Puerto Rico News Digest For January 9, 2019

PR FBI CHIEF: ISLAND FACES "CRISIS OF VIOLENCE"

From CBS News:

"The top FBI official in Puerto Rico said the island is facing a "crisis of violence" and has asked the agency for more personnel and resources from the U.S. mainland. In an interview with local radio station NotiUno630 Wednesday morning, Special Agent in Charge Douglas Leff said no other agency field office in the country is facing what his San Juan office is facing in terms of crime..."

GONZALEZ TO INTRODUCE NEW STATEHOOD BILL

From El Nuevo Dia:

"Resident Commissioner in Washington Jenniffer González plans to introduce a new pro-statehood bill in the House. However, for the legislation to be addressed during this Congress, the government of Puerto Rico would have to hold a "statehood: yes-or-no" referendum this year..."

AGRITEK GETS POT LICENSE

From News Is My Business:

"Agritek Holdings Inc., a real estate investor for the cannabis sector in the United States and Canada, announced that its licensee and partner, 1919 Clinic, has received its final approval from the Puerto Rico Department of Health to begin operations under the medicinal cannabis program..."

NY TIMES NAMES PR TOP TOURIST DESTINATION

From Caribbean Business:

"Puerto Rico Gov. Ricardo Rosselló Nevares was pleased Wednesday with the New York Times(NYT) having selected the island as its top recommended travel destination this year. “Once again, we see rewarded the effort we have made to present Puerto Rico to the world as a world-class destination, to present the attractions of our beautiful Island, as well as highlighting the resilient nature of Puerto Ricans..."

TEACHER SHORTAGE ON HORIZON AS MANY RETIRE

From The San Juan Daily Star:

"About 65 percent of local public school teachers are near the average age for retirement, yet there are not enough qualified candidates in the island to replace them, Teachers Association President Ada Diaz said Tuesday..."

How Stupid Is The FBI? You Must Read This!

Commentary 

Richard Lawless

Unfortunately, my company along with tens of thousands of other individuals and corporations was caught off-guard by Puerto Rico’s financial collapse. To make sure that it doesn’t happen to us again, my company launched an investigation into the causes of this tragedy so we wouldn’t become a victim a second time, somewhere else.

Part of the findings uncovered information indicating the Puerto Rico Government theft of hundreds of millions of dollars in public funds each year.  I reported this to the San Juan FBI office and after many months and little cooperation, they determined the activities did not meet criminal standards and would better be handled as a personal civil case.

Shortly after that I received a call from a CIA Agent that said they have been tracking the massive wire transfers out of Puerto Rico for almost a decade. The Agent then went on to say that they have notified the FBI repeatedly and the FBI failed to act on it.  The agent also said that in tape recorded phone conversations it was clear that the San Juan FBI and U.S. District Attorney Offices were participating in this massive theft and their family members were receiving payoffs; Further explaining the lack of prosecution for so many years.  A short time after that, British Intelligence suggested they were aware of much of same.

Two newspaper editors were able to confirm the tip from the CIA and British Intelligence.

On April 6, 2016, the Caribbean News Now Agency printed the article “Personal conflicts obstruct FBI investigation into Puerto Rico fraud” and the New York Observer printed a similar article on 6 27-16. As of today, it is my understanding that the money continues to flow out of Puerto Rico and find its way back to critical DOJ employees.

Reporting this to the San Juan FBI and U.S. Attorney would be silly, since they were the DOJ employees allegedly accepting the payoffs. I forwarded this information to the Washington Headquarters of the FBI hoping they would do something.

After not hearing anything for almost a year, I filed a Freedom of Information Request.  I received the results today. The Washington FBI referred my complaint back to the San Juan FBI so they could investigate themselves!

As of today, it is my understanding that the money continues to flow out of Puerto Rico and find its way back to critical DOJ employees.

Puerto Rico Bond Fraud that set a new standard for Congressional Corruption? 60 Sec Commercial Summarizing some of the crimes

Press Conference recapping testimony to the SEC/FBI and Congressional Oversight Committee – It is mind bending

Richard Lawless is a former senior banker who has specialized in evaluating and granting debt for over 25 years. He has a Master’s Degree in Finance from the University of San Diego and Bachelor’s Degree from Pepperdine University. He sits on several Corporate Boards and actively writes for several finance publications. The opinions expressed in the preceding commetary are solely his and do not represent those of The Puerto Rico Monitor.

Puerto Rico News Digest For June 15, 2016

PUERTO RICO MOURNS ORLANDO VICTIMS

From US News/AP:

"Puerto Ricans held somber vigils and prepared to bury many of their own
after authorities said nearly half of those killed at a gay night club in Florida
had ties to the U.S. territory. Officials said that while it's still unclear how ma-
ny of the 23 Puerto Ricans killed were born on the U.S. mainland or had mo-
ved there from the island, they expect many of them to be laid to rest in Puer-
to Rico in the coming days...The shooting early Sunday at the Pulse nightclub
in Orlando that killed 49 people has shaken Puerto Rico's gay community and
shocked the U.S. territory as a whole..."

