District of Puerto Rico
Press releases recorded for this federal judicial district.
37 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in San Juan, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On August 3, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging 37 violent gang members from the municipality of San Juan with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rico Police Bureau (PRPB), San Juan Strike Force were in charge of the investigation of the case, with the collaboration of the Puerto Rico Department of Treasury (Hacienda), the Puerto Rico Department of Corrections and Rehabilitation, and the San Juan Municipal Police.
“These arrests represent yet another example of the excellent collaboration between our state, local, and federal partners to take violent individuals off the streets,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “I commend the hard work of the agents and prosecutors who have worked tirelessly on this investigation to make our community safer.”
“This series of arrests represents ATF’s collaborative efforts to build, foster, and maintain relationships with our external partners in the continuing fight against those who seek to endanger the innocent with the plague of violent gun crimes,” said Christopher Robinson, Special Agent in Charge of the ATF, Miami Field Office.”
The indictment alleges that, from 2021 to the date of the return of the indictment, the drug trafficking organization distributed heroin, cocaine base (commonly known as “crack”), cocaine, marihuana, Oxycodone (Percocet), and Alprazolam (Xanax), within 1,000 feet of the Jardines de Country Club Public Housing Project and the Polvorín Ward. The object of the conspiracy was to operate a drug-trafficking organization to distribute controlled substances in the Jardines de Country Club Public Housing Project in the municipality of San Juan for significant financial profit.
Some members of the drug trafficking organization called themselves “PV” or “PV Familia.” During the investigation, members of the conspiracy moved the location of the drug points to avoid detection from law enforcement. At times, they placed locks on the access door of the building where the drug point was operating and only members of the gang had the keys to that lock, exercising control of the entrance and exit of the building.
As part of the conspiracy, the defendants operated a place where drug addicts could consume the controlled substances bought at the drug points, while out of sight from law enforcement, which they called “El Shooting”.
The defendants acted in different roles in order to further the goals of their organization, to wit: leaders/suppliers, enforcers, runners, sellers, lookouts, and facilitators. The members of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. Members of the gang modified firearms to convert them into automatic weapons (machineguns). Eight (8) defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
The defendants are:
Milton Caliel Rodríguez-Medero, a/k/a “Cali/Árabe/Calibre/Gavilán/Calin/K/Cali P”
Johan Javier Rosales-Medero, a/k/a “Johancito/Alcalde/J/Johansity”
Edgar Betancourt-Ortiz, a/k/a “Galdi/Gar/Gardiologo/Galdy/G/Triple G/G2”
Juan Cancio Rivera-Ballester, a/k/a “Pantro/Pacro/Pantron/Pantro Juan”
Julio Ángel Ortiz-Ortiz, a/k/a “Julito”
Carlos Roberto Correa-Agosto, a/k/a “Carlos Best/Best”
Joseph Miguel Sánchez-Figueroa, a/k/a “Cocho/Cochito/Pochito/J Montana”
Jesús Alberto Montañez-Serrano, a/k/a “Vecino/Vecino Patrón”
Onix Javier De León, a/k/a “Tarzán/Chita Tarzán/Tar”
Jasser Vega-Damiani, a/k/a “Piraña/Jasser Praña/Yaz/Yaziel/Bulty/Bulto/Y”
Héctor Kenneth Ramos-Vega, a/k/a “Kene/K Trump/Kene Tiro”
Carlos Miró-Pagán, a/k/a “Farru/Farruko”
Roberto Rodríguez-Medero, a/k/a “Boina/Boinita/R/Rob/Reien/Roller/R Boina”
Ángel Manuel Rivera-Pizarro, a/k/a “Obama/Obama Malo”
Wilmer Alemán Vélez, a/k/a “Manita/Perro/Wil/Wilmer Perro”
Edwin Rafael Moux-Marquez, a/k/a “Mou/Moe/Tripy Tripy”
Ricardo Osorio-Alverio, a/k/a “Giovani/Ricky/Riky/Riky Case”
Tishanny Vélez-Castillo, a/k/a “Tisha/Ticha/Tysha”
Zwailynn Santana-Vázquez, a/k/a “Zwaili/Zua/Zwa/Sua/S”
John Michael Correa-Agosto, a/k/a “John Best/Hermano Best/John Pablo Casella”
Jean Carlos Castillo-Rivera, a/k/a “Tío/El Tío”
William Joel Delgado-Linares, a/k/a “Canito/Kanito/Cano/Will”
Israel Ortiz-Santiago, a/k/a “Chimbi”
Frank Yaniel Torres-García, a/k/a “Gran/Frnk/Ferra/Boss”
Michael Ivaniel Rivera-López, a/k/a “M/Eme/Michel/Em”
Kevin Ortiz-Valentín, a/k/a “El Colo/Colo PV”
Luis Enrique López-Rivera, a/k/a “Chino Bebote/Chino PV”
Larry Ja’Male Michael-Ferrer, a/k/a “Pina”
Alexis De Arce-López, a/k/a “Warrior/Wario/Wariol”
Javier González-Marquez, a/k/a “Javi”
Arlene Morales-Jiménez, a/k/a “La Tuerta”
José Raúl López-Cruz, a/k/a “El Menor/Menor”
Carmen Delgado-Ortiz
FNU, LNU, a/k/a “Kenia Ivette Morales-Serrano/Kenia Marie Rivera-Torres/Kenya
Rivera-Torres/Kenya Marie Rivera-Torres/La Colorá/La Colorada/La Colo/Victoria”
Pablo Rivera-Pimentel, a/k/a “Luisito”
Luis Hernández-Serpa, a/k/a “Barber/Tuto”
Luz Elenia Rivera-Rohena, a/k/a “La Abuela/Abue”
Assistant U.S. Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares, AUSA Joseph Russell, and Special AUSA Cristina Caraballo-Colón from the Puerto Rico Department of Justice are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a minimum sentence of 15 years, and up to life in prison. All defendants are facing a narcotics forfeiture allegation of $24,888,000.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Governor of Puerto Rico Arrested in Bribery SchemeRead the Press Release
WASHINGTON – A former governor of Puerto Rico was arrested today on bribery charges related to the financing of her 2020 campaign.
Relatedly, a political consultant for the former governor and the president of the international bank have also pleaded guilty to participating in the bribery scheme.
“The alleged bribery scheme rose to the highest levels of the Puerto Rican government, threatening public trust in our electoral processes and institutions of governance,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Department of Justice is committed to holding accountable those who wrongly believe there is one rule of law for the powerful and another for the powerless. No one is above the rule of law.”
According to the indictment, from December 2019 through June 2020, then-Governor of Puerto Rico Wanda Vázquez Garced, 62, of San Juan, allegedly engaged in a bribery scheme with various individuals, including Julio Martín Herrera Velutini, Frances Díaz, Mark Rossini, and John Blakeman to finance Vázquez Garced’s 2020 gubernatorial election campaign.
“The criminal actions of the defendants in this case strike a blow to the heart of our democracy and further erode the confidence of our citizens in their institutions of governance,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “Our resolve to bring to justice those entrusted by the public to serve with integrity and who violate that trust remains steadfast. Equally steadfast is our resolve to prosecute those who seek to use their wealth and power to enrich themselves at the expense of honest government. I commend the dedication and hard work of the law enforcement personnel and prosecutors in this case, as well as those individuals willing to come forward and cooperate.”
Herrera Velutini, 50, a dual Venezuelan-Italian citizen residing in London, United Kingdom, owned an international bank operating in San Juan. Díaz, 50, of Puerto Rico was the CEO and President of the international bank owned by Herrera Velutini. Rossini, 60, of Madrid, Spain was a former FBI Special Agent who provided consulting services to Herrera Velutini. Blakeman, 53, of Puerto Rico, is a political consultant who worked on Vázquez Garced’s 2020 campaign.
“Public corruption manifests in many different ways,” said Special Agent in Charge Joseph González of the FBI San Juan Field Office. “Those who engage in this illegal conduct often believe they are above the law or fool themselves into believing this is a victimless crime and thus are not doing anything wrong. Our message is and has been clear. Public corruption erodes the people’s trust in our institutions and fuels civil unrest. As a top priority for the FBI, wherever allegations of public corruption arise, we will investigate. No one is above the law and the victim of this crime, the People, deserve better.”
According to the indictment, beginning in 2019, Herrera Velutini’s bank was the subject of an examination by Puerto Rico’s Office of the Commissioner of Financial Institutions (OCIF), a regulatory agency that oversees financial institutions operating in Puerto Rico. Through intermediaries, Herrera Velutini and Rossini allegedly promised to provide funding to support Vázquez Garced’s 2020 gubernatorial election campaign in exchange for Vázquez Garced terminating the Commissioner of OCIF and appointing a new Commissioner of Herrera Velutini’s choosing. The indictment alleges that Vázquez Garced accepted the offer of a bribe and, in February 2020, took official action to demand the resignation of OCIF Commissioner A and, in May 2020, to appoint OCIF Commissioner B – a former consultant for the international bank owned by Herrera Velutini – who had been personally selected by Herrera Velutini. In return, Herrera Velutini and Rossini allegedly paid more than $300,000 to political consultants in support of Vázquez Garced’s campaign.
The indictment further alleges that following Vázquez Garced’s primary election loss in August 2020, Herrera Velutini sought to bribe her successor, Public Official A, by offering funding in support of Public Official A’s campaign in exchange for Public Official A ending OCIF’s audit of Herrera Velutini’s bank on terms favorable to Herrera Velutini. According to the indictment, between April 2021 and August 2021, Herrera Velutini allegedly used intermediaries to convey his offer of a bribe to a witness who held himself out as a representative of Public Official A, but who was in fact acting at the direction of the FBI. As noted in the indictment, the witness was acting at the direction of the FBI during this timeframe and not actually serving as an intermediary of, or acting on behalf of, Public Official A. In August 2021, Herrera Velutini allegedly directed a $25,000 payment to a political action committee associated with Public Official A, with the understanding and expectation that Public Official A would resolve OCIF’s audit of Herrera Velutini’s bank in the manner requested by Herrera Velutini.
Vázquez Garced, Herrera Velutini, and Rossini are each charged with conspiracy, federal programs bribery, and honest services wire fraud. Vázquez Garced is scheduled to make her initial court appearance today in federal court in the District of Puerto Rico. If convicted on all counts, they each face a maximum total penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Relatedly, the department also announced the guilty pleas of two individuals in connection with the schemes to bribe Vázquez Garced and Public Official A.
According to court documents, in March, Frances Díaz pleaded guilty to conspiring with Herrera Velutini and others to bribe Public Official A. Díaz was, until February 2022, the CEO and President of the international bank owned by Herrera Velutini. In March, John Blakeman pleaded guilty to conspiring with Herrera Velutini and Rossini to bribe Vázquez Garced, and with Herrera Velutini to bribe Public Official A.
Both Díaz and Blakeman face up to five years in prison. Their sentencing hearings have not yet been scheduled. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.
The FBI’s San Juan Field Office is investigating the case.
Trial Attorneys Ryan R. Crosswell, Erica O. Waymack, and Nicholas W. Cannon of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe of the U.S. Attorney’s Office for the District of Puerto Rico are prosecuting the case. Members of the Justice Department’s Money Laundering and Asset Recovery Section also provided assistance with the investigation, including Trial Attorneys Margaret Leigh Kessler and D. Zachary Adams, and Bank Integrity Unit Acting Chief Molly Moeser.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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22-833
Contractor Enters Guilty Plea to Bribing Former Mayor of CatañoRead the Press Release
SAN JUAN, Puerto Rico – Mario Villegas-Vargas, 42, pleaded guilty today in Puerto Rico to engaging in a bribery scheme for paying kickbacks and bribes in exchange for being awarded municipal contracts that benefited his asphalt and paving company.
Beginning in or around June 2017, Villegas-Vargas and Individual B, co-owners of an asphalt and paving company, conspired to pay bribes and kickbacks to Félix Delgado-Montalvo, the former mayor of Cataño. The purpose of these payments was to help ensure that their company would be awarded and continue to be awarded municipal contracts as opportunities arose in Cataño.
Together, Villegas-Vargas and Individual B paid more than $95,000.00 in kickback payments to Delgado when he was the mayor of Cataño in exchange for asphalt removal and concrete paving contracts in the municipality.
Villegas-Vargas pleaded guilty to one count of conspiracy to engage in a bribery scheme. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, and Special Agent in Charge Joseph Gonzalez of the FBI’s San Juan Field Office made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
Trial Attorneys Nicholas W. Cannon and Ryan H. Crosswell of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Seth A. Erbe of the United States Attorney’s Office for the District of Puerto Rico are prosecuting the case.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. United States v. Raymond Rodríguez, 21-465 (RAM); United States v. Luis Arroyo-Chiques, 21-485 (SCC); United States v. Eduardo Cintron-Saurez, 22-151 (SCC); United States v. Ramon Conde-Melendez, 22-221 (PAD); Pedro Marrero-Miranda, 22-251 (RAM); and Jose Luis Cruz-Cruz, 22-276 (SCC).
Additionally, the department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Ángel Pérez-Otero, 21-474 (ADC); United States v. Radamés Benítez-Cardona, 21-475 (PAD); United States v. Javier García-Pérez, 22-185 (ADC); and United States v. Reinaldo Vargas-Rodríguez, 22-186 (PAD).
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Caribbean Corridor Strike Force Arrests Two International Drug TraffickersRead the Press Release
SAN JUAN, Puerto Rico — On April 8, 2021, a federal grand jury in the District of Puerto Rico returned a superseding indictment charging Jonmeny Barros-Casadiego and Álvaro León Barros-Ramírez with Conspiracy to Import Cocaine, in violation of 21 U.S.C. §§ 952(a), 960, and 963; International Cocaine Distribution Conspiracy, in violation of 21 U.S.C. §§ 959(a), 960, and 963; and International Cocaine Distribution Attempt, in violation of 21 U.S.C. §§ 959(a) and 963. Barros-Casadiego and Barros-Ramírez are leaders of a Transnational Criminal Organization (TCO) responsible for transportation and distribution of multi-ton kilograms from La Guajira and Venezuela into the Dominican Republic and Puerto Rico, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
Between July 28-29, 2022, Jonmeny Barros-Casadiego and Álvaro León Barros-Ramírez, Colombian nationals, surrendered to local authorities in the Dominican Republic. Thereafter, Barros-Casadiego and Barros-Ramírez were transported to Puerto Rico and their initial appearances in federal court were held on August 1, 2022. If convicted of the crimes charged, they face a minimum sentence of 10 years imprisonment and a maximum sentence of life imprisonment.
Jonmeny Barros-Casadiego was designated as an OCDETF Regional Priority Organizational Target (RPOT) in 2020. The RPOT List includes leaders of significant drug trafficking and money laundering organizations that are primarily responsible for a region’s drug threat.
Since 2020, federal law enforcement authorities identified Barros-Casadiego and Barros-Ramírez as leaders of a Transnational Criminal Organization (TCO) responsible for the transportation of multi-ton shipments of cocaine from South America into the Dominican Republic and Puerto Rico. Specifically, this TCO prepared and organized drug shipments that were dispatched and transported by go-fast vessels from the northwest coast of La Guajira and Venezuela to the Dominican Republic and Puerto Rico.
The case was investigated by the Drug Enforcement Administration’s (DEA) Cartagena Resident Office (RO), Santo Domingo Country Office (CO), and OCDETF’s Caribbean Corridor Strike Force (CCSF), and the United States Attorney’s Office for the District of Puerto Rico. As a result of the investigation, agents from CCSF, Cartagena RO, and Santo Domingo CO conducted various interventions leading to the seizure of over 18,000 kilograms of cocaine and the arrest and prosecution of 52 defendants – 48 defendants were prosecuted federally in Puerto Rico and four defendants were prosecuted by authorities in the Dominican Republic.
