District of Puerto Rico

SAN JUAN, P.R – On March 29, 2017, a federal grand jury in the District of Puerto Rico returned a one count indictment charging Tommy Rudy Habibe-Arias with making false statements in an application for a Home Equity Conversion Mortgage loan (commonly known as a “Reverse Mortgage”), announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The U.S. Department Housing & Urban Development- Office of Inspector General (HUD-OIG) is conducting the investigation.

 

According to the indictment, from on or about September 2009 until on or about November 2009, defendant Tommy Rudy Habibe-Arias knowingly made or caused to be made material false statements to a mortgage lending institution named Master Mortgage Corporation, for the purpose of influencing the Federal Housing Administration (FHA) to insure a Reverse Mortgage loan. Specifically, the false and fraudulent information indicated that said property was the defendant’s principal residence, when at no time since September of 2009, or at any other time, the defendant occupied the property as his “primary residence.” The defendant procured $203,605.55 from a Home Equity Conversion Mortgage loan, which he received illegally.

 

“Mortgage fraud is a serious issue that affects not just financial institutions but ordinary citizens who may have invested in such financial institutions or who hope to purchase, sell or refinance a home by honestly setting forth their finances,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Mortgage lenders provide capital so people can purchase homes, not enrich themselves illegally.”

 

“The FHA reverse mortgage program enables elderly people to withdraw some of their home's equity to give them greater financial security and allow them to afford to stay in their home,” said Nadine Gurley, HUD-OIG’s Special Agent-in-Charge for the Atlanta Region. “However, the public needs to be aware that to be eligible for these reverse loans, homeowners must be at least 62 years of age or older; own the property outright or have paid down a considerable amount; and must occupy the property as a principal residence. Our agency encourages anyone with information about waste, fraud or abuse against this program to confidentially report it by calling our San Juan Field Office at (787) 766-5868 or via e-mail at HOTLINE@HUDOIG.GOV ”

 

If convicted, the defendant faces a possible penalty of 30 years in prison and/or a fine of $1,000,000. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.

 

The case is being prosecuted by Assistant United States Attorney Scott H. Anderson.

SAN JUAN, Puerto Rico– Yesterday, defendant José Centeno-González was sentenced by Honorable Judge Francisco Besosa to 12 years of imprisonment and 3 years of Supervised Release, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.

José Centeno-González was arrested by the Police of Puerto Rico on May 6, 2015 while driving a Toyota Tundra. A search warrant was obtained for the Toyota Tundra and during the execution of the search police officers discovered a firearm, a Glock .40, 84 rounds of ammunition, and 113 grams of crack-cocaine inside a hidden compartment. At the time of Centeno’s arrest, he was on supervised release for a priory felony firearms offense. Following a jury trial, on September 21, 2016, Centeno was convicted of possessing a firearm after having been convicted of a felony.

Yesterday, March 29, 2017, during the sentencing hearing the Court found by a preponderance of the evidence that Centeno possessed with intent to distribute 113 grams of crack-cocaine and that he possessed the firearm in furtherance of this offense. Consequently, Centeno was sentenced to the statutory maximum term of imprisonment of 120 months followed by a three-year term of supervised release. In addition, the Court revoked Centeno’s supervision for having engaged in new criminal conduct and sentenced him to serve a consecutive 24-month term of imprisonment for a total sentence of 12 years.

The case was prosecuted by Assistant United States Attorneys Alexander Alum and Marie Christine Amy from the U.S. Attorney’s Violent Crimes Unit.

SAN JUAN, P.R. – United States District Court Judge Francisco A. Besosa sentenced José Luis Otero-Otero to 210 months (17 years and 6 months) in prison followed by 10 years of supervised release for sex trafficking of children, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Otero-Otero had plead guilty on November 4, 2016.

According to the Plea Agreement filed on November of 2016, the defendant sexually abused and/or engaged in illicit sexually explicit conduct with at least four male minors. Otero-Otero knowingly recruited, enticed, harbored, transported, provided, obtained, advertised, maintained, patronized and solicited by any means two 12 year-olds, one thirteen and one fourteen year-old male minors, knowing and in reckless disregard of the fact that they were minors and caused them to engage in commercial sex act.

The Government’s version of facts states that the defendant paid the male minors between twenty and eighty dollars to engage in sexual acts. Otero-Otero paid the victims in order for them to allow him to perform oral sex on them and also for the minor males to penetrate Otero-Otero anally.

“Justice was done today. This sentence should serve to reassure the public that we are paying close attention to the well-being of our children, and that we will spare no expense to take child predators off the streets,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “All child sexual predators will be held accountable for the unspeakable crimes they commit and the harm they cause to their victims and their families.”

Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.

The criminal prosecution was handled by Assistant U.S. Attorney Elba Gorbea. ICE-HSI was in charge of the investigation with the collaboration of the Puerto Rico Police Department.

SAN JUAN, PR – On March 27, 2017, federal officers assigned to the Caribbean Corridor Strike Force (CCSF) arrested four individuals while attempting to smuggle 1,608 kilograms of cocaine into Puerto Rico, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. A Glock 9mm pistol and 18 rounds of 9mm ammunition were also seized during the arrests. U.S. Magistrate Judge Camille L. Vélez-Rivé authorized a complaint charging Wilson Cuevas-Alcántara, Evelio Rivera-Jiménez, Tairo Martínez-De Rosario and Juan C. Rodríguez with Conspiracy to Possess with Intent to Distribute Cocaine and Possession of Cocaine.

 

On Monday, at approximately 12:00am, a United States Customs and Border Protection Marine Patrol Aircraft detected a vessel traveling southbound without navigation lights at approximately 40 nautical miles (NM) north of Dorado, Puerto Rico. The aircraft coordinated with the CBP Interceptor Unit and the United States Coast Guard to intercept the vessel. The CBP Interceptor Unit came to a short distance of the vessel at approximately four nautical miles north of the coast of Río Grande, PR, and initiated the interdiction of the vessel by energizing its blue lights, siren and verbal commands, but the vessel did not stop and continued at a high rate of speed of approximately 30-35knots.

 

The CBP Interceptor Unit fired two warning shots, but the vessel did not stop so they fired six disabling rounds to the vessel engines. Two individuals were arrested onboard and the other two who had jumped overboard during the pursuit were also apprehended by members of the United States Coast Guard and Puerto Rico Police Maritime Unit.

 

Forty-eight bales containing 1,449 bricks of cocaine weighing approximately 1,608 kilograms were field tested and yielded positive results to cocaine.

 

“These arrests are a clear indication of the continued success of the Caribbean Corridor Strike Force” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This is just another example of the fine work our State and Federal law enforcement partners accomplish every day. With the continued collaboration and assistance of our law enforcement partners, we will continue our efforts to bring the most powerful and prolific drug organizations to justice.”

 

“This is another example of how our anti-crime plan, which establishes a close collaboration with the federal agencies, is producing great dividends,” said Puerto Rico Police Department Superintendent Michelle Hernandez. “We congratulate all PRPD police officers who participated in this effort and the Caribbean Corridor officers and special agents for keeping our borders safe. Drug traffickers should know that we are working as a team to stop the flow of drugs on the Island.”

 

The case is being investigated by agents from the Caribbean Corridor Strike Force (CCSF). The CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.

 

The case is being prosecuted by Assistant United States Attorney Carlos R. Cardona.

 

The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

SAN JUAN, P.R. – After a three-day jury trial and four hours of deliberation, Joed Torres-Monge was found guilty of one count of possession of child pornography, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Senior Judge Juan Pérez-Giménez presided over the trial.

According to the Indictment, from on or about March 16, 2015 through May 6, 2015, the defendant knowingly possessed materials, which contained images of child pornography, where the production of such visual images involved the use of a minor engaging in sexually explicit conduct.

During trial, the government presented evidence that Torres-Monge downloaded numerous pictures and videos from the Internet depicting minors, in some cases infants, engaging in sexually explicit conduct.

“The conviction of Torres-Monge shows the commitment of our state and federal law enforcement agencies to apprehend and prosecute criminals whose crimes victimize children,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The U.S. Attorney’s Office for the District of Puerto Rico will continue to prosecute sexual predators in order to protect the vulnerable victims of these crimes, our children.”

The case was prosecuted by Assistant United States Attorney Ginette Milanes. The now convicted defendant faces a maximum penalty of twenty (20) years in prison. The sentencing is scheduled for July 21, 2017.

SAN JUAN, Puerto Rico– Josué Marrero was sentenced to 72 months in prison for being a prohibited person in possession of a firearm, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Marrero had plead guilty on November 28, 2016.

United States District Court Judge Francisco A. Besosa sentenced Josue Marrero to 72 months of imprisonment, which is 26 months higher than the upper end of the applicable guideline range. Marrero fled from the state of Delaware after an arrest warrant for Controlled Substances violations was issued; he was hiding in a house in the municipality of Toa Alta, PR.

The arresting officers executing the arrest warrant found him in possession of two (2) firearms; one (1) Glock pistol, .40 caliber, loaded with nine (9) rounds of ammunition and an extra Glock magazine with nine (9) rounds of .40 caliber ammunition, in addition to one (1) Smith & Wesson pistol, 9MM caliber, loaded with sixteen (16) rounds of 9MM caliber ammunition and an extra magazine with fifteen rounds of 9MM caliber ammunition. In addition, a box with 41 rounds of .40 caliber ammunition were also seized. His term of imprisonment is followed by a three year of supervised release.

The case was prosecuted by Assistant United States Attorney Max Pérez-Bouret. The FBI was in charge of the investigation with the collaboration of the Puerto Rico Police Department.

SAN JUAN, P.R. – Doctor Juan José Tull-Abreu was sentenced to serve 63 months of imprisonment for health care fraud, and a consecutive term of 24 months for aggravated identity theft, for a total term of imprisonment of 87 months, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.

 

Doctor Tull-Abreu was arrested on July 17, 2014, on charges of defrauding Medicare by submitting claims to Medicare Advantage health insurance plans for medical services never rendered. The evidence presented at trial showed that Tull-Abreu submitted thousands of false and fraudulent claims for services allegedly performed by the defendant at his Arecibo and Utuado, Puerto Rico, offices, which were, in fact, never performed. As explained by the witnesses from Medicare and the insurance carriers, Tull-Abreu submitted invoices for face-to-face office visits and face-to-face home visits on days when his office remained closed to the public or the defendant was travelling out of the country. The defendant was convicted on April 15, 2016, after a fourteen-day jury trial.

 

The evidence presented at trial demonstrated that Tull-Abreu caused a loss of over $1,200,000.00 to Medicare. Consequently, at sentencing, U.S. District Judge Jay García-Gregory ordered the defendant to pay a total of $509,775.20 in restitution to the six Medicare Advantage insurance carriers affected by the fraudulent scheme.

 

“We are pleased with the sentence imposed by the Court in this case,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “This prosecution and sentence should serve as clear message to those few dishonest members of the medical community in Puerto Rico of the stern consequences they will face for defrauding the Medicare program. We will not sit idly and allow doctors to illegally enrich themselves by engaging in fraudulent schemes that deplete the Medicare program of funds destined to assist and protect the elderly.”

 

The Department of Health and Human Services, Office of Inspector General was in charge of the investigation with the collaboration of the DEA. The case was prosecuted by Assistant U.S. Attorney Dennise N. Longo Quiñones.

Two identity document suppliers were sentenced to prison today for their role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Executive Associate Director Peter T. Edge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Acting Director Christian J. Schurman of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.

 

Francisco Matos-Beltre, 43, a Dominican national who became a U.S. citizen in 2013, formerly of Philadelphia, was sentenced to serve 51 months in prison and three years’ supervised release. Isaias Beltre-Matos, 46, a Dominican national and legal permanent resident formerly of Providence, Rhode Island, was sentenced to serve 51 months in prison and three years’ supervised release. Both defendants were sentenced before U.S. District Judge Juan M. Perez-Gimenez of the District of Puerto Rico. Beltre-Matos pleaded guilty on Aug. 10, 2016, to conspiracy to commit identification fraud and commit human smuggling for financial gain. Matos-Beltre pleaded guilty on Sept. 14, 2016, to conspiracy to commit identification fraud and commit human smuggling for financial gain.

 

According to admissions made in connection with the pleas, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators, identified as identity document suppliers and brokers, located in various cities throughout the United States allegedly solicited customers for the sale of social security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1,200 per set. The defendants also admitted that the conspirators used the U.S. mail to complete their illicit transactions.

 

According to the pleas, Beltre-Matos admitted that he sold identity documents to customers, who generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport, according to the plea agreement. Matos-Beltre also admitted to being a document supplier and that he bought and transferred identity documents belonging to real people to document brokers. Matos-Beltre admitted that he knew his customers would fraudulently use the documents that he provided.

 

The Chicago offices of ICE-HSI, USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from HSI San Juan and the DSS Resident Office in Puerto Rico. The HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.

 

Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in the matter.

 

Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.

 

Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; www.ssa.gov/pubs/10064.html; www.fbi.gov/about-us/investigate/cyber/identity_theft; and www.irs.gov/privacy/article/0,,id=186436,00.html.

SAN JUAN, Puerto Rico – On March 6, 2017, a federal grand jury in the District of Puerto Rico returned a superseding indictment against twelve defendants charged with various federal offenses, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation with the collaboration of the Federal Bureau of Investigation and the Puerto Rico Police Department.

 

This criminal organization led by Alex Baez-Espinal participated in different illegal schemes which are detailed in the superseding indictment. Defendants Baez-Espinal, Norman Guzmán-Ramos, Kelvin Hernández and Bryan Santiago are charged in a conspiracy to possess with intent to distribute cocaine. Defendant Kelvin Hernández is facing one count of possession with intent to distribute cocaine. Baez-Espinal, Hernández, and Guzmán-Ramos are facing charges for use of a communication facility in the commission of felonies under the Controlled Substances Act. That is, using a cellular telephone, in facilitating the commission of a felony under Title 21, United States Code, Sections 841 and 846, offenses set forth in the superseding indictment.