US SENATE TO CONSIDER PROMESA IN JUNE

From Caribbean Business:

"Majority Leader Mitch McConnell said Tuesday the Senate will consider a
rescue package to ease Puerto Rico’s financial crisis before the U.S. territory’s
$2 billion payment to creditors is due July 1. The House overwhelmingly pa-
ssed legislation to create a new control board and restructure some of Puerto
Rico’s $70 billion debt last week. The Senate is expected to take up the same
bill “sometime before the end of the month,” McConnell, R-Ky., told reporters
Tuesday..."

FBI INVESTIGATES BANKER'S DEATH IN PR

From The New York Times:

"The Federal Bureau of Investigation has identified possible suspects in its long-
running investigation into the murder of a banker in Puerto Rico,  but it is now
asking the public for help in solving the 2011 killing. Five years ago this week,
Maurice Spagnoletti, a top executive at Doral Financial, the holding company
that owned a Puerto Rico bank, was gunned down on his way home from work
in San Juan...The F.B.I. announced on Tuesday a $20,000 reward for information
that leads to an arrest..."

LIBERTY LAUNCHES HBO NOW IN PUERTO RICO

From News Is My Business:

"Starting [yesterday], Liberty Puerto Rico’s customers will begin to enjoy HBO
NOW, a new service from HBO for internet customers who want to watch the
network’s programming but are not subscribed to a video service. Liberty Puer-
to Rico is the only telecom provider to offer this service on the island, the com-
pany said. HBO NOW is an independent streaming service from HBO Networks
that provides unlimited access to all of HBO’s programming, including series, mo-
vies, documentaries and specials..."

American and British Intelligence Uncover Payoffs to the FBI & U.S. Attorney's Office

Commentary 

Richard Lawless





As the CEO of Commercial Solar Power (CSP), Mr. Lawless ordered a for-
ensic investigation into the $13,200,000 losses the company incurred while
doing business in Puerto Rico.  In an effort to better understand the causes
for such losses, Mr. Lawless and his team uncovered questionable practices
by the Puerto Rico Government and outright fraud by the Credit Rating Ag-
encies, Fitch, Moody’s and S&P.

The very first step in considering an investment of company resources in any
company is to check the credit ratings of the company and make sure they are
financially sound.  In this case, the rating agencies were giving the Puerto Ri-
co Electric Power Authority an “A” rating.  A pretty sound rating for a utility
company.

Given that the credit rating was the companies first step in their due diligen-
ce process, CSP did an audit of the bond offering memorandums that these
good ratings were based on.  The audit uncovered hundreds of millions in mi-
ssing funds and a utility that has been technically bankrupt since 2007. It see-
med inconceivable to the CSP team that all three rating agencies gave a bank-
rupt company an investment grade credit rating.  We delivered the results of
our audit to the Puerto Rico FBI, U.S. Attorney and the Puerto Rico Legisla-
ture.

After receiving no response for many months, I wrote an editorial that appe-
ared in many Puerto Rico Newspapers and Blogs.  Shortly after I wrote the
article I started receiving phone calls. One of the calls was from someone who
implied he was from the CIA and stated that the CIA has been listening into
phone activity between the utility and Hugo Chavez (Venezuela).  The calls
detailed a criminal enterprise that was stealing literally billions in public fun-
ds through bogus oil purchases and fraudulent municipal bond issues. While
listening in to the conversations over a number of years it became clear that
the Puerto Rico FBI Office and the Puerto Rico U.S. Attorney Office were
(and are) accepting payoffs to insure no interference from those agencies. This
story was confirmed to me by British Intelligence and confirmed a third time
by the editors of Caribbean News Now.

Shortly after this disclosure the FBI got back to me.  I was left a voicemail that
suggested the agency was very concerned about my criminal complaint but
could not find criminal grounds to pursue charges.  I was surprised by that res-
ponse so I contacted all persons of interest and discovered no one was ever in-
terviewed by the FBI.  In addition, during this time frame, two private parties
filed RICO charges against the utility that were challenged and upheld by the
courts. Amazing that private parties can file charges claiming that the utility
is an organized criminal enterprise but the DOJ can’t.

To make matters worse for the FBI and the U.S. Attorney, the Puerto Rico Se-
nate issued a 23-page report outlining the theft of billions and the purchase of
knowingly fraudulent credit ratings from Moody’s, Fitch and S&P. These pho-
ny credit ratings have already resulted in billions of losses for those bond hol-
ders. Once again the FBI and U.S. Attorney did nothing.

We have a 23-page confession and financial audits supporting all of the illegal
activity.  No charges, no investigation.

It was brought to my attention that Treasury Secretary Lew while COO for Citi-
bank, and Treasury Counsels, Weiss and Campbell while working for Lazard,
participated in this fraudulent activity by selling these knowingly fraudulent
bonds before joining the Treasury Department. This may help explain the rel-
uctance of the FBI and DOJ to do anything about any of this.

