Four Individuals Arrested For Social Security Fraud

Press Release

U.S. Attorney's Office - San Juan

SAN JUAN, P.R. - On August 2nd, 2016 a Federal Grand Jury in the District of
Puerto Rico returned a 16-count indictment charging one doctor, Americo Oms-
Rivera, his secretary Mayte González Muñoz, and Francisco Cabrera Alvarado,
a former Social Security Administration (SSA) employee, for fraud in the appli-
cation process for SSA disability insurance benefits in Puerto Rico, announced
United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez
Vélez.

Defendants are also facing charges for wire fraud, false statement or representa-
tion to SSA, dispensing controlled substances by a practitioner (diversion), hea-
lth care fraud, and aggravated identity theft.

The SSA is responsible for the implementation of the Disability Insurance Bene-
fits 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 dis-
abled by furnishing medical and other evidence with the application. The applica-
tion and supporting evidence is then evaluated by SSA to determine the individu-
al’s medical impairments and determine the effect of the impairment on the clai-
mant’s ability to work on a sustained basis.

The indictment alleges that on or about September 24, 2013, Person A was intro-
duced to Oms-Rivera to discuss his intentions of applying for disability insurance
benefits. During said meeting, Oms-Rivera informed Person A that he/she needed
to seek treatment for a period of five (5) to six (6) months before the paperwork
was submitted to the SSA. Oms-Rivera told Person A that once Person A’s disabi-
lity benefits were approved he would take a percentage of the check as payment.
The scheme involved, among others, the following acts alleged in the indictment:


* On or about January 14, 2014, Person A had the first medical appointment with
Oms-Rivera. During this visit, Person A informed the doctor that he/she was inter-
ested in obtaining SSA disability insurance benefits. Person A reported that his/her
medical conditions were high blood pressure and migraines from time to time. In
response, Oms-Rivera prescribed Prozac, a non-controlled narcotic, used for depre-
ssion and panic disorders and Restoril, a Scheduled IV narcotic used to treat insom-
nia symptoms.

* Person A made additional visits to Oms-Rivera for purported medical treatment.
During these visits Oms-Rivera and Person A discussed the disability application
process and Oms-Rivera prescribed Prozac, a non-controlled narcotic, used for de-
pression and panic disorders; Restoril, a Scheduled IV narcotic, used to treat ins-
omnia symptoms; Ambien, a Scheduled IV narcotic, used to treat insomnia; and
Xanax, a Scheduled IV narcotic, used to treat anxiety and panic disorders.

* Oms-Rivera and defendant González-Muñoz referred Person A to Cabrera, a
former SSA employee who worked as a non-attorney representative. Cabrera as-
sisted Person A in his application for SSA disability insurance benefits.

* On May 21, 2014, Cabrera met with Person A in order to assist him/her to fill
out the Adult Function Report, SSA Form 3373. During said meeting Cabrera
coached Person A as to what to write in the form in order to get Person A’s dis-
ability benefits approved.

* On June 10, 2014, González charged Person A $600.00 for the Psychiatric
Medical Report and $1,440.00 for backdating his/her medical file and creating
24 fictitious medical appointments.

* On or about October 22, 2015, the Psychiatric Medical Report signed by Oms-
Rivera was submitted to the SSA indicating that Person A was totally disabled to
return to work as of that date or in the near future. In the Psychiatric Medical Re-
port Oms-Rivera falsely represented to the SSA that Person A’s first medical visit
was on October 15, 2013. Oms-Rivera further reported a total of approximately
eleven (11) fictitious appointments that never took place. This was done to create
the appearance of a longer history of medical treatment.

The government is seeking the forfeiture of the medical license of Oms-Rivera since
he used it to facilitate the commission of controlled substances offenses when he pre-
scribed or dispensed controlled substances outside the scope of his medical practice.
The defendants are facing a maximum penalty of 5 years in prison for the conspiracy
to defraud the United States; up to 20 years in prison for wire fraud; up to 5 years in
prison for providing false statements to the SSA; up to 20 years for dispensing cont-
rolled substances by a practitioner (diversion); 10 years for health care fraud; and a
statutory term of two years in prison, consecutive to any other sentence, for the agg-
ravated identity theft charges.

Beneficiary Julio Rodríguez Ríos was charged in a separate indictment with theft
of government property and false statement or representation to SSA. That second
indictment alleges that Rodríguez-Ríos provided false statements to the SSA, during
a “Continuing Disability Review,” indicating that he had not worked since July 5,
2009, when in fact he had worked after said date. Rodríguez Ríos is facing a forfei-
ture allegation of $25,316.00 in United States currency.

“This is another Social Security Disability Benefits Fraud case where shameless in-
dividuals illegally facilitated and obtained the benefits provided by the Federal Go-
vernment. This is not a victimless crime, but rather an unacceptable act that depri-
ves those who truly need assistance from receiving it,” said United States Attorney
Rosa Emilia Rodríguez-Vélez. “The Department of Justice is committed to investi-
gate and prosecute those who engage in fraudulent schemes.”SSA-OIG Special Ag-
ent-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.
The program relies on the truthfulness of disability applicants, as well as other pro-
fessionals involved in the application process, to include physicians, attorneys, and
non-attorney representatives. It is particularly disturbing when people in positions
of trust engage in criminal activity that undermines Social Security’s programs and
their own professional responsibility. I am very grateful for the efforts of all of our
law enforcement partners involved in this investigation, and for the continued com-
mitment 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.”


The case was investigated by the Social Security-OIG with the collaboration of the
FBI, DEA, Health and Human Services, and the Puerto Rico Police Department.
The case was indicted by Special Assistant United States Attorney Vanessa D. Bo-
nano-Rodríguez.