 

Defendants Baez-Espinal and Hernández were the leaders of the Drug Trafficking Organization and the Cellphone and Rental Car Fraud Schemes, described below. Baez-Espinal and Hernández obtained personal individual information (including but not limited to Social Security Numbers and Dates of Birth) of unsuspecting victims from defendants Melton Pinilla and Luis Roberto Dávila. During the conspiracy, after receiving the victim’s personal information, Baez-Espinal and Hernández checked each victim’s personal credit rating. If the victim possessed a good credit rating, Baez-Espinal and Hernández then contacted credit card companies utilizing the fraudulently obtained personal information and applied for credit cards in the victim’s name. These credit cards were then sent via the mail to Puerto Rico by the credit card companies.

 

According to the indictment, Baez-Espinal and Hernández would provide the fraudulently obtained personal information to Luis Roberto Rivera-Ortiz, who created fraudulent Puerto Rican driver’s licenses in the victim’s names with the photos of the “runners” or “jockeys” and other members of the conspiracy. Ultimo Carrera-Rosario also made fraudulent documents such as fraudulent social security cards and fake utility bills in the victims’ names.

 

Defendants Bryan Santiago-Rivera, José Vásquez-Rodríguez, Leidy Baez-Espinal and Veronica Sierra-Pabón, acted as runners or jockeys for the organization. The different fraud schemes charged are as follows:

 

Mail fraud conspiracy:

 

According to the indictment, defendants Baez-Espinal, Hernández, Santiago-Rivera, Michael Alicea, Luis Roberto Rivera-Ortiz, Ultimo Carrera, Luis Roberto Dávila, José Vázquez, Kathya Andino-Aragonés, Leidy Bez-Espinal, and Verónica Sierra-Pabón utilized the U.S. mails to obtain fraudulent credit cards in victims’ names and then use those fraudulent credit cards, along with other fraudulent documents, to purchase goods and services.

 

Cellphone fraud conspiracy:

 

During the conspiracy, Baez-Espinal, Hernández and Alicea (after obtaining fraudulent credit cards and driver’s licenses and/or social security and utility bills), paid runners or jockeys to make purchases of cellphones at retail outlets in Puerto Rico. The runners or jockeys, utilizing the fraudulent identifications, would then purchase as many cellphones as allowed by the retail outlet using the victim’s information. The runners or jockeys would make a cash down payment on the cellphone(s), and finance the remaining portion of the cost of the cellphone on the victim’s credit.

 

The leaders of the conspiracy, Baez-Espinal and Hernández then sold the cellphones via the internet through AMBE Group Inc., to individuals in the United States, Italy, Peru, Canada, and Mexico. From on or about 2012 until 2016, the conspiracy made approximately $3,000,000.00 from the sale of the fraudulently obtained cellphones and other electronic devices.

 

Rental car fraud scheme:

 

Baez-Espinal and Hernández also used the fraudulent credit cards and driver’s license and/or social security and utility bills to rent vehicles at car rental outlets. They paid runners or jockeys to rent automobiles from car rental outlets in Puerto Rico using the victim’s identification. The runners or jockeys made these rentals knowing that the runner and/or members of the conspiracy were not going to return the rental vehicle to the car rental outlet. Baez-Espinal and Hernández and other members of the conspiracy would then utilize the fraudulently obtained vehicle, before selling it.

 

In Counts 6 through 9, Alex Baez-Espinal, Hernández and Leidy Baez-Espinal are charged with wire fraud, for transmitting illegal moneys in interstate and foreign commerce by means of wire communications. In Count 10 members of the conspiracy are charged with conspiracy to commit access device fraud. The defendants listed in Count 10, used other persons’ Social Security Number and Date of Birth to open and utilize fraudulent credit cards affecting interstate and foreign commerce. Counts 11, 12 and 13 detail the aggravated identity theft these defendants committed including but not limited to eight victims. Counts 14, 15 and 16 are money laundering counts derived from specified unlawful activities, which were the different schemes explained above.

 

“These individuals were involved in different criminal schemes in which they violated several federal statutes, defrauded and stole the identity of many individuals simply to enrich themselves quickly and illegally,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The US Attorney’s Office will work with our law enforcement partners to vigorously pursue and hold accountable those who perpetrate these schemes to enrich themselves at the expense of honest people.”

 

Assistant U.S. Attorney Stuart J. Zander is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison in Counts 1-2. If convicted of the aggravated identity theft charges, the defendants face a minimum sentence of two years in addition to the sentence imposed for the underlying felony. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.

 

The case was investigated by agents from the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney’s Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.

SAN JUAN, P.R. – On March 2, 2017, a Federal grand jury returned a two-count indictment against two agents from the Puerto Rico Treasury Department, (“Hacienda”) charging them with one count of extortion and one count of accepting bribes in their role as agents for the Puerto Rico Treasury Department, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Federal Bureau of Investigation.

 

The indictment alleges that on June 10, 2015, the defendants Edwin Aponte-Hernández and Eduardo Collazo-Torres, did obstruct, delay, and affect commerce and the movement of articles and commodities in commerce by extortion in that the defendants obtained property not due them or Hacienda under the color of official right. The bribes received were related to the regulation and licensure of adult entertainment machines within several businesses located in San Juan.

 

The defendants are also charged with accepting bribes in excess of $5,000.00 during the period of January through December 2015, intending to be influenced and rewarded in connection with a series of transactions on behalf of Hacienda.  The defendants were arrested March 9, 2017.

 

“Abusing one’s position as a public servant for personal gain is a breach of trust and a violation of the oath that every government employee takes,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue working together with our law enforcement partners to ensure that those who engage in corrupt activities are brought to justice.”

 

 

“The honor of public service brings with it the duty to find and remove those public servants who abuse their power to serve their own selfish ends,” said Douglas Leff, FBI Special Agent in Charge. “From the moment he took office, Secretary Maldonado Gautier reaffirmed Hacienda's commitment to this effort, which led to today’s actions on behalf of the honest citizens of Puerto Rico”.

 

 

“We worked closely with the Federal authorities during the course of this investigation. We are not going to stop until we get rid of those who betray the public trust,” stated Lcdo. Raúl Maldonado Gautier, CPA, Director of the Puerto Rico Treasury Department. “Our commitment is to maintain transparency on our administration and to collaborate in every necessary way to preserve the integrity of the Department of the Treasury and to recover the credibility of the people of Puerto Rico.”

 

The case is being prosecuted by Assistant U.S. Attorney Nicholas W. Cannon. The case was investigated by the FBI, with the collaboration of the PR Treasury Department.

If convicted the defendants face a sentence of 20 years of imprisonment. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.

SAN JUAN, Puerto Rico– Noel D. Cruz-Torres was sentenced before US District Court Judge Gustavo Gelpí to 60 months in prison, and three years of supervised release, for malicious use of explosive materials, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Cruz-Torres had plead guilty on November 16, 2016.

On June of 2016, Cruz-Torres was arrested after throwing Molotov cocktails at the DuPont Pioneer building in Salinas, PR, and at Puerto Rico Police Department officers who detained him. DuPont Pioneer is an agricultural business that conducts crop-genetic research and development. It imports seed from Iowa for research purposes.

According to the information contained in the plea agreement, on June 18, 2016, an individual called the 911 system to report an explosion near DuPont Pioneer. When police and firefighters arrived, they saw a vehicle burning nearby. PRPD officers reported that an individual was throwing Molotov cocktails at the building. The officers walked around the building and saw Cruz-Torres wearing a black t-shirt wrapped around his face and carrying a black backpack. While police pursued Cruz-Torres, he threw various Molotov cocktails at the officers. He also threw another lit Molotov at the fire truck.

Cruz-Torres had a flag with the words “LEVANTATE BORICUA Q HA LLEGADO EL MOMENTO DE DEFENDER NTRA PATRIA: VIVA P.R. Libre” (sic) (as translated in the criminal complaint, “Rise up Puerto Rican, the moment to defend our fatherland has arrived: long live free Puerto Rico.”)

The case was prosecuted by Assistant United States Attorney Alexander Alum. The FBI was in charge of the investigation with the collaboration of the Puerto Rico Police Department.

SAN JUAN, P.R. - On March 2, 2017, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging José Manuel Abreu-Ramírez and Milagros De los Santos-De Abreu with obstructing a U.S. Department of Labor investigation into their failure to pay minimum wage and overtime to their employees at the restaurants José José and El Catador D’Abreu in violation of the Fair Labor Standards Act of 1938. Both restaurants were owned and operated by the defendants and located in San Juan, Puerto Rico.

 

The United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez and Special Agent-in-Charge Michael Mikulka of the U.S. Department of Labor, Office of Inspector General, New York Regional Office made the announcement.

 

The 25 count Indictment charges Abreu-Ramírez and De los Santos with eight counts of false statements to a federal agency, three counts of wire fraud, eight counts of aggravated identity theft and five counts of tampering with a witness, victim or informant by intimidation, threats, corrupt persuasion or misleading conduct.

 

The allegations in the indictment indicate that instead of making payment to the employees in the amounts the defendants had agreed to pay pursuant to an investigation conducted by the Wage and Hour Division of the U.S. Department of Labor and the Office of Inspector General of the U.S. Department of Labor, the defendants made their employees endorse checks that had been issued to prove compliance with federal law and then withheld the checks from the employees. Abreu‑Ramírez and De los Santos either cashed or deposited the endorsed checks into their own bank accounts and kept the funds for their own benefit. The amounts Abreu‑Ramírez and De los Santos unlawfully retained from their employees in violation of the Fair Labor Standards Act of 1938 was approximately $23,448.47.

 

According to the Indictment, on different occasions between April and July, 2014, Abreu‑Ramírez and De los Santos also procured the signature of U.S. Department of Labor forms from 20 employees. In those forms the employees were coerced to falsely represent to the U.S. Department of Labor that they had been paid amounts owed to satisfy minimum wage and overtime payment obligations under federal law. Abreu‑Ramírez delivered those forms and other fraudulent documents in person and through email communications to the Wage and Hour Division of the U.S. Department of Labor knowing that they contained false statements.

 

The Indictment also alleges that Abreu‑Ramírez and De los Santos forged the signature of an employee in forms and documents submitted to the Wage and Hour Division of the U.S. Department of Labor.

 

“This Indictment is evidence of our commitment to work closely with our law enforcement partners to enforce U.S. Department of Labor programs and protect workers from unscrupulous employers. We will support federal agencies in their efforts to uphold the workplace protections and wages to which workers are entitled under federal law,” said Rosa E. Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The United States Attorney’s Office will vigorously prosecute individuals who exploit their employees and attempt to conceal their actions by obstructing investigations into employer compliance with federal law.”

 

“An important part of the mission of the Office of Inspector General is to investigate alleged obstruction of Department of Labor agencies, including the Wage and Hour Division. We will continue to work with our Department of Labor and law enforcement partners to vigorously investigate these types of allegations,” stated Special Agent-in-Charge Michael Mikulka of the New York Regional office of the U.S Department of Labor, Office of Inspector General.

 

The investigation was conducted by the United States Department of Labor’s Wage and Hour Division and Office of Inspector General in coordination with the United States Attorney’s Office for the District of Puerto Rico. Assistance has been provided by the United States Marshal Service and the case is being prosecuted by Assistant U.S. Attorney Dennise N. Longo Quiñones of the Financial Fraud and Corruption Unit.

 

Pursuant to the charges, Abreu- Ramírez and De los Santos face potential penalties of up to five years of imprisonment for making false statements to a federal agency, up to 20 years of imprisonment for conspiracy to commit wire fraud, a mandatory minimum term of two years of imprisonment for aggravated identity theft, and up to a term of imprisonment of 20 years for tampering with a witness. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.

San Juan, Puerto Rico – On February 22, 2017, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging Gabriel A. Pena-Castillo with trafficking firearms, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The United States Postal Inspector Service (USPIS) is in charge of the investigation in collaboration with Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

 

According to the indictment, Pena-Castillo, violated federal law by mailing three firearms from the Continental United States to Puerto Rico. Specifically, Pena-Castillo mailed three Glock pistols. Pena-Castillo’s actions violated 18 U.S.C. §§ 922(e) and 1715.

 

“Our district has renewed its efforts to investigate and prosecute the trafficking of firearms,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “Law enforcement relationships and alliances in the southeast United States allow us to identify those individuals sending and receiving weapons illegally. We will continue to investigate and prosecute those individuals to the fullest extent of the law.”

 

This case was investigated by the USPIS with the collaboration of ATF and prosecuted by Assistant United States Attorney Victor O. Acevedo-Hernández. Pena-Castillo faces a penalty of up to five years of imprisonment.

 

An indictment is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until convicted through due process of law.

SAN JUAN, P.R. - On December 28, 2016, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging Amalia López-Santiago, a former treasurer of the American Postal Workers Union (“APWU”) Local 1070 (the “Union”), with embezzlement of funds of said labor organization in an amount in excess of $92,965.89. The Indictment charges López-Santiago with one count of embezzlement of union funds, one count of false statements to the federal government, one count of aggravated identity theft, and four counts of wire fraud.

 

United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez, Andriana Vamvakas, the New York District Director of the Department of Labor’s Office of Labor-Management Standards (“DOL-OLMS”), and Douglas A. Leff, Special Agent in Charge of the Federal Bureau of Investigation’s Puerto Rico Field Office (“FBI”) made the announcement.

 

According to the indictment, from January, 2008 through June 2, 2012, López-Santiago, who was the Union’s Treasurer, authorized salary payments and reimbursement for lost wages and benefits on her own behalf in excess of the amounts actually allowed and authorized under the Union’s Constitution and Bylaws totaling approximately $77,543.30. Pursuant to the charging document, she submitted fraudulent claims for wage reimbursement and authorized duplicate or excessive salary payments.