Now it is up to the Press to bring pressure on our legislators to get involved.


Richard Lawless is a former senior banker who has specialized in evaluating and granting 
debt for over 25 years. He has a Master’s Degree in Finance from the University of San Diego 
and Bachelor’s Degree from Pepperdine University.  He sits on a number of Corporate Boards
and actively writes for a number of  finance publications. The opinions expressed in the prece-
ding commentary are those of the author alone and do not necessarily reflect those of The Puerto
Rico Monitor, its editors, contributors or advertisers. 

Puerto Rico News Digest For May 10, 2016

RECESSION TO LAST INTO 2017

From The San Juan Daily Star:

"More red ink is in store for Puerto Rico, according to an island Planning
Board statement issued late last week that projected negative growth in the
gross domestic product (GDP) of minus 1.2 percent for fiscal year (FY) 2016
and a minus 2.0 percent contraction for FY 2017. In FY 2015, at current pri-
ces the local economy measured by the GDP generated $68.52 billion, repre-
senting a growth of 0.1 percent with relation to FY 2014..."

EIGHT-YEAR-OLD GIRL SHOT DEAD IN CIALES

From Fox News Latino:

"A little 8-year-old girl died of a gunshot to her head while another 14 peo-
ple suffered multiple bullet wounds in two unrelated incidents during a vio-
lent weekend in Puerto Rico...The death of the 8-year-old, local authorities
said Monday in different reports, occurred Sunday night, though the circums-
tances of the shooting are as yet unknown...One or more unknown persons
shot at a vehicle carrying the little girl and her parents as they arrived home
in the town of Ciales on the north side of the island...They took their daugh-
ter to a  hospital where she was pronounced dead..."

NO URGENCY FROM CONGRESS ON ZIKA FUNDS

From Caribbean Business:

"Republicans from states at greatest risk, such as Florida, Texas, Louisiana
and Georgia, have been slow to endorse Obama’s more than 2-month-old re-
quest for $1.9 billion to battle the virus, which causes grave birth defects. The
Centers for Disease Control and Prevention currently reports more than 470
cases in the continental U.S., all so far associated with travel to Zika-affected
areas. Polls show that the public isn’t anywhere nearly as scared of Zika as it
was about the Ebola outbreak in...2014. Aides to GOP lawmakers, even those
representing Southern areas most vulnerable to Zika, say they’ve yet to hear
from many anxious constituents..."

PR SENATE HANDS PREPA PROBE TO FBI

From ABC News:

"A special commission looking into fuel purchases by the financially troubled 

electric utility in Puerto Rico has turned over its findings to U.S. federal autho-

rities for further investigation, the majority leader of the island's Senate said 

Monday...The special Senate investigative commission has been looking into 

allegations that the utility overcharged customers by hundreds of millions of 

dollars while amassing about $9 billion in debt in recent years. Utility officials 

appearing before the commission denied wrongdoing..."

Puerto Rico News Digest For April 26, 2016

HHS CHIEF TO VISIT PR, ADDRESS ZIKA

From The Washington Times:

"President Obama’s top health official will visit Puerto Rico this week to
get a firsthand look at how the island is combating the Zika virus, a trip
that coincides with Senate efforts to partially fund President Obama $1.9
billion request for emergency funding to stave off the mosquito-borne ill-
ness. On a two-day trip, Health and Human Services Secretary Sylvia Ma-
thews Burwell will meet with Puerto Rican Gov. Alejandro Garcia Padilla,
tour a blood bank and personally urge pregnant women and those of child-
bearing age to protect themselves against mosquito bites that could lead to
infection..."

PIP DENOUNCES DNA TESTING OF ACTIVISTS

From The San Juan Daily Star:

The vice president and secretary general of the Puerto Rico Independence
Party (PIP) María de Lourdes Santiago and Juan Dalmau, respectively, con-
demned late last week the arrest of independence party activists by the FBI
to take DNA samples from them... The denunciation from both PIP leaders
came after reports circulated through social and mass media of the arrests of
Orlando González Claudio and Norberto Cintrón Fiallo after federal José Fus-
té issued orders against 16 independence activists to provide their DNA..."

TREASURY PAYS VENDOR, PRIMARIES TO PROCEED

From Caribbean Business:

"State Election Commission President Liza M. García announced that the
Treasury Department has paid its $1.6 million balance with Dominion Vo-
ting Systems, which is providing electronic vote count equipment for Puerto
Rico’s Ju- ne 5 primaries. Dominion Voting machine“We are pleased with
[Secretary] Juan Zaragoza’s engagement with suppliers and because the two
checks emitted have settled the remaining balance with Dominion Voting
Systems for this fiscal year,” the official said..."

