July 2010, the defendants conspired to possess with intent to distribute controlled substances The object of the conspiracy was the wholesale distribution of controlled substances at multiple drug distribution points in the northern and central part of Puerto Rico, and further transshipment to the Continental United States; all for significant financial gain and profit.
Defendant Edgar Collazo-Rivera, a businessman from Bayamón, Puerto Rico, is facing two charges of conspiracy to commit money laundering and international money laundering. The objects of the money laundering conspiracy were: to conceal and disguise drug trafficking proceeds derived by co-conspirators, known and unknown to the Grand Jury; to use drug trafficking proceeds to promote the drug trafficking activities of co-conspirators; and to avoid any reporting requirements of drug trafficking proceeds. It was a manner and means of the conspiracy that the defendant and his co-conspirators would arrange to send bulk shipments of narcotics proceeds to the Dominican Republic, using Collazo-Rivera’s privately owned yachts to transport the U.S. Currency.
The International money laundering count charges Collazo-Rivera with the transportation of monetary instruments or funds, to wit: approximately eight-million dollars ($8,000,000.00) in United States currency from Puerto Rico to the Dominican Republic, knowing that the funds involved in the transportation represented the proceeds of some form of unlawful activity and that such transportation was designed in whole or in part to conceal or disguise the nature, location, source, ownership and control of the proceeds of the specified unlawful activity, to wit, drug trafficking.
The defendants are: Ramón L. Molina-Quintero, aka “Carnal;” José Molina-Quintero, aka “Manolo;” Anthony Declet- Rivera, aka “Chio;” Ángel Felix Esquilin, aka “ Esquilin;” Ismael Luna-Archeval, aka “Maelo;” Carlos Barreto-Bermúdez; Jovanni Varestin-Cruz, aka “Jova;” Alfonso Toledo-Jiménez, aka “Cabito;” Luis Fonseca-Sànchez, aka “Pollo;” Joe Corvette-Gonzàlez, aka “ Joe Cor;” Antonio Rivera-Rodríguez, aka “Prince;” Kermitt Ramos-Acevedo, aka “ Duco;” Hector L. Díaz-Torres, aka “Menor Jodiendita;” Joel Díaz-Torres, aka “Menor Roster;” Carlos Adorno-Cruz, aka “Gallego;” Rocky Martínez-Negrón, aka “Rocky;” Jorge L. Díaz-Casillas, aka “Roquero;” Rolando Melon-Baerga; Luis A. Cedeño-Burgos, aka “Cuco;” Jayson Berríos-Rodríguez, aka “Jayson;” Madelyn Morales-Pagàn, aka “La Loca;” Ryan Colón-Ojeda, aka “Ryan;” Edgar Collazo-Rivera; Carlos Raymundi-Hernàndez; Juan Carlos Fontanez, aka “Papun;” Felix Colón-Peña; and Jean Carlos Bracero-Cotto, aka “Janco.”
“This case demonstrates, once again, the Justice Department’s continued commitment to hold leaders of major drug trafficking cartels responsible for importing narcotics into Puerto Rico and the continental United States – no matter where they conduct their illegal business. Cartel members and their associates will be brought to justice for the damage they inflict on both sides of the border,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The case is being prosecuted by Assistant U.S. Attorney Olga Castellón. If convicted, the defendants could face from 10 years up to life in prison. 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 and Arrested for Bank Robbery and Use of A Firearm During the Comission of A CrimeRead the Press Release
SAN JUAN, P.R. – On September 5, a Federal Grand Jury returned a two-count indictment charging Rafael R. Navedo Jr., aka “Pisi”and Amir Adorno-Guishar of Bank robbery and the use of a firearm during the commission of the crime, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Both individuals were arrested by agents from the Police of Puerto Rico’s Bank Robbery Unit and the FBI. The indictment was unsealed yesterday evening after the arrest of Adorno-Guishar.
On August 22, the defendants aiding and abetting each other, by force, violence and intimidation did take from the person and presence of another, money belonging to and in the care, custody, control, management, and possession of Banco Popular de Puerto Rico, Vieques Branch, the deposits of which were then insured by the Federal Deposit Insurance Corporation, and in committing such offense, the defendants did assault and put in jeopardy the life of another person by the use of a firearm. The total amount robbed was $25,210.00. The next hearing is the arraignment and detention hearing of Amir Adorno-Guishar scheduled for September 13, 2013, at 2:00pm.
If convicted, defendants face up to 25 years for the bank robbery charge, and a minimum of 7 years up to life in prison for the armed robbery charge, and fines up to $250,000.00. The case was investigated by the FBI and Police of Puerto Rico’s Bank Robbery Unit and is being prosecuted by Special Assistant U.S. Attorney Vanessa D. Bonano-Rodríguez.Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Individual Indicted and Arrested for Making False StatementsRead the Press Release
SAN JUAN, P.R. – Today, a Federal Grand Jury returned a one-count indictment charging Gabriel Osorio-Cotto of providing false information and hoaxes to the Puerto Rico 9-1-1 Emergency Services, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Osorio-Cotto was arrested yesterday by agents from the Puerto Rico Police Department and the FBI.
Yesterday, September 10, at approximately 2:47 PM, a call was received by the PR 911 Center where an individual stated that an explosion would occur on a JetBlue flight at the Luis Muñoz Marín International Airport at 6pm. The call originated from a public phone booth at 2001 Americo Miranda. When special agents reported to the site they found that the business around the telephone booth had camera surveillance. The video was reviewed and it showed an individual making the call, who was later identified as Gabriel Osorio-Cotto. The airport operations were affected and the airport was screened for explosives due to this threat.
If convicted, defendant faces up to five years in prison, and fines up to $250,000.00. The case was investigated by the FBI and Police of Puerto and is being prosecuted by Assistant U.S. Attorney Marcela C. Mateo.Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
12 Individuals Indicted and Arrested for Introducing Narcoticts into State PrisonsRead the Press Release
San Juan, Puerto Rico – Twelve individuals, including six state correctional officers, one female correctional nurse, one civilian correctional employee, one state court marshal and three other individuals were charged in nine separate indictments for attempting to introduce heroin into state prisons, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The investigation revealed that corrupt correctional employees were abusing their positions to infiltrate narcotics and other contraband into state penitentiaries in Puerto Rico.
According to the indictments, the defendants attempted to distribute heroin by introducing it into state penitentiaries. The defendants and their roles in the indictments are:
- Lina Michelle Narvàez-Arroyo, relative of inmate
- William Joel Medina, correctional officer
- Yolanda Santiago, friend of Narvàez-Arroyo
- Ángel López Reverón, correctional guard
- Héctor Ruiz-Torres, employee of canteen Correctional Services
- Alberto Martínez-Moreno, correctional officer
- Edwin Sànchez-Velàzquez, correctional officer
- Victoria Rivera, correctional nurse
- Luis Lebron-Lebron, correctional officer
- Jessica Moreno, correctional officer
- Joel Torres-Velàzquez, State Court Marshal
- Antonio Romàn-Medina, friend of William Joel Medina
“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 exemplified in this case cannot and will not be tolerated. We will continue to investigate and prosecute these type of schemes.”
Carlos Cases, Special Agent in Charge of the FBI said: “Corrupt public officials undermine our overall safety, the public trust, and confidence in the Puerto Rico Government system. The FBI will continue to fight corruption in Puerto Rico”.This case is being prosecuted by Assistant U.S. Attorney Héctor Ramírez-Carbó. The case was investigated by Office of Internal Investigations of the Puerto Rico Department of Corrections, Puerto Rico Bureau of Special Investigations, commonly referred to as NIE, the Federal Bureau of Investigation (FBI), and the Puerto Rico Police Department.
The maximum penalties for these offenses are 20 years of imprisonment. 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.