Transnational Organized Crime Section Special Assistant U.S. Attorney Jordan H. Martin from the U.S. Attorney’s Office for the District of Puerto Rico is leading the prosecution for this case. The announcement was made by United States Attorney W. Stephen Muldrow and DEA Special Agent in Charge Denise Foster.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Caribbean Corridor Strike Force is to identify, disrupt, and dismantle large scale international drug trafficking and money laundering organizations importing and further transshipping cocaine, as well as money laundering activities.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Men Indicted in Separate Bankruptcy Fraud SchemesRead the Press Release
SAN JUAN, Puerto Rico – Jorge Droz Yapur and Yamil Fonseca Salgado were indicted by a federal Grand Jury in relation to separate bankruptcy fraud schemes, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
Jorge Droz Yapur was indicted in a bankruptcy fraud scheme for making materially false representations from May 2019 to August 2021 in order to defraud creditors as part of a bankruptcy proceeding, In re: Jorge Droz Yapur, Case No. 19-02999(MCF), all in violation of 18 U.S.C. § 157. Additionally, he is charged with nine counts of concealment of assets during his bankruptcy proceedings in violation of 18 U.S.C. § 152, and eight counts of making false statements in relation to such bankruptcy proceedings, in violation of 18 U.S.C. § 152.
The indictment alleges that during his bankruptcy proceedings, Jorge Droz Yapur concealed assets and income by using a bank account in his adult son’s name. It further alleges that Jorge Droz Yapur testified under oath that his mother was at an elderly home and provided Puerto Rico tax returns as part of the bankruptcy proceedings wherein he claimed his mother as a dependent between the years 2015, 2016, 2017 and 2018, when in fact, he knew his mother had passed away in the year 2011.
If convicted, Jorge Droz Yapur may be sentenced to up to five years of imprisonment for each violation of 18 U.S.C. § 157 and § 152, a two hundred and fifty thousand dollar fine, and three years of supervised release.
Separately, Yamil Fonseca Salgado was indicted in a bankruptcy fraud scheme where it is alleged that he made materially false representations between April 2018 and May 2022 in five separate bankruptcy cases in order to defraud his minor child of child support payments, all in violation of 18 U.S.C. § 157. Additionally, he is charged with one count of willful failure to pay approximately $107,200 in child support payments in violation of 18 U.S.C. § 228, and thirteen counts of false statements during his bankruptcy proceedings, in violation of 18 U.S.C. § 152.
The indictment alleges that Yamil Fonseca Salgado concealed in several bankruptcy filings, assets, income and his connection to a maintenance company by the name of CMM Janitorial, Inc. The indictment further alleges that Yamil Fonseca Salgado concealed, in several bankruptcy filings, that he received money transfers via ATH Móvil from the bank account of a construction company controlled by close family members. A Construction company which in turn collected monies from the public housing management company Yamil Fonseca Salgado worked for, and that he further received money through the use and control of a Banco Popular de Puerto Rico bank account in his grandmother’s name where he accessed funds for routine personal expenses.
If convicted, Yamil Fonseca Salgado may be sentenced to up to two years for violating 18 U.S.C. § 228, five years of imprisonment for each violation of 18 U.S.C. § 157 and § 152, a two hundred and fifty thousand dollar fine, and three years of supervised release.
“The fraudulent use of bankruptcy and other court proceedings to defraud creditors or defraud children of child support payments are of grave concern, and the U.S. Attorney’s Office remains vigilant in the effort to hold accountable those who would defraud the government,” said U.S. Attorney Muldrow.
“Together with U.S. Attorney Muldrow and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Mary Ida Townson, U.S. Trustee for Georgia, Florida, Puerto Rico, and Virgin Islands (Region 21). “I am thankful for the appointment by the U.S. Attorney of two Special Assistant U.S. Attorneys from our San Juan office that will allow us to prosecute all those who engage in fraudulent conduct.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
“As the primary investigative agency responsible for addressing bankruptcy fraud, the FBI takes these cases very seriously. The relief offered by federal bankruptcy proceedings can be life-saving for honest individuals who have fallen on hard times due to legitimate reasons. Unfortunately, bankruptcy can also be used by wrong doers for a variety of sinister reasons,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “This not only causes creditors to lose money, but also results in higher fees and even higher taxes for the innocent. We urge the public to report bankruptcy fraud by contacting the U.S. Trustees Program at [email protected] or to the FBI by calling 787-987-6500 or visiting tips.FBI.gov”.
“We are proud to be a part of the team that brought defendant Fonseca Salgado to justice for evading his child support obligations,” said Scott J. Lampert, Special Agent in Charge of the Office of Inspector General’s New York Regional Office which also covers Puerto Rico. “The Office of Inspector General will continue to work closely with our law enforcement partners to ensure that individuals like the defendant are held accountable for their actions when they violate the law.”
Both cases were referred to the U.S. Attorney’s Office for prosecution by the San Juan office of the U.S. Trustee. The Jorge Droz Yapur matter was investigated by the FBI and is being prosecuted by Special Assistant U.S. Attorney José Capó Iriarte from the Office of the U.S. Trustee. The Yamil Fonseca Salgado matter was investigated by the U.S. Department of Health and Human Services of Inspector General (HHS-OIG) and is being prosecuted by Special Assistant U.S. Attorney José Capó Iriarte and Special Assistant U.S. Attorney José C. Díaz Vega from the Office of the U.S. Trustee.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three Men, Who Acquired and Transferred Almost 1,000 Guns, Charged with Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned three indictments charging Radamés Revilla-Machín, Roberto Miranda-Schmidt, and Luis Matos-Rosa with the unlicensed business of dealing in firearms, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is in charge of the investigation, with the collaboration of the Puerto Rico Police Bureau (PRPB).
According to the indictments, since 2012 Revilla-Machín and Miranda-Schmidt have transferred over 820 firearms in Puerto Rico. Since 2019, Matos-Rosa has transferred over 100 guns. Several of these transfers occurred within 72 hours of the defendants’ acquisitions of the guns. The three defendants advertised guns for sale on websites, such as comprayventadearmas.com and pewpewpr.com. None of these individuals had a license to sell firearms. In 2019, ATF sent Revilla-Machín a letter advising him to stop engaging in the unlicensed business of dealing in guns.
“Working with our local partners to tackle violent crime is a top priority of the Justice Department,” said U.S. Attorney Muldrow. “Today’s arrests are yet another example of our commitment to combating violent crime and illegal firearms trafficking. We will continue to investigate and disrupt the networks that put guns into our communities -- oftentimes with tragic consequences.”
“Today’s arrests mark significant strides in ATF and PRPB efforts to combat firearms trafficking Puerto Rico,” said Christopher A. Robinson, Special Agent in Charge of ATF Miami Field Division. “This collaborative effort enhances our violent crime prevention strategy by apprehending those who place firearms in the hands of criminals.”
Assistant U.S. Attorneys Linet Suárez and Jonathan Gottfried of the Violent Crimes and National Security Section are in charge of the prosecution of the case. If convicted, each defendant faces a sentence of up to five years in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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33 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in Fajardo, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On July 20, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging 33 violent gang members from the municipality of Fajardo with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Bureau (PRPB)- Fajardo Strike Force- were in charge of the investigation of the case, with the collaboration of Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI).
The indictment alleges that from 2016 to the date of the return of the indictment, the drug trafficking organization distributed heroin, cocaine base (commonly known as “crack”), cocaine, and marihuana within 1,000 feet of the Pedro Rosario Nieves Public Housing Project, and other areas nearby. The object of the conspiracy was to operate a drug-trafficking organization to distribute controlled substances in many areas in the municipality of Fajardo for significant financial profit.
The main leader of the drug trafficking organization, Michael G. Molina-Quiñones, a/k/a Maicol/La M”, led the operations from outside the housing project. He communicated with other members of the organization and gave them instructions and orders on how to handle the operations. Molina-Quiñones also ordered acts of intimidation, force, and violence to maintain control of the operations, intimidate rival gangs, and discipline members of the organization.
As part of the conspiracy, the co-conspirators used apartments in the public housing project and other areas in several municipalities to prepare the drugs for distribution at the drug points.
The defendants acted in different roles in order to further the goals of their organization, to wit: leaders/suppliers, enforcers, runners, sellers, lookouts, and facilitators. Twenty-five defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime. The defendants charged in the indictment are:
Michael G. Molina-Quiñones, a/k/a “Maicol/La M”
Xavier Edgardo González-Rivera, a/k/a “Codito”
Luis Joel Nieves-Ciarez, a/k/a “Popeye”
Aramis Suárez-García, a/k/a “Blanco Perla
Manuel Cruz-Chico, a/k/a “Gongi”
Christian Cardona-Hernández, a/k/a “Pichingay”
Raúl Quiñones-Boria, a/k/a “Bebo Grande”
José Enriquez-Ciarez, a/k/a “Cheo”
Frank Luis Quiñones-Boria, a/k/a “Real G”
Alex Carrasquillo-Rosado, a/k/a “Boca”
Belmarie Nieves-Ciarez
José Pabón-Agosto, a/k/a “El Popo/Popola/Menor/Yeti”
José Esteban Rivera-Tolentino, a/k/a “Kikí”
Héctor Omar Hernández-Tolentino, a/k/a “Omy”
Jeziel Rodríguez-Cabral, a/k/a “Superman”
Anjofer A. Escobar-Aponte, a/k/a “Yoyo”
Carlos Alexis Serrano-Vega, a/k/a “Peluca”
Eliezer De La Paz-Cruz, a/k/a “Pocoyo/El Eliot”
Juan Gabriel Cruz-Torréns, a/k/a “Nurio/Negro”
Edwin Lemuel Marcano-Ferrer, a/k/a “Lele”
Manuel O. Robles-Osorio, a/k/a “Bota”
Juan Ramón Cortijo-Meléndez, a/k/a “Golo”
Alexander Rodríguez-Luna, a/k/a “Ale/Alex”
Iván Javier Ginés-Negrón, a/k/a “Gordo”
Julio L. Torres-Vázquez, a/k/a “Tito”
Marcelino Salcedo-Ayuso
Raymond Cruz-Medina
Héctor A. Laureano-Cruz, a/k/a “Rastrillo”
Alejandro Rivera-Molina, a/k/a “Tempo/Gringo”
Carlos Silva-Meléndez, a/k/a “Pinpin”
Anthony Adonays Centeno-Félix, a/k/a “Troco/Broco”
Kiara Michelle Méndez-Carrasco, a/k/a “La Dura”
Yarlin Torres-Rodríguez, a/k/a “Yailin”
Assistant U.S. Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares, AUSAs Corinne Cordero-Romo and Joseph Russell, and Special AUSA R. Vance Eaton are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a minimum sentence of 15 years, and up to life in prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Caribbean Corridor Strike Force Arrests Four Individuals Charged with Drug TraffickingRead the Press Release
ind_drug_trafficking_cloro_7-20-22-cr-328-fab_.pdf SAN JUAN, Puerto Rico – On July 20, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging four individuals with conspiracy and possession with intent to distribute cocaine, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Participating agencies in the Caribbean Corridor Strike Force and the Puerto Rico Police Bureau (PRPB) are in charge of the investigation of the case, with the collaboration from: the Puerto Rico Department of Justice, the Puerto Rico Department of Public Safety, the Puerto Rico Department of Corrections and Rehabilitation, the Puerto Rico Ports Authority, Customs and Border Protection (CBP), the San Juan Municipal Police, and the Guaynabo Municipal Police.According to the evidence recovered in the investigation, and as alleged in the indictment, as part of the manners and means of the conspiracy, the members of the conspiracy packaged the cocaine inside cardboard boxes labeled as cleaning products.
The defendants named in the indictment are:
Francisco Rivera-Rivera
Santiago Ramírez
Teddy Vergara-López
Jonathan Castro-Rivera
Part of the contraband seized in this case was recently recovered from a warehouse at a correctional facility. At this time, the evidence does not indicate the involvement of any correctional officer or correctional employee in the commission of this crime. Instead, it appears that the cocaine-laden boxes were not removed from the shipment as planned, and were mistakenly taken to the Ponce warehouse with the cleaning products. The estimated value of the approximately 228 kilograms of cocaine seized in this investigation is $4,104,000.
“This operation reflects the excellent collaboration between our state and federal law enforcement partners. We will continue following leads in this investigation in order to identify all of those responsible,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
“The Caribbean Corridor Strike Force is composed of our federal, state and local counterparts in an effort to stop the movement of contraband in the Caribbean,” said Iván J. Arvelo, Special Agent in Charge for HSI San Juan. “Those involved in drug trafficking should know that the Caribbean is no longer an option to transship narcotics into the United States, we are working together, we are interdicting, and we are arresting.”
“The events related to the discovery of 50 kilos of cocaine inside a warehouse at the Ponce Correctional Facility, have been coordinated with our Federal Law Enforcement partners, the Department of Correction and Rehabilitation, and the Department of Public Safety. Our combined mission in the investigation of this crime and violation of the law is to find and prosecute all individuals involved in this criminal organization,” stated the Secretary of the Department of Public Safety, Alexis Torres.
Assistant U.S. Attorney (AUSA) and Chief of the Transnational Organized Crime Section Max Pérez-Bouret, Deputy Chief of the Transnational Organized Crime Section, AUSA Vanessa Bonhomme, and AUSA Luis A. Valentin are in charge of the prosecution of the case. If convicted, the defendants face a minimum sentence of 10 years, and up to life in prison.
The Caribbean Corridor Strike Force is part of an Organized Crime Drug Enforcement Task Force’s (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Participating agencies of the Caribbean Corridor Strike Force include the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Coast Guard Investigative Service (CGIS), the U.S. Marshals Service, the Federal Bureau of Investigation (FBI), and the U.S. Attorney’s Office.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Municipal Director of Finance Pleads Guilty to Misappropriation of $2.5 MillionRead the Press Release
SAN JUAN, Puerto Rico – Defendant Victor Cruz-Quintero pleaded guilty before United States Magistrate Judge Marcos E. López to one count of misappropriation of government funds from the United States Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee Program, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
On or about October 28, 2014, defendant Victor Cruz-Quintero used his position as the director of finance of the Municipality of Toa Baja to make an unauthorized transfer of $2,538,164.41 from HUD Section 108 Loan Guarantee Program funds into the municipality’s general fund. These funds were utilized to make payroll payments to municipal employees and to pay various municipal contractors.
All federal funds and financing provided by HUD to the Municipality of Toa Baja as a part of the Section 108 Loan Guarantee Program were required to be used only for purposes authorized by HUD. At no time did HUD authorize the Municipality of Toa Baja or any municipal employees to utilize HUD federal funds or financing to pay non-HUD program municipal employees or to otherwise pay non-HUD program municipal contracts.
On March 18, 2021, the Municipality of Toa Baja recognized the misappropriation of these funds and executed a Repayment Agreement with HUD to make five annual payments to HUD totaling $2,605,164.
This case was investigated by the Federal Bureau of Investigation (FBI), the U.S. Department of Housing and Urban Development Office of the Inspector General (HUD-OIG), and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). Assistant U.S. Attorney Seth A. Erbe is in charge of the prosecution of this case.
Defendant Victor Cruz-Quintero faces a maximum penalty of 10 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Coast Guard Investigative Service Arrests 3 Individuals Charged with Conspiracy to Communicate a False Distress SignalRead the Press Release
SAN JUAN, Puerto Rico – On July 14, 2022, a federal grand jury sitting in the District of Puerto Rico returned an indictment charging Harold Carrion Butter, Justinita Butter, and Miriam Delgado-Serrano with Conspiracy to Communicate a False Distress Signal, in violation of 14 U.S.C. § 521(c) and 18 U.S.C. § 371; Communicating a False Distress Signal, in violation of 14 U.S.C. § 521(c), and 18 U.S.C. § 2; Conspiracy to Destroy, Alter, or Falsify Records in Federal Investigations, in violation of 18 U.S.C. §§ 1519 and 371; and Destruction, Alteration, or Falsification of Records in Federal Investigations, in violation of 18 U.S.C. §§ 2 and 1519. The announcement was made by United States Attorney for the District of Puerto Rico W. Stephen Muldrow, and Captain Jose E. Diaz, Commander of the U.S. Coast Guard, Sector San Juan.
