Department of Justice
U.S. Attorney’s Office
District of Puerto Rico
Ten Individuals Indicted For Conspiracy To Commit Federal Programs
Bribery, Honest Services Wire Fraud And Extortion
SAN JUAN, Puerto Rico– Ten Puerto Rico businessmen and government offici-
als have been indicted for their alleged participation in several schemes to corrup-
tly give things of value to public officials within the government of the Common-
wealth of Puerto Rico in exchange for favorable treatment and awarding of gov-
ernment contracts to various corporations. The 25-count indictment includes char-
ges of conspiracy to commit federal programs bribery and honest services wire fra-
ud, wire fraud, federal program bribery, extortion through fear of economic harm,
money laundering, false declarations before a grand jury, and obstruction of justi-
ce, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puer-
to Rico. The Federal Bureau of Investigation is in charge of the investigation.
The indictment, returned on December 2, 2015, by a federal grand jury in the Dis-
trict of Puerto Rico, includes twenty-five charges against the following individuals:
Anaudi Hernández Pérez, businessman and political fund raiser. Although not na-
med in official corporate records, he exercised de facto control over numerous com-
panies doing business with agencies and public corporations of the Commonwealth
of Puerto Rico.
Sally López Martínez, Administrator of the Commonwealth of Puerto Rico’s “
Administración de Desarrollo Laboral” (Workforce Development Administration)
Sonia M. Barreto Colón, Purchasing Director of the Commonwealth of Puerto Ri-
co’s “Autoridad de Acueductos y Alcantarillados” (Puerto Rico Aqueduct and Se-
wer Authority) (hereinafter “AAA”).
Ivonne M. Falcón Nieves, Vice President of AAA.Prior to her position as Vice
President, Ivonne M. Falcón Nieves served as Treasurer of AAA.
Javier A. Muñiz Álvarez, businessman. Utilized the Company JM Profesional (sic)
& Training Group, Inc. to secure contracts from the Commonwealth of Puerto
Carlos F. Luna Cruz, businessman. Worked for JM Profesional (sic) & Training
Xavier González Calderón, Administrator for the House of Representatives of the
Commonwealth of Puerto Rico.
Victor R. Burgos Cotto, Director of Technology for the House of Representatives.
Marielis Falcón Nieves, sister of Ivonne M. Falcón Nieves.
Glenn O. Rivera Pizarro, Special Assistant for Administration at the House of Re-
presentatives of Puerto Rico.
According to the indictment, Hernández Pérez utilized his political and personal
connections with high ranking members of the current government in order to have
“his people” appointed in critical government positions within the new administra-
tion which took over after the November 2012 elections. He also provided those in-
dividuals with things of value in exchange for government contracts, benefits and
preferential treatment for several of his corporations. The indictment focuses on be-
nefits Hernández Pérez, his co-conspirators, and corporate entities, obtained from
the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Wo-
rk-force Development Administration) (hereinafter “ADL”), the Commonwealth
of Puerto Rico’s “Autoridad de Acueductos y Alcantarillados” (Puerto Rico Aque-
duct and Sewer Authority) (hereinafter “AAA”), and the Puerto Rico House of Re-
presentatives. The three schemes detailed in the indictment essentially followed
the same modus operandi.
The indictment alleges that beginning in or about late 2012, and continuing in or
about early 2013, Hernández Pérez and several unindicted co-conspirators formali-
zed their plans to obtain government contracts with numerous governmental entities.
Hernández Pérez utilized his personal friendship with Person B (brother of the Go-
vernor of Puerto Rico, identified as Person A in the Indictment), and the good will
generated by his substantial fundraising activities during the 2012 election cycle,
to position himself to successfully make recommendations on behalf of individuals
seeking government appointments and employment after the election.
Hernández Pérez received numerous emails and resumes from individuals seeking
his assistance in obtaining positions within the newly elected government. Hernán-
dez Pérez, in turn, forwarded many of those emails to government officials, and to
the governor’s brother, Person B. Many of these individuals ultimately received go-
vernment employment. Hernández Pérez and his co-conspirators then set out to
form and make alliances with various corporations and limited liability companies
that would be used to obtain government contracts, proposals and purchase orders.
These companies included: 3 Comm Global, Inc., Links Group, LLC, EKO Techno-
logies, LLC, JM Profesional (sic) & Training Group, Inc., and Waffler Avenue,
LLC. Some of these corporations were formed immediately prior to, or after, the ge-
neral elections of November 2012.
Hernández Pérez and his co-conspirators were careful to ensure that his name did
not appear on any official documentation regarding the formation of the corporati-
ons, or on any formal request for government contracts, proposals, or purchase or-
ders. Hernández Pérez, however, was present in numerous meetings where the pro-
posals were discussed, was included in internal electronic and oral communications
regarding these matters, and received payment from the contracts into corporate
bank accounts and other suspicious transactions.
Many of the individuals recommended by Hernández Pérez whom obtained the jobs,
ultimately had the authority to approve or authorize contracts, purchase orders, and
other financial obligations on behalf of their respective agencies, departments or pu-
blic corporations, and in return for the recommendations for employment, and/or
other things of value, authorized contracts, purchase orders, proposals and pay-
ments on behalf of the co-conspirators and their corporations.