23 Individuals Indicted and Arrested for False Statements in Loan Applications and Bank FraudRead the Press Release
Defendants face a forfeiture allegation of $5,394,104.00
San Juan, Puerto Rico – Twenty-three individuals, including street brokers, loan officers, realtors, appraisers, straw buyers and sellers have been charged in a 15-count indictment unsealed today and returned by a grand jury in San Juan, Puerto Rico on September 4, 2013, 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 revealed that false statements and documents were submitted to mortgage lending institutions to qualify straw buyers for mortgage loans. The false and fraudulent statements supplied by these defendants were: bank account statements, income tax withholding statements, rental contracts, certification forms, and employment certifications, to mention a few. Once the bank approved the loan and disbursed the money, the co-conspirators would then divide the profits from the seller’s proceeds.According to the indictment, the defendants aiding and abetting each other, knowingly made or cause to be made material false statements to various financial institutions for the purpose of influencing the action of other financial institutions, in connection with a loan application to obtain mortgage loans. The financial institutions are: Banco Santander de PR, Cooperativa de Ahorro y Crédito Oriental, Cooperativa Abraham Rosa, Doral Bank, First Bank of PR, Banco Bilbao Vizcaya Argentaria of PR, and RG Premier Bank of PR.
The defendants and their roles in the scheme are as follows:- Defendant Wilson Álvarez-Luna was an individual engaged in the business of purchasing and selling real properties. At times he recruited straw buyers for transactions included herein.
- Defendants Arístides Reyes-Ayala; Benjamín García-De Villalobos; Joel Rodríguez-Santiago; Vivette Rodríguez-Navedo; and Ivyleslie Caraballo-Pastrana, were loan officers and supervised loan officers who participated in the mortgage loan origination, processing and approval process in connection with some of the loans included in the indictment.
- Defendants Álvarez-Luna; Reyes-Ayala; Guillermo Castro, aka “Reynaldo Vanderhorst Meléndez;” Ramón Álvarez-Lombana; José Rosario-Ruiz, aka “Chino;” Benneth Dàvila-Ochoa; Moisés Rolón-Santiago; Orlando Pérez-Juarbe; Cesar Berroteran-Cadenas; Anny Raquel Reyes-Cruz; Gerardo Vergara-Ramírez; and Edwin Girald-Torres participated in real estate transactions as either seller or straw buyer and applied and obtained mortgage loans.
- Defendants Antonio Sotomayor-Ramírez and Henry Schettini-Gutiérrez were real property appraisers.
- Defendants Álvarez-Luna; Jesús Cuadrado-Rodríguez; Beker De Jesus-Eckardt; Ángel Daniel Bermúdez-Saez; Onix Morales-Torres; Berroteran-Cadenas; and José Cabrera-Beuchamp, aka “Pepe” acted as facilitators who would recruit straw buyers or refer properties and property owners to participate in some of the fraudulent loan transactions.
- Defendants Morales-Torres and José Cabrera-Beuchamp, aka “Pepe,”were real estate agents.
“This indictment demonstrates the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to ensure the integrity of the financial and banking system,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The investigation and prosecution of financial crimes is one of the top priorities of the U.S. Department of Justice. Mortgage fraud is a serious issue for the banking industry and for homeowners who helplessly watch as their property values decrease, and foreclosure signs and abandoned properties take over their neighborhoods.”
Lester Fernàndez, Special Agent in Charge of this Region for the US Department of Housing and Urban Development – Office of Inspector General stated: “It is always disturbing when industry professionals who have fiduciary responsibilities and are expected to act as honest brokers exploit federally funded programs. HUD-OIG will continue to partner with prosecutors, law enforcement and audit agencies to aggressively pursue those engaged in activities that harm federal housing programs.”
Carlos Cases, Special Agent in Charge of the FBI said: “Mortgage fraud isn’t a victimless crime. It threatens the financial health of our communities, and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property. FBI will continue to utilize its financial investigative expertise to aggressively investigate criminal activities that attack our financial system.”
This case is being prosecuted by Assistant U.S. Attorney Mariana Bauza. The case was investigated by U.S. Department of Housing & Urban Development Office of Inspector General (HUD-OIG), Federal Bureau of Investigation (FBI), Puerto Rico Office of the Commissioner of Financial Institutions, Puerto Rico Police Department, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Treasury Department, Tax Crime Division.
The maximum penalties for these offenses are 30 years of imprisonment, and fines of $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.
23 Individuals Indicted and Arrested for False Statements in Loan Applications and Bank FraudRead the Press Release
Defendants face a forfeiture allegation of $5,394,104.00
San Juan, Puerto Rico – Twenty-three individuals, including street brokers, loan officers, realtors, appraisers, straw buyers and sellers have been charged in a 15-count indictment unsealed today and returned by a grand jury in San Juan, Puerto Rico on September 4, 2013, 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 revealed that false statements and documents were submitted to mortgage lending institutions to qualify straw buyers for mortgage loans. The false and fraudulent statements supplied by these defendants were: bank account statements, income tax withholding statements, rental contracts, certification forms, and employment certifications, to mention a few. Once the bank approved the loan and disbursed the money, the co-conspirators would then divide the profits from the seller’s proceeds.According to the indictment, the defendants aiding and abetting each other, knowingly made or cause to be made material false statements to various financial institutions for the purpose of influencing the action of other financial institutions, in connection with a loan application to obtain mortgage loans. The financial institutions are: Banco Santander de PR, Cooperativa de Ahorro y Crédito Oriental, Cooperativa Abraham Rosa, Doral Bank, First Bank of PR, Banco Bilbao Vizcaya Argentaria of PR, and RG Premier Bank of PR.
The defendants and their roles in the scheme are as follows:- Defendant Wilson Álvarez-Luna was an individual engaged in the business of purchasing and selling real properties. At times he recruited straw buyers for transactions included herein.
- Defendants Arístides Reyes-Ayala; Benjamín García-De Villalobos; Joel Rodríguez-Santiago; Vivette Rodríguez-Navedo; and Ivyleslie Caraballo-Pastrana, were loan officers and supervised loan officers who participated in the mortgage loan origination, processing and approval process in connection with some of the loans included in the indictment.
- Defendants Álvarez-Luna; Reyes-Ayala; Guillermo Castro, aka “Reynaldo Vanderhorst Meléndez;” Ramón Álvarez-Lombana; José Rosario-Ruiz, aka “Chino;” Benneth Dàvila-Ochoa; Moisés Rolón-Santiago; Orlando Pérez-Juarbe; Cesar Berroteran-Cadenas; Anny Raquel Reyes-Cruz; Gerardo Vergara-Ramírez; and Edwin Girald-Torres participated in real estate transactions as either seller or straw buyer and applied and obtained mortgage loans.
- Defendants Antonio Sotomayor-Ramírez and Henry Schettini-Gutiérrez were real property appraisers.
- Defendants Álvarez-Luna; Jesús Cuadrado-Rodríguez; Beker De Jesus-Eckardt; Ángel Daniel Bermúdez-Saez; Onix Morales-Torres; Berroteran-Cadenas; and José Cabrera-Beuchamp, aka “Pepe” acted as facilitators who would recruit straw buyers or refer properties and property owners to participate in some of the fraudulent loan transactions.
- Defendants Morales-Torres and José Cabrera-Beuchamp, aka “Pepe,”were real estate agents.
“This indictment demonstrates the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to ensure the integrity of the financial and banking system,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The investigation and prosecution of financial crimes is one of the top priorities of the U.S. Department of Justice. Mortgage fraud is a serious issue for the banking industry and for homeowners who helplessly watch as their property values decrease, and foreclosure signs and abandoned properties take over their neighborhoods.”
Lester Fernàndez, Special Agent in Charge of this Region for the US Department of Housing and Urban Development – Office of Inspector General stated: “It is always disturbing when industry professionals who have fiduciary responsibilities and are expected to act as honest brokers exploit federally funded programs. HUD-OIG will continue to partner with prosecutors, law enforcement and audit agencies to aggressively pursue those engaged in activities that harm federal housing programs.”
Carlos Cases, Special Agent in Charge of the FBI said: “Mortgage fraud isn’t a victimless crime. It threatens the financial health of our communities, and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property. FBI will continue to utilize its financial investigative expertise to aggressively investigate criminal activities that attack our financial system.”