PR RESTAURANT WEEK RETURNS IN JUNE

From News Is My Business:

"The 5th edition of “Puerto Rico Restaurant Week” will take place June
1-11, when premier restaurants will offer specially designed three course
dinner and/or lunch menus at a fixed price. These “prix fixe” menus are
the cornerstone of the event, that seeks to get foodies to try new establish-
ments and revisit old favorites, enticed by affordable multiple course me-
nus. The menu is set at either $28 or $38 for dinner and $20 for lunch, ex-
cluding beverages, tax, and tip. There are no tickets for the event, but re-
servations are required and must be booked directly with participating
restaurants.."

Individual Sentenced For His Participation In Extortion Scheme

Press Release

US Attorney's Office

SAN JUAN, P.R. – On March 1, 2016, defendant Diomedes Joshua
Alcantara-Troche was sentenced by United States District Court Judge
Jay A. Garcia-Gregory to serve a term of imprisonment of 2 years, and
3 years of supervised released, for his participation in an extortion sche-
me, announced today Rosa Emilia Rodríguez-Vélez, United States Attor-
ney for the District of Puerto Rico.  

On December 1, 2014, the victim received a telephone call from two un-
identified males. The individuals, who were later identified as inmates cu-
rrently incarcerated in a state prison, advised the victim that they had kid-
napped her son, and would harm him unless the victim provided them with
$6,000.00 US Dollars (USD). The inmates later agreed to lower the request
to $1,000. The inmates also warned the victim not to contact the police or
they would harm her son. Upon receiving the initial extortion telephone call
from the inmates, the victim went to withdraw the money and with the assis-
tance of a bank employee she managed to contact her son, who is a federal
agent.  Her son confirmed that he had not been kidnapped. The victim agreed
to assist federal law enforcement agents and proceeded to comply with the
instructions provided by the inmates to make the payment of $1,000.00 USD.

The inmates instructed the victim to bring $1,000.00 USD, to an area in Ca-
rolina. Upon receiving the money, the inmates stated that they would release
her son without incident. After arriving at the location the federal agents spot-
ted Alcantara-Troche driving a car that belonged to his girlfriend, Lorenly Gar-
cia-Echevarria. Alcantara-Troche was detained by federal agents. Alcantara-
Troche indicated that his girlfriend, Lorenly Garcia-Echevarria provided him
the cellular telephone and the vehicle used to pick up the extortion money. Al-
cantara-Troche and Garcia-Echevarria were going to earn approximately $300.
00 USD for their participation in the extortion scheme. Co-defendant Lorenly
Garcia was also sentenced to 2 years for her participation.

“This is a very common extortion scheme used by inmates in state prison in
order to make some easy money from victims who fear their loved ones are in
danger. We urge the public to contact law enforcement if they receive threats
similar to this one,” said U.S Attorney Rosa Emilia Rodríguez-Vélez.


The case was investigated by HSI and the FBI and prosecuted by Special
Assistant United States Attorney Normary Figueroa.

Puerto Rico News Digest For February 23, 2016

FBI MAKES ARRESTS FOR EDUCATION FRAUD

From Caribbean Business:

"The Federal Bureau of Investigation (FBI) was carrying out Tuesday mor-
ning 20 arrest warrants, of which more than 50 percent were conducted, in
relation to fraud in the Puerto Rico Education Department’s tutoring pro-
gram. FBI spokesman Carlos Osorio confirmed it is part of the second pha-
se of the agency’s “Bad Grade” operation, for which, on Sept. 9, 2015, a fe-
deral grand jury returned a 74-count indictment charging Rocket Learning
LLC and 31 individuals with conspiracy to commit mail fraud, mail fraud,
theft of government money and property, and aggravated identity theft..."

366,000 LEAVE PR FROM 2006 TO 2014

From The San Juan Daily Star:

"The net migration of Puerto Ricans to the mainland United States between
2006 and 2014 was around 366,000 people, according to a report issued late
last week by the University of Puerto Rico-Cayey’s Census Information Cen-
ter. Since Puerto Rico’s economic depression began in 2006, some 609,000
people moved from Puerto Rico to the mainland U.S. through 2014, while
243,000 people moved from the U.S. to Puerto Rico, according to Inter News
Service..."

DUNKIN' DONUTS TO OPEN 50 STORES

From News Is My Business:

"Less than two years after a court-ordered shutdown of all of it’s local Dun-
kin’ Donuts stores, Dunkin’ Brands announced Monday it is looking for
a franchisee to re-enter the market to develop 50 restaurants throughout
the island in the next seven years. The Mass.-based coffee and baked goods
chain is looking to recruit a franchisee with experience operating multi-unit
foodservice concepts in Puerto Rico as well as acquiring and developing lo-
cal real estate..."

WRITER ROSARIO FERRE DEAD AT 77

From The New York Times:

"Rosario Ferré, a formidable figure in Puerto Rican letters who wrote no-
vels in both Spanish and English, and who was a finalist for the National
Book Award in 1995 for the family epic “A House on the Lagoon,” which
she translated herself from the original Spanish, died on Thursday at her
home in San Juan, P.R. She was 77. Her son Benigno Trigo said the cause
had not been determined..."