Additionally, Justinita Butter and Miriam Delgado-Serrano were charged with multiple counts of making false statements to United States Coast Guard personnel and United States Coast Guard Investigative Service agents, in violation of 18 U.S.C. § 1001(a)(2).
Pursuant to court filings, on June 28, 2022, Harold Carrion Butter, while trying to evade local authorities regarding a domestic violence case, purposefully hid himself in an attempt to make it seem like he was swept out to sea at La Poza Del Obispo in Arecibo, Puerto Rico. Carrion Butter called his mother, Justinita Butter who, after several phone conversations with her son, called local 9-1-1. She falsely reported that her son had not been answering his phone and was missing from the beach at Poza Del Obispo in Arecibo, Puerto Rico. Her 9-1-1 call was transferred to United States Coast Guard Sector San Juan, which immediately began to coordinate a search and rescue operation for Carrion Butter. Throughout that night and following two days, through multiple phone calls with Coast Guard Officers, Justinita Butter and Miriam Delgado-Serrano, made multiple false claims that Carrion Butter did not have a phone, must have been swept out to sea, and that there was no other place he could be. All these claims were made while they were both in continuous and surreptitious communication with Carrion Butter through multiple phone calls and text messages.
On July 1, 2022, Carrion Butter was discovered by local Puerto Rico police, in a location near his family home. The United States Coast Guard subsequently ended its search and rescue operation, after having diverted multiple ships, boats, and aircraft from other potential search and rescue missions and criminal-interdictions, and after having expended over $1,000,000 in assets and resources in the search.
“The Department of Justice will vigorously prosecute those who make false reports to law enforcement. The defendants' actions in this case not only placed law enforcement officers and emergency responders participating in the rescue efforts in danger, but diverted essential resources from other law enforcement and potential rescue efforts,” said United States Attorney Stephen Muldrow.
“I want it to be very clear to the people and the maritime community of Puerto Rico, both commercial and recreational, that this unfortunate situation will not deter our response in future cases and maritime emergencies,” said Capt. José E. Díaz, Coast Guard Sector San Juan commander. “Of all our missions, search and rescue, and the safety of life at sea are my top priorities. It is important for everyone to know that the Coast Guard is always ready to respond to rescue people in distress at sea and that no one should ever hesitate to call the Coast Guard for help during a maritime distress.”
“For the Coast Guard, a false distress call diverts assets and personnel away from our critical missions, it is also a crime, and the Coast Guard Investigative Service will treat it accordingly,” said Zinnia James, Coast Guard Investigative Service Special Agent in Charge Southeast Region.
“In the Department of Public Security we do not hold back resources and personnel to safeguard lives and guarantee the safety of the people of Puerto Rico,” said Alexis Torres, Secretary of the Department of Public Security. “Harold Carrion Butter’s actions is unacceptable because he lied to federal and local authorities. Additionally, he placed the lives of emergency responders in jeopardy. The filing of the charges demonstrates show that any person who lies to authorities will have to answer for their actions.”
The prosecutors in charge of the case are, Assistant U.S. Attorney Max Pérez-Bouret, Chief of the Transnational Organized Crime Section; Deputy Chief of the Transnational Organized Crime Section, Assistant U.S. Attorney Vanessa Bonhomme, and Special Assistant United States Attorney Jordan Martin. If convicted, the defendants face a mandatory sentence of not more than 5 years for violation of 18 U.S.C. § 1001(a)(2), less than 10 years in prison for violations of 14 U.S.C. § 521, and up to 20 years for obstruction of justice.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty beyond a reasonable doubt.
Student Who Hacked over a Dozen Email and Snapchat Accounts of Female Students from the University of Puerto Rico Pleads Guilty to CyberstalkingRead the Press Release
SAN JUAN, Puerto Rico – On July 13, 2022, Iván Santell-Velázquez pled guilty to cyberstalking before United States District Court Judge Silvia Carreño-Coll, in violation of 18 U.S.C. § 2261A(2), announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
According to the parties’ stipulation of facts, Santell-Velázquez, while a student at the University of Puerto Rico at Cayey, sent unauthorized emails to faculty, administration, and students under the moniker “Slay3r_r00t”. Santell targeted over 100 student email accounts and successfully broke into multiple university e-mail accounts, collecting personal information through phishing and spoofing schemes. In addition, between 2019 and 2021, Santell-Velázquez hacked into several female students’ Snapchat accounts, some of which contained nude images that he shared with third parties who published the images online.
After Santell-Velázquez broke into a victim’s Snapchat account, she began receiving harassing text messages with her intimate pictures. Nude photos stolen from the victim’s Snapchat account were posted on Twitter as well as on a Facebook page.
The plea agreement encompasses 15 female victims of Santell-Velázquez’s conduct, as well as the University of Puerto Rico.
“This individual engaged in phishing and spoofing schemes to steal information,” said U.S. Attorney Muldrow. “He harassed numerous women with the nude photos he stole from them, and in some cases, he published them. This case demonstrates the importance of safeguarding personal information and passwords, especially in response to suspicious e-mails and text messages.”
“Individuals who engage in this type of behavior know what they are doing is wrong and they know they are causing great harm to their victims. What I want everyone to know is that, it is not just wrong, it is a federal crime, and one that the FBI won’t tolerate.” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “I want to urge everyone who has been a victim to this crime to report it immediately by calling 787-987-6500 or visiting tips.FBI.gov”.
Assistant U.S. Attorney Jeanette Collazo is in charge of the prosecution of the case. FBI Special Agent Christian Nieves of the San Juan Cyber Division was in charge of the investigation. Cyberstalking carries a maximum prison sentence of five years. The sentencing hearing is scheduled for October 12, 2022.
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Former Mayor of Guayama, Puerto Rico Sentenced for Accepting BribesRead the Press Release
SAN JUAN, Puerto Rico – The former mayor of the Municipality of Guayama, Puerto Rico, Eduardo Cintrón-Suárez, was sentenced today to 30 months in prison for his involvement in a bribery scheme in which he received cash payments in exchange for executing municipal contracts and approving invoice payments for an asphalt and paving company.
Eduardo Cintrón-Suárez, 54, pleaded guilty in April 2022 to one count of conspiracy to engage in a bribery scheme. According to court documents and statements made in connection with his plea and sentencing, Eduardo Cintrón-Suárez, was the mayor and highest-ranking government official in the municipality of Guayama from 2013 until 2022. Starting in 2013, Cintrón-Suárez executed asphalt and paving contracts and also approved municipal payments to Company A. In exchange, Cintrón-Suárez agreed to receive a kickback payment corresponding to $1.00 per square meter of new asphalt laid by Company A in the municipality of Guayama under the contracts. This kickback scheme continued until approximately February 2021. In addition to the term of imprisonment, the defendant forfeited $114,000 in cash and was sentenced to three years of supervised release.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Pedro Marrero-Miranda, 22-251(RAM); United States v. Ramon Conde-Melendez, 22-221 (PAD); United States v. Eduardo Cintrón-Suárez, 22-151 (SCC); United States v. Luis Arroyo-Chiqués, 21-485 (SCC); United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); and United States v. Raymond Rodríguez, 21-465 (RAM).
Additionally, the department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Ángel Pérez-Otero, 21-474 (ADC); United States v. Radamés Benítez-Cardona, 21-475 (PAD); United States v. Javier García-Pérez, 22-185 (ADC); and United States v. Reinaldo Vargas-Rodríguez, 22-186 (PAD).
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A Former Employee and a Contract Worker of Medtronic-CR Indicted for Conspiring to Defraud the Company of over $1M and Launder their ProceedsRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment charging defendants Elieser Feliciano-Soto and José E. Santana-Criado with agreeing to benefit and enrich themselves by obtaining money and property belonging to Medtronic Medical CR SRL (Medtronic-CR) through a wire fraud scheme. The defendants are also charged with a money laundering conspiracy involving transactions, using the stolen proceeds, in excess of $10,000. The indictment includes a forfeiture allegation related to the total value of the loss, approximately $1,151,296.38, and two residential properties.
As alleged in the indictment, Medtronic-CR was a Costa Rica limited liability company that manufactured orthopedic components used for spine surgery devices and spine surgery procedures, which are distributed and sold globally. As part of its expansion plans, in or about 2017, Medtronic-CR set out to build a new manufacturing facility in Coyol Alajuela, Costa Rica.
Elieser Feliciano-Soto was the Site Director for Medtronic-CR and was in charge of overseeing the construction of the new manufacturing facility. José E. Santana-Criado, a contract worker for Medtronic-CR, organized Innovative Engineering Corp. and Innovative Engineering LLC (collectively referred to as Innovative) in Puerto Rico. The defendants used Innovative to fraudulently obtain payments from Medtronic-CR for the purported provision of services which were never rendered.
Elieser Feliciano-Soto used his position as Site Director to authorize purchase orders issued by Innovative for the purpose of defrauding Medtronic-CR. The purchase orders authorized services to be rendered by Innovative. Once the purchase orders were approved, the defendants submitted fraudulent invoices from Innovative to Medtronic-CR for services which were never provided. Innovative would then receive electronic wire transfer payments from Medtronic-CR’s bank account in Costa Rica to Innovative’s bank account in Banco Popular de Puerto Rico (BPPR) corresponding to payments for Innovative’s invoices.
The defendants then transferred the wire fraud proceeds from Innovative’s bank account to other accounts that they controlled in BPPR and Baxter Credit Union (BCU) in Illinois. The wire fraud proceeds were used to financially enrich themselves, including to pay the mortgages for real property in Cabo Rojo and Humacao, Puerto Rico.
Pursuant to the indictment, the defendants are charged with conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349, and a money laundering conspiracy in violation of 18 U.S.C. § 1956(h). If convicted, the defendants face a sentence of up to 20 years in prison for each offense.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; and Joseph González, Special Agent in Charge of the FBI made the announcement.
The FBI is investigating the case.
Assistant US Attorney Víctor O. Acevedo-Hernández is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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MCS Advantage Agrees to Pay 4.2 Million Dollars to Resolve Allegations that it Violated the False Claims Act and Anti-Kickback StatuteRead the Press Release
SAN JUAN, Puerto Rico – On July 1st, 2022, the United States Attorney for the District of Puerto Rico and the U.S. Department of Health and Human Services, Office of Inspector General (HHS- OIG) announced that MCS Advantage, Inc. (MCS Advantage) has agreed to pay $4,200,000 to resolve False Claims Act allegations that it implemented a gift card incentive program in violation of the Anti-Kickback Statute.
According to the settlement agreement, the United States asserted that MCS Advantage submitted or caused to be submitted claims for payment to the Medicare Program relating to a gift card incentive program implemented by MCS during the period of November 2019 to December 2020, which the Government alleges resulted in violations of the False Claims Act and the Anti-Kickback Statute. As a result of the incentive program, MCS distributed 1,703 gift cards to administrative assistants of providers at an aggregate cost of $42,575 to induce the assistants to refer, recommend, or arrange for enrollment of 1,646 new Medicare beneficiaries to an MCS Medicare Advantage plan. Those new Medicare beneficiaries resulted in associated premium payments received by MCS Advantage for the new members.
This agreement underscores the commitment of the Justice Department and HHS- OIG to deterring fraud, waste, and abuse of federal benefit programs, as well as the benefits of cooperation with federal investigations. The negotiated settlement with MCS Advantage took into consideration the company’s voluntary termination of the gift card program in December 2020, the disclosure of relevant facts concerning the program, and the implementation of controls and revisions to its internal policies to promote and help ensure future compliance.
“Investigating healthcare fraud remains a high priority in the Department of Justice and the United States Attorney’s Office and we will aggressively pursue those that violate the healthcare laws of the United States”, said United States Attorney Muldrow. “In this case, we appreciate MCS Advantage’s willingness to promptly negotiate a resolution in this matter.”
Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General New York Region said, “HHS-OIG will continue to investigate any conduct by Medicare Advantage plans that may result in violation of federal law and will work jointly with our law enforcement partners to ensure that entities that conduct business with federal health care programs do so in an honest manner.”
The settled civil claims are allegations only and MCS Advantage did not admit liability as part of this settlement agreement. Further, there has been no determination of civil liability.
This matter was prosecuted by Assistant U.S. Attorney Rafael J. López Rivera, Civil Health Care Fraud Coordinator, at the U.S. Attorney’s Office, in coordination with the U.S. Department of Health and Human Services, Office of Inspector General.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Federal Correctional Officer Indicted and Arrested for Use of Excessive Force Against an InmateRead the Press Release
SAN JUAN, Puerto Rico – On Thursday, June 30, a federal grand jury in the District of Puerto Rico returned an indictment charging Emilio Rodríguez-Arroyo with deprivation of rights under color of law and obstruction of justice. Today the defendant was arrested on these charges and taken into federal custody.
According to court documents, Emilio Rodríguez-Arroyo, a correctional officer at the Metropolitan Detention Center (MDC) in Guaynabo, Puerto Rico, used excessive force against an inmate, while the inmate was handcuffed behind his back and not resisting, resulting in bodily injury.
On Nov. 8, 2021, Rodríguez-Arroyo deprived victim E.R.R. of the Eighth Amendment right to be free from cruel and unusual punishment. The indictment alleges that the defendant struck E.R.R. in the head and face area while E.R.R. was handcuffed behind his back, not resisting, and in the control of other officers. After the incident, Rodríguez-Arroyo knowingly misled a senior Bureau of Prisons (BOP) official about the incident.
The defendant made his initial court appearance today before U.S. Magistrate Judge Giselle López-Soler of the U.S. District Court for the District of Puerto Rico. If convicted, he faces a maximum penalty of 10 years in prison for the civil rights violation count, and a maximum penalty of 20 years for the obstruction of justice count.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico, Special Agent in Charge Joseph González of the FBI San Juan Field Office and Special Agent in Charge James F. Boyersmith of the Department of Justice Office of the Inspector General Miami Field Office made the announcement.
The FBI and the Department of Justice Office of the Inspector General are investigating the case.
Assistant U.S. Attorney Alexander Alum of the District of Puerto Rico and Trial Attorney Eric Peffley of the Civil Rights Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Correctional Officer Indicted and Arrested for Use of Excessive Force Against an InmateRead the Press Release
On Thursday, June 30, a federal grand jury in the District of Puerto Rico returned an indictment charging Emilio Rodríguez-Arroyo with deprivation of rights under color of law and obstruction of justice. Today, the defendant was arrested on these charges and taken into federal custody.
According to court documents, Emilio Rodríguez-Arroyo, a correctional officer at the Metropolitan Detention Center (MDC) in Guaynabo, Puerto Rico, used excessive force against an inmate while the inmate was handcuffed behind his back and not resisting, resulting in bodily injury.
On Nov. 8, 2021, Rodríguez-Arroyo deprived victim E.R.R. of the Eighth Amendment right to be free from cruel and unusual punishment. The indictment alleges that the defendant struck E.R.R. in the head and face area while E.R.R. was handcuffed behind his back, not resisting and in the control of other officers. After the incident, Rodríguez-Arroyo knowingly misled a senior Bureau of Prisons (BOP) official about the incident.
The defendant made his initial court appearance today before U.S. Magistrate Judge Giselle López-Soler of the U.S. District Court for the District of Puerto Rico. If convicted, he faces a maximum penalty of 10 years in prison for the civil rights violation count, and a maximum penalty of 20 years for the obstruction of justice count.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico, Special Agent in Charge Joseph González of the FBI San Juan Field Office and Special Agent in Charge James F. Boyersmith of the Department of Justice Office of the Inspector General Miami Field Office made the announcement.