 

The indictment also alleges that she used the Union’s credit card at a local wholesale supermarket to purchase personal items valued in excess of $15,422.59 without lawful authority and issued payments from APWU Local 1070’s bank account to cover the expense for those unlawfully procured items. The Indictment further alleges that in order to conceal the misuse and theft of Union funds, López-Santiago made false statements and omissions in the Union’s annual financial reports for the fiscal years 2008, 2009, 2010, and 2011.

 

“The United States Attorney’s Office, in partnership with our fellow federal investigative agencies, will continue to investigate and prosecute union officials who abuse their positions of trust,” said Rosa E. Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Let this be a clear message, that stealing and embezzling from labor unions carries serious penalties and consequences, including prison and fines.”

 

OLMS District Director Andriana Vamvakas said: “Embezzlement of union funds doesn’t only violate the law, it also betrays the trust of the union membership who rightfully expect their officials to protect and safeguard their union’s funds and assets. We thank USA Rodríguez-Vélez and SAC Douglas A. Leff for the valuable assistance they provided to the U.S. Department of Labor in this investigation and for the excellent work completed in the presentation of charges. We look forward to working again with these and other agencies to root out such corruption and abuse by union officers or members.”

 

“Those who defraud civil organizations created to benefit their fellow workers and betray the values they have sworn to protect will face the strength and reach of the criminal justice system. The FBI is proud to have assisted in this investigation and recognizes the outstanding work of the Department of Labor, and the diligence of the United States Attorney, in identifying and rooting out this type of deceitful conduct,” said Douglas A. Leff, SAC FBI San Juan.

 

This case was investigated by the DOL-OLMS and the FBI, and is being prosecuted by Assistant U.S. Attorney Dennise N. Longo Quiñones of the Financial Fraud and Corruption Unit.

 

Pursuant to the charges, Amalia López-Santiago faces potential penalties of up to five years of imprisonment for the embezzlement or theft of union assets, up to five years of imprisonment for false statements made to the federal government, a mandatory minimum term of two years of imprisonment for aggravated identity theft, and up to a term of imprisonment of 20 years for wire fraud. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.

SAN JUAN, P.R. – After an eight-day trial before U.S. District Court Judge Carmen C. Cerezo, a jury found Noel Turner-Ayala guilty of child pornography offenses, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Turner-Ayala is facing a mandatory minimum sentence of fifteen (15) years imprisonment and a statutory maximum of thirty (30) years, and a maximum possible fine of $250,000. His sentencing was scheduled for June 20, 2017.

 

The indictment charged that from in or about May 12, 2014 through June 6, 2014, Turner-Ayala, did employ, use, persuade, induce, entice or coerce a female minor, identified as Jane Doe, to engage in sexually explicit conduct, namely the lascivious exhibition of the genital areas and performing sexual acts, for the purpose of producing a visual depiction of such conduct knowing that such visual depiction would be transported or transmitted using any means or facility of interstate or foreign commerce.

 

The evidence at trial proved that defendant Turner-Ayala had requested sexually explicit images of the then 15-year-old minor through Facebook Messenger. During trial the evidence showed that the defendant’s relationship with the minor victim was not just a “virtual relationship,” but one wherein they also communicated via What’sApp, via telephone and, in person.

 

“We congratulate the agents who investigated this case, and our attorneys for its successful prosecution,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The conviction of this predator showed the commitment of our law enforcement agencies to apprehend and prosecute criminals who victimize our children.”

The case was investigated by the ICE-HSI and prosecuted by Assistant U.S. Attorney Elba Gorbea.

SAN JUAN, P.R. - On February 13, 2017, a Federal Grand Jury in the District of Puerto Rico returned a superseding indictment charging Dr. Dante A. Rodríguez-Rivera, Javier Efraín Siverio-Echevarría, Dr. George D. Alcántara-Cardi, Dr. Martha Nieves, Javier Antonio Aguirre- Estrada, and Carlos Maldonado-López with multiple counts of conspiracy to commit health care fraud, health care fraud and aggravated identity theft. The defendants were arrested today, announced Rosa Emilia Rodríguez Vélez, United States Attorney for the District of Puerto Rico, Scott Lampert, the Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services (“HHS-OIG”), and Douglas A. Leff, Special Agent in Charge of the Federal Bureau of Investigation’s Puerto Rico Field Office (“FBI”).

 

According to the indictment, from on or about February 20, 2007, and continuing through on or about July 18, 2013, the defendants conspired with each other and with other individuals known and unknown to the grand jury to defraud Medicare. The federal charges stem from an alleged scheme whereby Javier Efraín Siverio-Echevarría, as owner of Equipomed Care Corp., a durable medical equipment company with offices in Hatillo, Puerto Rico, would use the personal identifying information of Medicare beneficiaries, to invoice Medicare for durable medical equipment that these beneficiaries did not need or to whom the equipment would not be delivered.

 

The indictment alleges that Siverio-Echevarría procured the signature of prescription forms and Medicare documents from doctors who had not seen or examined the Medicare beneficiaries, including in particular Dr. Dante A. Rodríguez-Rivera, Dr. George D. Alcántara-Cardi, and Dr. Martha Nieves, to fraudulently invoice Medicare for durable medical equipment that was not medically necessary for these beneficiaries. Javier Antonio Aguirre-Estrada and Carlos Maldonado-López were employees of Equipomed Care Corp. and they aided the other defendants in the perpetration of the fraudulent scheme by submitting electronic invoices to Medicare and by convincing Medicare beneficiaries to accept medical equipment that they had not requested and that they did not need. The defendants fraudulently invoiced an amount in excess of $1,276,874.10 to Medicare through the three conspiracies charged in the superseding indictment.

 

“The Medicare system entrusts doctors with the responsibility of ensuring that their patients receive the care and equipment they need to achieve meaningful quality of life,” said U.S. Attorney Rosa E. Rodriguez-Velez. “The charges unsealed today allege that three physicians violated their responsibility to their patients and instead facilitated the means for an equipment company to bill over a million dollars to Medicare for equipment not delivered or not medically necessary. These charges are yet another example of the Department of Justice’s determination to hold those who choose to steal from Medicare for personal gain accountable for the harm they inflict on groups of the most vulnerable individuals in our society: the sick, the elderly and the disabled.”

 

“We are proud to be a part of the federal team that brought these defendants to justice for defrauding the Medicare program and exploiting the elderly,” said Scott Lampert, Special Agent in Charge of the Office of Inspector General’s New York Regional Office which also covers Puerto Rico. “Arresting owners and providers, and prosecuting them to the fullest extent possible, are some of the tools that the federal government has available, and will be utilized to remove these individuals from participating in the Medicare program”.

 

Pursuant to the charges, the defendants face potential penalties of up to ten years of imprisonment for the conspiracy to commit health care fraud or the health care fraud charges, and a mandatory minimum term of two years of imprisonment for the aggravated identity theft charges.

 

This case was investigated by the HHS-OIG, FBI, United States Secret Service and the Puerto Rico Police Department and is being prosecuted by Assistant U.S. Attorney Dennise N. Longo Quiñones of the Financial Fraud and Corruption Unit.

 

Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.

SAN JUAN, Puerto Rico – On February 8, 2017, a federal grand jury in the District of Puerto Rico returned a superseding indictment against twelve defendants charged with conspiracy to possess with intent to distribute cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.

 

During the course of the conspiracy, the defendants smuggled suitcases, each containing at least 8 to 15 kilograms of cocaine, through the TSA security system at the Luis Muñoz Marín International Airport (LMMIA). Sometimes as many as five mules were used on each flight, with each mule checking-in up to two suitcases. From 1998 through 2016, the defendants helped smuggle approximately 20 tons of cocaine through LMMIA.

 

Six current and former TSA employees, José Cruz-López, Luis Vázquez-Acevedo, Keila Carrasquillo, Carlos Rafael Adorno-Hiraldo, Antonio Vargas-Saavedra, and Daniel Cruz-Echevarría allegedly smuggled multi-kilogram quantities of cocaine while employed as TSA Officers at the San Juan airport. Their full time responsibilities were to provide security and baggage screening for checked and carry-on luggage that was to be placed on outbound flights from the LMMIA. During the duration of the conspiracy, these TSA employees smuggled multi-kilogram quantities of cocaine through the TSA X-Ray machines within LMMIA and onto airplanes without detection.

 

According to the superseding indictment, defendants Edwin Francisco Castro, Luis Vázquez-Acevedo and Ferdinand López became facilitators between the drug trafficking organizations and the TSA employees who smuggled the cocaine into the airplanes. Defendant Miguel Ángel Pérez-Rodríguez, who worked for the airport security company, was a source of supply of cocaine to the drug trafficking organization.

 

Defendant Javier Ortiz began assisting drug trafficking organizations as an employee of Airport Aviation Services (AAS) as a baggage handler/ramp employee. During the time of the conspiracy Ortiz used to pick up suitcases he knew contained cocaine from the mules at the airline check-in counter. Ortiz would then place the suitcases into the X-Ray machines being monitored by the TSA drug trafficking organization members, who cleared the suitcases. After the suitcases had been cleared by TSA members, Ortiz took the suitcases to their designated flight, making sure no narcotic K-9 unit or law enforcement personnel were present when the suitcase went from the checkpoint to the airplane. Once the suitcases were loaded into the airplane, defendant Ortiz would make a phone call to a drug trafficking organization member indicating the all clear and the mules would then board the airplane. Ortiz also paid the TSA employees for clearing the suitcases through TSA security.

 

Defendant Tomas Dominguez-Rohena assisted the drug trafficking organization by taking the suitcases he knew contained cocaine after they had been cleared by TSA members or smuggled passed security to their designated flight. Defendant José Gabriel López-Mercado was a mule for the criminal organization.

 

“These individuals were involved in a conspiracy to traffic massive quantities of illegal narcotics to the continental United States,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These arrests demonstrate the success of the AirTAT initiative, which has successfully allocated a dedicated group of state and federal law enforcement officers, whose mission is to ensure that our airports are not used in the drug traffickers’ illicit businesses.”

 

“This investigation was initiated by TSA as part of its efforts to address employee misconduct and specific insider threat vulnerabilities. TSA has zero tolerance for employees engaged in criminal activity to facilitate contraband smuggling,” said José Baquero, Federal Security Director, PR and USVI.

 

The Transportation Security Agency (TSA) and the Drug Enforcement Agency (DEA) are in charge of the investigation with the collaboration of the Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), the Federal Bureau of Investigation (FBI), the U.S. Marshals and the Police of Puerto Rico.

 

Assistant U.S. Attorney Stuart J. Zander is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.

 

This case is part of the ongoing efforts of the Airport Investigations and Tactical Team (AirTAT). Originating in January 2015, AirTAT is a multi-agency initiative created to identify, locate, disrupt, dismantle, and prosecute Domestic and Transnational Criminal Organizations (DTCOs) and its operatives using the LMMIA, the Fernando Luis Rivas Dominicci Airport (the Isla Grande airport), and peripheral airports as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents, illicit proceeds, and others. These airports play a strategic role for DTCOs to conduct contraband smuggling activities inbound and outbound to the continental US as well as internationally.

San Juan, Puerto Rico – Carlos Ernesto Ochoa-Rocafort, Correctional Officer at the Metropolitan Detention Center (MDC) in Guaynabo, PR, was indicted and arrested for providing contraband in prison, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation in collaboration with the Department of Justice – Office of the Inspector General (DOJ-OIG) and ATF.

 

Ochoa-Rocafort is facing three counts of providing contraband in prison, one count of bribery of public officials and two counts of sale of ammunition to a prohibited person. The indictment also charges Ochoa-Rocafort along with co-defendant José Guzmán-Marrero for attempting to aid and abet possession with intent to distribute cocaine and possession of firearms in furtherance of a drug trafficking crime.

 

According to the indictment, in or about November 10 and 11 and December 9, 2016, Ochoa-Rocafort knowingly and intentionally provided and attempted to provide four cellular telephones to an inmate housed at MDC. In exchange he demanded and agreed to receive $2,000. On or about December 2016, Ochoa-Rocafort sold a firearm and ammunition to felons; and participated as an armed escort for what he believed was a multi-kilo transportation of narcotics.

 

“The defendant was supposed to provide supervision of inmates and enforce the rules and regulations governing MDC and the inmates’ conduct. Instead, he behaved like one of them, and violated federal law,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “This case should send a clear message to those who attempt to smuggle illegal contraband into a federal facility. We will not tolerate these type of activities and will prosecute these offenders to the full extent of the law.”

 

This case was investigated by the FBI with the collaboration of the Department of Justice-Office of the Inspector General and ATF and prosecuted by Assistant United States Attorney Seth Erbe.

 

The maximum penalties for these offenses are: one year for providing cellular phones to inmates, 15 years for bribery, 10 years for selling ammunition and gun to felon, a mandatory minimum of 10 years on the drug charge, and a mandatory consecutive five-year sentence for carrying firearms in furtherance of a drug transaction. An indictment is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until convicted through due process of law.

SAN JUAN, P.R. – On February 8, 2017, United States Magistrate Judge Bruce McGiverin authorized a criminal complaint charging Waldemar Martínez-Ortiz with carjacking with serious bodily injury, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation.

According to the information contained in the affidavit submitted in support of the criminal complaint, on February 6, 2017, Martínez-Ortiz was detained by the Puerto Rico Police Department (PRPD) pursuant to an ongoing investigation concerning several cases reported to the PRPD of a masked man forcing entry into the homes of females, sexually assaulting them, and then taking their cars.

The investigation revealed that on January 31, 2017, at approximately 10:30 PM, Martínez-Ortiz, wearing a mask and carrying a silver gun, ran up to a female who was outside her home sitting on her porch. The defendant ordered her to go inside the apartment, where the victim’s sister was. The defendant demanded that both victims give him all their money and they complied. After the defendant went through the apartment in search of more valuables, he sexually assaulted both women. After sexually assaulting the sisters, Martinez-Ortiz took a car that belonged to one of them.