Puerto Rico News Digest For July 13, 2016

200K ZIKA CASES POSSIBLE BY YEAR END

From The San Juan Daily Star:

"The committee created by the Puerto Rico government to confront the Zika
virus reported Monday that more than 200,000 cases of people infected with
the virus could be registered by the end of the year. According to island State
Department Epidemiologist Brenda Rivera, a drastic increase in the pattern of
infection of the virus has been noted in recent weeks. According to the most re-
cent report, an increase of 30 percent in cases have been reported..."

S&P CUTS PRASA DEBT RATING

From Caribbean Business:

"S&P Global Ratings lowered its ratings on Puerto Rico Aqueduct & Sewer
Authority’s (Prasa) series 2008 and 2012 senior-lien revenue bonds two not-
ches to ‘CC’ from ‘CCC-‘. The outlook is negative. At the same time, it low-
ered to ‘D’ from ‘CCC-‘ the rating on Prasa’s obligations that also carry a Co-
mmonwealth of Puerto Rico guarantee, as well as those obligations that are co-
mmonwealth-supported. It removed the ratings from CreditWatch, where they
were placed with  negative implications on Aug. 18, 2015..."

TOURISM BOOKINGS UP 6% THIS SUMMER

From News Is My Business:

"The Puerto Rico Tourism Co.’s fourth annual “Summer is Easy” promotion
is outpacing last summer’s bookings, generating a 6 percent rise in participa-
ting partner room night sales in May and a 7 percent rise in June, versus the
same months in 2015, the agency said Monday. Comparatively, bookings thr-
ough “Summer is Easy” partner Expedia are currently 9.7 percent above 2015
bookings. The promotion highlights how travel to Puerto Rico has never been
easier — no passport is required for U.S. citizens, more than 70 direct flights
from the U.S. to Puerto Rico daily — and how many things there are to do on
the island..."

SAMSUNG PAY NOW AVAILABLE IN PR 

From Banking Technology:

"Samsung Pay will support eligible credit cards from Banco Popular, Puerto
Rico’s largest bank, and will be available on AT&T, T-Mobile, Sprint and Cla-
ro networks in Puerto Rico. The firm says Samsung Pay is the “only” mobile
wallet that allows users to pay with their compatible Samsung smartphones at
terminals, due to both MST (magnetic secure transmission) and NFC (near fie-
ld communications) technologies.Thomas Ko, vice-president and global co-ge-
neral manager of Samsung Pay at Samsung Electronics, says users can shop in
Puerto Rico right from their phones at retail chains and independent businesses..."

Puerto Rico News Digest For June 20, 2016

ROSSELLO TO ASK FOR DECOLONIZATION

From Caribbean Business:

"The president of the New Progressive Party (NPP), Ricardo Rosselló, will 

return Monday to the United Nations to deliver his message in favor of deco-

lonization. “Following the results of the 2012 plebiscite, this forum acquires

more relevance due to Puerto Ricans’ interest in solving the colonial problem.

It is now even more important because the Supreme Court of the United Sta-

tes confirmed the commonwealth has no sovereignty, which has been a decep-

tion, as we have been saying,” the party president said Sunday. In 2013, Rosse-

lló testified before the UN, after delivering to the entity in November 2012 the

results of the referendum in which the statehood option won a majority of votes..."

GROUP BUSINESS UP DESPITE ZIKA

From News Is My Business:

"Puerto Rico’s group business closed off what has come to be known as the

initial Zika period (March to May), “very much open for business,” with 57 

new booked pieces of business including events, conferences, annual meet-

ings and sports activities from now through 2017, Meet Puerto Rico offici-

als said Thursday. This represents a total direct spend of potentially $20.4 

million into the local economy, Milton Segarra, president of Meet Puerto Ri-

co, the Destination Marketing Organization responsible for attracting meeti-

ngs, conventions, trade shows, sporting events and incentive groups to Puer-

to Rico..."

ZIKA CONTRACEPTIVES FAIL TO REACH WOMEN

From Fox News:

"Only a small fraction of contraceptives donated in Puerto Rico to prevent 

Zika-related birth defects are expected to get to the women who need them 

this month, public health officials told Reuters. The donations - tens of thou-

sands of intrauterine devices and birth control pill packs - came from major 

healthcare companies as the virus spreads rapidly through the island. The de-

livery delays illustrate the struggles of Puerto Rico's healthcare system, which 

is faltering amid the commonwealth's financial crisis...

CAR RENTAL TAX GOES FORWARD

From The San Juan Daily Star:

"The island House of Representatives on Thursday approved with a voice
vote the bill to impose a tax of $3.50 per day for the rental of motor vehicles
in Puerto Rico. House Bill 2867, authored by Popular Democratic Party Rep.
Ángel Matos, establishes that the surcharge would be for the first 30 days of
rental and for those who do not have a driver’s license issued by the common-
wealth..."

Puerto Rico News Digest For June 7, 2016

AIR AMBULANCE PROVIDER SHUTS DOWN

From Caribbean Business:

"Aeromed, the only air ambulance company active in Puerto Rico, announ-
ced Tuesday that it ceased operations effective June 3. The company said it
could no longer continue operations without a commitment from the govern-
ment of Puerto Rico to pay the existing debt and offer acceptable fees that
could guarantee long-term service. According to Aeromed, since November
2013 it has unsuccessfully tried to resolve this situation with the government..."