The FBI & U.S. Attorney Embrace The Culture Of Corruption In Puerto Rico

Commentary

by Richard Lawless


If I were to tell you that Puerto Rico is so corrupt that not even the FBI or
U.S. Attorney on the island could be trusted to protect  it citizens, you wo-
uld find it hard to believe.

But that is exactly what is happening in Puerto Rico. With the FBI and U.S.
Attorney turning a blind eye to government corruption in Puerto Rico and
group of citizens had to file a private RICO lawsuit to protect themselves.
On February 24, 2015 a law suit was filed using the Racketeer Influenced
and Corrupt Organizations Act. (http://www.hbsslaw.com/cases-and-inves-
tigations/cases/PREPA)  This is a very difficult law to proceed under.  Ma-
ny courts are reluctant to consider RICO charges for fear the statute will be
abused. While our professional law enforcement authorities in Puerto Rico
stood by and did nothing for a number of years, these citizens took the law
into their own hands.

The lawsuit claims that government officials at the island's largest utility,
The Puerto Rico Electric Power Authority, stole over one billion dollars
in public money over 10 years and committed one of the largest municipal
bond frauds in the history of our country.  This scheme has been an open
secret on the island for many years.

The government perpetrators live in multi-million dollar homes in plain
sight of the FBI's and U.S. Attorney's employees.  Homes they could ne-
ver afford on their government salaries.

As the law suit progresses, a number of firms have moved to settle with
the plaintiffs by offering specifics on how the scheme was perpetrated
or by offering confidential multi-million dollars settlements in an effort
to keep their participation quiet (Law360/HagenBermen). While the De-
partment of Justice does nothing!

There are only two reasons the FBI and U.S. Attorney have failed to act:

1) The island of Puerto Rico is small and the amount of stolen money is
large. Some of that money made it to the FBI and U.S. Attorney offices.

Or

2) The officials at the FBI and U.S. Attorney’s offices decided that their
careers were more important than the oath they took. They are turning a
blind eye to all of this.  It is clear that the Obama Administration wants
bankruptcy for Puerto Rico and a crime of this magnitude would not help
the administration's cause.

Either way, under a new administration the Department of Justice will
have some explaining to do!

Richard Lawless is CEO of Commercial Solar Power, Inc. in Temecula, CA. The opinions expressed 

in the preceding commentary are exclusively his own.

Puerto Rico News Digest For September 30, 2015

US SENATE HOLDS HEARING ON PR 

From Caribbean Business:

If one thing was made clear after the two-hour Senate Finance Commi-
ttee hearing on Puerto Rico’s fiscal and economic issues, it is that the
Republican-controlled Congress wants more-transparent financial data
on the commonwealth in order for U.S. lawmakers to be in a better po-
sition to make decisions that will help the island tackle its fiscal and
economic woes. “I believe Puerto Rico faces a number of specific eco-
nomic challenges, and these challenges will not go away if the strategy
is simply to shave obligations to debtors and obtain more federal tax in-
centives and funds for various benefit programs. So I’m looking for pro-
growth policies that can promote economic activity in Puerto Rico,” co-
mmittee Chairman Sen. Orrin Hatch (R.,Utah) stressed during the hear-
ing. It remains to be seen if it is yet another pro forma exercise by a Con-
gress that seems each day more unlikely to move forward on such topics
as granting Chapter 9 bankruptcy protection to the island and increasing
federal healthcare spending in the commonwealth...

10 COPS ARRESTED FOR CORRUPTION

From FBI:

Ten Puerto Rico police officers have been indicted for their alleged parti-
cipation in a criminal organization, run out of the police department, that
used their affiliation with law enforcement to make money through robbe-
ry, extortion, manipulating court records and selling illegal narcotics, ann-
ounced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Pu-
erto Rico. The indictment, returned on Sept. 24,  2015, by a federal grand
jury in the District of Puerto Rico, includes 11 charges against the follow-
ing police officers: Shylene López-García aka “Plinia;” Ángel Hernández-
Nieves, aka “Doble;” Xavier Jiménez-Martínez, aka “Negro;” Alvin Mon-
tes-Cintrón, aka “Vinillo;” Ramón Muñiz-Robledo, aka “Marmota;” Gui-
llermo Santos-Castro, aka “Caco Biftec;” Luis Flores-Ortiz, aka “Piquito;”
José Neris-Serrano; Manuel Grego-López; and David Centeno-Faría, aka
“David Bisbal”.

The defendants are charged with conspiring to violate the Racketeer In-
fluenced and Corrupt Organizations (RICO) Act. Other charges against
certain defendants include extortion under color of official right, narco-
tics trafficking, civil rights violations and false statements to federal ag-
ents. According to the indictment, the officers charged with RICO cons-
piracy were members of a criminal organization who sought to enrich
themselves through a pattern of illegal conduct. The officers worked to-
gether to conduct traffic stops and enter homes or buildings used by per-
sons suspected of being engaged in criminal activity to steal money, pro-
perty and narcotics...