The investigation also revealed that on February 6, 2017, Martínez-Ortiz, wearing a mask, committed another home invasion in Bayamón. The defendant approached a female that was outside her home, brandished a firearm and directed her to get inside her home. Once inside the home, the victim’s brother and boyfriend were able to restrain him until officers from the PRPD arrived at the scene.

“The victims of this crime should rest assured that we will zealously protect their rights and seek justice during our prosecution of this offense,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend the PRPD agents, detectives and P.R. Department of Justice prosecutors for their persistence and efforts in solving these crimes.”

The case is being prosecuted by Special Assistant United States Attorney Daynelle M. Álvarez. If convicted, the defendant faces a maximum penalty of up to 25 years in prison. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.

SAN JUAN, Puerto Rico – On January 25, 2017, a federal grand jury in the District of Puerto Rico returned an indictment against 13 defendants charged with conspiracy to distribute controlled substances in the municipality of San Sebastián, PR, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The FBI and the Puerto Rico Police Department (PRPD), Aguadilla Strike Force Unit, are in charge of the investigation.

 

The indictment alleges that beginning in or about June 2012, the organization distributed heroin, cocaine, crack, and marihuana, at the San Andrés Public Housing Project in San Sebastián, all for significant financial gain and profit.

 

The thirteen defendants acted in different roles in order to further the goals of their organization, to wit: leader who directed and supervised enforcers, runners, sellers, drug processors, and facilitators. Seven defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.

 

The defendants are: Juan O. Vélez-Miranda, a.k.a. “Coski”; José Moreno-Díaz, a.k.a “Sicario”; Michael Rojas-Montalvo, a.k.a. “Fora”; Gabriel A. Ramos-Alers, a.k.a. “Gallo”; Alberto Cabrero-Cabrera; Jean Pierre De La Rosa-Pratts, a.k.a. “Jampi”; Ángel Rivera-Rivera, a.k.a. “Tato El Gordo”; Abisael Rivera-Rivera, a.k.a. “Avispa”; Gustavo A. Méndez-Báez, a.k.a. “Tavo”; Pablo E. Ríos-Cruz, a.k.a. “Kike”; Juan C. Arvelo-López, a.k.a. “Choky”; Kevin Molina-Noriega, a.k.a. “Baby Love”; and Carlos Bayrón-Ramos, a.k.a. “Harry”.

 

“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this operation is nothing short of significant and it underscores law enforcement’s main goal: to keep drugs out of our neighborhoods.”

 

Assistant U.S. Attorney Vanessa Bonhomme is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.

 

SAN JUAN, P.R. - On January 17, 2017, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging María Cristina Cotto-Ortiz with bank fraud and aggravated identity theft, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez. The FBI is in charge of the investigation.

 

The indictment charges Cotto-Ortiz with: five counts of theft, embezzlement, or misapplication by bank officer or employee; 13 counts of bank fraud; 12 counts of making false entry in a book, report, or statement of a federally insured bank; two counts of aggravated identity theft; and one count for exceeding authorized access of a protected computer. ‘Her husband Natanael Pacheco Martínez, is charged with one count of accessory after the fact, that is, while knowing that an offense against the United States was being committed he assisted Cotto-Ortiz in order to hinder and prevent her apprehension, trial and punishment.

 

According to the indictment, Cotto-Ortiz, who was the second in command at the Ceiba branch of Oriental Bank, embezzled from her employer, and also stole from an elderly couple that banked at Oriental Bank. The total theft by Cotto-Ortiz is estimated to be more than $768,800.

 

In 2006, according to the indictment, Cotto-Ortiz approached the victims and asserted that she had been authorized by Oriental Bank to offer high rate of interest to two customers. The victims, who knew Cotto-Ortiz from the bank and trusted her, opened a checking and savings account, initially transferring $160,000, and based on Cotto-Ortiz’s promises of increasing interest rates, deposited over $400,000 over a 5-year period of time, which sum represented their life’s savings.

 

The defendant, on numerous occasions accepted deposits from the victims but did not deposit the funds with Oriental Bank or record their receipt in Oriental Bank’s computer system. On other occasions, Cotto-Ortiz withdrew money from the victim’s accounts without their permission or knowledge.

 

Also, during the relevant time periods, Cotto-Ortiz, while employed at the bank, took money from the bank’s vault/working fund without authorization and against bank policy, making false entries in the bank’s general ledger to avoid detection of her theft.

 

In other efforts to conceal her criminal activity, and after she had been terminated from her job in February 2012, Cotto-Ortiz and her husband Natanael Pacheco-Martínez met with the victims and gave them a $500 check as a lulling payment in order to delay the detection of the scheme.

 

“The egregious behavior of those who exploit our banking system or its clients for personal and criminal gain will not be tolerated,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “We are particularly concerned when former bank officials, who have held positions of trust within their institutions, are alleged to have been involved in criminal activity. We will continue to aggressively pursue bank officials and others who victimize financial institutions and their trusting clients.”

 

If convicted, Cotto-Ortiz could face a maximum penalty of 30 years of imprisonment and a fine of $1,000,000 for each bank fraud, misappropriation and false entry charge, a maximum penalty of up to 5 years of imprisonment and a fine for the access of a protected computer without or in excess of authorization charge, and a mandatory consecutive sentence of two years for the aggravated identity theft charges. For accessory after the fact, Pacheco-Martínez is facing up to half the statutory maximum penalty of Cotto-Ortiz. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.

 

The prosecution of this case is assigned to Assistant U.S. Attorney Susan Z. Jorgensen of the Financial Fraud and Corruption Unit.

San Juan, Puerto Rico – Gilberto Escobar-López, horse trainer at the Hipódromo Camarero, formerly known as El Nuevo Comandante, horse racing track located in Canóvanas, Puerto Rico, was arrested by special agents of Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), the Food and Drug Administration (FDA) Office of Criminal Investigations, and Customs and Border Protection (CBP), for smuggling goods (illegal animal drugs) into the United States, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The defendant is facing one count of Smuggling Goods into the United States and fifteen counts for Introducing into Interstate Commerce Adulterated Animal Drugs.

 

According to the indictment, on January 5, the defendant concealed and facilitated the transportation of illegal animal drugs knowing that said merchandise had been imported and brought into the United States contrary to law. Escobar-López utilized wooden crates shipped from Panama to Puerto Rico with false bottoms which contained illegal animal drugs and products. These illegal animal drugs and products were to be used on horses and the Hipódromo Camarero Race Track and were meant to be used at, but not limited to, the 2016 Clásico del Caribe Race at Hipódromo Camarero.

 

The indictment includes charges for drugs that the defendant introduced or delivered into interstate commerce from Panama to Puerto Rico, knowing that they were unsafe animal drugs. These were: Norandren 50, Ganabol 50, Nabolic, Nabolic Strong, Estimil SI, CH 77, Batacas, Coagulante Chinfield, Tonicor RE, Neuromax 1.5%, Clenpulmin, MV Chinfield, Hepato Factor A, Arterol, and Bronquinort.

 

This case is being prosecuted by Assistant U.S. Attorney Stuart Zander, from the International Narcotics Unit. The case was investigated by ICE-HSI, the FDA Office of Criminal Investigations, CBP and Airport Investigations and Tactical Team (AirTAT). The AirTAT investigates international drug trafficking and money laundering organizations that utilize the aviation domain to smuggle narcotics and currency into and through the United States.

 

The maximum penalties for these offenses are 20 years of imprisonment. An indictment is a formal accusation of criminal conduct, not evidence. The defendant is presumed innocent unless and until convicted through due process of law.

SAN JUAN, Puerto Rico – On December 12, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against 38 defendants charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), and the Puerto Rico Police Department (PRPD), Guayama Strike Force are in charge of the investigation.

According to the indictment, the defendants conspired to knowingly and intentionally possess with intent to distribute heroin, cocaine base (crack), cocaine, marihuana, Oxycodone (commonly known as Percocet), and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Jardines de Montellano and Luis Muñoz Morales Public Housing Projects; El Polvorín, San Cristobal and Cantera wards; and other areas within and near the Municipality of Cayey, PR, all for significant financial gain and profit.

The indictment alleges that beginning in 2012, the organization established drug distribution points among the housing projects.  Some of the defendants and their co-conspirators committed murders in order to maintain order and control of the drug trafficking operations. Some of the defendants, while in prison, maintained contact by phone with other members of the organization in the free community to control and coordinate drug trafficking activities. The co-conspirators sometimes referred to the drug trafficking organization as “The Punishers” and some of its members have tattoos of “The Punisher” logo to identify themselves as members of the organization.

The defendants and their co-conspirators routinely used social media to post pictures of co-conspirators, communicate amongst themselves and promote their drug trafficking activities. They took photos and videos of themselves, their associates, vehicles, drugs, firearms and other drug trafficking related items.

The defendants are: Edwin José Santos-Martínez, a.k.a. “Chinai/Chinito”; José A. Torres-Burgos, a.k.a “La Letra”; Curtis R. Laringa-Ortiz, a.k.a. “Gordo Gordo”; Arnaldo J. Vega-Marrero, a.k.a. “Naldito”; Heriberto J. Martínez-Rosa, a.k.a. “Yandel”; Gabriel E. Ortiz-Haddock, a.k.a. “Gavilán”; Javier Rivera-Nuñez, a.k.a. “Javi/Kevin/Adidas”; Carlos Omar Rivera-Pérez, a.k.a. “Carlitos Punisher”; Christopher L. Collazo-Cartagena, a.k.a. “Varguitas”; Efraín A. Planell-Pérez, a.k.a. “Gordo Billar”; Samuel Vélez-Rosa, a.k.a. “Samuelito”; Jean Carlos Vázquez, a.k.a. “Yankee”; Jonathan Vicente-Vázquez, a.k.a. “Jonan/El Negro”; Jorge E. Álvarez-Rivera, a.k.a. “Georgie”; Alexander Arroyo-González, a.k.a. “Alex Corcho/Alex Corchoneta”; Elvin Mejías-Cáceres, a.k.a. “Cuña”; Kendrick A. Morell-Torres, a.k.a. “Kenry”; Ramón E. Gómez-Montañez, a.k.a. “Imperio”; Reynaldo Alverio-Moyet, a.k.a. “Reyo/Reyito/Alverio”; Ezequiel Martínez-Llopiz, a.k.a. “Menor”; Eddie Rivera-Santana, a.k.a. “Finito/Tatuaje”; Entuan J. Rivera-Vega, a.k.a. “Bebo”; Edgardo Ramos-Meléndez, a.k.a. “Galdito”; Carlos Santiago-Morales, a.k.a. “Carlos Cantera”; Carlos E. Rosado-Hiraldo, a.k.a. “Kiko”; Ramón L. Rodríguez-Colón, a.k.a. “Topo”; Erick A. Bolorín-Vega, a.k.a. “Bolo”; Xavier De Jesús-Taboada, a.k.a. “Xavi Jordan”; Jonathan A. Alvarado-Vega, a.k.a. “Transfor”; Christopher X. Torres-Morales, a.k.a. “Buho”; Pedro De Jesús-Ortiz, a.k.a. “Pitín”; Raymond Rivera-Rivera, a.k.a. “Raymond Joe/Pupu”; Kelvin Omar Bermúdez-López; Gerardo Marcano-Rivera, a.k.a. “Bebe”; Sergio Rodríguez-Mendoza; Christian Ortiz-Meléndez, a.k.a. “Chata/Monaguillo”; Freddie Rivera-Rodríguez, a.k.a. “Domi”; and Armando Soto-Díaz.

The thirty-eight defendants acted in different roles in order to further the goals of their organization, to wit: leaders, managers, drug owners, enforcers, runners, sellers, facilitators, and lookouts. Thirty defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.

Assistant U.S. Attorney César S. Rivera-Giraud is in charge of the prosecution of the case. Defendants convicted of drug trafficking face a minimum sentence of 10 years, and a maximum of life in prison.  Defendants convicted of drug trafficking and a firearms offense face a minimum of 15 years, and up to life in prison. An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.

SAN JUAN, P.R. - On December 6, 2016, a Federal Grand Jury in the District of Puerto Rico returned five separate Indictments charging seven individuals with fraud against the Social Security Administration (SSA) disability insurance benefits in Puerto Rico, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez.

The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides monetary benefits to workers with severe, long-term disabilities, who have worked in SSA covered employment for a required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits.

Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application. The application and supporting evidence would then be evaluated by SSA to determine the individual’s medical impairments and determine the effect of the impairment on the claimant’s ability to work on a sustained basis.

The five indictments charge seven individuals of theft of government property, concealment or failure to disclose work activity to SSA and false statements or representations to the SSA. These defendants knowingly and willfully embezzled, stole, and converted to their own use the Social Security Disability Insurance Benefit payments to which the defendants knew that they were not entitled.

Two of the seven individuals, namely, Arturo Santiago-Acevedo and Erick Malavé-Hernández, were also charged with healthcare fraud. These defendants, as part of their SSA disability benefits, became eligible, applied for and received benefits under the Medicare Program.

Once a person is receiving SSA disability benefits for 24 months he/she automatically starts receiving Part A of the Medicare Program (hospitalizations) and they become eligible to apply for Part B and C of the Medicare Program. If they decide to apply for Part B and/or C of the Medicare Program, the monthly premium is deducted from their monthly disability benefits.

The other five defendants are: Ferdinand Negrón-Candelaria, a.k.a. “Yuca;” Jorge M. Bultrón-Casas, a.k.a. “Ernesto Bultrón Casas,” a.k.a. “George Bultrón;” Nancy López-Villanueva; Aracely Amadeo-Pumarejo and Luz B. Hiraldo-Rivera. They reported during a Continuing Disability Review (CDR) that the disability beneficiary had not been able to work due to different health conditions, when in truth they were working.

“This is a great example of ongoing efforts by the Government to deter fraud against the social security programs,” said United States Attorney Rosa Emilia Rodríguez-Vélez. The Department of Justice is committed to investigate and prosecute those who engage in fraudulent schemes. Hopefully this round of arrests will discourage more people from getting involved in these types of schemes, because we will continue investigating these crimes.”