ELECTIONS COMMISSION TOOK DAY OFF

From ABC News:

"It will be a little while longer before final vote totals are known in Puerto Ri-
co's Democratic presidential primary, because the U.S. territory's election co-
mmission workers took the day off on Monday. Officials will resume manually
counting votes on Tuesday and expect to issue a final certification later that
day, Roberto Prats, the island's Democratic Party chairman, told The Associa-
ted Press. He said officials worked until nearly dawn counting results of both
the presidential primary and a local primary in which voters narrowed their
choice for the island's next governor, legislators and mayors..."

PENSION SYSTEM HEADED FOR INSOLVENCY

From The San Juan Daily Star:

"A recent Retirement Systems Administration audit revealed that the island’s
largest retirement plan will run out of money by 2017, according to a news re-
port published by Bloomberg late last week. The report adds that if contributi-
ons to the retirement system do not increase, the Retirement Systems Adminis-
tration will become insolvent.The audit...indicates that the Retirement Systems
Administration only has 0.27 percent of funds to cover $30.2 billion it has pro-
mised to current and future retirees..."

BEAUTY QUEEN'S MOTHER IS MURDERED

From New Delhi Times/AP:

"A former Puerto Rican beauty queen is calling on the public to help police find
those responsible for the shooting death of her mother. Police said that Elena San-
tos Agosto, a 59-year-old nurse, died Friday night in her living room in Puerto Ri-
co after being struck by gunshots to the head and chest that were fired into her re-
sidence from a passing vehicle. “This crime cannot go unpunished, a crime with-
out cause, without reason. Those responsible have to pay,” ex-Miss Puerto Rico
Alba Reyes said in a statement Saturday..."

Government Reaches $2.5 Million Settlement in Healthcare Fraud Matter

Press Release

US Attorney's Office - San Juan

SAN JUAN, Puerto Rico – On May 18, 2016, the U.S. Government entered
into an out of court settlement agreement with Hospicio La Paz, Inc., in co-
nnection with a False Claims Act investigation carried out by the U.S. Dep-
artment of Health and Human Services, Office of Inspector General (HHS-
OIG) and the U.S. Attorney’s Office, District of Puerto Rico. The investiga-
tion uncovered approximately $1,504,509.00 in questionable billings submi-
tted for payment by Hospicio La Paz, Inc. to Medicare Program, Part A, from
October 2011, through September 2012.

Under the False Claims Act, Title 31, United States Code, Sections 3729, et
seq., the United States can recover up to three times the amount of loss and
civil monetary penalties ranging from $5,500.00 to $11,000.00 per false cl-
aim. As part of the settlement negotiations, Hospicio La Paz, Inc. paid the
United States Government the sum of $2,500,000.00, including excess da-
mages and penalties. Furthermore, Hospicio La Paz will enter into a comp-
liance agreement with HHS-OIG.

The United States Attorney’s Office will continue to investigate healthcare
fraud matters, and will aggressively pursue civil and criminal actions against
those who attempt to defraud the United States.  The matter was prosecuted
by Assistant U.S. Attorney Rafael J. López Rivera, Civil Health Care Fraud
Coordinator, at the U.S. Attorney’s Office.

First Case of Zika-Related Microcephaly Reported In Puerto Rico

Caribbean Business


SAN JUAN – Puerto Rico Health Secretary Ana Ríus announced Friday
the first local case of microcephaly, a severe birth defect in which babies
are born with abnormally small heads. The unborn fetus’ condition inclu-
ded severe calcification and enlargement of the brain lobes and the pres-
ence of the Zika virus. The analysis was conducted by the Health Depart-
ment “on the product of an unconcluded pregnancy.” The virus was not
found in the pregnant woman’s body...[CONTINUE READING]

Is There Really a Zika Epidemic In Puerto Rico? (Video)

Jose Izquierdo

Puerto Rico News Digest For May 2, 2016

PR DEFAULTS ON GDB PAYMENT 

From Caribbean Business:

"In a televised message Sunday, Gov. Alejandro García Padilla announced
he has declared a moratorium on the Government Development Bank’s (GDB)
debt service, as the commonwealth stands ready to partially default on as much
as $270 million due May 2 on the bank’s debt. The cash-strapped institution
would have faced a $400 million payment on principal, with an additional $22
million in interest. But during the past few days, the GDB pushed maturity on
roughly $30 million after reaching a deal with local credit unions, followed by
an agreement struck with a creditor group to enter into a 30-day forbearance
agreement that would cover more than $100 million of the bank’s May payment.
The GDB already stated it will pay about $22 million in interest due May 2, as
well as roughly more than $40 million in debt payments across other common-
wealth credits that also hit on Monday..."

FIRST ZIKA DEATH REPORTED IN PR

From The Guardian:

The first American has died from complications related to the Zika virus,
health officials with the Centers for Disease Control reported late Friday.
A Puerto Rican man in his 70s died in February from “complications re-
lated to severe thrombocytopenia”, the CDC reported in its Morbidity and
Mortality Weekly Report. The man, from the San Juan area, fell ill with the
Zika virus and experienced symptoms including fever, rash and joint pain.
After recovering from the Zika symptoms, the man then developed immu-
ne thrombocytopenic purpura, or ITP, an autoimmune disorder that has been
linked to the virus. The bleeding disorder that killed him was as a side-effect
of the ITP..."

BERNIER CALLS FOR IVA REPEAL

From The San Juan Daily Star:

"Popular Democratic Party (PDP) President and gubernatorial candidate Da-
vid Bernier on Thursday called on the PDP majority in the Legislature to pass
legislation to repeal the value-added tax (IVA by its Spanish acronym) slated
to go into effect in June. “To permit an increase in the value-added tax would
hurt the pocketbooks of our people and the operations of our businesses,” Ber-
nier said. “The responsible thing at this time is that the Legislature act to pre-
vent the IVA and the increase in the B2B [business-to-business tax] from being
enacted in final form.”