TRUCKERS PROTEST AGAINST TAX, CSP

From The San Juan Daily Star:

A group of truckers held a demonstration early Monday against the Pu-
blic Service Commission (CSP by its Spanish acronym) and the four
percent business-to-business (B2B) tax. The protest, a caravan of trac-
tor trailers and tow trucks that began in theSan Juan ports area and pro-
ceeded to the Capitol building in Puerta de Tierra, caused a fairly large
morning rush hour traffi c jam, mainly on the José de Diego Highway
and Kennedy Avenue. The demonstration was headed by the Authentic
Central Transportation Union (CAT by its Spanish acronym), which is
calling on lawmakers to pass legislation that would remove them from
CSP jurisdiction. They are also protesting the implementation of the bu-
siness-tobusiness tax, which could be approved by the island Legislature
on Thursday...

WOMEN'S SUMMIT TO TAKE PLACE IN SAN JUAN

From News Is My Business:

More than 500 women will meet in San Juan, Puerto Rico, this Friday to
participate in Animus, an innovation platform designed to maximize wo-
men’s economic and personal development. Inspired to search solutions
to effect significant positive change, entrepreneurs Lucienne Gigante and
Carlos Cobián have joined forces to launch Animus and its first summit
Oct. 2, at the Caribe Hilton Hotel from 8 a.m. to 5 p.m. More than 30 sp-
eakers — world-class professionals and leaders — will share their stories,
teachings and advice in three main areas: “Mindset and  Mindfulness,”
“Innovation,” and “Entrepreneurship.”...

Puerto Rico News Digest For June 19, 2015

FBI ARRESTS FOUR FOR CHIILD PORN

As reported today by El Nuevo Dia, FBI agents in Puerto Rico are serving
four arrest warrants in different parts of the island this morning, all related
to the production and distribution of child pornography. The arrests, which
are being carried out in conjunction with the Puerto Rico Police, are taking
place in the cities of Aguadilla, San Juan, Quebradillas and Carolina. Once
the suspects are detained, they wil be taken to Federal Court in San Juan.

POLICE: PUERTO RICO HOMICIDES DOWN

From The San Juan Daily Star:

At a period almost halfway through the calendar year, the Police Department
of Puerto Rico has reported 249 murders for the year to date, less than half
compared to the same time four years ago. This would  indicate that while
homicide is being checked, as Police note, the island rate is still considerably
higher than any mainland city or state, while still trailing many Caribbean
and Central American cities in deadliness quotient.And while Puerto Rico
has a rate of 30.1 murders per 100,000 people, officials estimate that about
60 percent of homicides on the island are linked to drug trafficking. The to-
tal number of killings between June 13, 2011 and June 13, 2015 decreased
by 261, according to a written communication from the Police Department
released this week.

PR EX-PRIEST GETS 11 YEARS FOR SEX ABUSE

From San Diego Union-Tribune:

A former Roman Catholic priest was sentenced Thursday to 11 years in pri-
son for taking a teenage boy on a cruise ship vacation with the intent to en-
gage in illegal sexual conduct. The U.S. Attorney's Office on the U.S. Cari-
bbean island announced the sentencing of expelled priest Israel Berrios, who
had pleaded guilty in August 2014. Prosecutors accused Berrios of giving the
15-year-old boy money, a computer and a camera and taking him on a four-
day cruise to the Bahamas with his mother's permission in July 2008.

DON YOUNG RAISES FUNDS BEFORE PR HEARINGS

From Politico:

Alaska Republican Don Young is holding a fundraiser in Puerto Rico Friday,
just days before he chairs a controversial hearing on the territory’s political
and economic status. The close proximity of the hearing and the fundraising
event has sparked ethical concerns among some of Young’s colleagues on a
Natural Resources subcommittee, but committee Chairman Rob Bishop (R-
Utah) told POLITICO that Young is free to set his own schedule. Young’s
fundraiser at a San Juan restaurant is hosted by Igualdad Futuro Seguro, a
pro-statehood political action committee.

PREPA GETS ANOTHER EXTENSION

From Caribbean Business:

The Puerto Rico Electric Power Authority (Prepa) and its creditors entered
Thursday into yet another forbearance agreement extension, until June 30,
while they continue to hammer out consensus on a restructuring plan for the
financially troubled utility that would keep it away from a potential default
and court-mandated receivership. Although prior negotiations to further ex-
tend the grace period have usually lasted until the last minute, CARIBBEAN
BUSINESS sources on Wall Street had said both sides were closing in on an
additional extension to the forbearance period until the end of the month.

WATER RESERVOIR LEVELS FOR THIS MORNING

From AcueductosPR.Com:

Levels for Carraizo and La Plata are down again, after recent rains failed to
raise water levels at either reservoir. Cidra is down as well. 48-hour rationing
continues for users in the Carraizo zones and 24-hour rationing is in effect for
users in the La Plata zones.