Hernández Pérez and his co-conspirators offered and gave, and the public offici-
als solicited and accepted from Hernández Pérez and his co-conspirators, things
of value, including expensive meals, personal gifts, expensive fountain pens,
purses, bags,concert tickets, and the payment of certain accrued debts. Hernan-
dez Perez allegedly kept written electronic records regarding the purpose of his
government related business meetings, and the things of value provided to each
of these individuals.
Hernández Pérez and his co-conspirators utilized their government influence to re-
ceive an unfair competitive advantage over their competitors, in that they: a) recei-
ved 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) deman-
ded and were provided with explanations from agency employees when their pro-
posals 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 wo-
uld perform the work defined in the contracts. On many occasions, Hernández Pé-
rez and his co-conspirators provided substandard work on their contractual obliga-
tions in that they: a) failed to make the required payments to suppliers, subcontrac-
tors and creditors; b) failed to abide by the terms of the contract regarding perfor-
mance results/follow up as required under the contract; c) failed to competently
provide the services they were contracted to perform.
Hernández Pérez is also charged, along with defendants Ivonne Falcón and Ma-
rielis Falcón, with Hobbs Act extortion under fear of economic harm. Hernández
Pérez and unindicted co-conspirators would utilize their contacts and influence
within at least one government dependency (the AAA) to secure, for a fee, the re-
lease of legitimate payments due to other corporations, which lacked the current
connections within the government. In particular, Hernández Pérez and his asso-
ciates, obtained property not due to them, specifically, $100,000.00 from Contrac-
tor 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 extor-
tion. Defendant Ivonne M. Falcón Nieves utilized her position at AAA in order to
enable her sister, defendant Marielis Falcón Nieves, to obtain property not due to
her, specifically, cash payments, check payments, payments to contractors, and
the performance of residential tree trimming, from Contractor A, with Contractor
A’s consent, induced through the wrongful use of a fear of economic loss.
The 25 counts detailed in the Indictment are as follows:
Count 1: 18 U.S.C. § 371, Conspiracy to Commit Federal Programs Fraud and
Honest Services Wire Fraud regarding contracts with ADL and AAA.
Count 2: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud
for scheme with ADL.
Counts 3-5: 18 U.S.C. § 343, substantive Wire Fraud counts for emails related to
the scheme with ADL.
Count 6: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud
for the scheme with AAA.
Counts 7-9: 18 U.S.C. § 1343, substantive Wire Fraud counts for emails related to
the scheme with AAA.
Count 10: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization recei-
ving federal funds for the scheme with ADL (Sally López Martínez).
Count 11: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organiza-
tion receiving federal funds for the scheme with ADL.
Count 12: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization re-
ceiving federal funds for the scheme with AAA (Ivonne Falcón).
Count 13: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organi-
zation receiving federal funds for the scheme with AAA (Ivonne Falcón).
Count 14: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization
receiving federal funds for the scheme with AAA (Sonia Barreto).
Count 15: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organi-
zation receiving federal funds for the scheme with AAA (Sonia Barreto).
Count 16: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm
Count 17: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm
(Ivonne & Marielis Falcón Nieves).
Count 18: 18 U.S.C. § 1956(h), Conspiracy to Commit Money Laundering
(Hernandez Perez and Muñiz Alvarez).
Count 19: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos
F. Luna Cruz).
Count 20: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos
F. Luna Cruz).
Count 21: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna
Count 22: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna
Count 23: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna
Cruz and Javier A. Muñiz Álvarez (computer)).
Count 24: 18 U.S.C. § 1346, Conspiracy to Commit Wire Fraud (money
and property) for scheme with PR House of Representatives.
Count 25: 18 U.S.C. § 666(a)(1)(A), Intentional misapplication of funds by
an agent of an organization receiving federal funds for the scheme with House
of Representatives (González Calderón, Burgos Cotto and Rivera Pizarro).
“For decades now, political cronyism, favoritism, and corruption have robbed the
people of Puerto Rico of the right to decent services and unbiased representation,
including legally awarded government contracts. The people of Puerto Rico foot
the bill for the underhanded dealings detailed in the indictment. The time for go-
vernment cronyism that allows some to line their pockets with ill-gotten contracts
at the expense of the many, is over. The time for public servants who trade their
duty to represent the people of Puerto Rico in exchange for political appointments
and gifts, is also over. The people of Puerto Rico deserve the honest services of,
not only those in their government, but those who choose to do business with the
government. Their violations of the public trust will be prosecuted to the full extent
of the law,” stated Rosa Emilia Rodríguez Vélez, US Attorney for the District of
“Unfortunately, this is one more case of graft, greed, and corruption that over the
last 20 years have contributed to the Government of Puerto Rico’s fragile financial
condition and on the brink of bankruptcy. It is the responsibility of the leaders of
the Government of Puerto Rico to ensure this type of reprehensible and corrupt be-
havior does not occur. The FBI along with the United States Attorney’s Office,
District of Puerto Rico will always remain vigilant and attack the corruption threat
with undeniable and fervent passion. Let there be no doubt this is only the beginn-
ing and the investigation will continue. There will be no stone left unturned,” said
Carlos Cases, Special Agent in Charge of the FBI, San Juan Division.
The case is being investigated by the FBI’s San Juan Division. The case is being
prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó
Iriarte, Deputy Chief of the Financial Fraud and Corruption Unit. If found guilty,
the defendants are presumed innocent unless and until proven guilty.