Puerto Rico News Digest For April 29, 2016

PR GOVT MAY DEFAULT ON MAY 1ST

From Forbes:

"Speaking to reporters on Wednesday, Governor Alejandro Garcia Padilla
said “there will be a default on Monday,” adding, “I don’t think there is a
deal on the table that avoids a default.” Puerto Rico’s Government Develop-
ment Bank, the island’s primary fiscal agent, owes creditors $422 million on
Monday, a payment Garcia Padilla has said the bank cannot afford. The loo-
ming default is part of a broader economic crisis in the Caribbean haven pla-
gued by $70 billion in total debt, a shrinking population and a 45% poverty
rate..."

ZIKA OUTBREAK GROWS, PREGNANT WOMEN WORRY

From USA Today:

"Nowhere in the U.S. has been hit harder by the Zika outbreak than
Puerto Rico, where 570 people have been diagnosed with the virus,
including 48 pregnant women. The true number of Zika cases in Puerto
Rico, where the virus is spreading among local mosquitoes, could be
much greater. Only about one in five people with Zika develop symptoms,
so most of those with the virus are unaware they've been infected,
according to the Centers for Disease Control and Prevention..."

ENVIRONMENTAL GROUPS BACK BOTTLE BILL

From The San Juan Daily Star:

"The Sierra Club and the Basura Cero Puerto Rico (Zero Garbage Puerto
Rico) project are backing a bill in the island House of Representatives to
establish a five cent deposit on glass, aluminum and plastic containers to
prevent them from reaching Puerto Rico’s landfills. The bill, authored by
Rep. Víctor Vasallo and sponsored by Rep. José Báez, is called the Recep-
tacle Recycling Promotion Law, better known as the “Bottle Bill” in English,
and is under consideration by the House in the current session..."

PUERTO RICO RETAIL SALES DOWN 3.71% 

From News Is My Business:

"Puerto Rico retail sales started 2016 in a slump, reflecting a 3.71 percent
year-over-year drop in January, or $113.3 million less than what was gene-
rated during the same month in 2015, Puerto Rico Trade and Export repor-
ted Wednesday. Total retail sales January totaled $2.9 billion, while in 2015
this figure was a little more than $3 billion, agency Executive Director Fran-
cisco Chévere said..."

10 Year Sentence For Doctor Who Defrauded AFLAC

Press Release

US Attorney's Office - San Juan

SAN JUAN, P.R. – On Monday, March 21, 2016, the Hon. Gustavo
Gelpí sentenced Aníbal Pagan-Romero, a general practitioner with a
clinic in Quebradillas, Puerto Rico, to a term of imprisonment of 120
months and a term of supervised release of five (5) years in the crimi-
nal case for mail fraud prosecuted against Pagan-Romero in federal
court. Pagan-Romero was also ordered to pay $2,056,503.32 in resti-
tution to the American Life Assurance Company (“AFLAC”) of Co-
lumbus, Georgia. This sentence is the result of a lengthy investigation
undertaken by the Federal Bureau of Investigations into multiple insu-
rance fraud schemes in the Western region of Puerto Rico which resul-
ted in the arrest and prosecution of hundreds of individuals.

On October 5, 2015, Aníbal Pagan-Romero had been found guilty by
a jury of his peers on all counts of an 82 count indictment charging 21
conspiracies and 61 individual counts of mail fraud.   Pagan-Romero
was charged with 35 patients for orchestrating a large-scale fraudulent
scheme where he fraudulently signed AFLAC accidental insurance claim
forms without examining the patients. The evidence presented at trial sho-
wed that Pagan-Romero caused a loss to AFLAC in excess of $6,000,000.
The 35 patients who were charged alongside Pagan-Romero pled guilty to
the charges prior to the trial.

The three-week trial before the Hon. Gustavo Gelpi included the testimo-
ny of three of the doctor’s employees and four patients who indicated that
Pagan-Romero personally instructed them to submit the documents for his
signature without examination. The evidence also showed that the scheme
had grown so large and lucrative that Pagan-Romero had to hire two emplo-
yees to do data entry full time in order to generate the thousands of AFLAC
claim forms submitted for reimbursement under his signature.

The case was prosecuted by Assistant United States Attorneys Dennise N.
Longo and Julia Díaz-Rex.

Puerto Rico News Digest For February 4, 2016

CARIBBEAN CONCERNED OVER ZIKA EFFECTS

From Caribbean Business:

"As an increasing number of Caribbean holidays and conferences are
cancelled due to the growing concern over the Zika virus, regional health
officials are sounding the alarm about the negative consequences that this
may have on the heavily tourism-dependent region. “We would like to send
a message to travelers coming to the Caribbean: Don’t let the mosquitoes ruin
your travel,” exhorted Dr. Lisa Indar of the Caribbean Public Health Agency
(CPHA). While there is no vaccine to prevent contracting Zika or medicine to
treat Zika, travelers can protect themselves against Zika and other mosquito-
borne infections like Chikungunya and dengue by preventing mosquito bites..."