SSA-OIG Special Agent-in-Charge John Grasso said: “The Social Security Disability Insurance program is intended to support individuals truly in need of this important and earned benefit, not those who are willing to lie about their true condition to steal from the Social Security Trust Fund. I am very grateful for the efforts of all of our law enforcement partners involved in this investigation, and for the continued commitment from the United States Attorney’s Office for the Commonwealth of Puerto Rico to aggressively pursue these important cases. I strongly encourage the public to report suspected instances of Social Security fraud to the OIG’s Fraud Hotline at 1-800-269-0271 or https://oig.ssa.gov/report.”

These cases were investigated by the Social Security-OIG with the collaboration of Health and Human Services-Office of Inspector General, and the Puerto Rico Police Department and were indicted by Special Assistant United States Attorney Vanessa D. Bonano-Rodríguez.

If convicted, the defendants could face a maximum penalty of 10 years of imprisonment and/or fines of up to $250,000.00.  Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.

SAN JUAN, P.R. – On December 1st, 2016, a federal grand jury in the District of Puerto Rico returned a two-count indictment against José Reyes-Alicea and Edgardo Meléndez-Silva, a.k.a. “Wong”, for drug trafficking, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Today’s arrests are the result of an investigation led by the FBI, with the collaboration of the Puerto Rico Police Department (PRPD).

On or about December 14, 2011, the defendants conspired to possess with intent to distribute detectable amounts of cocaine. Both defendants are also charged with carrying firearms during and in relation to a drug trafficking crime. At the time of the offense, Reyes-Alicea and Meléndez-Silva were police officers with the Puerto Rico Police Department (PRPD) assigned to the Drugs Division in San Juan.

“We expect police officers to enforce the law and protect our citizens. These two officers broke the trust we placed in them and it is our responsibility to bring them to justice,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.

Assistant U.S. Attorney Teresa Zapata-Valladares is in charge of the prosecution of the case. If convicted, the defendants face a minimum sentence of five years up to life in prison.  Defendants are presumed to be innocent until and unless proven guilty.

Citizens of Puerto Rico with allegations of law enforcement corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.

 

Today, Victor M. Ortiz-Díaz a.k.a. “Manolito,” mayor of the municipality of Gurabo, Puerto Rico, was arrested by Federal Bureau of Investigation (FBI) agents on charges of extortion and soliciting a bribe, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico.  

According to the indictment, on or about October 2012, the Municipality of Gurabo owed Company A payments for eight outstanding invoices for work performed in the municipality.  Person A, co-owner of Company A, met with mayor Ortiz-Díaz to discuss the outstanding debt.  The mayor solicited $125,000 from Person A to invest in a telecommunication antennas project.  Because Company A did not have the money to pay the $125,000, the mayor told Person A that he would have the municipality make a payment to the company.  With this money, Company A could be able to cover the “loan” to Ortiz-Díaz, as well as pay other debts it owed its suppliers.

On Oct. 19, 2012, Person A issued three post-dated Company A checks payable to three different individuals, who were employees of Miguel Merced.  Merced was the individual orchestrating the telecommunications investment scheme in which Ortiz-Diaz invested the three checks totaling $125,000.  On that same date, the Municipality of Gurabo issued two checks totaling $196,643.26 payable to Company A for contracting work performed.         

Unbeknownst to him, Ortiz-Díaz used the money he extorted from Person A in what turned out to be a Ponzi scheme run by Merced, who is now serving a six-year prison sentence.

“Defendant Ortiz-Díaz extorted Person A, to invest in a Ponzi scheme, which resulted in losses to many victims,” said U.S. Attorney Rodríguez-Vélez.  “Although he presented himself as a victim in federal court, it was the citizens of Gurabo who were the victims of his corrupt acts, as it was their money he squandered.”

“It is always a sad day when someone who enjoys the trust of the people abuses that trust,” said FBI Special Agent in Charge Douglas Leff.  “It should be clear by now that those officials who have served the public dishonestly will eventually have justice delivered to their doorstep.  The FBI will continue to work with its partners at the U.S. Attorney’s Office to ensure that the citizens of Puerto Rico receive the fair and honest government to which they are entitled.”

This case was investigated by the FBI and U.S. Department of Housing and Urban Development’s Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda.

If found guilty, the defendant could face up to 20 years in prison and $250,000 in fines.   An indictment contains only charges and is not evidence of guilt.  Defendant is presumed to be innocent unless and until proven guilty. 

 

Today, Victor M. Ortiz-Díaz a.k.a. “Manolito,” mayor of the municipality of Gurabo, Puerto Rico, was arrested by Federal Bureau of Investigation (FBI) agents on charges of extortion and soliciting a bribe, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico.  

According to the indictment, on or about October 2012, the Municipality of Gurabo owed Company A payments for eight outstanding invoices for work performed in the municipality.  Person A, co-owner of Company A, met with mayor Ortiz-Díaz to discuss the outstanding debt.  The mayor solicited $125,000 from Person A to invest in a telecommunication antennas project.  Because Company A did not have the money to pay the $125,000, the mayor told Person A that he would have the municipality make a payment to the company.  With this money, Company A could be able to cover the “loan” to Ortiz-Díaz, as well as pay other debts it owed its suppliers.

On Oct. 19, 2012, Person A issued three post-dated Company A checks payable to three different individuals, who were employees of Miguel Merced.  Merced was the individual orchestrating the telecommunications investment scheme in which Ortiz-Diaz invested the three checks totaling $125,000.  On that same date, the Municipality of Gurabo issued two checks totaling $196,643.26 payable to Company A for contracting work performed.         

Unbeknownst to him, Ortiz-Díaz used the money he extorted from Person A in what turned out to be a Ponzi scheme run by Merced, who is now serving a six-year prison sentence.

“Defendant Ortiz-Díaz extorted Person A, to invest in a Ponzi scheme, which resulted in losses to many victims,” said U.S. Attorney Rodríguez-Vélez.  “Although he presented himself as a victim in federal court, it was the citizens of Gurabo who were the victims of his corrupt acts, as it was their money he squandered.”

“It is always a sad day when someone who enjoys the trust of the people abuses that trust,” said FBI Special Agent in Charge Douglas Leff.  “It should be clear by now that those officials who have served the public dishonestly will eventually have justice delivered to their doorstep.  The FBI will continue to work with its partners at the U.S. Attorney’s Office to ensure that the citizens of Puerto Rico receive the fair and honest government to which they are entitled.”

This case was investigated by the FBI and U.S. Department of Housing and Urban Development’s Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda.

If found guilty, the defendant could face up to 20 years in prison and $250,000 in fines.   An indictment contains only charges and is not evidence of guilt.  Defendant is presumed to be innocent unless and until proven guilty. 

San Juan, Puerto Rico– Today, U.S. Magistrate Judge Silvia Carreño-Coll authorized a complaint charging Rosa Betancourt-Farfán, with the injection of a device into a human body, after shipment in interstate commerce, having the device been adulterated or misbranded, all in violation of Title 21, United States Code, Sections 331 (k), 333(a)(1), and 351(f)(1)(B), announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The Food and Drug Administration (FDA) is in charge of the investigation.

According to the information gathered during the investigation, liquid silicone is sometimes injected into the body to “augment” tissues, such as the buttocks or breasts. When intended for tissue augmentation, liquid silicone is a “device” under the FDCA, and is subject to FDA approval before it can legally be distributed and used for such use in the United States.  FDA has not approved any liquid silicone products for injection to augment tissues anywhere in the body.  In addition, the injection of liquid silicone into the body for tissue augmentation can result in serious adverse health consequences, including hardening of tissue at the injection site, embolization, and even death.

On or about May 23, 2016, Puerto Rico Board of Health, Legal Division, contacted the FDA, San Juan Resident Office, to advise of a complainant who received medical procedures from a female individual who claimed to be a nurse. It was further indicated that the complainant received treatment to enlarge his/her buttocks and that the female individual was identified as “Rosa from Venezuela” (later identified as Rosa Betancourt-Farfán).

The complainant was interviewed by FDA agents and indicated that she/he had been injected on both glutes one (1) vial by Betancourt-Farfán, for which he/she paid twelve hundred dollars ($1,200.00) in cash, but was having health problems during the summer of 2013. These problems consisted first with trouble breathing and back pain. His/her health condition worsened on or about 2015, when he/she was hospitalized with tendonitis and back spasms.

A second victim indicated that he/she received treatment for butt augmentation with Betancourt-Farfán who had injected him/her with stem cells. According to the second victim, the first time he/she received the cosmetic treatment by the defendants, there were more than ten (10) individuals at a residence in Bayamón waiting to receive treatment. This second victim is presenting serious health issues and is receiving medical treatment with a doctor outside of Puerto Rico.

“If you or a person you know have been treated by the defendant, please call the Junta de Licenciamiento y Disciplina Médica y Oficina de Reglamentación y Certificación de los Profesionales de la Salud al 787-765-2929, ext. 6589.  Your life is in danger if you have received any of these adulterated treatments,” stated Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico.

This case is being prosecuted by Assistant U.S. Attorney Myriam Fernández. The case was investigated by the FDA.

A criminal complaint is an accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty.

SAN JUAN, P.R. - On November 29, 2016, a federal grand jury returned an indictment charging defendants Pedro Van Rhyn Soler and Edgardo Van Rhyn Soler with one count of health care fraud and two counts of money laundering for their participation in a scheme to defraud Multinational Life Insurance Company (“MLIC”), formerly known as National Life Insurance Company (“NALIC”),” announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.

According to court documents, between 2006 and 2011, Edgardo Van Rhyn Soler was the Vice President and then President of National Life Insurance Company (NALIC), a health insurance company operating in the District of Puerto Rico. Between 2004 and 2012, the defendants were both co-owners of Option Health Care Network (Option), a company that provided administration services to insurance companies. In April 2006, Option signed a "Service Agreement" contract with NALIC allowing Option to be the third party administrator of NALIC's health care division and granting Option ninety-five percent (95%) of NALIC's income.

Starting in 2010, the Puerto Rico Health Insurance Administration, known as ASES, negotiated and contracted qualified health insurance agencies to provide services for Puerto Rico government employees. Before 2010, the Puerto Rico Department of Treasury (Hacienda) performed this duty. ASES authorized Hacienda to disburse state government funds to pay the qualified health insurance agencies that provided services for Puerto Rico government employees. After receiving sworn certifications from the responsible health insurance agency that no debt remained outstanding to be paid to health care providers, such as, but not limited to, doctors, hospitals, and laboratories, by the health insurance agency, ASES would authorize such payments from Hacienda.

From January 2009 to December 2011, Hacienda disbursed a total of $41,225,539.33 to NALIC and Option. Per the Service Agreement, ninety-five percent (95%) of the money received from Hacienda was transferred from NALIC to Option.

From 2009 to 2012, both defendants purchased large amounts of personal and non-business related expenditures using a corporate credit card or money received from Option including, but not limited to, massages, groceries, jewelry, private boats, gas, and accessories. The defendants also transferred U.S. currency to other bank accounts or financial institutions that they had access to. In the meantime, debts owed to health care providers by Option grew to many times more than Option owed previously. In 2006 and 2007, Option owed less than $2,000 to service providers, but Option owed more than $1,000,000 to service providers in 2010, and more than $2,000,000 to service providers in 2011.

NALIC changed its name to Multinational Life Insurance Company (MLIC) after a change of administration in November 2011. In February 2012, NALIC, then owned by MLIC, paid more than $4,000,000 to the health care providers with outstanding debts owed by Option as a result of the scheme to defraud. This resulted in a loss of potential revenue and profit to NALIC's new owner, MLIC.

The maximum penalties for these offenses are fines or imprisonment not more than 20 years, or both.

An indictment is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until convicted through due process of law.

The case was investigated by the Internal Revenue Service, Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI), and is being prosecuted by Assistant United States Attorney Edward Veronda.

 

# # #

 

San Juan, Puerto Rico– Today, U.S. Magistrate Judge Silvia Carreño-Coll authorized a complaint charging Abraham Moisés Pagán-Rola with drug trafficking at the Luis Muñoz Marín International Airport in Carolina, P.R. (LMMIA), announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The Drug Enforcement Administration is in charge of the investigation.

Today, at approximately 5:00 am, AirTAT agents were conducting random interdictions on JetBlue Flight #1504 departing San Juan LMMIA in Carolina, Puerto Rico destined to the John F. Kennedy International Airport in New York, NY. AirTAT agents encountered passenger Abraham Moises Pagán-Rola at the JetBlue A-4 gate, where the flight was scheduled to depart and interviewed him. Pagán-Rola was acting nervous and suspiciously when the agents asked if they could search his carry-on bag. The defendant gave consent and the agents found fifteen (15) bricks of cocaine inside Pagán-Rola’s carry-on bag weighing approximately 16.7 kilograms.

This case is being prosecuted by Assistant U.S. Attorney Stuart Zander. The case was investigated by the Airport Investigations and Tactical Team (AirTAT).

The maximum penalties for these offenses are at least 10 years but not more than 40 years of imprisonment. A criminal complaint is an accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty.

San Juan, Puerto Rico– Máximo Paredes-Suárez was indicted for bulk cash smuggling and providing false statements to federal officials, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Customs and Border Protection (CBP) and Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) are in charge of the investigation.

On or about November 12, 2016, Máximo Paredes-Suárez, did knowingly conceal more than $10,000 in currency and other monetary instruments, to wit: sixty-two thousand three hundred eighty-six dollars ($62,386.00) in United States currency, in his luggage, and attempted to transport and transfer said U.S. currency and monetary instruments from the San Juan Luis Muñoz Marín International Airport, in the District of Puerto Rico, to the Dominican Republic.