The FBI and the Department of Justice Office of the Inspector General are investigating the case.
Assistant U.S. Attorney Alexander Alum for the District of Puerto Rico and Trial Attorney Eric Peffley of the Civil Rights Division are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Mayor of Trujillo Alto Pleads Guilty to Accepting BribesRead the Press Release
SAN JUAN, Puerto Rico – The former mayor of the Municipality of Trujillo Alto, Puerto Rico, José Luis Cruz Cruz, age 62, pleaded guilty today in Puerto Rico to engaging in a bribery conspiracy in which he received cash kickback payments in exchange for the award of municipal asphalt and paving contracts as well as municipal trash removal contracts.
According to court documents, in 2020 and 2021, José Luis Cruz Cruz solicited and accepted multiple kickback payments from Individual A and Individual B via Individual C. Individual A was the owner of an asphalt and paving company awarded municipal contracts in Trujillo Alto. Individual B was the owner of a trash removal company awarded municipal contracts in Trujillo Alto. José Luis Cruz Cruz, as mayor, directed municipal employees to execute these contracts. In 2020 and 2021, José Luis Cruz Cruz agreed with Individual C that Individual C would solicit and obtain cash payments from municipal contractors. During that period, José Luis Cruz Cruz received approximately $10,000 from Individual A and Individual B via Individual C in cash kickback payments.
Cruz Cruz pleaded guilty to one count of conspiracy to engage in a bribery scheme. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement. The FBI San Juan Field Office investigated the case.
Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Pedro Marrero-Miranda, 22-251(RAM); United States v. Ramon Conde-Melendez, 22-221 (PAD); United States v. Eduardo Cintrón-Suárez, 22-151 (SCC); United States v. Luis Arroyo-Chiqués, 21-485 (SCC); United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); and United States v. Raymond Rodríguez, 21-465 (RAM).
Additionally, the department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Ángel Pérez-Otero, 21-474 (ADC); United States v. Radamés Benítez-Cardona, 21-475 (PAD); United States v. Javier García-Pérez, 22-185 (ADC); and United States v. Reinaldo Vargas-Rodríguez, 22-186 (PAD).
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Two Additional Defendants Indicted in Case Involving El Hipopótamo RestaurantRead the Press Release
SAN JUAN, Puerto Rico – On June 16, 2022, a federal grand jury in the District of Puerto Rico returned a four-count, second superseding indictment against six defendants for conspiracy to rob El Hipopótamo restaurant on October 31, 2021, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Four of the defendants had been previously indicted for armed carjacking and kidnapping, which resulted in the death of J.F.P. The FBI is in charge of the investigation.
The second superseding indictment charges Basilio Matías-Fajardo, an employee of the El Hipopótamo restaurant, and Edwin Peña-Valdez with conspiring to rob El Hipopótamo restaurant, together with Geofley Jomar-Pérez, Luis Aulet-Maldonado, Luis Cabán-Nieves, and José Jomar Santos-Mercado.
Assistant U.S. Attorney Linet Suárez of the Violent Crime Division is in charge of the prosecution of the case. For the additional count in the second superseding indictment, the defendants face a possible sentence of 20 years in prison. The remaining counts have a maximum possible sentence of life in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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World Elder Abuse Awareness Day (WEAAD)Read the Press Release
SAN JUAN, Puerto Rico – Today, the Department of Justice reaffirms its commitment to elder justice while joining the world in commemorating World Elder Abuse Awareness Day (WEAAD).
Elder abuse takes many forms, including financial exploitation (abuse and fraud), caregiver neglect, and physical, sexual, and psychological abuse.[1] Annually, at least 15% of older adults experience some form of elder abuse, affecting 15 to 20 million older Americans. While the staggering number of older Americans affected by elder abuse is stunning, it is the consequences associated with elder abuse that demand our attention. Victims of elder abuse experience devastating financial losses, compromised health, injury, institutionalization, hospitalization, and even early mortality to name a few.
Attorney General Merit Garland stated “The Department has a strong elder justice history that I continue to fully support. We all know an older family member or friend who has been the victim of financial fraud, either domestically or internationally, and we’ve witnessed first-hand how financial loss impacts older adults. Some older adults cut down on their prescription medications harming their health or they are unable to pay their rent and may have to move into senior subsidized housing, impacting their sense of independence. That is why the Department has devoted significant personnel and resources specifically to combat financial fraud committed against older Americans.”
Associate Attorney General Vanita Gupta commented “Our guiding legislation in the elder justice arena is the Elder Abuse Prevention and Prosecution Act (EAPPA). While financial fraud is a high priority for the Department, it is important to recognize that the EAPPA instructs the Department to take a much broader stance to include elder abuse in all its forms, whether occurring in domestic or long-term care settings. Therefore, the Department continues to invest heavily in elder justice by developing tools and training to enable federal, state, and local elder justice professionals to respond vigorously yet compassionately when elder abuse occurs. Older Americans deserve to age with dignity and the Department’s commitment to elder justice contributes to this goal.”
“We will continue our efforts to protect senior citizens along with state and federal agencies who comprise our district’s Elder Justice Task Force,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “Consumers are fed up with the constant barrage of scams that maliciously target everyday citizens- especially when the elderly are the victims of rip-offs. Every day, people receive offers that sound just too good to be true; some come through the mail, others by telephone or the Internet. These offers have one objective – to rob you of your belongings. Prevent becoming a victim by saying “No”, ignoring the scammers, and reporting them to the authorities.”
The Department’s Elder Justice Highlights
Across the country, Department personnel and our law enforcement partners are diligently pursuing fraudsters who swindle money from older adults, whether they live with the older adult or on the other side of the globe. When older adults experience victimization, the Department responds with the full force of the federal government. For example, the Transnational Elder Fraud Task Force is a federal-state collaborative body that investigates and prosecutes individuals and organizations engaged in foreign-based fraud schemes that disproportionately affect older Americans. The Money Mule Initiative involves federal, state and local law enforcement agencies specifically identifying and addressing money mule activity to disrupt these fraud schemes that impact older Americans. The National Nursing Home Initiative coordinates and enhances civil and criminal pursuit of nursing homes that provide grossly substandard care to their residents. The Elder Fraud Initiative within the Consumer Protection Branch is the Department’s leader in prosecuting elder fraud crimes, while Elder Justice Coordinators serving in each of the US Attorney’s Offices actively pursue elder fraud in their respective jurisdictions.
Key to the Department’s efforts to prevent and investigate elder fraud are reports from financial institutions collected by the Financial Crimes Enforcement Network (“FinCEN”). Today, FinCEN is releasing an Advisory on Elder Financial Exploitation, highlighting fraud typologies that impact older adults.
For every enforcement action taken, there is one (and often many) older victims whose future is forever altered. To assist older victims in recovering from crime victimization, the Department provides Victims of Crime Act (VOCA) funding to states for crime victim services programming, with a significant portion of those funds assisting older victims. At the federal level, Victim Specialists serve alongside Elder Justice Coordinators in facilitating services for older victims. The Department enthusiastically promotes collaborations of all types and for the first time released a $3.75 million solicitation to develop statewide elder justice coalitions (June 27, 2022, deadline), through the Office for Victims of Crime, in which elder justice professionals collaborate to collectively identify and address state-level gaps in services to older victims. Importantly, the Department trains elder justice professionals to embrace a victim-centered response when interacting with older victims. For example, funding provided by the Office for Victims of Crime resulted in Responding to Transnational Elder Fraud - A Victim-Centered Approach for Law Enforcement, a training provided by the National White Collar Crime Center. These and other efforts support victim recovery and well-being.
The Department stands at the ready to intervene when fraud and abuse occur, assisting victims and holding offenders accountable. However, the Department recognizes that public awareness is our best defense and therefore extensively invests and engages in public outreach. In addition to enforcement efforts, Elder Justice Coordinators across the country engage in public outreach activities.
There are things we can all do to promote public awareness. Join us this WEAAD in sharing with your friends and family our Community Outreach Flyers containing information on elder abuse and where to report. The former FBI Director Webster warns Americans to be vigilant about elder fraud. Educate yourself about Transnational Elder Fraud Schemes and listen to the voices of older fraud victims in the video, Financial Scams -- Deceit and Devastation, so you “know fraud when you see it”. On WEAAD, and throughout the year, we can all work to find solutions to stop elder abuse.
These few examples demonstrate how collectively the Department is daily striving to promote justice and safety for older Americans through enforcement actions, victim services, elder justice training and resources, and public awareness. To learn more about the Department’s elder justice efforts, please visit the Elder Justice website.
Report
To report financial fraud, contact the National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10:00 am – 6:00 pm eastern time. English/Español/Other languages available.
To report elder abuse, contact your local adult protective services agency through the Eldercare Locator or by calling the helpline at 1-800-677-1116 Monday – Friday 9am - 8pm eastern time.
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[1] What is Elder Abuse (Elder Justice Website); Overview of Elder Abuse (NIJ)
Former Legislator Found Guilty of Theft of Government Funds and Honest Services Wire FraudRead the Press Release
SAN JUAN, Puerto Rico – After a six-day jury trial, former legislator Nestor Alonso-Vega was found guilty of nine counts of Federal Funds Theft, Kickbacks; and Honest Services Wire Fraud, announced United States Attorney W. Stephen Muldrow. United States District Court Chief Judge Raúl Arias-Marxuach presided over the trial. The FBI was in charge of the investigation.
According to court documents and evidence presented at trial, between April 2018 and September 2020, Nestor Alonso-Vega authorized several salary adjustments for his assistant. It was agreed that his assistant would kickback to Alonso-Vega half of the total amount of the pay raise, split between each pay day. The defendant received more than $40,000.
It was further alleged that the assistant, who testified during the trial, used a variety of means to transfer the kickbacks to Alonso-Vega. For example, he used ATH Móvil, made withdrawals around the time he received his paycheck and paid Alonso-Vega in cash, and, at times, made payments to Alonso-Vega’s Home Depot account.
“We continue to see the results of our efforts fighting public corruption,” said U.S. Attorney Muldrow. “My office will continue to diligently investigate and prosecute public corruption schemes to protect the public and hold those involved accountable for their actions.”
“Public Corruption is and will continue to be a top priority for the FBI and today’s verdict is a result of that commitment.” – said Special Agent in Charge of the FBI San Juan Field Office, Joseph González. “I’d like to thank the US Attorney’s Office for being a strong partner in this commitment and urge those who might still need to come forward with information regarding these schemes, to do so. Our lines and doors are always open, and it’s never too late to do the right thing.”
Assistant U.S. Attorney Scott Anderson prosecuted the case. The case was investigated by FBI Special Agent Juan Carlos López of the San Juan Field Office.
Former Mayor of Puerto Rico Municipality Sentenced for Accepting BribesRead the Press Release
WASHINGTON – A former mayor of a municipality in Puerto Rico was sentenced today to two years in prison for his involvement in a bribery scheme in which he received monthly cash payments in exchange for awarding municipal contracts.
Luis Arroyo-Chiqués, 56, of Rincon, pleaded guilty in December 2021 to one count of conspiracy to engage in a bribery scheme. According to court documents and statements made in connection with his plea and sentencing, Arroyo-Chiqués was the mayor and highest-ranking government official in the municipality of Aguas Buenas from 2005 until 2016. In 2017, Arroyo-Chiqués negotiated with Individual B for a waste collection contract for Company A, which was owned and operated by Individual A. In exchange for the 10-year waste collection contract, Individual A agreed to pay Arroyo-Chiqués bribes of $10,000 per month ($1.00 per house for 10,000 houses in the municipality). The agreement was arranged so that Arroyo-Chiqués would be paid $5,000 per month for the life of the contract and Individual B would be paid $5,000 per month. This payment was made in cash every month from 2016 and continued even after Arroyo-Chiqués left office in 2016. The last payment to Arroyo-Chiqués occurred in June 2021.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Eduardo Cintrón-Suárez, 22-151 (SCC); United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodríguez, 21-465 (RAM); and United States v. Ramon Conde-Melendez, 22-221 (PAD).
Additionally, the department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Ángel Pérez-Otero, 21-474 (ADC); United States v. Radamés Benítez-Cardona, 21-475 (PAD); United States v. Javier García-Pérez, 22-185 (ADC); and United States v. Reinaldo Vargas-Rodríguez, 22-186 (PAD).
Former Director of Public Works of Puerto Rico Municipality Pleads Guilty to Accepting BribesRead the Press Release
WASHINGTON – The former Director of Public Works in the Municipality of Cataño, Puerto Rico, pleaded guilty today in Puerto Rico to a bribery conspiracy in which he received cash payments in exchange for the distribution of asphalt removal projects and certification of invoices for payments from the Municipality of Cataño to an asphalt and paving company.
According to court documents, in 2019, 2020, and 2021, Pedro Marrero-Miranda agreed to receive and did receive multiple kickback payments from Individual A and Individual B, owners of an asphalt and paving company, equaling approximately $1.00 for each square meter of asphalt removed by the company in the municipality of Cataño. The total value of the kickback payments received by the defendant from Individual A and Individual B exceeded $40,000.
Marrero-Miranda, pleaded guilty to one count of conspiracy to engage in a bribery scheme. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Luis Arroyo-Chiqués, 21-485 (SCC); United States v. Eduardo Cintrón-Suárez, 22-151 (SCC); United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodríguez, 21-465 (RAM); and United States v. Ramon Conde-Melendez, 22-221 (PAD).
Additionally, the department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Ángel Pérez-Otero, 21-474 (ADC); United States v. Radamés Benítez-Cardona, 21-475 (PAD); United States v. Javier García-Pérez, 22-185 (ADC); and United States v. Reinaldo Vargas-Rodríguez, 22-186 (PAD).
13 Individuals Charged with Possession and Distribution of OpioidsRead the Press Release
SAN JUAN, Puerto Rico – On May 24, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging seven women and six men from the municipality of Ponce with conspiracy to possess with intent to distribute controlled substances, and a former doctor in medicine, defendant Julia Torres-Ortiz, with health care fraud, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA) is in charge of the investigation with the collaboration of the U.S. Department of Health & Human Services Office of Inspector General.
The indictment alleges that from January 2017, and continuing through April 2021, the defendants knowingly and intentionally conspired to possess with intent to distribute Oxycodone (commonly known as Percocet) and Alprozolam (commonly known as Xanax). Defendant Romualdo Matos-Rodríguez distributed the narcotics from his residence in Ponce, PR, and other places nearby, all for significant financial gain and profit.
Co-conspirators would buy pills at pharmacies and return them to defendant Romualdo Matos-Rodríguez for further distribution at his house and other nearby places.
The defendants are:
Leximara Santiago-Martínez
Edna Caridad Cruz-Vélez
Solmarie Gautier-Díaz
Ramón Costa-Pérez
David Santos-Soto
José Manuel Santos-Bodon, a/k/a “Manuel”
Gloria Elena Mercado-Millán
José Alberto Ortiz-Flores, a/k/a “Berto”
Jessenia Díaz-Torres
Edgardo Iván García-Santiago, a/k/a “Meru”
Naomi Rosario-López
Regina Santiago-Martínez, a/k/a “Gina”
Defendant Romualdo Matos-Rodríguez is facing a forfeiture allegation of his property, a residence located at Urb. Villa Dos Ríos, Yagüez Street, in Ponce, PR.
Defendant Julia Torres-Ortiz is facing two counts of health care fraud for prescribing medications, which were then paid by Triple-S Advantage, a medical insurance plan, using her expired DEA Certificate of Registration, Medical License, and Controlled Substance License. Defendant Torres-Ortiz had a National Provider Identifier (NPI), which Triple-S Advantage used to transmit payment for medication prescribed by her, despite lacking legal authority to do so.