Puerto Rico News Digest For May 22, 2015

HIGLER'S FAMILY IN PR FOR HEARING

L: Laurens Higler. R: Gerardo de La Paz.

Relatives of Laurens Higler, the Dutch globetrotter and sailor who was
killed in a hit and run car accident in  March, are in Puerto Rico to attend
a court hearing for 49-year-old Gerardo De La Paz, the man accused of
hitting Higler with his car by the side of the road in Guayama and fleeing
the scene. Mother Rianne Higler stated "It is unforgivable that he didn't
stop the car, that he didn't call 911 and that he didn't help my son", in re-
gards to De La Paz, as reported yesterday by El Nuevo Dia. Laurens
Higler would have turned 27 years old on May 20.

At the hearing, De La Paz -- who is free but wearing an ankle monitor --
opted to go directly to trial for the charges of negligent homicide and vio-
lating the recently amended Article 5.07 of Transit Law 22. He was also
driving with an expired driver's license. The judge set the trial date for
June 26. De La Paz could face prison time, but there is  also the possibility
that he might only get a suspended sentence. After the hearing, De La Paz
agreed to meet the late Higler's family in private, but after the brief encoun-
ter, De La Paz hurried out of the building accompanied by his lawyers.

HOUSE APPROVES 11.5%  'IVU' TAX

From Caribbean Business:

After much debate and opposition, the House of Representatives app-
roved Thursday the tax bill that calls for the implementation of an
11.5% sales tax at cash registers, up from the current 7% paid under
the sales & use tax (IVU by its Spanish acronym), after introducing
several amendments on the floor. The final vote count was 26 in favor
and 24 against, including two Popular Democratic Party (PDP) legisla-
tors, Reps. Carlos Vargas and Angel Matos, and the New Progressive
Party minority delegation. It now moves to the Senate, where discussi-
on on the amended bill is expected to take place Friday, with the upper
chamber's session slated to begin at 10 a.m.

ACOSTA BLASTS MOODY'S GDB DOWNGRADE

From News Is My Business:

Government Development Bank President Melba Acosta came down
hard on Moody’s Investors Service’s decision to downgrade the Co-
mmonwealth’s credit rating deeper into junk status by saying the move
shows “ratings agencies are totally out of tune with what’s happening”
in Puerto Rico. Reading off an email she said she received earlier in the
day from a banker who expressed to her that markets were reacting fa-
vorably to the proposed increase in the sales and use tax — up to 11.5
percent from 7 percent approved Thursday by the House — and about
the budget, Acosta called Moody’s decision “a bit ironic.”

BUS OWNERS INDICTED FOR BID-RIGGING

From FBI:

A federal grand jury in San Juan, Puerto Rico, returned an indictment
against five individuals for participating in bid rigging and fraud cons-
piracies at an auction for public school bus transportation contracts in
Puerto Rico’s Caguas municipality, the Department of Justice announ-
ced today. A seven-count felony indictment was filed yesterday in U.S.
District Court of the District of Puerto Rico in San Juan against five bus
transportation company owners: Gavino Rivera-Herrera, Luciano Vega-
Martínez, Alfonso Gonzales-Nevarez, José L. Arroyo-Quiñones and
René Garay-Rodríguez.

Count one charges the bus owners with participating in a conspiracy
to rig bids and allocate the market for public school bus transportation
services in the Caguas municipality. The second count charges the bus
owners with conspiracy to commit mail fraud and counts three through
seven charge the bus owners with committing mail fraud. According to
the indictment, the defendants and others defrauded, and conspired to
defraud, the Puerto Rico Department of Education and the Caguas mu-
nicipality, among others, in order to fraudulently obtain contracts for
school bus transportation services.

Puerto Rico Police Officers Sentenced For Fatal Beating

Press Release

US Dept. of Justice 

WASHINGTON—Former Puerto Rico Police Officers Jimmy Rodriguez
Vega and David Colon Martinez were sentenced today for civil rights and
obstruction of justice violations related to the fatal beating of Jose Luis
Irizarry Perez, 19, announced Principal Deputy Assistant Attorney General
Vanita Gupta of the Civil Rights Division, U.S. Attorney Rosa Emilia
Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge
Carlos Cases of the FBI San Juan Field Office. Rodriguez Vega was senten-
ced to serve 33 months in prison for violating Irizarry Perez’s civil rights by
striking him with a police baton during the incident, and Colon Martinez was
sentenced to serve 24 months for making false statements to a Special Agent
of the Federal Bureau of Investigation (FBI) and to the federal grand jury
during the federal civil rights investigation.