This case is being prosecuted by Assistant U.S. Attorney Mariana Bauza. The case was investigated by U.S. Department of Housing & Urban Development Office of Inspector General (HUD-OIG), Federal Bureau of Investigation (FBI), Puerto Rico Office of the Commissioner of Financial Institutions, Puerto Rico Police Department, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Treasury Department, Tax Crime Division.
The maximum penalties for these offenses are 30 years of imprisonment, and fines of $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 and Arrested for ExtortionRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 2 defendants charged with Attempted Hobbs Act extortion, Travel Act, and Conspiracy. Defendants Jesús Damiàn Martínez-Silva and Jonathan Montes-Martínez, aiding and abetting one another, attempted to obstruct, delay, and affect commerce and the movement of articles and commodities in commerce by extortion. The defendants attempted to obtain the purported property of RV, a female victim, in the form of $1,000.00 with RV’s consent induced by the wrongful use of force, violence, and fear.
On August 28, 2013, the defendants participated in a scheme in which the ring would call the victim, describe her 78-yr old mother’s home, and threaten to kill her unless she paid them money. The victim paid $1,000 and then was called the next day, August 29, and was extorted for more money. The victim called the FBI and the FBI did a sting and the defendants were arrested after Jesús Damiàn Martínez-Silva and another individual collected $1,000 in government funds from the victim.
Assistant U.S. Attorney Luke Cass is in charge of the prosecution of the case. If convicted the defendants face up to thirty years imprisonment. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Man Sentenced to 50 Years in Prison for Production of Child PornographyRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that United States District Judge Carmen C. Cerezo sentenced 42 year old Luis Alberto Morales-Badillo to serve a term of imprisonment of 50 years imprisonment followed 15 years of supervised release, to be served consecutively to the 15 year imprisonment term imposed for additional sexual aggression charges against minors. On November 16, 2012, Morales-Badillo pled guilty to five counts of production of child pornography and one count of possession of child pornography, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In May, 2012, the defendant was charged for production and possession of child pornography. The evidence in this case revealed that during an eleven year period, from 1999 to 2010, the defendant sexually abused and/or engaged in illicit sexually explicit conduct with five different female minors and documented his sexual abuse by making visual depictions of such conduct from 2003-2010. From 1999-2004 he abused a female minor while she was 8-12 years old; from 2005-2008 he sexually abused two female minor siblings while they were 4-8 and 9-12 years old respectively; from 2007-2008 he exploited a female minor while she was 12-13 years old; and in 2010 he took advantage and exploited an 8 year old female minor. Such evidence was discovered during a search warrant execution by Homeland Security Investigations Agents wherein a digital camera and a laptop computer was seized in August, 2011.
The defendant has also been convicted at the state level for sexually abusing two additional female minor victims during the time period of 1995-1999.
The defendant exhibited a pattern of sexual abuse against innocent female minors until he was arrested in 2011. Luis Morales Badillo caused substantial lifetime harm to his victims.
“Justice was done today. This sentence should serve to reassure the public that we are paying close attention to the well-being of our children, and that we will spare no expense to take child predators off the streets,” said US Attorney Rosa Emilia Rodríguez-Vélez. “All child sexual predators will be held accountable for the unspeakable crimes they commit and the harm they cause to their victims and their families.”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.
The criminal prosecution was handled by Assistant U.S. Attorney Jenifer Y. Hernàndez and investigated by ICE agents.
Puerto Rico Man Sentenced to Life in Prison for 2009 Mass ShootingRead the Press Release
WASHINGTON – Alexis Candelario-Santana, 42, was sentenced today to life in prison for murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting at a Puerto Rico nightclub in 2009.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez made the announcement.
“The horrifying massacre at La Tómbola came just nine months after Candelario-Santana’s release from prison for committing 12 murders. During his rampage, he brutally killed or injured dozens of other innocent victims, including children and the elderly,” said Acting Assistant Attorney General Raman. “Our thoughts are with the victims and their families, and we hope that today’s life sentence brings some measure of comfort to them. As this prosecution and today’s life sentence shows, we will not waver in our commitment to bringing violent criminals to justice.”
“With the sentencing of this career criminal we have made our community a safer place. The U.S. Attorney’s Office will continue working along with other law enforcement agencies to prosecute criminals who deprive our communities of a peaceful and safe environment,” said U.S. Attorney Rodríguez-Vélez. “I commend our prosecutors and investigative agencies who have demonstrated, once again, that our efforts continue to provide positive results to the community.”
Candelario-Santana and his co-defendant David Oquendo-Rivas were convicted by a federal jury on March 8, 2013. Candelario-Santana was convicted of 28 counts of committing violent crimes in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possessing a firearm as a convicted felon. Oquendo-Rivas was convicted of 28 counts of committing violent crimes in aid of racketeering activity and nine counts of using a firearm in relation to a crime of violence. These offenses occurred on Oct. 17, 2009, in what became known as the “La Tómbola Massacre.”
Based on the government’s charging documents, only Candelario-Santana was potentially eligible for the death penalty. On March 23, 2013, the same jury that determined the guilt of Candelario-Santana and Oquendo-Rivas was unable to reach a unanimous verdict on the question of whether Candelario-Santana should be sentenced to death or life in prison. As a result, under the Federal Death Penalty Act, Candelario-Santana was required to be sentenced to life in prison.
According to the evidence presented at trial, from approximately 1993 through 2003, Candelario-Santana was a leader of the drug trafficking organization that operated principally in Sabana Seca, Toa Baja, Puerto Rico. The organization purchased drugs in bulk, processed and packaged the drugs, and sold them at Sabana Seca through numerous sellers, runners and enforcers under Candelario-Santana’s control. The organization sold crack, cocaine, heroin and marijuana, and members of the organization routinely possessed firearms to protect its drug points. In addition, the evidence introduced at trial established that, between 1995 and 2001, Candelario-Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats to his drug trafficking organization or as being disloyal members of the drug trafficking organization.
In approximately 2002, Candelario-Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Candelario-Santana was eventually convicted of 12 murders in the local courts, and was sentenced to a total of 12 years in prison. Sometime after Candelario-Santana’s arrest, co-defendant Carmelo Rondón-Feliciano took charge of the day-to-day operations of the organization, but Candelario-Santana continued to direct the organization from prison until approximately 2006, when he was marginalized by co-conspirator Wilfredo Semprit-Santana and Rondón-Feliciano. According to evidence presented at trial, Candelario-Santana was infuriated at being removed from power within the drug trafficking organization.
On Sept. 25, 2006, Rondón-Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes, for which he was eventually convicted. These charges stemmed, in part, from Rondón-Feliciano’s distribution of narcotics in Sabana Seca. After Rondón-Feliciano’s arrest, co-conspirator Semprit-Santana took charge of the organization.
In February 2009, Candelario-Santana was released from prison.On Oct. 17, 2009, Semprit-Santana held the grand opening of a nightclub he had rented and refurbished called La Tómbola, located in Toa Baja, Puerto Rico, complete with a popular live band and a festive Paso Fino horse parade, known as a “cabalgata.” The event was heavily attended, with families congregating inside and outside the establishment, most of whom had nothing to do with the drug trafficking organization and merely resided in the general area. At approximately 11:50 p.m., Candelario-Santana, co-defendant David Oquendo-Rivas, and others, all of whom were heavily armed, drove to La Tómbola. When they arrived, they immediately opened fire indiscriminately on all the patrons located outside, many of whom were women, children and elderly people. Candelario-Santana and Oquendo-Rivas stormed into the La Tómbola, and Candelario-Santana was heard to yell, “no one gets out alive,” as they opened fire on the people inside.
In all, eight people and an 8-month unborn child were killed as a result of the gunfire at La Tómbola, and 19 other victims were shot and injured. The individuals killed included Candelario-Santana’s godson, Rondón-Feliciano’s stepson, and Candelario-Santana’s cousin. The evidence introduced at trial demonstrated that 335 expended shell-casings were recovered from the La Tómbola crime scene. The ballistics evidence established that three AK-47-type assault rifles, one AR-15-type assault rifle, eight .9 mm semi-automatic pistols, three 40-caliber semi-automatic pistols, and two 45-caliber semi-automatic pistols were used in the attack.