Triple-S Advantage is a Medicare Advantage (MA) Plan. MA plans pay for claims submitted by providers for services provided to Medicare beneficiaries. The NPI is a Health Insurance Portability and Accountability Act (HIPAA) standard. It is a unique umber issued by the Centers for Medicare and Medicaid Services to identify a specific individual health care provider, including a specific physician, like defendant Torres-Ortiz.
“Prescribing and distributing opioids without regard to the potentially lethal consequences simply cannot be tolerated,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We will continue to work with our law enforcement partners to hold accountable criminals who scheme to profit from prescribing medically unnecessary drugs.”
“DEA’s objective is clear, the DEA will bring all it has to bear to make our communities safer and healthier, and to reverse the devastating trends of drug-related violence and overdoses plaguing our communities,” said Renita Foster, Special Agent in Charge of the DEA, Caribbean Division. “We will not rest until we eradicate drug violence.”
Assistant U.S. Attorney (AUSA) and Deputy Chief of the Asset Recovery and Money Laundering Unit Myriam Y. Fernández-González, and AUSA Manuel Muñiz-Lorenzi are in charge of the prosecution of the case. If convicted on the conspiracy charge, the defendants face a sentence of up to 20 years in prison. If convicted of health care fraud, Julia Torres-Ortiz faces up to 10 years in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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41 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in San Juan, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On May 17, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging 41 violent gang members from the municipality of San Juan with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Rico Police Bureau (PRPB), San Juan and Carolina Strike Forces were in charge of the investigation of the case, with the collaboration of the United States Marshals Service, the Drug Enforcement Administration (DEA), and Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI).
“Last year we arrested Carlos Manuel Cotto-Cruz, aka “Wasa”, the leader of this violent organization. We continued to work non-stop to put an end to the organization’s violence, and today we have dismantled its drug trafficking activities,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “This operation reflects the excellent collaboration between our state and federal law enforcement partners – coordinated through our OCDETF task force program.”
“It’s important to highlight that during today’s operation, we arrested various drug trafficking leaders in Puerto Rico,” said Joseph González, Special Agent in Charge of the FBI, San Juan Field Office. “We know this doesn’t mean our work is done, and what I want tom make clear is that we won’t stop.”
The indictment alleges that from 2016 to the date of the return of the indictment, the drug trafficking organization distributed heroin, cocaine base (commonly known as “crack”), cocaine, marihuana, Oxycodone (Percocet), Alprazolam (Xanax), and Buprenorphine (Suboxone) within 1,000 feet of the Vista Hermosa, Villa España, and Luis Lloréns Public Housing Projects, and other areas nearby. The object of the conspiracy was to operate a drug-trafficking organization to distribute controlled substances in many areas in the municipality of San Juan, and to ship narcotics to the Continental United States, for significant financial profit.
During the course of the investigation, members of the conspiracy received shipments of narcotics at the coastlines of Puerto Rico from vessels that had traveled from Venezuela and Dominican Republic. Members of the organization transported and distributed kilogram quantities of cocaine from Puerto Rico into the continental United States.
As part of the conspiracy, the co-conspirators used abandoned apartments in the Public Housing Projects to prepare the drugs for distribution at the drug points. They would also rent different properties or locations using home rental applications like AirBnb, in order to use them as stash places to store kilogram quantities of heroin, cocaine, crack, marihuana, U.S. currency, firearms, and ammunition in order to avoid detection from law enforcement.
The defendants acted in different roles in order to further the goals of their organization, to wit: leaders/suppliers, enforcers, runners, sellers, lookouts, and facilitators. The members of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. They held meetings to discuss the operations of the drug-trafficking organization and to plan violent acts against members of their own gang or members of a rival gang. Twenty-six defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime:
Carlos Manuel Cotto-Cruz, a/k/a “Wasa/Zion/Loco/Alto Rango/Ministro”
Héctor Luis Santiago-Medina, a/k/a “Gordo Casco/El Incorregible”
Luis Daniel García-Hernández, a/k/a “Luisda/Ele-D/El Enano”
Jermaine Calderón-Echevarría, a/k/a “Jey/Jeso/Pupi”
Victor Isaac Del Valle-Rivera
José Luis Castro-Vázquez, a/k/a “Manota”
Fabián Nieves-Rosales, a/k/a “Chino”
Karem Lynette Varcárcel-Cruz, a/k/a “La Prieta”
Pedro Alejandro Ocasio-Hernández, a/k/a “Chino”
Giovanni Andrés Reyes-Cruz, a/k/a “Koala/Ken Y/El Animal/Koa”
Luis Manuel Vega-Quiles, a/k/a “Luisma/Sangre”
Gabriel Casanova-Yales, a/k/a “Gaby Luchy”
Fernando Ian Canino-Ortiz, a/k/a “Ian”
Carlos J. Santos-Díaz, a/k/a “Mambiche”
Luis Miguel Muñóz-López, a/k/a “Chino/Chino Grillo”
Luis Alberto Cintrón-Collazo, a/k/a “Pacho/El Negro”
Pablo De La Cruz-Arias, a/k/a “Pablo El Diablo”
Pedro Victor Nieves-Hernández, a/k/a “Pedrito”
Mario Alexander Rivera
Carlos A. Benítez-Rolón, a/k/a “Charlie/Charlie El Negro”
Jesús David Maldonado-Morales, a/k/a “Chu/Chuito”
Arsenio Laborde-Figueroa
Juan Francisco Torres-Huertas, a/k/a “Cano/Canito/Jonathan”
Julio Ángel Galarza-Rosado
Alex Darnel Rodríguez-Huertas, a/k/a “Darnel”
Lino Acosta-López
The other defendants are:
Luis Manuel Ortiz-Romero, a/k/a “Yiyo”
Luis Nike Santiago-Medina
Juan Ruiz-Díaz, a/k/a “Pra Pra”
Rubén Figueroa-Rodríguez, a/k/a “Rubén el Gordo”
Yan Carlos De Jesús-Ortíz a/k/a “Cepi/Cepi El Escudo”
Omar Quiles-Arce a/k/a “Tibu”
Kevin Jomar Maldonado-Rosa
Kristian Damián Martínez-Cruz
Ángel Rafael Torres-Reyes, a/k/a “Mickey Wood”
Orlando José Rodríguez-Lara, a/k/a “Trippy”
Kibanielle Ichael Colón-Muñíz, a/k/a “Kiba/Kiva”
Chris Anthony Jiménez-Ortiz
Kenny J. Rodríguez-Rodríguez, a/k/a “Kencho/Kenny Kencho/Ian”
Keyshla Michelle Rodríguez-Acevedo
Kelvin Joel Torres-Flores
Defendants Héctor Luis Santiago-Medina and Keyshla Michelle Rodríguez-Acevedo are facing one count of conspiracy to commit money laundering. According to court documents, the object of the conspiracy was to conduct financial transactions with the proceeds of drug trafficking to conceal and disguise the nature, location, source, ownership, and control of the proceeds. For example, they used the proceeds from the sale of the narcotics to purchase vehicles. At times they submitted false financial documents and made false statements to financial institutions to receive loans to purchase automobiles and paid the loans with the narcotics proceeds. They also registered the vehicles in the names of co-conspirators, but the vehicles were used by other individuals from the organization.
Assistant U.S. Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares, AUSAs Corinne Cordero-Romo and Pedro Casablanca, and Special AUSA R. Vance Eaton are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a minimum sentence of 15 years, and up to life in prison. All defendants are facing a narcotics forfeiture allegation of $58,151,800.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Rafael “Raphy” Pina Sentenced to 41 Months in PrisonRead the Press Release
SAN JUAN, Puerto Rico – U.S. District Judge Francisco A. Besosa sentenced Rafael “Raphy” Pina-Nieves to a term of 41months in prison, 3 years of supervised release, 200 hours of community service and a fine of one hundred fifty thousand dollars ($150,000) for firearms violations being a convicted felon, and possession of a machinegun. Pina-Nieves was found guilty by a federal jury on December 22, 2021.
According to court documents and evidence presented at trial, Pina-Nieves knowing that he had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed: one Glock pistol, Model 19, 9mm caliber; one Smith & Wesson, Model SD40, .40 caliber, and 526 total rounds of live ammunition, including 148 rounds of .40 caliber handgun ammunition, 123 rounds of .357 caliber handgun ammunition, 3 rounds of .45 caliber handgun ammunition, 170 rounds of .25 caliber handgun ammunition, 3 rounds of 5.7 caliber handgun ammunition, 35 rounds of 7.62 caliber rifle ammunition, 18 rounds of 7.92 caliber rifle ammunition, 1 round of 12 gauge shotgun ammunition, and 25 rounds of 9mm caliber handgun ammunition.
The Glock pistol, Model 19, 9mm caliber possessed by Pina-Nieves was a machine gun, as it was modified to shoot more than one shot, without manual reloading, by a single function of the trigger.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico, Joseph González, Special Agent in Charge of the FBI, and Matthew D. Line, Special Agent in Charge of the IRS-C.I. made the announcement.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation, were in charge of the investigation of the case.
Assistant U.S. Attorneys María L. Montañez-Concepción and José Ruiz-Santiago prosecuted the case.
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Man Sentenced to 55 Months in Prison for Illegal Sale of FirearmsRead the Press Release
SAN JUAN, Puerto Rico – The Honorable Daniel Domínguez of the United States District Court for the District of Puerto Rico sentenced defendant Carlos Osorio-Pérez to a near-statutory-maximum sentence of 55 months of prison and three years of supervised release. Osorio-Pérez pled guilty to a conspiracy to engage in the unlicensed business of dealing in firearms in violation of 18 U.S.C. §§ 371 and 922(a)(1)(A).
Osorio-Pérez was the leader of an organization active for years in the Miami and Tampa Field Division areas of responsibility. As part of his plea, he acknowledged that he purchased almost 100 guns in Florida and sent them via the U.S. mail to co-conspirators in Puerto Rico for sale. Osorio-Pérez further acknowledged that he knew that the buyers of several of the guns would use them unlawfully. Intended recipients of the guns included drug-trafficking organizations in Puerto Rico. In WhatsApp conversations, Osorio-Pérez recommended that an unlicensed firearm seller in Puerto Rico talk directly to the “street bosses” and “top dogs.”
On December 14 and 15, 2020, Osorio-Pérez caused to be mailed from Florida to Puerto Rico for illegal sales the following firearms: four (4) Glock pistols; a Zastava AK-47 type pistol; a Mini AK-47 type pistol; and four (4) lower receivers for AR-15 type pistols.
Osorio-Pérez was charged with four other members of the conspiracy. Co-defendant Luz Damariz Pérez-Velázquez was already sentenced to 36 months in prison and three years of supervised release. Her roles in the conspiracy included sending money to Florida for the purchase of firearms, receiving the firearms in Puerto Rico through the U.S. mail, and delivering the guns to co-conspirators in order to sell them in Puerto Rico for profit without a license. Members of the conspiracy would use Western Union and Walmart to transfer the proceeds of firearm sales from Puerto Rico to Florida.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; and Christopher Robinson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Miami Field Division, made the announcement.
Assistant United States Attorneys Jeanette Collazo, Carlos Cardona, and Jonathan Gottfried prosecuted the case.
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Former Director of Public Works in Guayama Pleads Guilty to Accepting Bribes in Exchange for Certifying Completion of Municipal Asphalt ProjectsRead the Press Release
SAN JUAN, Puerto Rico – The former Director of Public Works in the Municipality of Guayama, Puerto Rico, Ramón Conde-Meléndez, pleaded guilty today in Puerto Rico to engaging in a bribery conspiracy in which he received cash payments in exchange for certifying the completion of asphalt projects which was required for the approval of payments from the Municipality of Guayama to an asphalt and paving company.
According to court documents, in 2019 and 2021, Ramón Conde-Meléndez agreed to receive and did receive multiple kickback payments from Individual A, an owner of an asphalt and paving company, equaling approximately $1.00 for each square meter of asphalt removed by the company in the municipality of Guayama. The total value of the kickback payments received by the defendant from Individual A exceeded $15,000.
Conde-Meléndez pleaded guilty to one count of conspiracy to engage in a bribery scheme. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Seth A. Erbe of the United States Attorney’s Office for the District of Puerto Rico are prosecuting the case.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Luis Arroyo-Chiqués, 21-485 (SCC); United States v. Eduardo Cintrón-Suárez, 22-151 (SCC); United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodríguez, 21-465 (RAM).
Additionally, the Department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Ángel Pérez-Otero, 21-474 (ADC); and United States v. Radamés Benítez-Cardona, 21-475 (PAD); United States v. Javier García-Pérez, 22-185 (ADC); United States v. Reinaldo Vargas-Rodríguez, 22-186 (PAD).
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Firefighter arrested for Transporting and Harboring Non-Citizens for financial gainRead the Press Release
SAN JUAN, Puerto Rico – On May 18, 2022, a federal grand jury returned an indictment charging Pedro Rafael Rodríguez-Garnier, 54, of Cabo Rojo, Puerto Rico, with transporting and harboring illegal aliens.
According to the investigation, on August 1, 2019, during the early morning hours, Pedro Rafael Rodríguez-Garnier encountered multiple immigrants that had arrived in Puerto Rico illegally. He transported them from Joyuda to Puerto Real, Cabo Rojo, and once there, defendant harbored them and requested money in exchange for providing them food and shelter.
“Today’s arrest demonstrates the Department of Justice’s commitment to protecting and seeking justice for vulnerable individuals,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
“HSI San Juan is focused on identifying and assisting victims of crimes, and providing them with services regardless of citizenship or status,” said HSI San Juan Special Agent in Charge Ivan Arvelo. “We are committed to bringing to justice those who try to take advantage of the vulnerabilities of non-citizens.”
Special Assistant United States Attorney Nadia Pineda-Perez is in charge of the prosecution of this case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fifteen Individuals Indicted for Shipping Cocaine to the Continental United StatesRead the Press Release
SAN JUAN, Puerto Rico – On May 11, 2022, a Federal Grand Jury in the District of Puerto Rico returned a four-count indictment and a three-count superseding indictment against 15 defendants for conspiracy to possess with intent to distribute controlled substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The agencies in charge of the investigation are the United States Postal Service Office of Inspector General (USPS-OIG), the U.S. Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), and the U.S. Army Criminal Investigation Division, with the collaboration of the Puerto Rico Police Bureau.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The thirteen individuals charged in the indictment are:
Pablo Colón-Rolón, a.k.a “Gordo/Goldo”
Carlos Castro-Lecumberri
Enmanuel Matos-Matos, a.k.a “El Menor”
José Pérez-Cuevas, a.k.a “Chipolo”
Juan Manuel Vázquez-Díaz, a.k.a “Demente”
Saul Montalvo-Mulero, a.k.a “La Momia”
Luis M. Ortiz-Rivera, a.k.a “Jingo/Ñingo”
Miguel Piñeiro-Ramos, a.k.a “El Grande”
Nelson Suárez-Ortiz, a.k.a “El Cocinero/El Quemao”
Carlos Marrero-Vazquez, a.k.a “El Cartero”
Johan Torres-Feliciano, a.k.a “El Ingeniero/Inge”
Gustavo Rivera-Mulero, a.k.a “El Cano”
Abraham Nelson-Brenes
From at least the year 2020, until March 2021, the defendants conspired to distribute wholesale amounts of cocaine within Puerto Rico and the continental United States including Florida, Massachusetts, Maryland, Alabama, Connecticut, Pennsylvania, Delaware, and New York among others, for financial gain and profit.
As part of the manner and means of the conspiracy, the co-conspirators met at cock fighting events around Puerto Rico, networking with known and unknown co-conspirators, and entered deals for the purchase, transfer, and sale of kilogram quantities of cocaine. They utilized the U.S. Postal Service and other private shipping companies to transport the cocaine to the various locations in the U.S. When the co-conspirators utilized the private shipping companies, they concealed the kilograms of cocaine in buckets of industrial sealant, household items, and board games, among other things.