PANEL WARNS ON PR HEALTH CARE SYSTEM

From News Is My Business:

The prognosis for Puerto Rico’s health system is already critical and will only
get worse if Congress doesn’t act fast, warned a panel of doctors and finance
experts meeting on Capitol Hill this week. The briefing, organized by the Puerto
Rico Health Care Crisis Coalition (PRHCC) and the Congressional Hispanic Cau-
cus, also featured comments by three sympathetic Democrats: House Minority
Whip Steny Hoyer of Maryland, Rep. José Serrano of New York, and Puerto Ri-
co’s non-voting Resident Commissioner, Pedro Pierluisi. “Congress has held se-
ven hearings on the island’s fiscal crisis in the last 12 months, including one this
morning in the House Natural Resources Committee,” which will soon draft a le-
gislative package on Puerto Rico, said Pierluisi..."

WAL-MART SUES PR OVER TAX HIKE

From Retail Dive:

"Puerto Rico, in the midst of a financial crisis, is in federal court battling Wal-
Mart Stores Inc. over a new hike in taxes on goods that retailers bring to the
island to sell. The island government raised the tax from 2% to 6.5% in May,
and Wal-Mart responded with a lawsuit contending that the tax is aimed at it
in particular and effectively makes its income tax burden 91.5%..."

13 CUBAN MIGRANTS DETAINED NEAR PR

From Voice of America:

"Authorities in Puerto Rico have detained 13 migrants from Cuba who were
found on an uninhabited island. U.S. Customs and Border Protection said Tues-
day that the group was found on Mona Island just west of the U.S. territory. The
seven men and six women detained Monday are expected to appear before an
immigration judge soon..."

Puerto Rico News Digest For January 28, 2016

MORE ZIKA CASES CONFIRMED IN PR

From The San Juan Daily Star:

"[Health Secretary Ana Rius] said cases of the mosquito-borne illness Zika
are also on the rise. Since the first case of the disease with its origins in
Africa was reported in Puerto Rico in December, an additional 17 cases have
been confirmed mostly in southeast part of the island. None of the cases in-
volve pregnant women, Ríus said, according to an AP report, adding that the
Health Department was taking preventive measures against the mosquito-
borne virus, which has been linked to serious birth defects, and was prepa-
red to conduct future testing as more suspected cases are expected in the
future..."

PREPA REVITALIZATION ACT DEADLINE EXTENDED

From Caribbean Business:

"The Puerto Rico Electric Power Authority (Prepa) announced late Wednesday
that it has entered into an amended restructuring support agreement (RSA)
with the Ad Hoc Group of Prepa bondholders, comprising municipal bond in-
vestors and hedge funds, its fuel line lenders, the monoline insurers and the Go-
vernment Development Bank. Prepa also entered into an amended bond purcha-
se agreement with the Ad Hoc Group and the monoline insurers. The amended
agreement, which includes agreements with holders of approximately 70% of
Prepa’s financial debt, extended the deadline to enact the Prepa Revitalization
Act to Feb. 16..."

DEM LAWMAKERS PRESS FOR PR ACTION

From News Is My Business:

"U.S. Senator Maria Cantwell (D-Wash.), ranking member of the Senate Ener-

gy and Natural Resources Committee, along with Minority Leader Harry Reid 

and 44 other Democrats and Independents in the Senate, wrote to Leader Mitch 

McConnell urging bipartisan, legislative action to give Puerto Rico access to 

the appropriate financial restructuring tools. “Puerto Rico is facing severe eco-

nomic, fiscal and liquidity challenges that are placing immediate and growing 

hardships on the island’s 3.5 million U.S.-citizen residents,” the group of law-

makers said in the letter..."

RICKY MARTIN TO GET  STAR ON WALK OF FAME

From Latin Post:

"Puerto Rican music superstar Ricky Martin will be receiving a star on the 

Walk of Fame in Puerto Rico on Feb. 3. According to People en Español, the 

44-year-old singer is the latest Puerto Rican entertainer to be given the honor.

"We continue paying homage to those figures that have given name to our land," 

said Santiago Villar, chairman of the board of the Walk of Fame of Puerto Rico, 

Inc. "We are really pleased that Ricky Martin can give continuity to this project 

which, I believe, can continue until we fulfill our objective of the first phase, 

which consists of the unveiling of 40 stars..."

TWO INDICTED FOR MAIL FRAUD

From US Attorney's Office:

"A Federal grand jury in the District of Puerto Rico returned a twenty-three 

count indictment against Oscar Ferrer (“Ferrer”) and Jonathan A. Rivera-Pa-

dilla (“Rivera-Padilla”) charging them with conspiracy to commit mail fraud, 

mail fraud, and monetary transactions in property derived from specified un-

lawful activity announced Rosa Emilia Rodríguez-Vélez, United States Attor-

ney for the District of Puerto Rico. The United States Postal Inspection Service 

(“USPIS”) and Federal Bureau of Investigation (“FBI”) are in charge of the in-

vestigation. The indictment was unsealed today following the arrest of Ferrer 

in Florida and Rivera-Padilla in Puerto Rico.

These charges resulted from a Ponzi scheme originating in the Cabo Rojo area 

of Puerto Rico and involving the payment of approximately $5.7 million to cor-

porations operated by Ferrer in Puerto Rico and Florida. The corporations, inclu-

ding Reco Financial, Inc., National Western HIA, Inc., and CGB Financial, Inc., 

were utilized to receive victim’s purported investment deposits and to disburse 

the funds to Ferrer and Rivera-Padilla for their own personal use..."

Zika Virus Reaches Puerto Rico

From Latin Post:


Earlier this month, news broke out that the Zika virus which cause micro-
cephaly in newborn babies reached Puerto Rico. As per Inquisitr, Puerto
Rico's representative in congress, Pedro Pierluisi released a statement re-
garding Zika fever.