Oquendo-Rivas is scheduled for sentencing on Sept. 20, 2013.
The case was investigated by the FBI and the Puerto Rico Police Department, with the collaboration of the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice. The case was prosecuted by First Assistant U.S. Attorney María Dominguez-Victoriano and Assistant U.S. Attorney Marcela C. Mateo of the U.S. Attorney’s Office for the District of Puerto Rico and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Unit.
126 Individuals Indicted for Drug Trafficking in the Municipality of CaguasRead the Press Release
Defendants face a forfeiture allegation of 76 million dollars
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 126 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances. Today, FBI agents and officers of the Puerto Rico Police Department (PRPD), the agencies in charge of the investigation, executed the arrest warrants with assistance from the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement – Homeland Security Investigations, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshals Service.
The indictment, handed down Aug. 15, 2013 by a federal grand jury and unsealed in federal court today, charges 126 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising a public or private school and/or playground at the Morales Ward (Barriada Morales) in the Municipality of Caguas, Puerto Rico.
The indictment alleges that beginning in 2005, the organization operated six different drug points located within Barriada Morales. These drug points would have fixed prices for each type of drug, in order to maintain the parity of the sales among the drug points.The 126 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: 18 leaders or drug point owners; 26 enforcers; three drug processors; 23 runners/suppliers; 40 sellers; and 16 facilitators. All defendants are facing a forfeiture allegation of seventy-six million dollars.
Some of the defendants and their co-conspirators would be paid $500 a week in exchange for their job as enforcers. During the holiday season, the sellers would often receive a cash award or a “Christmas bonus” in addition to their regular pay.
The indictment further alleges that the co-conspirators would have access to different vehicles, usually parked in strategic locations, inside and outside Barriada Morales, in order to transport money, narcotics and firearms. These vehicles would often be used by some of the defendants and their co-conspirators to conduct drive-by shootings and to go out and “hunt” rival gang members.
Fifty-two of the co-conspirators are charged with using and carrying firearms during and in relation to a drug trafficking crime. Some of the defendants and their co-conspirators would often act as look-outs and armed surveillance at five strategically located observation points, used to alert other co-conspirators of the presence of law enforcement agents and/or rival drug traffickers.
During daylight hours the armed surveillance would be conducted with pistols and revolvers. At night, the co-conspirators in charge of the armed surveillance would conduct the same by possessing, carrying and brandishing high power rifles, often altered to function as fully automatic.
The members of the conspiracy used force, violence and intimidation in order to scare rival drug traffickers and members of their own organization. Sometimes, the leaders would discipline the members of their own organization by breaking their legs and arms using an axe handle.
“Violent drug trafficking gangs should take note, and know that we are determined to break their grip on communities, and that they will face severe penalties for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, and to reduce gang violence and bring narcotics and firearms violators to justice.”
“The FBI's message is clear and unequivocal. We will work together with our federal, state and local law enforcement partners to assign all necessary resources to identify, locate, and arrest violent crimes offenders. They will face our justice system. They will be prosecuted to the fullest extent of the law,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
Assistant U.S. Attorneys Alberto López-Rocafort and Teresa Zapata and Special Assistant U.S. Attorney Victor O. Acevedo-Hernàndez are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation, responsible for drug trafficking in Puerto Rico. 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.
Local Defense Attorney and Other Individual Arrested for Money LaunderingRead the Press Release
SAN JUAN, P.R. – On August 23, 2013, a Federal grand jury returned an indictment against attorney Ramón M. Negrón-Colón, aka “Monchito,” and William Barreto-Ortiz, aka “Willie,” for conspiracy to commit money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Federal Bureau of Investigations (FBI) and Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI).
Ramón M. Negrón-Colón is an attorney licensed to practice law in Puerto Rico. Negrón-Colón has represented José D. Figueroa-Agosto, aka “Junior Càpsula,” in judicial proceedings in Commonwealth courts. Defendant William Barreto-Ortiz is a self-employed legal broker operating mainly in Bayamón, Puerto Rico. 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 alleges 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 alleges that beginning on a date unknown, but not later than 2007, until on or about the return of the Indictment, in the Districts of Puerto Rico and New York, and in the Dominican Republic, Negrón-Colón and Barreto-Ortiz knowingly conducted and attempted to conduct financial transactions affecting interstate commerce, which transactions involved the proceeds of specified unlawful activity, that is, 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 known to the Grand Jury in different occasions in order to further the goals of the conspiracy.
Barreto-Ortiz is also facing one charge of making a false statement, for knowingly and willfully lying to the FBI while it was engaged in an official investigation.
“The actions committed by these two defendants and their efforts to set aside a criminal conviction through illegal payments, undermine the public’s trust in the judicial system, which is a cornerstone to our democracy,” said United States Attorney Rosa Emilia Rodríguez-Vélez.
The case is being prosecuted by Assistant U.S. Attorney Timothy Henwood, Chief of the White Collar and General Crimes Unit.
If found guilty, the defendants could face a possible sentence of up to 20 years in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Two Individuals Arrested for Health Care FraudRead the Press Release
SAN JUAN, P.R. – On August 22, 2013, a Federal grand jury returned an indictment against two individuals for conspiracy to commit health care fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Department of Health and Human Services, Office of Inspector General (HHS-OIG), with the collaboration of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), the Federal Bureau of Investigations (FBI) and the Puerto Rico Police Department.
Carlos I. Rivera-Torres, President of CEM Puerto Rico Health Services, Inc. (CEM) and Alpha-Omega Wound Care (Alpha-Omega) and Pedro Rivera-Rivera, President of New Center Medical Supply, Inc. (New Center), are charged in a 25-count indictment for conspiracy to commit health care fraud and a forfeiture allegation of $1,741,090.08. The government seeks to forfeit two bank accounts, CEM Office Building in Caguas, PR and a property in Urb. Sabanera in Cidra, PR.
The indictment alleges that from on or about June 18, 2008 through on or about March, 2012, CEM and New Center submitted at least 710 false and fraudulent claims to Medicare totaling approximately $2,457670.00, seeking reimbursement for Durable Medical Equipment (DME) including collagen wound dressings that were misbranded, causing Medicare to disburse approximately $1,741,090.08.
It was part of the scheme and artifice to defraud that Rivera-Torres and other unindicted employees of Alpha-Omega, at their premises, in a room that was used for this activity, removed some of the 8x8 inch Helicoll collagen wound dressings from their primary unlabeled pouches, cut them into pieces of approximately 4x4 inch and 2x2 inch and repacked them in unlabeled plastic and foil material, contrary to the manufacturer's product instructions ("Sterility Guaranteed in Unopened, Undamaged Package. To Be Used for One Procedure Only").
Those repacked 4x4 inch and 2x2 inch collagen wound dressings, which were cut by using common household scissors, some of them with rust, were provided to patients by representatives of Alpha-Omega or CEM inside unlabeled pouches created in a converted garage located at the premises of Alpha-Omega.
Both defendants also face three counts for soliciting and receiving kickbacks in relation to the Medicare Program. Defendant Rivera-Torres also faces charges of misbranding and adulterating medical devices with intent to mislead and defraud and money laundering.“As part of the nation’s health care system, Medicare serves vulnerable populations,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “These individuals jeopardized the health of injured people who needed the sterile collagen wound dressings. Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate criminals who engage in fraudulent schemes which deplete the Medicare program of funds in order to enrich themselves.”
Thomas O’Donnell, Special Agent in Charge of the Office of Inspector General’s New York Regional Office which also covers Puerto Rico stated: “HHS/OIG works diligently to investigate allegations of Medicare fraud. Today's arrests involving Durable Medical Equipment (DME) fraud demonstrate our resolve to bring these subjects to justice. Our efforts, along with the US Attorney's Office and our Law Enforcement partners, have made a dramatic reduction on the total dollars billed and paid for DME in Puerto Rico.”
HHS-OIG was the lead agency which conducted the investigation, with the collaboration of FDA, FBI, and PRPD. The case is being prosecuted by Special Assistant U.S. Attorney Wallace A. Bustelo and Assistant U.S. Attorney Héctor Ramírez-Carbó.
