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Monday, October 10, 2016

Five Individuals Arrested for Bank Fraud

U.S. Attorney's Office

San Juan

Press Release

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

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 combin-
ed, 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 ob-
tain monies and funds owned by and under the custody and control of the fin-
ancial institutions.

As part of the conspiracy the defendants conspired to engage in deceptive con-
duct 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 perso-
nal identification information of a recruit and proceed to provide false employ-
ment and income information. The recruits, aided and abetted by the other me-
mbers of the conspiracy, would submit false documentation regarding employ-
ment 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 me-
mbers of the conspiracy. In some instances, loan proceeds and credit cards we-
re used to purchase vehicles, such as a BMW, a Raptor and Polaris. They wo-
uld 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. Prev-
ention 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 Rodr-

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.

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