According to the indictment, the defendant willfully and knowingly made materially false, fictitious, and fraudulent statements by stating to CBP and ICE-HSI AirTAT agents that he was not transporting any currency, at the San Juan Luis Muñoz Marín International Airport, San Juan, Puerto Rico. The statement and representation was false because, as Paredes-Suárez then and there knew, he had $62,386.00 in United States currency concealed in his luggage at the San Juan Luis Muñoz Marín International Airport.

This case is being prosecuted by Assistant U.S. Attorney Stuart Zander. The case was investigated by Customs and Border Protection officers and Homeland Security Investigations (HSI) Airport Investigations and Tactical Team (AirTAT).

The maximum penalties for these offenses are 10 years of imprisonment. An indictment is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until convicted through due process of law.

SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that United States District Judge Pedro A. Delgado sentenced Noel Aquino Florenciani to serve a term of imprisonment of 22 years followed by 10 years of supervised release. On April 7, 2016, Aquino-Florenciani pled guilty to one count of production of child pornography and one count of possession of child pornography, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

In December, 2015, the defendant was charged for production and possession of child pornography. The evidence in this case revealed that the defendant sexually abused and/or engaged in illicit sexually explicit conduct with at least one male minor and documented his sexual abuse by making visual depictions of such conduct. The defendant had also used peer-to-peer file sharing program and had downloaded child pornography using his laptop and phones. This evidence was discovered during the execution of a search warrant by Homeland Security Investigations agents during which a laptop computer and three cellular phones were seized.

“Justice was done today.  This sentence should serve to reassure the public that we are paying close attention to the well-being of our children, and that we will spare no expense to take child predators off the streets,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.  “All child sexual predators will be held accountable for the unspeakable crimes they commit and the harm they cause to their victims and their families.” 

Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.

The criminal prosecution was handled by Assistant U.S. Attorney Elba Gorbea.

SAN JUAN, Puerto Rico – United States Magistrate Judge Bruce McGiverin authorized a criminal complaint against 34 year-old William Javier Vega-Valentín, and 26 year-old Carlos Manuel Borrero-Vélez, both residents of Aristides Chavier public housing project, charging them with child pornography and child exploitation crimes, announced United States Attorney Rosa Emilia Rodríguez-Vélez. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), working jointly with the Puerto Rico Police Department’s (PRPD) Ponce Sexual Crimes Division, conducted the investigation that led to the arrests.

Vega-Valentín was charged with production of child pornography, while Borrero-Vélez was charged in a separate criminal complaint with attempted production of child pornography and sexual enticement of a minor. They were arrested at their respective residences during the execution of a federal search warrant by HSI special agents.  According to the charging documents, Borrero-Vélez, a.k.a. “Carlito,” and Vega-Valentín made sexually explicit approaches to a 14-year-old minor identified as “MM” and requested sexually explicit images and videos from the minor. According to the Affidavit in Support of the Criminal Complaint, Vega-Valentín works as a sports youth leader at the Aristides Chavier public housing project.

“The sexual exploitation of vulnerable individuals will not be tolerated. Our prosecutors and law enforcement partners will vigorously investigate and prosecute the abuse that these victims suffered at the hands of these offenders. The children of Puerto Rico deserve no less,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.

 “Child exploitation in all its forms is a very serious crime.  HSI will continue investigating and arresting those who think they can victimize our children and get away with it,” said Ricardo Mayoral, special agent in charge of HSI. “These allegations are especially disturbing given the position of trust one of these defendants occupied.  Identifying people who violate their positions of trust by contributing to the exploitation of children is a top priority for HSI.  Anyone who targets children for sexual exploitation should also consider themselves a target by HSI and by our law enforcement partners regardless of who they are. We have an obligation to protect those most vulnerable in our society who cannot protect themselves.”

HSI encourages the public to call the toll free number 1-800-981-3030 or (787) 729-6969 to report any information that may lead to the identification and rescue of additional victims regarding this case.

Both men are scheduled to appear before U.S. Magistrate Judge McGiverin today for their initial appearances, after which they will be transferred to the Guaynabo Metropolitan Detention Center awaiting their respective detention hearings.

Special Assistant U.S. Attorney Cristina Caraballo is prosecuting the case. If convicted defendant faces a mandatory minimum term of 15 years’ incarceration up to a maximum term of life in prison.  A criminal complaint contains only charges and is not evidence of guilt.  A defendant is presumed to be innocent unless and until proven guilty.

This investigation was conducted under HSI’s Operation Predator, an international initiative to protect children from sexual predators.  Since the launch of Operation Predator in 2003, HSI has arrested more than 12,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children.  In fiscal year 2014, more than 2,300 individuals were arrested by HSI special agents under this initiative and more than 1,000 victims identified or rescued.

HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.  Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199.  Hearing impaired users can call TTY 802-872-6196. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.

For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page.  HSI is a founding member and current chair of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.

            SAN JUAN, Puerto Rico– Miosotis Ribot-Figueroa (Ribot) was sentenced before US District Court Judge Gustavo Gelpí to 36 months in prison, three years of supervised release, an order to forfeit her home in the Municipality of Gurabo, and an order to pay a restitution of $451,950.77 for bank fraud and aggravated identity theft charges, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. José F. González-Guzmán (González) was sentenced to five years of probation, was ordered to forfeit a Vessel, a 2002 Doral International Model 360SE named Cizañas, and was ordered to pay a restitution of $4,134.35 for one charge of monetary transaction in property derived from specified unlawful activity. Both defendants had plead guilty on April 26, 2016.

On December 9, 2015, a Federal grand jury returned a seventy-nine count indictment with multiple counts of bank fraud, wire fraud, aggravated identity theft, and four counts of monetary transactions in property derived from specified unlawful activity. The Federal Bureau of Investigation (FBI) was in charge of the investigation.

 

According to the indictment, which was filed on December 9, 2015, these charges stem from a scheme utilized by Ribot from approximately May to October 2014 to make thirty-four unauthorized bank transfers from the bank account of her employer to bank accounts controlled by Ribot and/or González totaling approximately $490,165.42. Ribot was employed as an assistant controller for a Puerto Rico company that sold, distributed, and provided service for medical equipment.

 

As a part of the scheme, Ribot logged into her employer’s computer network and accessed their bank’s system for processing payments and bank transfers to vendors and customers. Ribot then processed thirty-four unauthorized bank transfers to herself and González. Ribot submitted false and fraudulent invoices to correspond to the fraudulent bank transfers. Ribot also submitted false information into a journal voucher system to reflect that the bank transfer had been authorized by a supervisor. In doing so, Ribot utilized the names and signature of others to further the scheme to defraud, which constituted the aggravated identity count.

 

The case was prosecuted by Assistant U.S. Attorney Seth Erbe.

SAN JUAN, P.R. – Eduard Bueno-Beltrán pled guilty to all counts of an indictment which charged him with importation of controlled substances, conspiracy to import controlled substances, and two counts of possession with the intent to distribute a controlled substance on board a vessel under the jurisdiction of the United States, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. This guilty plea finalized a drug trafficking investigation and prosecution by the U.S. Immigration & Customs Enforcement’s Homeland Security Investigations, the US Coast Guard, and the United States Attorney’s Office for the District of Puerto Rico. United States District Court Judge Gustavo A. Gelpí presided the case.

On March 17, 2015 at around 2:00 am, a maritime patrol aircraft (MPA) detected a go-fast vessel heading eastbound in international waters, approximately 20 nautical miles north of the coast of Miches, Dominican Republic. The vessel was operating without navigation lights at night along a known smuggling route. The patrol aircraft observed packages being jettisoned from the go-fast vessel. The boarding team intercepted the go-fast vessel in international waters and conducted a search. They recovered nine (9) bales containing brick-shaped objects with a white powdery substance, one (1) cellular telephone and one (1) Global Positioning System (GPS) device. A field test of the substance within the bales was conducted by USCG personnel and yielded a positive result for cocaine. 

An individual identified as Eduard Bueno-Beltrán claimed to be the master of the vessel.       The other two subjects involved were identified as Ismael King-Almeida, who already pled guilty, and Pedro Antonio Berroa-Bonilla, who passed away due to preexisting conditions; all Dominican Republic nationals. A total of approximately 205 bricks of cocaine weighing approximately 229.2 kilograms were seized. These defendants are exposed to a term of imprisonment of not less than 10 years and up to life in prison for the drug trafficking conspiracy.

The case was prosecuted by Special Assistant United States Attorneys Eugenio Lomba and Nicholas Smith.

SAN JUAN, Puerto Rico – Yesterday evening, after a 17-day trial, a jury found three members of the violent drug trafficking organization known as La Rompe ONU guilty of drug trafficking and murder charges. Namely, the jury found defendants Rubén Cotto-Andino, a.k.a. “Rubén El Negro”, José D. Resto-Figueroa, a.k.a. “Tego”, and Carlos Velázquez-Fontánez guilty of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), conspiracy to possess with intent to distribute controlled substances, carrying firearms during and in relation to a drug trafficking offense, drive-by shooting murders and related firearm offenses, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Jay García Gregory presided over the trial.

Rubén Cotto-Andino was a leader of La Rompe ONU and oversaw the organization’s drug trafficking activities at the Jardines de Cupey and Brisas de Cupey Public Housing Projects. Jose Resto Figueroa, an enforcer for the organization, was found guilty of participating in a drive-by shooting that occurred on August 28, 2012, in which enforcers of La Rompe ONU shot and killed Luis Ojeda-Andino, a.k.a. “Pollo,” Luis Velázquez-Aquino, a.k.a. “Urraca,” and José Ayala-García. These murders are known as the “Jardines de Cupey Massacre.”

Carlos Velázquez-Fontánez, a San Juan Municipal Police Agent, who supplied members of La Rompe ONU with ammunition and engaged in drug trafficking, was also found guilty of a drive-by shooting murder. Namely, he participated in a drive-by shooting on June 25, 2011, during which enforcers of La Rompe ONU shot and killed Edwin Díaz-Cruz, Hervin Valcarcel-Martínez, a.k.a. “Prieto,” Javier Catala-Bermúdez, and Orlando Meléndez-Villegas. These murders are known as the “Tortuguero Massacre.”

During trial, the government presented the testimony of cooperating witnesses, law enforcement officials, forensic science technicians, experts and physical evidence such as firearms, ammunition, and narcotics seized, which proved that the defendants were guilty beyond a reasonable doubt.

“The Rompe ONU gang ruled certain neighborhoods in San Juan, spreading violence and fear in their communities,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico.  “This extensive investigation has taken dangerous Rompe ONU leaders, members and associates off the streets and put them in prison, where they belong. Violent street gangs should take note, and know that we are determined to break their grip on our communities, and   that they will face justice for their crimes.”

Assistant U.S. Attorneys Alberto López-Rocafort and Victor O. Acevedo-Hernández were in charge of the prosecution of the case. The defendants face sentences of up to life imprisonment.

SAN JUAN, Puerto Rico – On November 2nd, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against two defendants charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Agency (DEA) is in charge of the investigation with collaboration from the Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), Transportation Security Agency (TSA), the Federal Bureau of Investigation, and the Police of Puerto Rico.

The indictment, unsealed today, alleges that from on or about 2008, José Cruz-López smuggled kilogram quantities of cocaine while employed as a TSA Officer at the Luis Muñoz Marín International Airport (LMMIA) in San Juan, Puerto Rico. At the time, Cruz-López worked at the TSA X-Ray machine in the airport. Cruz-López would “clear” suitcases containing kilograms of cocaine by allowing them to pass through the X-Ray machines and onto airplanes without detection.  In 2008, Edwin Francisco Castro began assisting Cruz-López with the drug smuggling ventures. Castro was employed by Empresas Santana, an airport service company, as a supervisor in the Wheelchair Section at LMMIA.

During the course of the conspiracy, Cruz-López and Castro smuggled suitcases, each containing at least 8 to 12 kilograms of cocaine, through the TSA security system at LMMIA. From 2008 through 2016, Cruz-López and Castro helped smuggle approximately 1,500 kilograms of cocaine through LMMIA.

According to the indictment, Cruz-López, in his capacity as a TSA employee, was a public official who accepted bribe payments. Cruz-López took multiple cash payments totaling in excess of $215,000.00 in exchange for allowing luggage, which he knew contained kilogram quantities of cocaine, bypass normal baggage screening procedures so that the luggage could be placed on outbound airplanes departing the LMMIA for destinations in the continental United States.

This case is part of the ongoing efforts of the Airport Investigations and Tactical Team (AirTAT). Originating in January 2015, AirTAT is a multi-agency initiative created to identify, locate, disrupt, dismantle, and prosecute Domestic and Transnational Criminal Organizations (DTCOs) and its operatives using the LMMIA, the Fernando Luis Rivas Dominicci Airport (the Isla Grande airport), and peripheral airports as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents, illicit proceeds, and others. These airports play a strategic role for DTCOs to conduct contraband smuggling activities inbound and outbound to the continental US as well as internationally.  

“These two individuals were involved in a conspiracy to traffic massive quantities of illegal narcotics to the continental United States,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These arrests demonstrate the Justice Department’s continued commitment to arrest and hold responsible those who engage in drug trafficking. The creation of AirTAT has successfully collocated a dedicated group of state and federal law enforcement officers, whose mission is to ensure that our airports are not used in the drug traffickers’ illicit businesses.”

Assistant U.S. Attorney Stuart J. Zander is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison.  Indictments contain only charges and are not evidence of guilt.  Defendants are presumed to be innocent until and unless proven guilty.

Today, former U.S. Postal Service (USPS) employee Rodolfo Vázquez-Soto was found guilty on all counts of fraud associated with Department of Labor (DOL) Office of Workers’ Compensation Programs (OWCP), announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez.

On August 30, 2013, Vázquez-Soto was indicted by a Federal Grand Jury in the District of Puerto Rico for charges of fraud against the OWCP. This program provides wage loss and medical benefits to employees who have become injured in the course of their official capacity within the USPS and are unable to work due to disability.