If found guilty, the defendants could face a possible sentence of up to 10 years in prison for the Health Care Fraud offense. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Man Arrested for Child Sexual Exploitation ChargesRead the Press Release
SAN JUAN, Puerto Rico — On Friday, August 9, 2013, Javier Negrón-Arce, 47, was arrested at his place of residence after an HSI investigation, which stemmed from a referral from the Puerto Rico Police Department’s Sexual Crimes Division, and revealed that he allegedly transported a 16-year-old minor identified as Jane Doe with the intent to engage in sexual criminal conduct, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. This arrest followed an investigation from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF).
According to the criminal complaint, on Jan. 16, Negrón-Arce, drove Jane Doe to a local motel and sexually abused her against her will. The charging document further alleges that during the sexual act Negrón-Arce restrained Jane Doe’s hands using physical force.
Today, Negrón-Arce appeared before U.S. Magistrate Sylvia Carreño for his detention hearing and was ordered to remain at the Metropolitan Detention Center in Guaynabo to wait for the outcome of his case.
If convicted, the defendant faces a sentence of 10 years to life in prison. The case is being prosecuted by Assistant U.S. Attorney Julia M. Meconiates.“Evidence that adults are taking children to motels for the purpose of committing sexual abuse is on the rise. In Puerto Rico, Federal authorities have enhanced jurisdiction to investigate sex abuse crimes involving children; that is to say that, because of our unique commonwealth status, we can prosecute crimes federally that in the rest of the 50 states would be solely local crimes,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The USAO for the District of Puerto Rico is committed to taking full advantage of this enhanced jurisdiction in order to protect your children. I urge the public to be on the lookout for children being transported anywhere within Puerto Rico for the purpose of engaging in any sexual activity to contact the Federal authorities directly.”
“Predators who victimize innocent children for selfish gratification must know that we will not rest until they are brought to justice, regardless of where they live,” said Ángel M. Meléndez, special agent in charge HSI San Juan. “Words cannot describe the harm that these crimes inflict on children.”
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
Doctor Brothers Jose and Carlos Lopez Diaz Sentenced for Health Care FraudRead the Press Release
SAN JUAN, P.R. – Yesterday and today, doctor brothers José and Carlos López-Díaz were sentenced to 121 months and 36 months and one day of imprisonment respectively, and three years of supervised release for their participation in a conspiracy to commit health care fraud, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. U.S. District Court Judge Francisco A. Besosa imposed the sentences and ordered José López-Díaz to be committed immediately to the Metropolitan Detention Center while Carlos López-Díaz was allowed to voluntary surrender upon designation by the Bureau of Prisons.
Doctor José López-Díaz and his brother Doctor Carlos López-Díaz were arrested on September 1, 2011, after a Federal grand jury returned 20-count indictment for conspiracy to commit health care fraud and a forfeiture allegation of $727,729.16. The investigation was lead by the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), with the collaboration of the United States Secret Service (USSS). They were found guilty by a jury of their peers on June 13, 2012.
According to the indictment, José Lopez-Díaz a general practitioner licensed to practice medicine in Puerto Rico, was billing for Medicare services not rendered. The services billed and not rendered included: billing Medicare for 10,231 claims for medical treatment allegedly provided to Medicare patients at Guaynabo Medical Mall’s Emergency Room, even though he had never worked at such institution and never saw the patients; billing of Medicare code 53085, known as “Drainage Perineal Urinary Extravasation”, a procedure which was allegedly performed by José López-Díaz on female patients, when this procedure can only be performed on male patients. José Lopez-Díaz never provided medical treatment to the Medicare beneficiaries whose identities he used in order to bill Medicare.
Over the period of time referred to in the Indictment, José Lopez-Díaz fraudulently billed Medicare for $3,591,298.90 and received the amount of $727,729.16 in Medicare reimbursements. He was also ordered to pay the amount of $1,028,691.55 in restitution and a Special Monetary Assessment of $3,400.
Doctor Carlos López-Díaz is a licensed dentist in Puerto Rico and the brother of José Lopez-Díaz. Over the course of the health care fraud scheme, Carlos López-Díaz conspired with his brother to defraud Medicare and provided him with names and Medicare beneficiary numbers of patients treated by Carlos López-Díaz at his dental clinic in order for his brother to bill Medicare for services not rendered to those patients.
“We are pleased with the sentences of these two defendants,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “These demonstrate that we will not tolerate criminals who engage in fraudulent schemes which deplete the Medicare program of funds which are destined for our elderly population in order to enrich themselves. “May these sentences serve as an example for the medical community in Puerto Rico of what could be the consequences they can face if they defraud the Medicare program.”“We are proud to be a part of the federal team that brought these defendants to justice for defrauding the Medicare program and exploiting the elderly,” said Thomas O’Donnell, Special Agent in Charge of the Office of Inspector General’s New York Regional Office which also covers Puerto Rico. “Arresting owners and providers, freezing their assets and prosecuting them to the fullest extent possible, are some of the tools that the federal government has available, and will be utilized to remove these individuals from participating in the Medicare program.”
HHS-OIG, USSS and the FBI, the investigative agencies received substantial collaboration from the Special Investigative & Compliance Units from Medical Card System Inc., Triple-S Salud, Medicare y Mucho Màs and Preferred Medicare Choice.
The case was prosecuted by Assistant U.S. Attorney Ernesto López-Soltero and Special Assistant U.S. Attorney Wallace A. Bustelo.
Arrest and Indictment of Seventy-Five Individuals for Social Security FraudRead the Press Release
SAN JUAN, P.R. - On August 16, 2013 a Federal Grand Jury in the District of Puerto Rico returned 73 separate Indictments charging three doctors, Wildo Vargas, Rafael Miguez Balseiro, and Erica Rivera Castro; one non-attorney representative, Samuel Torres Crespo, a retired Social Security employee; and 71 other social security claimants for fraud in the application process of Social Security Administration (SSA) disability insurance benefits in Puerto Rico, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez.
For the past two years the FBI and SSA-OIG have jointly investigated fraud in claims for SSA disability insurance benefits. Analysis conducted by SSA of the volume of pending, processed, and approved claims suggested that Puerto Rico is one of the top districts in the country for the commission of this type of fraud. The investigation focused on historical claimants, whose claims were medically supported by suspect physicians.
The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides cash benefits to workers with severe, long-term disabilities, who have worked in SSA covered employment for the required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits.
Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application. The application and supporting evidence would then be evaluated by SSA to determine the claimant’s medical impairments and determine the effect of the impairment on the claimant’s ability to work on a sustained basis.
Samuel Torres Crespo would complete an SSA disability insurance application for a claimant in a manner calculated to justify a non-existent medical disability, in order to improperly deceive and persuade the SSA to award the claimant retroactive and future disability benefit payments. Torres Crespo charged and collected a fee equal to 25% of the retroactive lump sum payment made by the SSA, but not to exceed $6,000.00 dollars. The government has civilly forfeited approximately $1.7 million dollars and other valuables from Torres Crespo.
The doctors, Wildo Vargas, Rafael Miguez Balseiro, and Erica Rivera Castro, would evaluate, treat, and diagnose the claimants in a manner calculated to justify a non-existent disability in order to improperly deceive and persuade the SSA to award the claimants with retroactive and future disability benefit payments. The doctors would receive between $150.00 to $500.00 dollars for the submission of their medical reports to SSA.