U.S. Centers for Disease Control and Prevention confirmed the first Zika
virus case in Puerto Rico. The said virus already infested Puerto Rico's neigh-
boring countries such as Brazil, the Dominican Republic, Colombia, Paragu-
ay and Mexico. Puerto Rico's Health Secretary, Ana Rius, was the one who
confirmed that the Zika virus that hit the Puerto Rican victim was acquired
from a local mosquito after a thorough investigation considering the fact that
the patient has not traveled recently.

As per Pierluisi, though the virus may have reached Puerto Rico, residents
should not panic as it is only a single case. He did however warn the public
to make necessary precautions such as wearing long pants and using insect
repellents...[CONTINUE READING]

Puerto Rico News Digest For December 15, 2015

GOVERNOR GARCIA PADILLA WILL NOT SEEK REELECTION

From Caribbean Business:

"In a broadcast announcement Monday, Dec. 14, Gov. Alejandro García
Padilla said he will not seek reelection in 2016, saying the task  of help-
ing Puerto Rico out of its financial hole would require his full attention
and therefore cannot focus on a gubernatorial campaign. “I will not seek
reelection for governor. Big causes demand big sacrifices,” said the go-
vernor, noting that next year will bring “politically unpleasant decisions."
The governor is expected to leave early this week for Washington, D.C.,
where he will be speaking at a National Press Club speakers luncheon in
the U.S. capitol on Dec. 16..."

TWO INDICTED FOR BANK & WIRE FRAUD

From US Attorney's Office:

"On December 9, 2015, a Federal grand jury returned a seventy-nine count
indictment charging Miosotis Ribot-Figueroa (Ribot) with bank fraud, wire
fraud, and aggravated identity theft and charging Ribot and José F. Gonzá-
lez-Guzmán (González) with a total of four counts of monetary transactions
in property derived from specified unlawful activity, announced Rosa Emi-
lia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
The Federal Bureau of Investigation (FBI) is in charge of the investigation.
The indictment was unsealed today upon the arrest of both defendants. The-
se 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..."

AUTHORITIES PREPARE FOR ZIKA VIRUS

From The San Juan Daily Star:

"While there is no immediate threat, the island Health Department is pre-
paring for the arrival of the Zika virus, which is transmitted by the same
mosquito responsible for the dengue and chikungunya virus on the island,
State Epidemiologist Brenda Rivera said. “All Caribbean jurisdictions are
on the watch,” she said. Common symptoms of infection with the virus in-
clude mild headaches, rash, fever, malaise, conjunctivitis and others..."

PR REVENUES DOWN FOR NOVEMBER

From News Is My Business:

"Puerto Rico General Fund collections reached $488.6 million in Novem-
ber, falling $15.4 million short of estimates, but $36.7 million above what
the government shored up during the same month in 2014, Treasury Secre-
tary Juan Zaragoza said Monday. The current decrease is 3.2 percent less
than the revenue projections included in the original $9.8 billion budget
for Fiscal 2016..."

Puerto Rico News Digest For November 9, 2015

BEN CARSON ENDORSES STATEHOOD FOR PR

From Business Insider:

"Republican presidential candidate Ben Carson endorsed U.S. statehood
for Puerto Rico on Sunday, citing its "very strategic" location for milita-
ry defense. Speaking at a convention for Puerto Rican gubernatorial can-
didate Ricardo Rossello, a member of the island's pro-statehood party,
Carson said he "would be incredibly honored and delighted for Puerto
Rico to be the 51st state." "One thing I've found when I have come to
Puerto Rico is extremely friendly people," the 64-year-old retired neuro-
surgeon said, adding that "we have probably more patriotic Puerto Ri-
cans than almost any other state..."

THOUSANDS MARCH FOR HEALTH CARE PARITY

From The San Juan Daily Star:

"Thousands of protesters joined a march to urge the U.S. Congress to
stop the proposed $3 billion in cuts to Medicare and Medicaid programs
for Puerto Rico and grant the island parity in healthcare  funds. Gov. Ale-
jandro García Padilla and other politicians of different ideologies joined
the march as well as several former governors, including Sila Calderón
and Aníbal Acevedo Vilá. Protesters gathered under a hot sun at the Jo-
sé Miguel Agrelot Coliseum in San  Juan’s Hato Rey sector and from
there walked to Hiram Bithorn Stadium..."

GDB RELEASES ECONOMIC ACVTIVITY INDEX

From Caribbean Business:

"The Government Development Bank (GDB) has released its Econo-
mic Activity Index (EAI) for September 2015. The index is made up
of  four indicators: total payroll employment; total electric power ge-
neration; cement sales; and gas consumption. For September, the GDB
-EAI increased by 0.8% on a year-over-year (y-o-y) basis, and reflected
a month-over-month (m-o-m) increase of 0.5%. On a year-to-date basis
(July-September) the EAI was 127.1, remaining flat compared with the
same period last year. Total nonfarm payroll employment for September
averaged 904,300, an annual increase of  0.5%..."

REP MCCAUL SEES RISK IN PR FLIGHTS

From Bloomberg:

"Flights bound from Puerto Rico to the U.S. mainland may be vulnerable
to having bombs placed on board, according to the chairman of the House
Homeland Security Committee. “In Puerto Rico, we have many cases of
prosecution of corruption, of putting drugs and weapons on airplanes inbo-
und to the United States,” Representative Michael McCaul, a Texas Repu-
blican, said on “Fox News Sunday,” according to a transcript. “It wouldn’t
take a whole lot to put a bomb on one of those airplanes as well. And I think
that’s a main thing from the homeland security standpoint, we’re really wo-
rried about these planes coming into the United States,” the lawmaker said..."