Rodolfo Vázquez-Soto was found guilty of two counts of false statements and one count of theft of government property. During trial, the government presented photos, videos and witness testimonies that proved that the defendant had been requesting and receiving unwarranted disability benefits through OWCP.

 “This conviction marks yet another victory in our fight against fraud in Puerto Rico. I thank our team of prosecutors and our federal law enforcement partners for the teamwork they showed in leading us to a successful outcome today,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.

The case was investigated by the USPS-OIG with the collaboration of the Department of Health and Human Services - Office of Inspector General, the FBI, and the Puerto Rico Police Department. The case was prosecuted by Special Assistant U.S. Attorney Amanda Soto and Assistant U.S. Attorney Max Pérez.

SAN JUAN, Puerto Rico – On October 13, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against six defendants charged with conspiracy import controlled substances from the Dominican Republic into Puerto Rico, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Department of Homeland Security Investigations is in charge of the investigation with collaboration from the Caribbean Corridor Strike Force and the Police of Puerto Rico.  

The indictment, which was unsealed yesterday, alleges that from about January 2013 through in or about May 2013, defendants Erick Mosquea-Polanco; Juan José De La Cruz-Morales; Kevin De Morla-Santana; Rudy Contreras-Severino; José Morales-Soto; and Sandy Hernández-Mieses conspired to intentionally and knowingly import and attempt to import from the Dominican Republic into the United States more than five kilograms of cocaine.

The indictment alleges that the defendants knowingly and unlawfully conspired to launder over one million dollars which were the product of drug trafficking.  

During the arrest of Sandy Hernández yesterday, HSI Agents found over $30,000 U.S. cash, three weapons (two Glock and one Beretta pistols), and more than one thousand seven hundred kilograms of cocaine. Of the six persons in the indictment three were arrested and 3 are awaiting extradition from the Dominican Republic.  

Assistant U.S. Attorney Desiree Laborde is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Supervisor of the Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison.  Indictments contain only charges and are not evidence of guilt.  Defendants are presumed to be innocent until and unless proven guilty.

SAN JUAN, P.R. – Today, defendant, Carlos Maldonado, owner of Business Planning Resources International Corporation (BPRIC), Glorimar Fashions and Tailoring, LLC, Global Business Insurance Agency Inc., and associated under the incorporation documents with Pet Card Systems, Inc., and Datavos Corporation, was arrested and charged in a sixteen-count indictment alleging securities fraud and bank fraud, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.  

From on or about the year 2007 through the year 2012, Carlos Maldonado along with other individuals known and unknown to the Grand Jury raised over $5,000,000 on behalf of BPRIC, from over one hundred individuals, and other businesses and investments; resulting in losses to investors exceeding $2,900,000. As part of the solicitation, individuals throughout Puerto Rico and the Continental US received Investment Contracts that were signed by Maldonado and his associates.

While soliciting investors, defendant Maldonado, in person, through the telephone, internet and through other promoters, would make or cause materially false and misleading representations to be made to investors, including: (i) that various companies were involved in legitimate business functions; (ii) failing to disclose to investors that their funds would be used to buy and trade stocks and commodities on a ScottTrade account, Foreex Capital markets, LLC, and other personal trading accounts, and for Maldonado’s family and expenses; (iii) purchase goods and services at retail stores, restaurants, and spend money for travel, rent, entertainment, and personal auto loan payments.

“The defendant’s alleged conduct undermines the confidence investors place in the financial markets,” said US Attorney Rosa Emilia Rodríguez-Vélez.  “Financial markets are governed by rules that are supposed to protect investors. This defendant, skilled at convincing individuals to place their trust in him, engaged in a ‘Ponzi’ scheme to defraud investors, and ultimately cost them millions of dollars.  We will continue investigating and prosecuting this type of crimes to the full extent of the law.”

Investors who believe they are victims of Carlos Maldonado and signed investment contracts with Maldonado are encouraged to contact the US Attorney’s Office to be informed of the proceedings and their rights to restitution.

The case is being prosecuted by Assistant United States Attorney Edward Veronda. The case was investigated by the FBI. Defendant Maldonado is facing a maximum term of imprisonment of 30 years, and a fine not to exceed $1,000,000.

An indictment is only an accusation and not evidence of guilt.  All defendants are presumed innocent until proven guilty.

# # #

               United States Attorney Rosa Emilia Rodríguez-Vélez announced today that her office will lead the efforts of an Election Crimes Task Force in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.  The task force includes Assistant U.S. Attorneys and special agents from the FBI’s Corruption Squad and Cybercrimes Unit who have been assigned to investigate any violations of federal election laws.  The Department of Homeland Security’s Critical Infrastructure team will also collaborate with this group of investigators and prosecutors.  The task force will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.                                                                               

            United States Attorney Rodríguez-Vélez said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will act promptly and aggressively to protect the integrity of the election process.” 

            The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day. 

            Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

            The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Rodríguez-Vélez stated that the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day.  The local FBI field office can be reached by the public at 787-754-6000.

              Complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767 or by TTY (202-305-0082).  In addition, individuals may also report complaints, problems or concerns related to voting by fax 202-307-3961, by mail to voting.section@usdoj.gov and by complaint forms that may be submitted through a link on the department’s website: https://www.justice.gov/crt/voting-section.      

            United States Attorney Rodríguez-Vélez said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.   It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

SAN JUAN, Puerto Rico– Today, after a 20-day trial and two hours of deliberations before U.S. District Court Senior Judge Daniel R. Domínguez, state criminal defense attorney Lemuel Velilla-Reyes was found guilty of one count of concealing a fugitive from arrest, and two counts of mail fraud, one count of endeavoring to obstruct, influence and impede the due administration of justice, and one count of tampering with official proceedings, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The investigation was led by the Federal Bureau of Investigation (FBI) Public Corruption Squad.

Velilla-Reyes was indicted on September 16, 2014, for harboring and concealing from detection a person for whose arrest a warrant had been issued under the provisions of a law of the United States on a charge of felony. He was later indicted, along with Wilfredo Rodríguez-Rodríguez on July 9, 2015, on charges of mail fraud, endeavoring to obstruct, influence and impede the due administration of justice, and tampering with official proceedings.

The facts proven at trial showed that on July 14, 2011, Velilla-Reyes represented federal fugitive Wilfredo Rodríguez- Rodríguez, aka “Fredo”, aka “Cape”, aka “Capellán”, under the false name of “Felix Otero-Torres” on local drug and weapon charges in state court. At that time, Wilfredo Rodríguez-Rodríguez had an outstanding arrest warrant since July 14, 2010, in federal case U.S. v. José Colón-de Jesus, et. al. Crim. No. 10-251 (JAF), where he was listed as the fifth individual in the 110-defendant indictment for participating as a leader in a drug trafficking conspiracy to distribute controlled substances at the Virgilio Dávila, Las Gardenias, Brisas de Bayamón, and Falin Torrech housing projects, and other areas within the Bayamón Municipality. Velilla-Reyes was the attorney for many of the members of the drug trafficking organization which Rodríguez-Rodríguez was a part of, and had legally represented him in a prior criminal state case in 2006.

In the early morning hours of July 14, 2011, Police of Puerto Rico officers arrested Rodríguez-Rodríguez in Toa Baja while they were executing state arrest warrants. Upon his arrest, he provided the false name of Felix Otero-Torres, and did not provide or have on his person any identification documents.

Attorney Velilla-Reyes arrived at the police station to provide legal representation for Rodríguez-Rodríguez under the false name he had provided. Velilla-Reyes stood by while the charges against his client where filed under the false name. He then appeared in court during the probable cause proceedings and falsely represented to the court that his client Felix Otero-Torres could not recall his social security number or his full address. Velilla-Reyes requested that bail be set without electronic monitoring and told the court he would continue to represent his client throughout all the proceedings. He also vouched for his client’s fulfillment of pre-trial release conditions and his appearance in court. Rodríguez-Rodríguez, who was affirmatively identified during the days that followed, did not show up at the police station for booking and did not return to any court proceeding. Velilla-Reyes continued as the attorney of record, but failed to appear in any of the subsequent court hearings. As a consequence of the above actions, the bond was ordered confiscated and the bond company had to pay $24,000.

“Our efforts to eradicate corruption in Puerto Rico’s judicial system will include investigations and prosecutions such as this one. The actions committed by this attorney and his effort to conceal a federal fugitive from arrest through illegal conduct, undermined the public’s trust in the judicial system, which is a cornerstone of our democracy,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.

“As the evidence in this case demonstrated, this defendant abused his status as a trusted officer of the court to corrupt the judicial system, and in doing so, endangered the public by setting a fugitive free,” said Douglas Leff, Special Agent in Charge of the FBI. “The FBI thanks its partners at the US Attorney's Office for their diligence in obtaining this conviction.” 

Assistant U.S. Attorney Jenifer Y. Hernández, Senior Litigation Counsel José Ruiz Santiago and Victor O. Acevedo-Hernández were in charge of the prosecution of the case. The sentencing was scheduled for February 9, 2017; and the defendant faces a sentence of up to 20 years’ imprisonment.

SAN JUAN, Puerto Rico– Today, after a 25-day trial before U.S. District Court Judge Pedro A. Delgado-Hernández, three women and one man were found guilty of wire fraud, bribery and extortion charges, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The four defendants participated in several schemes to corruptly give things of value to public officials within the government of the Commonwealth of Puerto Rico in exchange for favorable treatment and awarding of government contracts to various corporations. The 25-count indictment filed on December of 2015, included charges of conspiracy to commit federal programs bribery and honest services wire fraud, wire fraud, federal program bribery, extortion through fear of economic harm, money laundering, false declarations before a grand jury, and obstruction of justice.

The defendants who were found guilty today are:

1. Sally López Martínez, Administrator of the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Workforce Development Administration) (hereinafter “ADL”). She was found guilty of Count One, Conspiracy to Commit Federal Programs Fraud and Wire Fraud; Count Two, Conspiracy to Commit Honest Services Wire Fraud; Counts Three to Five, Honest Services Wire Fraud; and Count Eleven, Receipt of a Bribe by Agent of an Organization Receiving Federal Funds.
2. Ivonne M. Falcón Nieves, Vice President of the Puerto Rico Aqueduct and Sewer Authority (“AAA”), and former Treasurer of AAA. She was found guilty of Count One, Conspiracy to Commit Federal Programs Fraud and Wire Fraud; Count six, Conspiracy to Commit Honest Services Wire Fraud; Counts Seven to Nine, Honest Services Wire Fraud; Count Thirteen, Receipt of a Bribe by Agent of an Organization Receiving Federal Funds; and Count Seventeen, Extortion Through Fear of Economic Harm.
3. Marielis Falcón Nieves, sister of Ivonne M. Falcón Nieves. She was found guilty of Count Seventeen, Extortion Through Fear of Economic Harm.
4. Glenn O. Rivera Pizarro, Special Assistant for Administration at the House of Representatives of Puerto Rico. He was found guilty of Count Twenty-Four, Conspiracy to Commit Wire Fraud; and Count Twenty-Five, Intentional Misapplication of Property by Agent of an Organization Receiving Federal Funds.

Their sentences were scheduled for February 6, 2017.

The other defendants are:

5. Anaudi Hernández Pérez, businessman and political fund raiser. Although not named in official corporate records, he exercised de facto control over numerous companies doing business with agencies and public corporations of the Commonwealth of Puerto Rico. He plead guilty on February 18, 2016.

6. Sonia M. Barreto Colón, Purchasing Director of the Commonwealth of Puerto Rico’s Aqueduct and Sewer Authority. She plead guilty on May 31, 2016.

7. Javier A. Muñiz Álvarez, businessman. Utilized the Company JM Profesional (sic) & Training Group, Inc. to secure contracts from the Commonwealth of Puerto Rico. He plead guilty on June 29, 2016.

8. Carlos F. Luna Cruz, businessman. He worked for JM Profesional (sic) & Training Group, Inc., and plead guilty on April 28, 2016.

9. Xavier González Calderón, Administrator for the House of Representatives of the Commonwealth of Puerto Rico. He plead guilty on August 9, 2016.

10. Victor R. Burgos Cotto, Director of Technology for the House of Representatives. He plead guilty on July 13, 2016.

According to the evidence presented at trial, Hernández Pérez utilized his political and personal connections with high ranking members of the current government in order to have “his people” appointed in critical government positions within the new administration which took over after the November 2012 elections. He also provided those individuals with things of value in exchange for government contracts, benefits and preferential treatment for several of his corporations. The indictment focused on benefits Hernández Pérez, his co-conspirators, and corporate entities, obtained from the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Workforce Development Administration) (hereinafter “ADL”), the Commonwealth of Puerto Rico’s Aqueduct and Sewer Authority, and the Puerto Rico House of Representatives.

Hernández Pérez and his co-conspirators utilized their government influence to receive an unfair competitive advantage over their competitors, in that they: a) received preferred opportunities on certain government “request for proposals” (“RFPs”); b) received guidance from agency employees on the proper format and content of proposals and bids for government contracts; c) had access to speak and meet with critical employees in decision making positions within the agencies, departments and government corporations; d) received guidance on how to structure bids and proposals in order to avoid the formal bidding process required by law; e) demanded and were provided with explanations from agency employees when their proposals or bids were not selected.

Once awarded the government contracts, Hernández Pérez and his co-conspirators would utilize, often without proper contractual authority, subcontractors who would perform the work defined in the contracts. On many occasions, Hernández Pérez and his co-conspirators provided substandard work on their contractual obligations in that they: a) failed to make the required payments to suppliers, subcontractors and creditors; b) failed to abide by the terms of the contract regarding performance results/follow up as required under the contract; c) failed to competently provide the services they were contracted to perform.