The defendants who illegally received the benefits are Myrna M. Santos Rivera, Nevelline Tirado Gomez, Mayra L. Pantoja Carrelo, Obette Santiago Maldonado, Julio A. Crespo Crespo, Arnaldo Pino Hernandez, Jose Perez, Carmen L. Gonzalez, Olvin Rosado Ballester, Arlivone Rodriguez Rivera, Carlos Colon Gonzalez, Liz D. Vega Mena, Joanna Rodriguez, Lynette Figueroa Vazquez, Gerardo Torres Lopez, Aixa Prado Serrano, Joel Pabón Hernandez, Glorivette Montalvo Guzman, Ruth Adan, Lizbeth M. Martinez Velez, Juan J. Malpica Nieves, Victor R. Santiago, Carmen Noriega, Carmen R. Cortes Nieves, David Rodriguez Colon, Alex E. Morales Quijano, Cynthia E. Rivera Mejías, Ismael Rivera Figueroa, Enrique Torruella, Jismel A. Lozada Pabon, Jaime M. Santiago Piñeiro, Nancy Melendez Crespo, Madelyn Molina Valentin, Benny Bonet Rivera, Jose L. Orta Rivera, Jorge L. Morales Melendez, Hector L. Rodriguez Marrero, Luz D. Figueroa Diaz, Eduardo Serrano Quintero, Lissette Vidot Santiago, Victor O. Rodriguez Arroyo, Francisco L. Cintron Otero, Aurora Millet Millet, Neftalí Vazquez Erazo, Misael Ramirez, Jose L. Lozada Maldonado, Angel F. Declet, Maribel Matos Soto, Adelmis Rosario Hernandez, Nydia E. Rivera Rodriguez, Brenda I Rivera Rivera, Elsie Padilla Caban, Manuel Tirado Maldonado, Miguel Rivera Ayala, Luis R. Santiago Rodriguez, Juan C. Colon Casanova, Juan Arocho De Jesus, Adahid Galàn Figueroa, Norma Calderon Ortiz, Leinette Bravo Maldonado, Alberto L. Pagan Rosario, Ruben Ortiz Rodriguez, Julio C. Baquero Torres, Doreli Pagan Castro, Sonia Candelario Castro, Carmen M Torres Hernandez, Luis Pastrana Pastrana, Maribel Varela Fuentes, Javier F. Declet Carrasquillo, Sandra I. Rios Serrano, and Hector L. Rodriguez Rodriguez. All the defendants are facing forfeiture allegations totaling more than $900,000.00 dollars.
“These 75 individuals are charged with defrauding the Social Security Administration by making false claims for social security benefits,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “The Department of Justice is committed to investigate and prosecute those who engage in these types fraudulent schemes,” stated Rodríguez-Vélez.
Special Agent-in-Charge Edward J. Ryan of the Office of the Inspector General, Office of Investigations of the Social Security Administration stated “This fraud conspiracy scheme involving unscrupulous medical professionals, a non-attorney representative, and SSA disability claimants has been exposed and those involved are being brought to justice. It was only after an extensive analysis of medical source documentation in voluminous SSA files that SSA and OIG identified the fraudulent pattern investigated by SSA OIG, the FBI San Juan Office, and the Puerto Rico Police Department. This intensive and complex investigative work consisted of numerous interviews, hundreds of surveillances, and other investigative activities that I cannot detail. The evidence was provided to the U.S. Attorney’s Office which culminated in the arrests this morning. However, our cooperative investigative work in this conspiracy continues. OIG will continue to work with our partners to protect the integrity of the Social Security Trust Fund.”
The case was investigated by the Social Security-OIG with the collaboration of the FBI. The case was indicted by First Assistant U.S. Attorney Maria Dominguez.
U.S., U.K. Authorities Seize Cocaine Worth over $24 Million in CaribbeanRead the Press Release
SAN JUAN, Puerto Rico – Today, a federal grand jury in the District of Puerto Rico returned an indictment against three defendants charged with drug trafficking, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Coast Guard, British Royal Navy and U.S. law enforcement partners interdicted a multi-engine “go-fast” vessel bearing no indicators of nationality with three suspected smugglers onboard during an at-sea interdiction Friday in the Caribbean Sea; seizing 721.53 kilograms of cocaine, worth an estimated street value of more than $24 million.
The interdiction was a result of an international, multi-agency law enforcement effort in support of Operation Unified Resolve, Operation Caribbean Guard, Operation Martillo (a joint, interagency, 15-nation collaborative counter narcotic effort), and the Caribbean Corridor Strike Force (CCSF).
“Our collective aggressive efforts involving international, federal and local enforcement authorities continue to yield positive results,” said Rear Admiral Jake Korn, commander of the Coast Guard Seventh District. “We stand united in our unwavering commitment to protect the citizens of Puerto Rico and the U.S. Virgin Islands from the threats that come from the sea by interdicting these major drug shipments as far from shore as possible and bringing those responsible to justice.”
Joint Interagency Task Force South relayed to Coast Guard Seventh District and Coast Guard Sector San Juan Command Center watchstanders that the crew of a patrolling U.S. Customs and Border Protection (CBP) P-3 fixed-wing maritime patrol aircraft detected a suspicious 30-foot go-fast vessel Friday afternoon. The vessel was spotted with three suspected smugglers onboard using a tarp in an effort to conceal their position.
Coast Guard watchstanders at Sector San Juan diverted the Coast Guard Cutter Sapelo to assist with the interdiction of the go-fast, while the Royal Navy’s HMS Lancaster frigate, on patrol in the Caribbean Sea with a U.S. Coast Guard Law Enforcement Detachment Team (LEDET) onboard, also responded.
The CBP aircraft maintained constant aerial surveillance of the go-fast as the HMS Lancaster arrived on scene. Once on scene, the HMS Lancaster launched their Lynx helicopter and high-speed pursuit boat to interdict the go-fast. The suspected smugglers threw a package overboard into the water upon noticing the presence of law enforcement authorities. The package was recovered by the HMS Lancaster’s pursuit boat crew.
A Coast Guard LEDET boarding team, with the assistance of HMS Lancaster crewmembers, boarded the suspect vessel, detained the three men onboard and seized 22 bales of suspected contraband in plain view. Law enforcement personnel took a representative sample from the suspected contraband and conducted a narcotics identification kit field test which revealed positive results for the presence of cocaine.The crew of the HMS Lancaster detained the three suspected smugglers and contraband onboard the HMS Lancaster before transferring custody of the contraband and suspected smugglers to the Coast Guard for transport to Puerto Rico for prosecution.
On Sunday, the crew of the Sapelo transported the detainees and the cocaine to CBP officers, Immigrations and Customs Enforcement (ICE)-Homeland Security Investigations (HSI), and Drug Enforcement Administration (DEA) special agents in Ponce, Puerto Rico. The Caribbean Corridor Strike Force is leading a criminal investigation into the case.
“These arrests and multi-kilogram seizure are a clear indication of the success of the Caribbean Corridor Strike Force Initiative,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Along with our domestic and international law enforcement partners, we will continue to bring our resources to bear to ensure that drug traffickers and their associates are brought to justice for the damage they inflict on our communities.”
The case is being prosecuted by Assistant U.S. Attorney Carlos R. Cardona and Special Assistant U.S. Attorney Kelley Tiffany. If convicted, the defendants could face from 10 years up to life in prison.
Since September 2012, the Coast Guard has seized 20,500 kilograms of cocaine and 8,500 pounds of marijuana during 22 law enforcement interdictions under Operation Unified Resolve, in partnership with regional law enforcement authorities in the Caribbean. The wholesale value for these seizures is worth an estimated $690.3 million.
The Coast Guard’s efforts under Operation Unified Resolve contribute to the interagency results being achieved each and every day locally under Operation Caribbean Guard, which coordinates efforts between the Coast Guard, its DHS, Commonwealth and Territorial law enforcement partners, who are working diligently to deter, detect and disrupt illicit maritime trafficking to Puerto Rico and the U.S. Virgin Islands.
CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the High Intensity Drug Trafficking Area (HIDTA) and Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of HSI, the U.S. Attorney for the District of Puerto Rico, Drug Enforcement Administration, FBI, the Coast Guard, CBP and PRPD's Joint Forces for Rapid Action.
The Coast Guard Cutter Sapelo is a 110-foot island class patrol boat homeported in San Juan, PR.
The HMS Lancaster is a British Royal Navy Duke-class Type 23 frigate, which has played a primary role in major drugs seizures in the Caribbean.The Coast Guard’s efforts under Operation Unified Resolve contribute to the interagency results being achieved each and every day locally under Operation Caribbean Guard, which coordinates efforts between the Coast Guard, its DHS, Commonwealth and Territorial law enforcement partners, who are working diligently to deter; detect, and disrupt illicit maritime trafficking to Puerto Rico and the U.S. Virgin Islands.
CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the High Intensity Drug Trafficking Area (HIDTA) and Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of Department of Homeland Security, Drug Enforcement Administration, Federal Bureau of Investigations, the US Coast Guard, Customs Border Protection, Puerto Rico Police Department Joint Forces for Rapid Action and the U.S. Attorney for the District of Puerto Rico.
139 Individuals Indicted for Drug Trafficking in the Municipality of CaguasRead the Press Release
SAN JUAN, Puerto Rico – On July 29, 2013, a federal grand jury in the District of Puerto Rico returned three separate indictments against 139 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 Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD) collaborated during the investigations. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) also collaborated during the arrests.
The first indictment charges 79 individuals for conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Turabo Heights Public Housing Project, a housing facility owned by a public housing authority, and other areas nearby and within the Municipality of Caguas, Puerto Rico.
According to the indictment, beginning in 2005, as part of the manner and means of the conspiracy, the defendants would use electricity boxes known as “dangers” to stash packages or bundles of decked narcotics which were to be distributed to the sellers in a controlled manner. Sellers were not allowed to get more bundles or packages before tallying with the owner or his runner for the packages or bundles received. Tallies would be written in notebooks or sheets of paper.It was further a part of the manner and means of the conspiracy that during the span of the conspiracy, the marihuana drug points were identified by the colors blue (“Las Azules”) and yellow (“Las Amarillas”). Leaders would supply firearms to other drug trafficking organization members for protection of the narcotics and their proceeds. Lookouts would be posted with two way radios (walkie-talkies) in specific areas of the Turabo Heights Public Housing Project in order to alert other organization members of police presence or the presence of rival gangs.
During the span of the conspiracy, in order to be able to have a drug point at Turabo Heights, “rent” would be paid to the leaders of the drug trafficking organization and their family members. It was a part of the manner and means of the conspiracy that control of the drug points at Turabo Heights was, obtained and maintained by the use of force, violence, and intimidation which operated twenty-four (24) hours a day in 3 shifts per day, including a “midnight marihuana” shift. Facilitators would act as intermediaries in drug sale transactions when clients did not want to go into the housing project.
According to the indictment, the 79 co-conspirators had many roles in order to further the goals of the conspiracy. These were: two leaders; seven drug point owners (including the two leaders); four suppliers; three enforcers; 14 runners; 31 sellers; and 19 facilitators. Nine defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of forty-five million dollars.
The second indictment charges 31 individuals for conspiracy to knowingly and intentionally possess with intent to distribute cocaine, heroin, crack, marihuana, Percocet, and Xanax, within one thousand (1,000) feet of the real property comprising housing facilities owned by a public housing authority, to wit: the Brisas del Turabo Public Housing Project in the municipality of Caguas, PR. The object of the conspiracy was to distribute controlled substances for significant financial gain and profit.
The defendants and their co-conspirators would act in different roles in order to further the goals of the conspiracy, to wit: leaders who directed and supervised enforcers, suppliers, runners, sellers, drug processors, lookouts, and facilitators. Twenty defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of ten million dollars.
The third indictment charges 29 individuals for conspiracy to knowingly and intentionally possess with intent to distribute cocaine, heroin, marihuana, crack, Percocet, and Xanax, within one thousand (1,000) feet of the real property comprising housing facilities owned by a public housing authority, to wit: the Gautier Benitez Public Housing Project in the municipality of Caguas, PR. The object of the conspiracy was to distribute controlled substances for significant financial gain and profit.
It was further part of the manner and means of the conspiracy that the drug point would move through different locations within the Gautier Benitez Public Housing Project in order to avoid detection by law enforcement. The defendants and their co-conspirators would act in different roles in order to further the goals of the conspiracy, to wit: leaders who directed and supervised enforcers, runners, sellers, drug processors, lookouts, and facilitators. Seventeen defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of seventeen million dollars.
“Violent drug trafficking gangs should take note, and know that we are determined to break their grip on communities, while ensuring that they face justice for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, and to reduce gang violence and to bring narcotics and firearms violators to justice.”
Special Agent in Charge of the DEA in Puerto Rico and the Caribbean stated: “Reducing violent crime in our community requires a commitment by federal and local law enforcement to combat illegal drug trade and the violence associated with it. This joint operation, which has been conducted for almost three years by the Drug Enforcement Administration, Federal Bureau of Investigations and Puerto Rico Police Department, represents that type of commitment of resources. We believe that today’s arrests will significantly reduce violence in Caguas by dismantling these notorious drug operations from top to bottom. We are hopeful that this will have a lasting community impact by reducing the level of crime in Puerto Rico.”
“The FBI's message is clear and unequivocal, we will work together with our federal, state and local law enforcement partners to assign all necessary resources to identify, locate, and arrest violent crimes offenders. They will face our justice system. They will be prosecuted to the fullest extent of the law,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
Assistant US Attorneys Alberto López-Rocafort and Teresa Zapata and Special Assistant US Attorney Victor Acevedo are in charge of the prosecution of the cases. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation, responsible for drug trafficking in Puerto Rico. 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.
Woman Found Guilty for Theft of Government Property and Aggravated Identity TheftRead the Press Release
Defendant facing a forfeiture of $153,896.45SAN JUAN, PR – Yesterday evening, Allison Gonzàlez-Martínez was convicted of 21 counts of theft of government property, one count of attempted theft of government property and one count of aggravated identity theft, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Gonzàlez-Martínez deposited or attempted to deposit 22 Treasury Checks for over $153,000 issued by the IRS in connection with false and fraudulent tax returns. The defendant spent some of the proceeds at Casa Febus, Capri, and Victoria’s Secret.
The tax returns were filed using the personal identifying information of the victims, when in reality, the victims never filed such tax returns with the IRS. According to the evidence presented at trial, the false and fraudulent tax returns were filed without the consent of the taxpayers whose identities appear in the returns.
“The Department of Justice is strongly committed to promoting compliance with federal tax laws,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “We congratulate our attorneys who held this defendant accountable for the harm she caused to her victims and our tax system. We will continue to vigorously pursue this issue.”
The case was investigated by the Internal Revenue Service with the collaboration of the Puerto Rico Police Department. The case was prosecuted by Assistant U.S. Attorney Mariana Bauza and Senior Litigation Counsel Charles Walsh.
Two Individuals Arrested for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico —U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF) arrested Victor Vega-Rodríguez, 21, of the municipality of Arroyo, and Kermet Cuebas-Crespo, 21, of Mayagüez, on two different criminal complaints for child pornography, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On July 16, HSI received information from PRPD regarding a complaint filed against Vega-Rodríguez alleging that he used his Facebook account to entice, coerce and induce two female minors identified as Jane Doe 1 and Jane Doe 2 to engage in sexually explicit conduct and that he allegedly transported them to his home to engage in sexual criminal acts. The information provided by PRPD led to an HSI investigation that resulted in the arrest of Vega-Rodríguez.
According to the charges, a relative of Jane Doe 1 filed a complaint with the PRPD. The complaint was regarding the kidnapping of Jane Doe 1. PRPD officers rescued the minor at Vega-Rodríguez’s residence located in Arroyo, Puerto Rico. The second victim, another 14 year old female minor, was picked up by the defendant at her school in February of this year. According to the charges they engaged in multiple sexual acts.
In a separate case yesterday, HSI agents arrested Kermet Cuebas-Crespo, for possession of child pornography. The HSI investigation that led to Cuebas-Crespo’s arrest stemmed from a referral from the National Center for the Missing and Exploited Children.
Vega-Rodríguez faces a sentence of 15 years to life in prison while Cuebas-Crespo faces a sentence of five years in prison. Assistant U.S. Attorney Luke Cass is prosecuting both cases.
“Criminals with this kind of depravity in mind should know that law enforcement agencies in Puerto Rico are always vigilant. For every tactic taken to evade the law, we will adapt our strategies to find them and prosecute them to the fullest extent of the law,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The U.S. Department of Justice, through its Project Safe Childhood, will continue prosecuting sexual predators of minors.”