With the issuance of today’s sentences, all six former Puerto Rico police
officers who pled guilty for their roles in the beating and obstruction of the
subsequent civil rights investigation have been sentenced. According to docu-
ments filed in connection with the underlying guilty pleas, Rodriguez Vega
and former Puerto Rico Police Sergeant Erick Rivera Nazario violated the
constitutional rights of Irizarry Perez by striking him with their police batons
while Colon Martinez physically restrained Irizarry Perez during an election
evening celebration at the Las Colinas housing development in Yauco, Puerto
Rico, on Nov. 5, 2008. As part of his guilty plea, Rodriguez Vega admitted
that after Rivera Nazario struck Irizarry Perez, while he was restrained and
not posing a threat to any officer, Rodriguez Vega swung his own police ba-
ton as if it were a baseball bat into the victim’s forehead. In conjunction with
his guilty plea, Colon Martinez admitted that he falsely told the FBI and the
U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which
will be followed by three years of supervised release. During the three-year
term, the defendants will be under federal supervision, and risk additional
prison time should they violate any terms of their supervised release.

“The former police officers convicted for their roles in the fatal beating and
obstruction of the subsequent investigation violated their sworn oaths to the
young victim, his family, and the public at large,” said Principal Deputy
Assistant Attorney General Gupta. “Unfortunately, egregious civil rights vio-
lations by a few individuals, such as in this case, damage the public’s trust in
law enforcement. That’s why the department will steadfastly continue to inves-
tigate and prosecute these matters, but also work with law enforcement to re-
build that trust and ensure all individuals’ civil rights are protected under the
 law.”

“Today’s sentencing brings a measure of justice to the family of Jose Luis
Irizarry Perez,” said U.S. Attorney Rodriguez-Vélez. “The U.S. Attorney’s
Office reaffirmsits commitment to vigorously prosecute those who abuse their
power and official positions at the expense of constitutionally guaranteed civil
rights.”

This case was investigated by the FBI’s San Juan Division and is being prose-
cuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel
and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney
 Jose A. Contreras of the District of Puerto Rico.

15-550

Puerto Rico News Digest For January 22, 2015

SUPERIOR COURT JUDGE CONVICTED BY FEDS

From the FBI:

A current Puerto Rico Superior Court Judge was convicted
yesterday by a federal jury in Puerto Rico of accepting bribes
to acquit a businessman of vehicular homicide charges.
Assistant Attorney General Leslie R. Caldwell of the Justice
Department’s Criminal Division, U.S. Attorney Rosa Emilia
Rodríguez-Vélez of the District of Puerto Rico and Special
Agent in Charge Carlos Cases of the FBI’s San Juan Division
made the announcement.

Puerto Rico Superior Court Judge Manuel Acevedo-Hernandez,
62, was convicted late yesterday following a one-week trial of
conspiracy to commit federal programs bribery and receipt of
a bribe by an agent of an organization receiving federal funds.
Sentencing is scheduled for April 20, 2015, before Chief U.S.
District Judge Aida Delgado-Colon of the District of Puerto
Rico.

According to evidence at trial, Acevedo-Hernandez presided over
a case involving Lutgardo Acevedo-Lopez, 39, a certified public
accountant in Aguadilla, Puerto Rico. On June 30, 2012, a car
driven by Acevedo-Lopez collided with another car, resulting
in the death of the other car’s driver. Acevedo-Lopez was charged
with criminal vehicular homicide in connection with the incident.
Acevedo-Hernandez, a supervisory superior court judge in the
Aguadilla judicial region of Puerto Rico, acquitted Acevedo-Lopez
of all charges.

DTOP GRANTS CONTRACT TO PDP DONOR

El Nuevo Dia has reported that the company that was recently
granted a contract for facilities to be used by the Department
of Transportation and Public Works (DTOP) in Carolina,
Educon Management, is owned by a group that includes promi-
nent donor to the Popular Democratic Party Agustín Crespo
Rivera. Crespo Rivera's father Johnny has also been a  long-
time PDP donor. Governor Padilla's administration has denied
any conflict of interest, and has stated that the contract was
vetted by the courts and will save taxpayers money.

COP MASTURBATION PICS BEING INVESTIGATED

El Vocero reports that Police Superintendent José Luis
Caldero López has said that he will suspend an unidentified
female police officer that has allegedly appeared in pictures
seemingly masturbating with a police baton while wearing a
Police shirt. The pictures -- in which the woman's face
is digitally altered -- have made the rounds of social
media, and it has been said that the photos were taken
in a Carolina-area Police station.

ENDANGERED PUERTO RICAN PARROTS RELEASED

From  The Fresno Bee:

A group of scientists opened a cage at dawn on Wednesday and
reintroduced 15 endangered Puerto Rican parrots into the wild as
part of a conservation program. The birds flew away without
hesitation as they disappeared into a forest near Puerto Rico's
north coast, according to Natural Resources Secretary Carmen
Guerrero.

It was the ninth release at the Rio Abajo Nature Preserve since
2006. Another 204 parrots remain at the preserve, and an estimated
57 to 108 parrots are believed to live in the wild nearby, she
said.