Other co-conspirators located in the continental United States would receive the cocaine shipments and further distribute them to other co-conspirators. These co-conspirators collected the proceeds from the sale of cocaine in the continental United States for its return to Puerto Rico.
Ten (10) of these defendants are facing one count of conspiracy to launder monetary instruments. The defendants conducted financial transactions with the proceeds of drug trafficking by transferring the proceeds from the continental U.S. to co-conspirators in Puerto Rico.
Defendant Abraham Nelson-Brenes in facing one count for knowingly managing and controlling a place located at Urbanization Jardines de Dorado for the purpose of unlawfully storing and distributing kilograms of cocaine.
The superseding indictment charges Juan González-Ayala, Carlos Castro-Lecumberri, and Jonathan Santiago-Hernández of conspiracy to possess with intent to distribute wholesale amounts of cocaine within Puerto Rico and the continental U.S. for financial gain and profit.
Defendant Santiago-Hernández is facing one count of possession of a firearm in furtherance of a drug trafficking crime.
Assistant U.S. Attorney Camille García from the Transnational Organized Section and Special Assistant U.S. Attorney R. Vance Eaton from the Gang Section are in charge of the prosecution of the cases. The defendants face a possible sentence of 10 years up to life in prison for the drug trafficking charges, and up to 20 years for the money laundering charges.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Río Piedras Man Charged and Arrested for Child ExploitationRead the Press Release
SAN JUAN, Puerto Rico – United States Magistrate Judge Marshal D. Morgan authorized a criminal complaint against 33 year-old Gilberto E. Raffols-Cuevas, a.k.a. “Tito”, of San Juan, Puerto Rico, with production of child exploitation material, coercion and enticement of a minor, possession of child pornography, and distribution of child pornography, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The arrest follows an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with the assistance of the Puerto Rico Police Bureau (PRPB) and the U.S. Attorney’s Office for the District of Puerto Rico.
According to court documents, from April 1 to April 28, 2022, Gilberto E. Raffols-Cuevas knowingly persuaded, induced, enticed, and coerced a female minor to engage in sexual activity. The man was arrested at his residence without incident.
The criminal complaint alleges that Raffols-Cuevas was having sexually explicit conversations with a 10-year-old female and that Raffols-Cuevas requested naked pictures from her. The victim sent pictures to the defendant and Raffols-Cuevas demanded more pictures and more sexually explicit. When the female minor did not comply, Raffols-Cuevas threatened that he would upload her images to his Instagram accounts and that he would share them with an unimaginable amount of people. The defendant also sent pictures of his penis to the female minor. Since the female minor did not comply with the defendant’s request, he sent pornographic material to another female minor.
Raffols-Cuevas had his initial hearing before U.S. Magistrate Judge Morgan on May 13. He was transferred to the Guaynabo Metropolitan Detention Center awaiting the outcome of his case.
If convicted, Raffols-Cuevas faces a mandatory minimum penalty of 15 years up to 30 years in prison for the production of child exploitation material, and a mandatory minimum of 10 years up to life, followed by a supervised release term up to life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant United States Attorney Daynelle M. Álvarez-Lora, of the Child Exploitation and Immigration Unit, is in charge of the prosecution of this case.
HSI is the principal investigative arm of DHS and a vital U.S. asset in combatting transnational crimes and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse and help make the internet a safer place for children.
For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney W. Stephen Muldrow Recognizes Police WeekRead the Press Release
SAN JUAN, Puerto Rico— In honor of National Police Week, United States Attorney W. Stephen Muldrow recognizes the service and sacrifice of federal, state, local, law enforcement. This year, the week is observed Wednesday, May 11 through Tuesday, May 17, 2022.
“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”
“I am grateful for the opportunity to pay my respects to so many fallen heroes and colleagues”, said U.S. Attorney Muldrow. “We understand the risks of law enforcement work, but we must also understand the challenges. We must join our law enforcement community in standing up against crimes large and small. We must help each other in times of need. And above all, we must protect those who have made service to others their life’s work. It is our most important priority to keep law enforcement officers safe.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021. Of that number, 319 succumbed to COVID-19. Ten (10) officers have died in the line of duty in the District of Puerto Rico:
Eliezer Hernández-Cartagena, Carolina Municipal Police, 1/11/2021
Luis Xavier Salamán-Conde, Carolina Municipal Police 1/11/2021
Luis Ángel Marrero-Díaz, Puerto Rico Police Bureau (PRPB) 1/11/2021
Ervin Castro-Domínguez, Carolina Municipal Police, 9/11/2020
José Ferrer-Pabón, PRPB, 12/24/2021
Erasmo García-Torres, PRPB, 6/10/2021
Juan Francisco Rosado-López, PRPB, 2/3/2021
Juan Rafael Rivera-Padua, PRPB, 1/23/2021
Juan Ramón Ramírez-Padilla, PRPB, 11/13/2020
Roberto Rodríguez-Hernández, PRPB,11/4/2020
https://nleomf.org/memorial/facts-figures/roll-call-of-heroes/
Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents. Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year. In 2021, unprovoked attacks[1] were the cause of 24 deaths significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting. Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program.
The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
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Reference to any specific organization or service(s) offered by an organization is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the United States Department of Justice.
[1] An unprovoked attack is defined as an attack on an officer not prompted by official contact at the time of the incident between the officer and the offender. Source: Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program.
Former Police Officer Found Guilty of Stealing 125 Firearms from the Puerto Rico Police Shooting Range at Isla De CabraRead the Press Release
SAN JUAN, Puerto Rico – On May 6, 2022, following a ten-day bench trial, the Honorable Silvia Carreño-Coll found defendant José Padilla-Galarza guilty as charged in Counts 1, 2, 3, 5, and 6 of the superseding indictment, which included the following:
- Conspiracy to interfere with commerce by robbery (Hobbs Act);
- Carrying a firearm during and in relation to a crime of violence;
- Stealing firearms;
- Prohibited person in possession of a firearm; and
- Interference with commerce by robbery (Hobbs Act).
According to court documents and evidence presented at trial, Padilla-Galarza, a former Puerto Rico Police Bureau (PRPB) officer, used to visit the PRPB Isla de Cabra Shooting Range to become familiar with the personnel, their shifts, and the layout of the facility. Padilla-Galarza, as mastermind, planned the heist for over a year. The robbery took place on October 26, 2010. The co-conspirators assaulted, subdued, and bound the duty police officers and stole the firearms stored in the vault to subsequently sell them for significant pecuniary gain and profit.
The co-conspirators used a white Ford Crown Victoria attached with decals of the PRPB to give it the appearance of an official PRPB patrol car. Members of the conspiracy dressed as PRPB police officers, some in regular police uniforms and others in tactical uniforms. The 125 firearms stolen included two pistols taken from duty officers, 40 AR-15 rifles, 24 shotguns, nine 9mm carbines, one MP3 rifle, and 49 pistols.
This was the biggest firearms robbery in the history of Puerto Rico.
Padilla-Galarza now faces terms of imprisonment of up to 20 years for the Hobbs Act violations, a minimum of 5 years for carrying a firearm in furtherance of a crime of violence (robbery), up to 10 years for stealing firearms, and up to 10 years for being a prohibited person in possession of a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) lead the investigation with the collaboration of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), and the Federal Bureau of Investigation (FBI).
The case was prosecuted and tried by Assistant United States Attorneys Max Pérez-Bouret and Jawayria Z. Auchter.
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Two Puerto Rico Mayors Arrested and Charged with Accepting BribesRead the Press Release
The mayors of two municipalities in Puerto Rico were arrested yesterday for allegedly engaging in conspiracy, soliciting bribes, and extortion.
According to the indictment, unsealed yesterday in the District of Puerto Rico, Javier García-Pérez, 46, Mayor of Aguas Buenas, was involved in a bribery conspiracy in which, from 2017 through 2021, he received and accepted cash payments from two businessmen in exchange for awarding municipal contracts for waste disposal services, asphalt and paving services, and debris removal and paying outstanding invoices on the contracts. The indictment alleges that García-Pérez received at least $32,000 in cash payments from the two businessmen from August 2020 through September 2021.
A second indictment unsealed yesterday alleges that Reinaldo Vargas-Rodriguez, 48, Mayor of Humacao, was involved in a bribery conspiracy in which, from January to July 2021, he received and accepted cash payments from two businessmen in exchange for awarding municipal contracts for waste disposal and asphalt and paving services, and for paying outstanding invoices on the contracts. The indictment alleges that Vargas-Rodriguez received at least $15,000 in cash payments from the two businessmen from March 18, 2021, through April 15, 2021.
If convicted of all counts, García-Pérez and Vargas-Rodriguez each face up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
The cases are being prosecuted by Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico.
The cases are part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Luis Arroyo-Chiques, 21-485 (SCC); United States v. Eduardo Cintron-Suarez, 22-151 (SCC); United States v. Felix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodriguez, 21-465 (RAM).
Additionally, the department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Angel Perez-Otero, 21-474 (ADC); and United States v. Radames Benitez-Cardona, 21-475 (PAD).
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Puerto Rico Mayors Charged with Accepting BribesRead the Press Release
WASHINGTON – A federal grand jury in San Juan, Puerto Rico returned an indictment yesterday charging Javier García-Pérez, the Mayor of Aguas Buenas, with conspiracy, soliciting bribes, and extortion. In a separate indictment, Reinaldo Vargas-Rodriguez, the Mayor of Humacao was also charged with conspiracy, soliciting bribes, and extortion.
According to court documents, Javier García-Pérez, 46, of Aguas Buenas, was involved in a bribery conspiracy in which, from 2017 through 2021, he received and accepted cash payments from two businessmen in exchange for awarding municipal contracts for waste disposal services, asphalt and paving services, and debris removal and paying outstanding invoices on the contracts. The indictment alleges that García-Pérez received at least $32,000 in cash payments from August 2020 through September 2021 from the two businessmen.
A second indictment returned yesterday alleges that Reinaldo Vargas-Rodriguez, 48, of Humacao, was involved in a bribery conspiracy in which, from January to July 2021, he received and accepted cash payments from two businessmen in exchange for awarding municipal contracts for waste disposal and asphalt and paving services, and for paying outstanding invoices on the contracts. The indictment alleges that Vargas-Rodriguez received at least $15,000 in cash payments from March 18, 2021 through April 15, 2021 from the two businessmen.
If convicted of all counts, García-Pérez and Vargas-Rodriguez face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
The cases are being prosecuted by Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico.
The cases are part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Luis Arroyo-Chiques, 21-485 (SCC); United States v. Eduardo Cintron-Suarez, 22-151 (SCC); United States v. Felix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodriguez, 21-465 (RAM).
Additionally, the department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Angel Perez-Otero, 21-474 (ADC); and United States v. Radames Benitez-Cardona, 21-475 (PAD).
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Super PAC and its President Plead Guilty to Dark Money Scheme to File False Reports with the FECRead the Press Release
A Super PAC and its president pleaded guilty today to scheming to lie to the Federal Election Commission (FEC) about the true identities of donors.
According to court documents, Joseph Fuentes-Fernandez, 62, of Arlington, Virginia, and the Super PAC for which he served as president and treasurer, Salvemos a Puerto Rico, pleaded guilty today before U.S District Judge Joseph N. Laplante to one count of scheming to falsify and conceal material facts.
According to the admissions made in connection with their pleas, Fuentes was the president and treasurer of Salvemos a Puerto Rico, which was organized to raise funds to support the 2020 election campaign of Public Official-1, then a candidate for office in the executive branch of the government of Puerto Rico. Soon after Salvemos a Puerto Rico was organized, Fuentes and others also formed two shell § 501(c)(4) nonprofit social welfare organizations. These two § 501(c)(4) entities were registered within seven minutes of each other, listed the same mailing address, and shared some of the same officers.
Fuentes and others solicited hundreds of thousands of dollars of donations to the two shell nonprofit entities, which rapidly sent most of those funds on to Salvemos a Puerto Rico. Fuentes and Salvemos a Puerto Rico then reported to the FEC that the nonprofit organizations were the donors of those funds, rather than reporting the true source of the funds. The purpose of routing these donor funds through the nonprofit organizations was exclusively to conceal the true identities of the donors to Salvemos a Puerto Rico. For example, in October 2020, Fuentes sent this text message to a potential donor: “You can use a third party to not disclose the true donor.” By ensuring that many of the true donors to Salvemos a Puerto Rico remained anonymous, Fuentes and Salvemos a Puerto Rico deprived the people of the Commonwealth of Puerto Rico and the FEC of information about the true source of hundreds of thousands of dollars flowing into the Commonwealth of Puerto Rico’s political system.
In connection with its plea, Salvemos a Puerto Rico has agreed to pay a fine of $150,000 and file amended Reports and Receipts and Disbursements with the FEC containing the true identity of all donors to Salvemos a Puerto Rico from 2020 to the present.
Fuentes and Salvemos a Puerto Rico are scheduled to be sentenced on Aug.15. Fuentes faces a maximum of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.
The FBI’s San Juan Field Office is investigating the case.
Trial Attorney Jonathan E. Jacobson of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
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Super PAC and its President Plead Guilty to Dark Money Scheme to File False Reports with the FECRead the Press Release
A Super PAC and its president pleaded guilty today to scheming to lie to the Federal Election Commission (FEC) about the true identities of donors.
According to court documents, Joseph Fuentes-Fernandez, 62, of Arlington, Virginia, and the Super PAC for which he served as president and treasurer, Salvemos a Puerto Rico, pleaded guilty today before U.S District Judge Joseph N. Laplante to one count of scheming to falsify and conceal material facts.
According to the admissions made in connection with their pleas, Fuentes was the president and treasurer of Salvemos a Puerto Rico, which was organized to raise funds to support the 2020 election campaign of Public Official-1, then a candidate for office in the executive branch of the government of Puerto Rico. Soon after Salvemos a Puerto Rico was organized, Fuentes and others also formed two shell § 501(c)(4) nonprofit social welfare organizations. These two § 501(c)(4) entities were registered within seven minutes of each other, listed the same mailing address, and shared some of the same officers.
Fuentes and others solicited hundreds of thousands of dollars of donations to the two shell nonprofit entities, which rapidly sent most of those funds on to Salvemos a Puerto Rico. Fuentes and Salvemos a Puerto Rico then reported to the FEC that the nonprofit organizations were the donors of those funds, rather than reporting the true source of the funds. The purpose of routing these donor funds through the nonprofit organizations was exclusively to conceal the true identities of the donors to Salvemos a Puerto Rico. For example, in October 2020, Fuentes sent this text message to a potential donor: “You can use a third party to not disclose the true donor.” By ensuring that many of the true donors to Salvemos a Puerto Rico remained anonymous, Fuentes and Salvemos a Puerto Rico deprived the people of the Commonwealth of Puerto Rico and the FEC of information about the true source of hundreds of thousands of dollars flowing into the Commonwealth of Puerto Rico’s political system.
In connection with its plea, Salvemos a Puerto Rico has agreed to pay a fine of $150,000 and file amended Reports and Receipts and Disbursements with the FEC containing the true identity of all donors to Salvemos a Puerto Rico from 2020 to the present.
Fuentes and Salvemos a Puerto Rico are scheduled to be sentenced on Aug.15. Fuentes faces a maximum of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.
The FBI’s San Juan Field Office is investigating the case.
Trial Attorney Jonathan E. Jacobson of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
Woman Pleads Guilty to Unemployment Benefits and Pandemic Unemployment Assistance (PUA) FraudRead the Press Release
SAN JUAN, Puerto Rico – Defendant Millisen M. Martínez-Medina pleaded guilty before United States Magistrate Judge Camille Vélez-Rivé to 13 counts of theft of government funds from the Unemployment Insurance and Pandemic Unemployment Assistance Program, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. She was charged in 12 separate cases regarding PUA fraud in April and October of 2021.