Defendants Ivonne Falcón and Marielis Falcón, were also charged with Hobbs Act extortion under fear of economic harm. Hernández Pérez and unindicted co-conspirators would utilize their contacts and influence within at least one government dependency (the AAA) to secure, for a fee, the release of legitimate payments due to other corporations, which lacked the current connections within the government. In particular, Hernández Pérez and his associates, obtained property not due to them, specifically, $100,000.00 from Contractor A, in exchange for utilizing his connections within AAA in order to secure a portion of the money owed (approximately $1,000,000) to Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss. Moreover, the Falcón sisters, aided and abetted each other to commit extortion. Defendant Ivonne M. Falcón Nieves utilized her position at AAA in order to enable her sister, defendant Marielis Falcón Nieves, to obtain property not due to her, specifically, cash payments, check payments, payments to contractors, and the performance of residential tree trimming, from Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss.

The case was investigated by the FBI’s San Juan Division. The case is being prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó Iriarte, Chief of the Criminal Division. If found guilty, the defendants are facing possible sentences of up to five years for the conspiracy to commit federal programs fraud and wire fraud, up to 10 years for honest services fraud, up to 20 years for money laundering, Hobbs Act, obstruction of justice, and conspiracy to commit honest services fraud.

SAN JUAN, P.R. – On October 5, 2016, a Federal grand jury returned a nineteen count indictment against five individuals for conspiracy to commit bank fraud, bank fraud, unlawful transfer, possession, and use of means of identification during and in relation to an enumerated felony, and access device fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the United States Secret Service.

 

The indictment alleges that from on or about May, 2012, through on or about March, 2015, Frankie Ortiz-Jaime, Wilfredo Reyes-Hiche, Cesar Quiles-Perez, Linda Rivera-Ortiz and Javier Torres-Garay knowingly and willfully combined, conspired and agreed with each other, to execute a scheme and artifice to defraud and to obtain money from Banco Popular de Puerto Rico, First Bank, and Oriental Bank which are federally insured financial institutions and to obtain monies and funds owned by and under the custody and control of the financial institutions.

 

As part of the conspiracy the defendants conspired to engage in deceptive conduct designed to fraudulently obtain monies and credit from federally insured financial institutions for the purchase of goods and the distribution of monies to the members of the conspiracy. The indictment alleges that the defendants would contact Telebanco Popular to request loans using the name and personal identification information of a recruit and proceed to provide false employment and income information. The recruits, aided and abetted by the other members of the conspiracy, would submit false documentation regarding employment and income in order to obtain loans, lines of credit, and credit cards from the financial institutions.

 

According to the indictment, the defendants would receive electronic transfers or official checks for the loan proceeds and divide the proceeds with other members of the conspiracy. In some instances, loan proceeds and credit cards were used to purchase vehicles, such as a BMW, a Raptor and Polaris. They would also utilize the credit cards to obtain cash and make other retail purchases.

 

The indictment includes a forfeiture allegation of any property, constituting, or derived from, proceeds obtained, directly or indirectly, as a result of the violations such as U.S. Currency totaling $285, 270, and three vehicles.

“Sophisticated financial crimes such as this one cause painful long lasting loss to law abiding businesses thereby affecting our fragile economy. Prevention and prosecution of crimes of this nature will remain a top priority for the U.S. Attorney’s Office.” said United States Attorney, Rosa Emilia Rodríguez-Vélez.

 

The case is being prosecuted by Assistant U.S. Attorney Seth A. Erbe. The case was investigated by the United States Secret Service.

 

 If convicted on charges of bank fraud, the defendants face a sentence of up to thirty (30) years of imprisonment. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.

 

SAN JUAN, Puerto Rico – Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced that on September 23, 2016, a federal grand jury in the District of Puerto Rico returned a six count indictment against seventy-two (72) individuals charged with conspiracy to possess with intent to distribute controlled substances, aiding and abetting in the possession /distribution of Heroin, cocaine base, cocaine, marijuana, conspiracy to possess firearms in furtherance of a drug trafficking crime. The U.S. Immigration and Customs Enforcement (ICE) and the Police of Puerto Rico Strike Force are in charge of the investigation.

During the span of the conspiracy, in order to be able to operate a drug point at Vista Hermosa Public Housing Project, “rent” would be paid to the leaders of the drug trafficking organization and their family members. As part of the manner and means of the conspiracy high level members of the DTO would order and authorize, the use of force and violence against members of their own DTO suspected of providing information to law enforcement.  

The indictment alleges that the conspirators had many roles in order to further the goals of the drug trafficking organization. They served as “leaders”, “drug point owners”, “runners”, “sellers”, “drug processors”, among other roles. Also, as part of the conspiracy, armed conspirators provided security to the drug point at the Vista Hermosa PHP. Members of the DTO were under the rules dictated by the leaders regarding the location from where controlled substances could be sold, how conflict resolution between members of the drug trafficking organization was to be handled, how conflict resolution between Vista Hermosa residents not related to the DTO was to be handled. If said rules were violated, the leader or high level members of the DTO would use force, violence, and intimidation against the offenders in an effort to maintain order within Vista Hermosa.

According to the indictment Jaret Navedo-Meléndez, Julio González-Burgos, José Davier Carvente-Guzmán, Kilpatrick Acosta-Cruz, Sergio E. Santa-Otero, Jeancristh N. Reyes-Masso, Carlos R. Hernández-Rodríguez, Ángel Román-Ayala, Jessenia Díaz-Colón, Elba Iris Estrada-Negrón, Rafael O. Álvarez-Cruz, Noel Manzano-Cintrón, Carlos Luis Hernández-Rodríguez, and an individual known as “Alex Tota”, acted as leaders or drug point owners for the DTO.  The organization also had six (6) defendants that acted as enforcers, two (2) drug processors, nine (9) runners, forty (40) sellers, and one (1) facilitator.

Assistant U.S. Attorney Vanessa E. Bonhomme and AUSA Kelly Zenon-Matos are in charge of the prosecution of the case.  If convicted the defendants face a minimum sentence of ten (10) years and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.

 

Two individuals each pleaded guilty today to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain in relation to their respective roles in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Bill A. Miller of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement. 

Francisco Matos-Beltre, 42, a U.S. citizen formerly of Philadelphia, and Alejandro Tello-Rojas, aka Joel Ocasio-Cancel, aka William Davila, 36, a Mexican citizen formerly of Lawrenceville, Georgia, pleaded guilty before U.S. District Judge Juan M. Perez-Gimenez of the District of Puerto Rico.  On Aug. 6, 2015, Matos-Beltre, an identity document supplier, and Tello-Rojas, an identity document broker, were charged in an indictment returned by a federal grand jury in Puerto Rico.  To date, 14 individuals have been charged for their roles in the identity trafficking scheme, eight defendants have pleaded guilty and six individuals remain fugitives.

According to admissions made in connection with today’s pleas, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents.  Other conspirators, identified as identity document suppliers and brokers, were located in various cities throughout the United States and allegedly solicited customers for the sale of social security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set, the defendants admitted.  The defendants acknowledged that the conspirators used text messages, money transfer services and U.S. mail to complete their illicit transactions.

The defendants also admitted that they sold Puerto Rican identity documents to  customers, who generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses.  Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport, according to the plea agreements.  At the time of his arrest, Tello-Rojas had assumed the identity of Ocasio-Cancel, a Puerto Rican U.S. citizen.

The Chicago offices of ICE’s Homeland Security Investigations (HSI), USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from the HSI San Juan Office and the DSS Resident Office in Puerto Rico.  The HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center provided invaluable support with assistance from ICE, USPIS, DSS and IRS-CI offices around the country.

Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.  The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter. 

Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html.  Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.

Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft.  Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; www.ssa.gov/pubs/10064.html;  and www.irs.gov/privacy/article/0,,id=186436,00.html.

A seven-count indictment was unsealed today charging four current and former Police of Puerto Rico (POPR) Carolina Drug Unit officers with civil rights violations and obstruction of justice arising out of a police operation conducted on Nov. 15, 2014.  The indictment alleges that during the police operation, POPR officers Jose Cartagena, Carlos Nieves, Jimmy Davis and former POPR officer Shylene Lopez used excessive force against an arrestee, identified in the indictment as C.C., and that they unlawfully concealed evidence of their misconduct.

The indictment was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico.

The indictment alleges that Cartagena struck C.C. in the head with his gun, resulting in bodily injury; that Nieves shot C.C. as he was fleeing, resulting in bodily injury; that Davis physically choked and slapped C.C., resulting in bodily injury and that Lopez physically slapped C.C., resulting in bodily injury.  Cartagena then allegedly obstructed justice by covering up the conduct.

Cartagena is charged with two counts of obstruction of justice and two counts of deprivation of rights under color of law.  Nieves, Davis and Lopez are each charged with one count of deprivation of rights under color of law.

If convicted, the defendants face a maximum sentence of 20 years in prison for each of the obstruction of justice charges and a maximum sentence of 10 years in prison for each of the civil rights violations.  The defendants also face a potential $250,000 fine for each count.

An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.

This case is being investigated by the FBI’s San Juan Division.  It is being prosecuted by Assistant U.S. Attorneys José Contreras and Victor Acevedo of the District of Puerto Rico and Special Litigation Counsel Gerard Hogan and Trial Attorney Nicholas Murphy of the Civil Rights Division’s Criminal Section.

Cartagena et al Indictment

SAN JUAN, PR – This morning, the Organized Crime Drug Enforcement Task Force (OCEDTF) dismantled a drug trafficking organization responsible for the transportation of multi-kilogram quantities of cocaine and drug money between Puerto Rico and the Continental United States, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Drug Enforcement Administration (DEA) is in charge of the investigation with the collaboration of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Internal Revenue Service (IRS).

On August 23, 2016, a federal grand jury returned a one-count indictment charging five individuals with participating in a conspiracy to possess with intent to distribute cocaine between the year 2009 through December 2013. The defendants are: José G. Herrera-Olavarría, a.k.a. “Pito”; Richard Rodríguez-Heredia; Luis Rodolfo Mejía, a.k.a. “Tripa”; Emilio J. González-Espinal, a.k.a. “Buster”; and Cessy Martínez-Lantigua, wife of Herrera-Olavarría.

The investigation leading to today’s arrests uncovered that members of this organization traveled on commercial flights that departed from the Luis Muñoz Marín International Airport (LMMIA) to the continental United States with kilograms of cocaine concealed inside suitcases. According to the indictment, the defendants and co-conspirators also mailed controlled substances to the continental United States.

The indictment alleges that the defendants sold the controlled substances in the continental United States and would have the profits from the sales sent back to Puerto Rico.

The case is being prosecuted by Assistant United States Attorney José A. Contreras.

If found guilty, the defendants are facing terms of imprisonment from 10 years to life. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

The case was investigated by agents from the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney’s Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.

The Airport Investigations and Tactical Team (AirTAT) operates in the District of Puerto Rico as an OCDEFT strategic initiative that is part of the National Airport Initiative. It is a multi-agency, co-located task force that includes DEA, HSI, FBI, USPIS, CBP - Office of Field Operations, and ATF. AirTAT also works closely with the Police of Puerto Rico. AirTAT’s mission is to identify, locate, disrupt, dismantle, and prosecute TCOs and their operatives using the Luis Muñoz Marín International Airport (LMMIA), the Fernando Luis Rivas Dominicci Airport (FLRDA), and airport peripherals as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents, illicit proceeds, and other contraband through these critical airport infrastructures.

SAN JUAN, P.R. – Defendants Gabriel Aquino-Camilo and Pedro J. Esteves-Rosa and defendant Samer Suboh-Kased plead guilty before United States District Judge Juan M. Pérez-Giménez to twenty counts, ten counts, and five counts, respectively, of theft of government property, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.

From December 2011 through May 2012, Aquino-Camilo gave Esteves-Rosa twenty (20) U.S. treasury checks totaling $138,912.43 that were fraudulently obtained by filing false tax returns with the Internal Revenue Service (IRS) using stolen identities of residents of Puerto Rico. Esteves-Rosa successfully deposited the checks into two business bank accounts that he controlled. The treasury checks were endorsed with the victims’ signatures, but each victim denied filing the tax return and endorsing the check.

From September through October 2012, defendant Suboh-Kased also received treasury checks that were fraudulently obtained by filing fraudulent tax returns with the IRS. He deposited these checks into his business bank accounts, without the authorization of the individuals whose names were on the checks, and then Suboh-Kased withdrew the money in cash. Suboh-Kased received a percentage for each check he deposited and another individual kept the remaining amount.

The cases were investigated by the Internal Revenue Service, Criminal Investigation (IRS-CI) and prosecuted by Assistant United States Attorney Nicholas W. Cannon. Esteves-Rosa and Suboh-Kased are scheduled to be sentenced on November 29, 2016. Aquino-Camilo is scheduled to be sentenced on December 15, 2016.

SAN JUAN, P.R. –Francisco Martínez-Mercado was sentenced to 87 months in prison and three years of supervised release for conspiracy to deprive a person of civil rights, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Defendant was found guilty to the charge on February 26, 2016.

The evidence presented at trial showed beyond a reasonable doubt that the defendant, a sworn police officer and federal task force officer planned and executed a violation of civil rights by conducting an illegal search and seizure of an apartment where he knew there were drugs and money. The defendant came up with a plan, sought out the necessary personnel, including two other corrupt police officers and a marked patrol car. Witnesses testified that they were hired by the defendant to sit in a marked patrol car outside of a condominium in Isla Verde while two thugs broke into said apartment.

During the course of the trial, the government presented overwhelming evidence that showed that the defendant used his knowledge and contacts as a police officer in order to plan and execute the illegal search and seizure object of the indictment. Had the defendant not been a police officer, he certainly would not have had access to other corrupt officers who in turn had access to the patrol car and radio that were used on his behalf.

“The evidence showed that defendant used his law enforcement knowledge to do the opposite of what he was supposed to do with the trust that was placed in him,” said Rosa E. Rodíguez-Vélez. “The defendant abused his position of trust and used his contacts in the police to commit the offense.”

The case was prosecuted by Assistant United States Attorneys Teresa Zapata-Valladares y Mariana Bauzá.