Puerto Rico News Digest For November 6, 2015

GOV. FILES BILL TO OVERHAUL PREPA

From News Is My Business:

"Puerto Rico Gov. Alejandro García-Padilla on Thursday submitted a bill
to the legislature that proposes a sweeping overhaul of the Puerto Rico Elec-
tric Power Authority, with the goal of “providing clean and reliable energy
at the lowest possible cost.” The 159-page PREPA Revitalization Act pro-
poses: Enhancements to governance processes so that PREPA..."

25,000 TO GET ENERGY BILL HELP

From The San Juan Daily Star:

"Resident Commissioner Pedro Pierluisi announced Wednesday that, for
the third consecutive fi scal year, Puerto Rico will receive over $15 million
from the federal government to help island families pay their electricity bills
as a result of a change in the funding formula that he secured for the comm-
onwealth and the other U.S. territories in late 2013..."

NYC POLS JOIN PR HEALTH CARE RALLY

From Caribbean Business:

"Resident Commissioner Pedro Pierluisi announced Wednesday that, for the
third consecutive fi scal year, Puerto Rico will receive over $15 million from
the federal government to help island families pay their electricity bills as a re-
sult of a change in the funding formula that he secured for the commonwealth
and the other U.S. territories in late 2013..."

20 MIGRANTS CAUGHT ON PR'S WEST COAST

From Caribbean News Now:

"US Customs and Border Protection (CBP) Border Patrol, air interdiction ag-
ents and Puerto Rico Police officers have apprehended 20 undocumented mi-
grants from Haiti and the Dominican Republic during the process of disem-
barking near the coastal town of Aguada...”

Puerto Rico News Digest For November 2, 2015

GOV'T ATTEMPTS TO AVOID SHUTDOWN

From The San Juan Daily Star:

"La Fortaleza is still looking at “new measures” and focusing on debt
restructuring as the deadline approaches when the island government
will run out of money...Although the director of the Office of Manage-
ment and Budget, Luis Cruz, did not rule out the possibility of a par-
tial closing, Ortiz said the government is trying to prevent such that
from happening. Ortiz said the governor has said that between not pa-
ying debt and shutting down services, he would rather maintain ser-
vices..."

ORGANIZATIONS TO PROTEST FISCAL PLAN

From Caribbean Business:

"Dozens of union, political, civic, student and community organiza-
tions agree to conduct an island-wide protest following an assembly
held at the Antonio R. Barceló Coliseum in Toa Baja over the week-
end to discuss the fiscal adjustment plan, which they say would eli-
minate public- and private-employee rights. In a declaration adop-
ted by more than 20 entities, they established that "there is an urgent
 need to express our opposition in a clear and defined way. Thus, this
Assembly of the People is committed to work regionally and nationa-
lly to carry out a national strike that will stop the [policies]..."

MEDICAL FACILITIES INVEST IN UPGRADES

From News Is My Business:

"Two private health care providers in Ponce and Juana Díaz recently
announced major investments to upgrade their medical facilities ser-
ving Puerto Rico’s southern region. The Hospital Metropolitano Dr.
Pila, an affiliate of the Metro Pavía Health System, recently inaugu-
rated new facilities and services resulting from a investment of $15
million in the past five years. Renovations include new 2D and 3D
Digital Mammography services with tomosynthesis, ultrasound scree-
ning, breast MRI and 3D and 4D sonography, an Invasive Cardiovas-
cular Center with catheterization, nuclear medicine equipment, am-
ong others..."

PREPA EXTENDS CREDITOR AGREEMENTS AGAIN

From Reuters:

"Puerto Rico's debt-laden power utility, PREPA, has again extended for-
bearance agreements with bondholders and lenders that will allow it to
keep negotiating a restructuring deal with other creditors, it said on  Fri-
day. PREPA, facing more than $8 billion in debt, said in a statement it
extended through Nov. 3 an agreement that was to expire Friday night,
to finalize its agreements with the forbearing creditors and continue dis-
cussions with its monoline bond insurers..."

Medcan Foundation to Hold Medical Cannabis Seminars in Puerto Rico

Press Release

San Juan, PR, Sept. 21, 2015 – Medcan Foundation today announced it will
hold their first Medical cannabis seminars in San Juan, Puerto Rico at the
Condado Plaza Hilton on Oct. 17th & 18th and provide participants with an
introduction into the lucrative career opportunities in the rapidly growing le-
galized cannabis industry.

Medcan Foundation is an innovative group of entrepreneurial professionals
with over one hundred years of combined experience in the fields of medici-
ne, science, marketing, federal law and business management. “Medcan Fo-
undation’s primary objective is to provide our students with the most com-
prehensive information available on the subject of the medicinal cannabis in-
dustry; to apprise them of all of the legal ramifications and introduce them to
the rapidly emerging medical cannabis commerce,” commented Dante Pica-
zo, Medcan Foundation’s president and CEO. “Our seminars offer an outstan-
ding curriculum designed for people working in the industry or potential pa-
tients wanting to be well informed on the subject. Medcan’s seminars are the
quintessential precursor to those either wanting to start their own business or
work within the industry or patients in need of information about medical ca-
nnabis.

“Medcan Foundation is preparing a structure and a pathway to those interested
in a profession within this newly emerging business. We have prepared and
organized a group of educational seminars that can help interested people be-
come a part of  this exciting new industry, should they choose to do so.

“The opportunities brought about by this newly emerging phenomenon are limit-
less. Everything from owning or running your own clinic to becoming a caregi-
ver or a grower, based on the history and track record of other states where ca-
nnabis has been decriminalized for medical purposes, the cannabis industry pre-
sents new opportunities where abundant success is inevitable. The proof is highly
visible by just witnessing the economic explosion that has happened in the states
that have taken the step to legalize this much needed medical miracle.