According to court documents, from June 2020, up to December 2020, Millisen M. Martínez-Medina engaged in deceptive conduct designed to fraudulently obtain Unemployment Insurance compensation from the Puerto Rico Department of Labor and Human Resources (PRDLHR) by using false personal identification information, including false social security numbers. Specifically, the defendant submitted to the PRDLHR Unemployment Insurance (UI) applications on her own behalf and on behalf of at least twelve others, utilizing false social security numbers.
Martínez-Medina, willfully and knowingly stole and converted to her own use or the use of another, money of the United States, namely UI benefits, payments to which no one was entitled, having a value of approximately $474,504.00.
Defendant Martínez-Medina is scheduled to be sentenced on August 23, 2022 and faces a maximum penalty of 10 years in prison for each count. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
These cases were investigated by various federal agencies, including the Federal Bureau of Investigation (FBI), the United States Postal Inspection Service (USPIS), the United States Department of Labor Office of Inspector General (USDOL-OIG), and the Social Security Office of Inspector General (SSA-OIG), with the assistance of local law enforcement officials from the Puerto Rico Police Bureau (PRPB), the Puerto Rico Department of Labor and Human Resources, and the Puerto Rico Department of Treasury (Hacienda).
Special Assistant U.S. Attorney (SAUSA) Vanessa D. Bonano-Rodríguez from the Social Security Administration and Assistant U.S. Attorney Victor Acevedo are in charge of the prosecution of these cases.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Prolific Fraudster Sentenced to 18 Months in PrisonRead the Press Release
SAN JUAN, Puerto Rico – On April 19, 2022, defendant Ramón Julbe-Rosa was sentenced to 18 months in prison and was ordered to pay $270,941.98 in restitution, by United States District Court Judge Aida Delgado Colón, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
On January 27, 2022, Julbe-Rosa pleaded guilty to 12 counts including theft of government property and introducing unapproved new drugs into the United States. Ramón Julbe-Rosa defrauded the Social Security Administration and Medicare by receiving Social Security Disability Insurance Benefit payments while working.
Defendant Julbe-Rosa also committed fraud against the Department of Veterans Affairs for fraudulently receiving unemployability benefits, and fraud in connection with Major Disaster or Emergency Benefits related to Hurricane María. Julbe-Rosa applied for an SBA Disaster Loan by falsely representing that on September 20, 2017, his primary residence, damaged by Hurricane María was located in Morovis, Puerto Rico when he well knew that this was not his primary residence. As a result, the defendant fraudulently received $50,000.00 from SBA.
In addition, Julbe-Rosa plead guilty to Introducing into Interstate Commerce Unapproved New Drugs. Defendant Julbe-Rosa established and operated the website www.aceitedeguanabana.com through which he promoted and sold various products intended as treatments for serious medical conditions without FDA approval. Defendant Julbe-Rosa sold at least $341,242.26 worth of unapproved new drugs.
Julbe-Rosa was ordered to make restitution as follows: $57,552.00 for the Social Security Administration; $118,943.94 for the U.S. Department of Veterans Affairs; $47,002.10 for the Medicare Program and $47,443.94 for the Small Business Administration; for a total restitution amount of $270,941.98.
This case was investigated by the Social Security Office of Inspector General (SSA-OIG) with the collaboration of the Food and Drug Administration, Office of Criminal Investigations (FDA); Department of Homeland Security, Office of Inspector General (DHS-OIG); Health and Human Services, Office of Inspector General (HHS-OIG); Department of Veterans Affairs, Office of the Inspector General (VA-OIG); and the Puerto Rico Police Bureau.
Special Assistant U.S. Attorney Vanessa D. Bonano from the Social Security Administration prosecuted the case.
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Former Puerto Rico Police Officer Sentenced to 48 Months of Imprisonment for Participating in Robbery and Extortion ConspiracyRead the Press Release
SAN JUAN, Puerto Rico – Former Puerto Rico police officer Carlos Boyrie-Laboy was sentenced today to 48 months of imprisonment and three years of supervised release by District Judge Francisco A. Besosa for his role in a robbery and extortion conspiracy.
Boyrie-Laboy conspired with Sergeant Miguel Conde-Vellón and officer Luis Rodríguez-García on multiple occasions to illegally enter premises, detain individuals, and steal property while in their official capacity as police officers. Boyrie-Laboy was found guilty on December 6, 2021 following a one week jury trial. Conde-Vellón and Rodríguez-García pleaded guilty and were sentenced to 24 months of imprisonment.
The United States established at trial that on December 29, 2016, defendants, Conde-Vellón, Rodríguez-García, and Boyrie-Laboy, while acting in their official capacity as PRPD officers and carrying firearms, made an unauthorized, forced entry into a residence located in the Duque Ward in Naguabo, PR, which they believed to be the stash house location utilized by the purported illegal seller of pyrotechnics. The defendants searched the residence, located and took possession of the following pyrotechnics: two (2) boxes of fireworks each containing 40 pieces of generic fireworks, two (2) boxes each containing 53 pieces of Thunder Max fireworks, one (1) box containing 18 pieces of Premiere FWK fireworks, and $2,995.00 in U.S. currency, which they believed to be proceeds of illegal activity from the person and presence, of a confidential source without lawful authority. In fact, the pyrotechnics and money stolen by the defendants was the property of the United States, with a combined value in excess of $1,000.
On or about June 15, 2017, defendants, Conde-Vellón, Rodríguez-García, Boyrie-Laboy, and Quermie Marquez-Rivera, while acting in their official capacity as PRPD officers and carrying firearms, made an unauthorized, forced entry into a residence located in the Calabazas Ward in Yabucoa, PR, which they believed to be the stash house location utilized by the purported illegal seller of stolen electronic equipment. The defendants searched the residence in order to locate and steal cash and property belonging to the purported illegal seller of electronic equipment. They found and stole two Samsung Tablets, and $6,350.00 in U.S. currency, which they believed to be proceeds of illegal activity from a confidential informant without lawful authority. In fact, the electronic equipment and money stolen by the defendants was the property of the United States, with a combined value in excess of $1,000.
This investigation was conducted by the FBI’s Humacao Resident Agency. Assistant U.S. Attorney Marie Christine Amy handled the prosecution of the case.
Mayor of Guayama Pleads Guilty to Accepting Bribes in Exchange for Executing Municipal Contracts and Approving Invoice PaymentsRead the Press Release
SAN JUAN, Puerto Rico – The mayor of Guayama, Puerto Rico, Eduardo Cintrón-Suárez, pleaded guilty today in Puerto Rico to engaging in a bribery scheme in which he received cash payments in exchange for executing municipal contracts and approving invoice payments for an asphalt and paving company.
Eduardo Cintrón-Suárez, 54, was the mayor and highest-ranking government official in the municipality of Guayama from 2013 until 2022. Starting in 2013, Cintrón-Suárez executed asphalt and paving contracts and also approved municipal payments to Company A. In exchange, Cintrón-Suárez agreed to receive a kickback payment corresponding to $1.00 per square meter of new asphalt laid by Company A in the municipality of Guayama under the contracts. This kickback scheme continued until approximately February 2021.
Cintrón-Suárez pleaded guilty to one count of conspiracy to engage in a bribery scheme. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Seth A. Erbe of the United States Attorney’s Office for the District of Puerto Rico are prosecuting the case.
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20 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in Cabo Rojo, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On March 31, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging 20 violent gang members from the municipality of Cabo Rojo with conspiracy to possess with intent to distribute and possession with intent to distribute controlled substances, as well as firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI), and the Puerto Rico Police Bureau (PRPB), Mayagüez Strike Force, led the investigation, with assistance from the United States Marshals Service, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Also assisting in today’s arrets were: the Drug Enforcement Administration (DEA), United States Customs and Border Protection (CBP), and United States Border Patrol.
“These arrests spotlight the hard work and dedicated partnership between the men and women of our federal, state and local law enforcement agencies,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We share the mission of taking violent criminals off the streets and enhancing community-wide efforts to make Puerto Rico a safer place for all.”
“Today’s operation is an example of the dedication and hard work of the men and women of the FBI. Our commitment to Puerto Rico is to all 100x35 miles and it’s municipal islands as well,” said Joseph González, FBI Special Agent in Charge. “Organized crime will not be tolerated, and we will continue to dismantle groups like this to give back the communities they’ve taken from the people.”
The indictment alleges that from 2015, continuing up to and including 2019, the drug trafficking organization distributed cocaine base (commonly known as “crack”), cocaine, marihuana, and Oxycodone (Percocet), within 1,000 feet of the Santa Rita de Casia Public Housing Project, and other areas nearby the municipality of Cabo Rojo. The object of the conspiracy was the large-scale distribution of controlled substances in Cabo Rojo for significant financial gain and profit.
The 20 defendants acted in different roles to further the goals of their organization, including as leaders, enforcers, runners, sellers, and facilitators. Nine of the defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
As part of the conspiracy, members of the drug trafficking organization named themselves “Los Lobos” (the wolves) and would display hand signs to identify themselves as such. Some of them have tattoo wolf designs on their bodies such as the paw print of a wolf, to identify themselves as members of the organization. The defendants and their co-conspirators established a drug distribution point that would move within different areas inside the public housing project to avoid police detection. Members of the conspiracy, upon request, delivered drugs to different locations within the municipality of Cabo Rojo.
The members of the gang used force, violence, and intimidation against rival drug traffickers, as well as members of their own drug trafficking organization, to intimidate and maintain control of the drug trafficking operation. Another means of intimidation used by the co-conspirators was setting vehicles on fire.
The defendants charged are:
Juan Gabriel Rivera-Surita, a.k.a. “Gaby”
Nelson Enrique Aragonés-Nazario
Rafael Irizarry-Santiago, a.k.a. “Rafy”
Antonio Ferrer-Pabón, a.k.a. “Pingui”
Santos Delgado-Colón, a.k.a. “Santitos/El Cojo”
Eric Joel Ortiz-Ribot, a.k.a. “Joito”
Bryan Lee Rodríguez-Mercado, a.k.a. “Brallitan”
Alexander Olivo-Franqui, a.k.a. “El Menor”
Jean Paul Lamboy-Palermo, a.k.a. “Jampi”
José Enrique Rivera-Negrón, a.k.a. “Joito”
Kyfran Janiell Casiano-Jorge
Jayson Ramos-Jorge, a.k.a. “Bibi”
Jennifer Villanueva-Pérez, a.k.a. “La Flaca”
Oscar Andrés Vélez-Matos
Rafael Manuel Irizarry-Vélez, a.k.a. “Pucho”
Edian Palermo-Barea
Brenda L. Rodríguez-Rosado
Roberto L. Lamberty, a.k.a. “Sierra Linda”
Kifran Adrián Casiano-Alayon
Alex Aragonés, a.k.a. “Nono”
Assistant U.S. Attorney and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Tereza Zapata-Valladares, AUSAs Pedro Casablanca, and Joseph L. Russell are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a mandatory minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a mandatory minimum sentence of 15 years, and up to life in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Individuals Indicted and Arrested for Bank Fraud and Aggravated Identity TheftRead the Press Release
SAN JUAN, Puerto Rico – On March 31, 2022, a federal grand jury returned a 92-count indictment charging two individuals with conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and money laundering. Today, FBI agents arrested both defendants without incident.
According to court documents, Carmelo Santiago-Santiago and Efraín Delgado-Rodríguez conspired and executed a scheme to commit bank fraud to obtain money held by Company A, an insurance company located in San Juan, Puerto Rico.
Carmelo Santiago-Santiago worked at Company A since 2016 as an accountant overseeing matters related to accounts’ reconciliation and closing journal entries. Efraín Delgado-Rodríguez was the President of Fast Contractors LLC, a general construction company in Puerto Rico.
The defendants created false and fraudulent checks using the check numbers of outstanding checks and voided checks originally issued to vendors and service providers of Company A. Using the check number and account number for Company A, the defendants changed the payee and made the false checks payable to Delgado-Rodríguez and Fast Contractors LLC. Once the false checks were deposited, funds were then shared with Santiago-Santiago. The fraudulent checks also contained the digital handwritten signature of Company A personnel without their knowledge or consent. The defendants’ conspiracy and scheme to defraud involved approximately $526,767 in actual loss.
“Financial fraud is one of the largest challenges facing American citizens and businesses today. Prevention and prosecution of crimes of this nature will remain a top priority for the U.S. Attorney’s Office.” said United States Attorney, W. Stephen Muldrow.
“This type of scheme is sadly a recurring one that we see far too often. My message to corporations is, prevention is the key and the FBI is here to help,” said Joseph González, Special Agent in Charge of FBI San Juan. “We have resources available to enhance awareness, as well empower your compliance teams so you can avoid becoming a victim. Call us to coordinate a presentation, and of course, if the worst happens, and you become a victim, call 787-987-6500.”
The defendants made their initial court appearance today before U.S. Magistrate Judge Marcos E. López of the U.S. District Court for the District of Puerto Rico. If convicted, they face a maximum penalty of 30 years in prison and a mandatory consecutive sentence of at least two years for the aggravated identity theft charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Marie Christine Amy is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three Individuals Indicted and Arrested for Drug Trafficking from Puerto Rico to the Continental United StatesRead the Press Release
SAN JUAN, Puerto Rico – On March 23, 2022, a federal grand jury returned an eight-count indictment charging three individuals for drug trafficking, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The United States Postal Inspection Service and the Drug Enforcement Administration investigated the case, titled Operation Air Fryer Express.
According to court documents, Héctor Colón-Rosario, Edgardo Colón-Pons, and Carlos Neftalí Torres-Santiago were arrested on March 31, 2022, for the large-scale distribution of kilogram quantities of cocaine to the continental United States. The indictment alleges that starting in June of 2020, the defendants used the United States Postal Service to send kilograms of cocaine to the continental United States. Specifically, these three defendants purchased new household appliances such as air fryers, among other things, and concealed kilograms of cocaine in those newly bought items. They would mail those items in larger boxes by way of the United States Postal Service to Pennsylvania, Rhode Island, Massachusetts, Florida, New Jersey, Connecticut, and Maryland. Other co-conspirators would receive the cocaine-laden shipments for further distribution.
The defendants made their initial court appearance yesterday before U.S. Magistrate Judge Marcos E. López of the U.S. District Court for the District of Puerto Rico. If convicted, the defendants face a mandatory minimum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Special Assistant U.S. Attorney R. Vance Eaton is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Puerto Rico Legislator and Two Capitol Employees Plead Guilty to Bribery and Kickback SchemeRead the Press Release
A former Puerto Rico legislator and two employees who worked in his office pleaded guilty this week to engaging in a bribery and kickback scheme.
According to court documents, Nelson Del Valle Colon, 56, of Dorado, Puerto Rico, pleaded guilty yesterday to one count of federal program bribery, and Mildred Estrada-Rojas, 55, of Bayamon, Puerto Rico, and her daughter, Nickolle Santos-Estrada, 32, also of Bayamon, each pleaded guilty Wednesday to one count of federal program bribery.
Del Valle Colon was elected to the Puerto Rico House of Representatives in 2016 and hired Estrada and Santos to work in his legislative office. In exchange for their employment and their salaries, Estrada and Santos paid biweekly kickbacks to Del Valle Colon of between approximately $500 and $1,300 from early 2017 until July 2020.
According to admissions made in connection with their pleas, Del Valle Colon, Estrada, and Santos paid the kickbacks in a variety of ways. Estrada and Santos generally paid cash in an envelope that they provided to Del Valle Colon in an office in the Capitol Building in Old San Juan. Estrada also sometimes paid Del Valle Colon over ATH Móvil, a mobile phone cash transfer application. Another individual who worked for Del Valle Colon in his legislative office also agreed to pay Del Valle Colon biweekly cash kickbacks during that individual’s employment with Del Valle Colon.
Del Valle Colon is scheduled to be sentenced on June 30, and Estrada and Santos are scheduled to be sentenced on June 29. Each faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.