“The sexual exploitation of children is perhaps one of the most heinous crimes there are and HSI will continue to fight it, said Ángel M. Meléndez, special agent in charge of HSI San Juan. “With the alarming increase of these cases on the island HSI is committed to continue working with our PRCACTF partners to bring those who exploit our children to justice.”
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
9 Individuals Indicted and Arrested for Drug Trafficking in the Municipality of PonceRead the Press Release
Defendants face a forfeiture allegation of one million dollarsSAN JUAN, PR – On Wednesday, July 24, a federal grand jury indicted 9 individuals as the result of an investigation led by Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD), announced today United States Attorney Rosa Emilia Rodríguez-Vélez.
The indictment charges 9 individuals in a two-count indictment with possession of firearms in furtherance of a drug trafficking crime and conspiracy to possess with intent to distribute controlled substances at the “Méndez Vigo” area, located within the municipality of Ponce. The object of the conspiracy was to distribute “crack” (cocaine base), cocaine, marihuana and heroin for significant financial gain and profit.
The defendants are: Leonardo Lizardi-Muñiz, aka “Pichu;” Reynaldo Lizardi-Muñiz, aka “Rey;” Mariano Maldonado-Muñiz, aka “Marianito;” Jayson Rentas-Muñiz, aka “Jayson;” José L. Rinaldi-Vélez, aka “Joseito;” Jorge Rivera-Rivera, aka “El Mono;” Elvin Romàn-Díaz, aka “Piojillo;” Omar Sotomayor-Sepúlveda, aka “Omaro;” and José A. Villodas-Chamorro, aka “Villoda.”According to the indictment, the defendants would possess, carry, brandish, discharge and use firearms to protect themselves and their drug trafficking activities. They would routinely wear bullet proof vests in order to protect themselves during “shootouts” with rival drug traffickers.
“These arrests confirm the Justice Department’s commitment to hold ruthless drug traffickers responsible for selling narcotics and promoting the violence we are seeing in our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue with our efforts of investigating and prosecuting drug trafficking organizations, until we have covered every municipality in Puerto Rico.”
The case is being prosecuted by Special Assistant United States Attorney Kelly Zenón and is part of the US Attorney’s Office Firearms and Violence Reduction Initiative.
If convicted, the defendants face a minimum of fifteen (15) years of imprisonment and a maximum of life imprisonment, with fines of up to $10 million. Criminal indictments are only charges and not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Two Individuals Sentenced for Conspiracy to Commit Bribery Concerning Programs Receiving Federal FundsRead the Press Release
SAN JUAN, PR – Today Daniel Erazo-Burgos and Brenda Velàzquez-Corchado, former procurement officials with the Puerto Rico Department of Education (PR DOE) were sentenced to 18 and 30 months of imprisonment respectively for conspiracy to commit a violation of Title 18 USC Section 666(a)(1)(B), Bribery Concerning Programs Receiving Federal funds, announced United States Attorney Rosa Emilia Rodríguez-Vélez.
Daniel Erazo-Burgos, was the Procurement Supervisor of the Puerto Rico Department of Education (PR DOE), was sentenced by United Stated District Chief Judge Aida Delgado-Colón to 18 months in prison. He had pleaded guilty on August 29, 2012. Erazo-Burgos was supervising and coordinating the PRDOE procurement officers in the Caguas and Ponce regions in their compliance with all necessary and appropriate procedures related to the processing of purchase orders. Defendant accepted cash and goods from other co-defendants in return for his assistance in the expeditious processing of invoices for payment on contracts awarded to the co-defendants by PRDOE.
Defendant Velàzquez-Corchado was the sole defendant remaining of a 13 person indictment filed against various PR DOE officials, which included the Chief Procurement Officer of the PR DOE Luis Conde-Rosa, and various company officials doing business with the Department. Velàzquez-Corchado was found guilty on April 19, 2013; United States District Court Senior Judge Juan Pérez-Giménez presided the trial. The jury found that between January 2008 through February 2010, the defendant conspired with others to corruptly solicit, demand, give and accept things of value, goods and cash, intending to be influenced and rewarded in connection with a transaction and a series of transactions. The evidence presented at trial showed that approximately $2,900,000.00 dollars in contracts were awarded to companies where the defendant received over $25,000 in bribes, which included cash and goods.
“These individuals defrauded education programs, with the assistance of public employees who abused their positions for personal gain,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue to investigate and prosecute those who engage in corrupt acts which directly affect federal programs and the availability of these funds for its intended recipients,” stated Rodríguez-Vélez.The case was prosecuted by Assistant United States Attorneys Julia Díaz-Rex and Héctor Ramírez. The investigation was led by the U.S. Department of Education, Office of the Inspector General (DOE-OIG), with the collaboration of the Federal Bureau of Investigation (FBI) and the Comptroller’s Office in Puerto Rico.
Drug Dealer Sentenced to 17 1/2 Years in Jail for His Participation in A Conspiracy to Import DrugsRead the Press Release
Vessels, vehicles, and real estate property forfeitedSAN JUAN, P.R. – Yesterday evening, defendant Nick Irizarry-Rosado, was sentenced by United States District Court Judge José A. Fusté to serve a term of imprisonment of 17 ½ years for his participation in a conspiracy to import narcotics into Puerto Rico, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The judge also ordered the forfeiture of multiple vessels, vehicles, and other assets named in the Indictment, as well as a parcel of land and house in La Parguera, Lajas, PR owned by Irizarry-Rosado.
Irizarry-Rosado was one of thirteen individuals accused of conspiring to import multi-kilograms amounts of cocaine from the Dominican Republic and other places abroad into Puerto Rico on board of motor vessels. The evidence obtained in this case showed that Irizarry-Rosado and other members of the drug trafficking organization would purchase motor vessels, to include a Wellcraft 33 feet and Bertram 46 feet to be used in the transportation of the narcotics by members of the conspiracy. They would pay in cash for the purchase of such vessels and would arrange for the preparation of hidden compartments in the vessels to be used in the transportation of the narcotics by members of the conspiracy. Once the narcotics were transported into Puerto Rico, some of the narcotics would be resold in Puerto Rico and some would be further transported to the continental United States for eventual resale.
The evidence against the drug trafficking organization included photographs, audio and video recordings. Nine of the thirteen defendants, including Irizarry-Rosado pleaded guilty. The two defendants who went to trial were convicted and are waiting to be sentenced. They are facing sentences ranging from 10 years to life. There is a defendant pending to be extradited from the Dominican Republic and another that is still pending trial.
The case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and prosecuted by Assistant United States Attorney Carlos R. Cardona.
Individual Plead Guilty of Threatening Interstate CommunicationsRead the Press Release
SAN JUAN, Puerto Rico – Yesterday evening Joseph Joel Morales-Serrano entered a straight plea and was sentenced to time-served and three years of supervised release for his violation of 18 U.S.C. section 875(c), a Class D felony, which is Threatening Interstate Communications, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On May 6, 2013, at approximately 11:31 p.m., the defendant Joseph Joel Morales Serrano using Twitter name, “Carlito anti Bhatia@leonidadpr,” stated the following directly to Pedro Julio Serrano: “watch out in the march, it can end like in Boston asshole.” Joseph Joel Morales Serrano knowingly sent this message in interstate commerce, online from Puerto Rico and Pedro Julio Serrano received it while in New York.
Defendant admitted that the message contained a true threat to injure Pedro Julio Serrano insofar that it referenced the April 15, 2013 terrorist attack in Boston. The defendant also admitted to law enforcement officers after his arrest that he was trying to upset Pedro Julio Serrano by making his threat.
The victim, Pedro Julio Serrano felt threatened upon receipt of this message, contacted the FBI, and was under the guard of New York Police Department officers for a period of time.
This is the first case in the District of Puerto Rico that has resulted in a felony conviction for threatening hate speech against an individual and specific group in our community.
The case was prosecuted by Assistant United States Attorney Luke Cass.