“The time has come to stop denying wellness to those who need it because of
outmoded thinking. If you are interested in any of the opportunities presented by
this emerging new industry you will find our seminars informative and helpful;
however, seating is limited and we tend to fill up fast, ” Picazo concluded.

For more information, please visit us at medcanfoundation.com or call (787)
919-0355.

Puerto Rico News Digest For August 7, 2015

MEDICARE ADVANTAGE HEADED FOR COLLAPSE

From The San Juan Daily Star:

The crisis in the Medicare Advantage program is beginning to be felt.
The president of the Physicians-Surgeons Association, Víctor Ramos,
said Wednesday hundreds of Medicare Advantage patients are finding
out that doctors are not accepting their health insurance plans and  are
being forced to pay for services out of their own pockets or refrain from
seeking medical treatment. Ramos said that Medicare Advantage has
cancelled health insurance contracts with over 600 doctors without ade-
quate justification. The situation is also causing a mass exodus of doc-
tors from the island as they face a reduction in the number of patients
seeking their services.

PR TO HOST LATIN AMERICA TRADE EVENT

From Caribbean Business:

The Latin American Business Council (CEAL by its Spanish acronym) is
slated to hold its "Latin America and International Trade" meeting Aug.
13-14 at the Condado Vanderbilt Hotel in San Juan. Business leaders, o-
fficials and experts in international commerce will attend the event to de-
bate and contribute to Latin American trade. Among the issues to be dis-
cussed will be Latin America's participation in international trade, new
U.S. developments, the state of global entrepreneurship, internationali-
zation and new business opportunities with Cuba.

BONDHOLDERS DEMAND PFC PAYMENT

From News Is My Business:

OppenheimerFunds and Franklin Advisers, which represent Public Finance
Corporation bondholders, sent a letter to Puerto Rico government officials
demanding that they take “all necessary actions” to make the $58 million pay-
ment missed this week. In the letter, the entities said the nonpayment came
“just a few short weeks” after Gov. Alejandro García-Padilla and Senate Pre-
sident Eduardo Bhatia said the government intended to negotiate with bond-
holders. “Now, just a few short weeks later and before any negotiations have
taken place, negotiations in which we have been willing to participate, the go-
vernment of Puerto Rico has decided not to pay the Public Finance Corpora-
tion bond debt service payment,” the letter stated.

SALSA ICON LEAVITT DIES AGED 66

From Latin Times:

Puerto Rico and music lovers around the world are mourning the death of
Raphy Leavitt, composer and founder of the salsa orquesta La Selecta.  The
iconic musician, who was born on September 17th, 1948 in San Juan, Puerto
Rico, passed away on August 5th at his home in Miami, Fla. two days after
undergoing hip surgery. He was 66 years old. "I stay with the memories of a
great human being, a father my whole life and a colleague forever," said band
member Sammy Marrero in an interview with Wapa.

Puerto Rico News Digest For June 8, 2015

48-HOUR WATER RATIONING IS HERE

From Caribbean Business:

Puerto Rico Aqueduct and Sewer Authority (Prasa) President Alberto
Lázaro announced Sunday that the water-rationing plan has been ex-
tended to two days for customers supplied by the Sergio Cuevas fil-
tration plant, whose source is the Carraízo dam, as well as the addition
of 2,000 customers in the Carolina area designated as Zone  B. The uti-
lity director said 2,000 customers have been included in  areas of Caro-
lina, which represents 600,000 gallons of water, including Paseo del
Prado, Martín González Industrial Zone, San Fernando Village, Jardi-
nes de San Fernando, Buenaventura, Estancias de Tierra Alta, Puerto
Rico Industrial Park, Veredas del Río, Río Vista and Parque Juliano.

MAN SHOT WHILE DRIVING IN RIO PIEDRAS

As reported this morning by El Nuevo Dia, 49-year-old Carlos Madera
Segarra was shot to death while driving down José Celso Barbosa Ave-
nue in Río Piedras at 2:40 AM Monday morning. The victim was a mar-
keting manager for Caribbean Cinemas, and was well-liked by friends
and colleagues. Segarra was driving a 2006 Honda Civic near the inter-
section of Celso Barbosa and Ramon Lopez Avenue. After being shot,
Segarra struck a traffic light pole and died at the scene. No motive for
the  killing is yet known.

TEACHER'S UNION FIGHTS SCHOOL CLOSINGS

From The San Juan Daily Star:

Teachers Association President Aida Díaz announced Thursday that
the organization that she heads will go to court against the Edu-
cation Department in order to paralyze implementation of the school
closing plan. In a radio interview, Díaz said the Association’s act-
ions respond in particular to the fact that Education excluded school
councils -- which include the teachers,parents, students and the co-
mmunity where the school is located -- from the school consolidation
process. “The Education Department left out the school communities,”
Díaz said. “There was no participation off ered, and those changes
will provoke emotional damages in these communities, because they
see how their link to their school is now disintegrating.”

SUMMIT TO FOCUS ON MEDICAL TOURISM

From News Is My Business:

Puerto Rico is moving quickly to position itself as a leading medical
tourism destination in the Caribbean and Latin America, looking to be-
come the preferred choice of potential patients from the U.S. mainland.
During the first “Caribbean Health Summit” taking place at the Caribe
Hilton Hotel on Thursday, Puerto Rico hospitals and service providers
will present their services and benefits to potential buyers, investors
and healthcare executives interested in the potential of the island as
a destination in this medical market.