The FBI’s San Juan Field Office is investigating the case.
Trial Attorney Jonathan E. Jacobson of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Scott Anderson from the U.S. Attorney’s Office for the District of Puerto Rico are prosecuting the case.
Former Puerto Rico Legislator and Two Capitol Employees Plead Guilty to Bribery and Kickback SchemeRead the Press Release
SAN JUAN, Puerto Rico – A former Puerto Rico legislator and two employees who worked in his office pleaded guilty this week to engaging in a bribery and kickback scheme.
Nelson Del Valle Colón, 56, of Dorado, Puerto Rico, pleaded guilty today before U.S. District Judge Silvia Carreño-Coll to one count of federal program bribery. Mildred Estrada-Rojas, 55, of Bayamón, Puerto Rico, and her daughter, Nickolle Santos-Estrada, 32, also of Bayamón, Puerto Rico, pleaded guilty yesterday before Judge Carreño-Coll, each to one count of federal program bribery.
“We will continue to prosecute public officials whose conduct undermines the public’s trust in the government,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “Public corruption destroys the trust we have in our elected officials, which is essential for democracy to thrive. Now the defendants will be held accountable for violating one of the basic tenets of public trust, that is, serving their constituents with integrity and honesty.”
“Public corruption investigations require hard work and dedication. They take time to complete, because they are sensitive and complex in nature,” said Joseph González, Special Agent in Charge of The FBI San Juan Field Office. “Today’s result is another example of how our steadfast commitment to doing the right thing, the right way pays dividends in justice to the people of Puerto Rico. Special thanks to the US Attorney’s Office for the District of Puerto Rico, for their continued support to the FBI mission.”
According to court documents, Del Valle Colón was elected to be a member of the Puerto Rico House of Representatives in 2016. He thereafter hired Estrada and Santos to work in his legislative office. In exchange for their employment and their salaries, however, Estrada and Santos paid biweekly kickbacks to Del Valle Colón of between approximately $500 and $1,300 from early 2017 until July 2020.
According to admissions made in connection with their pleas, Del Valle Colón, Estrada, and Santos admitted that they paid and he received the biweekly kickbacks in a variety of ways. Estrada and Santos generally paid their biweekly cash kickbacks in an envelope that they provided to Del Valle Colón in an office in the Capitol Building in Old San Juan. Estrada sometimes paid her kickback to Del Valle Colón over ATH Móvil, a mobile phone cash transfer application. Another individual who worked for Del Valle Colón in his legislative office also agreed to pay Del Valle Colón biweekly cash kickbacks during this individual’s employment with Del Valle Colón.
Del Valle Colón is scheduled to be sentenced on June 30, and Estrada, and Santos on June 29, and each faces a maximum penalty of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
Trial Attorney Jonathan E. Jacobson of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Scott Anderson from the U.S. Attorney’s Office for the District of Puerto Rico are prosecuting the case.
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Religious Leader Indicted and Arrested for Coercion and Enticement of a MinorRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned an indictment charging pastor Emmanuel Morales-Hernández, 29, of Lares, Puerto Rico, with coercion and enticement of a minor and attempted receipt of child exploitation material, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The arrest follows an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with the assistance of the Puerto Rico Police Bureau (PRPB) and the U.S. Attorney’s Office for the District of Puerto Rico.
According to court documents, around November and December of 2021, Emmanuel Morales-Hernández knowingly persuaded, induced, enticed, and coerced an individual who had not attained the age of 18 to engage in sexual activity. The man was arrested at his residence without incident. The defendant is a well-known pastor in Lares and Utuado. Morales-Hernández utilized his position of public trust to entice and coerce a 16-year-old minor.
“The defendant used his position of trust in his community to prey on a minor, making him the victim of child exploitation,” said U.S. Attorney Muldrow. “If you are a victim or know of another victim of this individual, please come forward; contact the authorities so we can protect you and others from these crimes. We want the community to know that the U.S. Attorney’s Office and the Department of Justice, along with our federal, state and local partners, are committed to protecting children from these criminals.”
“The sexual exploitation of minors, in all forms, is a despicable and a very serious crime. HSI will fiercely investigate these crimes to identify the alleged perpetrator, arrest him or her, and obtain solid evidence that will prevail in court,” said Iván J. Arvelo, Special Agent in Charge for HSI San Juan. “We will continue working with our local and federal partners and using all resources available and robust investigative authorities to identify you, arrest you and prosecute you.”
Morales-Hernández had his initial hearing before U.S. Magistrate Judge Bruce McGiverin on March 24. He was transferred to the Guaynabo Metropolitan Detention Center awaiting the outcome of his case.
If convicted, Morales-Hernández faces a mandatory minimum penalty of 10 years in prison for the enticement and coercion charge, and a mandatory minimum penalty of five years for the attempted receipt of child exploitation material. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant United States Attorney Jenifer Hernández-Vega, Chief of the Child Exploitation and Immigration Unit, is in charge of the prosecution of this case.
HSI is the principal investigative arm of DHS and a vital U.S. asset in combatting transnational crimes and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse and help make the internet a safer place for children.
For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Couple Indicted and Arrested for Pandemic Unemployment Assistance Fraud and Money LaunderingRead the Press Release
SAN JUAN, P.R. – On March 23, 2022, the Federal Grand Jury in the District of Puerto Rico returned an indictment charging Fernando Gallardo-Álvarez and his consensual partner Olga Rivera-Dávila with a conspiracy to commit mail, wire, and bank fraud, aggravated identity theft, and money laundering violations related to fraudulently obtained funds from the Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PUA) Program, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The case was investigated by Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the United States Department of Labor Office of Inspector General (USDOL-OIG), U.S. Postal Inspector Service, Social Security Administration Office of Inspector General (SSA-OIG), the Puerto Rico Department of Labor (PRDL), and the Puerto Rico Police Bureau (PRPB).
According to the indictment, Fernando Gallardo-Álvarez and Olga Rivera-Dávila devised a conspiracy and scheme to defraud the United States and Puerto Rico’s state-federal Unemployment Insurance programs and financial institutions to obtain money for personal gain by making materially false and fraudulent representations to obtain and deposit UI/PUA funds. The defendants used the social security numbers and names of others to fraudulently obtain UI/PUA funds and then proceeded to alter the fraudulently obtained checks to list the defendant’s own names and personal identifying information. These falsified checks were then deposited into multiple accounts under the defendants’ control. The defendants also concealed the proceeds of the fraud scheme and structured subsequent financial transactions.
In a separate indictment, Fernando Gallardo-Álvarez is charged with fraudulently submitting false immigration documentation, mail fraud, misuse of social security numbers, and aggravated identity theft.
From approximately 2017 through August 2021, defendant Gallardo-Álvarez unlawfully enriched himself and obtained money from individuals, by preparing and filing Violence Against Woman Act (VAWA) petitions with the United States Citizenship and Immigration Services (USCIS) containing false information using Form I-360 and accompanying forms for work authorization and fee waivers. Form I-360 is used by battered spouses, children, and parents to file an immigrant visa petition under the Immigration and Nationality Act (INA), as amended by the VAWA.
According to the indictment, Gallardo-Álvarez made false representations to non-citizens that he was an attorney and collected thousands of dollars for legal services to assist them in resolving their immigration status. After collecting payment, Gallardo-Álvarez would file VAWA petitions containing false and incomplete information without the petitioners’ knowledge and consent. Gallardo-Álvarez knew the petitions he submitted to the USCIS contained false information and that he could not provide the needed documentation for the USCIS to adjudicate the petitions filed.
When USCIS did not receive enough information to fully adjudicate a VAWA petition utilizing Form I-360 submitted by the defendant, USCIS would ask Gallardo-Álvarez, for more information before ultimately denying the VAWA petition. While the VAWA petition was pending, USCIS would make a preliminary determination regarding eligibility for an Employment Authorization Document (EAD card), i.e., work authorization.
The EAD cards obtained by Gallardo-Álvarez for his clients were only valid for one year and many petitioners returned to him before the year was over to refile their petitions. Gallardo-Álvarez would charge these petitioners thousands of U.S. dollars to submit Form I-360s and associated immigration applications.
USCIS records suggest that Gallardo-Álvarez has filed at least 136 fraudulent I-360 VAWA applications for over 100 petitioners within the last four years.
Assistant U.S. Attorneys (AUSA) Victor Acevedo and Manuel Muñiz Lorenzi are in charge of the prosecution of the PUA fraud case. If convicted, the defendants are facing up to 30 years in prison for bank fraud, 20 years for mail and wire fraud, and a mandatory consecutive term of two years in prison for aggravated identity theft.
AUSAs Daynelle Álvarez-Lora and Daniel Olinghouse are in charge of the prosecution of the immigration fraud case. Gallardo-Álvarez is also facing up to 20 years in prison for mail fraud, up to 10 years for misuse of visa, up to five years for misuse of Social Security number, and a mandatory consecutive two-year term of prison for aggravated identity theft.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Man Sentenced to 480 Months in PrisonRead the Press Release
SAN JUAN, PUERTO RICO – U.S. District Judge Francisco Besosa sentenced Ricardo Pérez-Delgado to a term of 480 months (40 years) in prison for his participation in a robbery resulting in the murder of Armando Rosado-Molina, a businessman who owned several gas stations and other commercial properties, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
Between March 30, 2019 and March 31, 2019, Pérez-Delgado and his co-defendants planned to commit a robbery at Rosado-Molina’s residence in San Lorenzo. During the evening hours between March 31, 2019 and April 1, 2019, Pérez-Delgado and his co-defendants set up surveillance near Rosado-Molina’s residence. They were armed with a baseball bat, a weapon having the appearance of a rifle, and pepper spray. Pérez-Delgado and his co-defendants later breached the residence and encountered Rosado-Molina who tried to defend himself with a firearm he legally owned. During a physical struggle with Pérez-Delgado, Rosado-Molina lost control of the firearm. He was subsequently beaten with a baseball bat, after which point Pérez-Delgado shot and killed Rosado-Molina.
Pérez-Delgado and his co-defendants, all of whom have already pleaded guilty, took two motor vehicles and over $20,000 from Rosado-Molina’s residence.
The Federal Bureau of Investigation was in charge of the investigation, and Assistant United States Attorney Alexander Alum prosecuted the case.
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Individual Indicted and Arrested for Laundering More Than $360,000 of Unemployment Benefits and Pandemic Unemployment Assistance FundsRead the Press Release
SAN JUAN, P.R. – On March 10, 2022, the Federal Grand Jury in the District of Puerto Rico returned an indictment charging Martín Scamaroni-Cintrón with money laundering violations related to fraudulently obtained funds from the Unemployment Insurance and Pandemic Unemployment Assistance Program, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The case was investigated by the Federal Bureau of Investigation (FBI), the United States Department of Labor Office of Inspector General (USDOL-OIG), and the Puerto Rico Department of Treasury (Hacienda).
According to the indictment, Scamaroni-Cintrón engaged in a money laundering conspiracy in violation of 18 U.S.C. § 1956(h) to obtain Electronic Transfers of Funds (ETFs) containing Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PUA) payments from multiple states as well as the proceeds of U.S. Small Business Administration (SBA) loans that he was not qualified and authorized to receive in his various bank accounts held in Puerto Rico. The applications for UI and PUA were fraudulently submitted in the names of other persons, whom never applied for UI and PUA benefits or SBA loans, but the applications utilized the defendant’s bank account and routing numbers. Scamaroni-Cintrón knowingly transferred these illegally obtained proceeds to conceal and disguise the nature, location, source, ownership and proceeds.
In addition to the money laundering conspiracy, Scamaroni-Cintrón was also charged with sixteen substantive counts of money laundering in violation of 18 U.S.C. § 1956(a)(1)(B)(i). From approximately May 2020 through January 2021, the amount of fraudulently obtained benefits and loans associated with the defendant’s money laundering activity totaled approximately $361,683.
Assistant U.S. Attorneys (AUSA) Victor Acevedo and Manuel Muñiz Lorenzi are in charge of the prosecution of the case. If convicted, the defendant is facing 20 years in prison for each money laundering count, a fine of up to $250,000, and three years of supervised release.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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20 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in Vega Alta, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On March 3, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging 20 violent gang members from the municipality of Vega Alta with conspiracy to possess with intent to distribute and possession with intent to distribute controlled substances, as well as firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI), and the Puerto Rico Police Bureau (PRPB), Bayamón Strike Force, led the investigation, with assistance from the United States Marshals Service, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Drug Enforcement Administration (DEA).
“Today’s arrests reflect the unwavering commitment of the U.S. Department of Justice and its law enforcement partners to investigate and prosecute those who fuel violence in our streets through their illegal drug trafficking activities” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
The indictment alleges that from 2018, until the date of the return of the indictment, the drug trafficking organization distributed cocaine base (commonly known as “crack”), heroin, cocaine, marihuana, Oxycodone (Percocet), and Alprazolam (Xanax) within 1,000 feet of Las Violetas and El Batey Public Housing Projects, and the Sabana Hoyos Ward, and also within 1,000 feet of a real property comprising a public or private school and/or playground. The object of the conspiracy was the large-scale distribution of controlled substances in Vega Alta for significant financial gain and profit.
The 20 defendants acted in different roles to further the goals of their organization, including as leaders, enforcers, runners, sellers, lookouts and facilitators. Eight of the defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime. All the defendants are facing a narcotics forfeiture allegation of $6,451,375.
As part of the conspiracy, the drug trafficking organization would import wholesale quantities of narcotics from the Dominican Republic, and other places, into Puerto Rico, to distribute in street- quantity amounts at their drug distribution points. The defendants and their co-conspirators established a drug distribution point that would move within different areas inside the public housing projects to avoid police detection. Some of the co-conspirators used different types of barriers and diversionary devices to avoid law enforcement detection, including fences, altered public housing amenities, dogs, and barbed wire.
Members of the organization would steal cars and use them to further their drug trafficking activities. Some members of the organization belonged to a musical group called “Los Piratas.” They would draw graffiti resembling this group near the drug points that belonged to the organization.
The members of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. They often abducted and assaulted rival drug traffickers, as well as members of their own drug trafficking organization, to intimidate and maintain control of the drug trafficking operation. Some of the members of this organization marked themselves with a tattoo with the letters LSR, which stands for the phrase “Lealtad Sin Rango” (Loyalty with no rank). This tattoo symbolized loyalty among the members of the organization.
The defendants charged are:
Marcos Pagán-Rodríguez, a.k.a. “Papin”
Miguel Santana-Avilés, a.k.a. “Macho/Machito”
John Morales-Rodríguez, a.k.a. “Gordo”
Michael Nieves-Lacend, a.k.a. “Pinto”
Christian Sifonte-Ramos, a.k.a. “Peluche”
Joseph Israel-Ramos, a.k.a. “Mena”
Alex Jomar Negrón-García
Said David Adorno-Martínez, a.k.a. “Saiid”
Raymond Santana-Avilés
William Rodríguez-Reyes, a.k.a. “Willy”
Juan Lozada-González, a.k.a. “Picu”
Luis Alfonso-Cabrera, a.k.a. “Javi”
José Rosado-Vega, a.k.a. “Manos Mongas”
José Negrón-Rodríguez, a.k.a. “Pepo”
David Rodríguez-Reyes
Steven Pacheco-Melecio
Josué Rosado-Rivera, a.k.a. “Cano/Patineta”
Ismael Figueroa-Maldonado, a.k.a. “Capo”
Gabriel Aguayo-Santana, a.k.a. “Gaby”
Mizrain López-Feliciano, a.k.a. “Mizra/Flaco”
Assistant U.S. Attorney and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Tereza Zapata-Valladares, AUSA Pedro Casablanca, and Special AUSA Cristina Caraballo are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a mandatory minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a mandatory minimum sentence of 15 years, and up to life in prison.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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