DOJ Says a Confession is Not Good Enough For a Prosecution

Commentary 

Richard Lawless


In June 24, 2015 the government of Puerto Rico issued a 23-page legisla-
tive report that is no less than a detailed confession. The report details how
government officials in Puerto Rico conspired with Wall Street firms to co-
mmit $11 billion dollars in financial fraud.  After reviewing this document
and other evidence for many months, the FBI is claiming that the best prose-
cutors in the DOJ have not yet found criminal grounds to move forward.

Let’s look at the confession:

· “Investors allowed PREPA to issue bonds, then, PREPA borrowed from
private banks to pay the bond’s interests; then, borrowed from the Govern-
mentDevelopment Bank (from herein “GDB”) to pay back the private bank
loans, and the GDB, in turn, issued more bonds to refinance all.”

“This practice could constitute a fraud scheme for which the federal agen-
cies that regulate financial instruments and the Security Exchange Commi-
ssion could take action against and/or pursue civil suits against these
institutions.”

The legislature is describing a Ponzi Scheme.

· “Therefore, the institutional bondholders bought this debt with the know-
ledge and with consent of what was going on financially in the corporation,
which was ailed with technical insolvency or bankruptcy.”

This means the Wall Street firms bought these bonds knowing they were no
good and they in turn resold them to retail investors. Puerto Rico is clearly
saying these firms conspired with them.

· “This goes to show that the financial intermediaries and the institutio-
nal holders, despite being fully aware of PREPA’s fiscal situation, had no
qualms with Unjustly Enriching themselves and with having the conse-
quences of their negligent acts be paid for by the people of Puerto Rico”.

Why did the Wall Street firms participate? According to Puerto Rico “to
unjustly enrich themselves (fee income).

· “in the face of the credit houses, whom, knowing this, and therefore
PREPA’s technical insolvency, allowed this public corporation, and thus
the people of Puerto Rico, to continue running into debt”.

(Credit Houses is a reference to Moody’s, S&P & Fitch Credit Rating 
Services.)

To clarify, the credit houses issued unjustified credit ratings to earn
fee’s according to the report.

· “Said debt was sold at discount, a large quantity of it between .60 to
less than .50 cents to the dollar”

Once the scheme was uncovered, the investors that owned the bonds lost 40
to 50 cents on the dollar.  With $11 billion outstanding that is around
$5 billion in losses.

· “That this Report be forwarded to the Justice Department of the Common-
wealth of Puerto Rico and the United States of America for their correspon-
ding actions;”

“That this Report be forwarded to the United States Securities Exchange
Commission for its corresponding action;”

Legislature is clearly suggesting a criminal act occurred and should be 
investigated.

The report gives many, many more specifics.  Given all this information, the
DOJ believes there may not have been any actual crimes. Umm?



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

preceding commentary are exclusively his own and do not represent the  opinions of The Puerto Rico Monitor, 

its editors or advertisers.

Feds Arrest Businessmen And Gov't Officials For Corruption

Press Release

Department of Justice
U.S. Attorney’s Office
District of Puerto Rico








Ten Individuals Indicted For Conspiracy To Commit Federal Programs 
Bribery, Honest Services Wire Fraud And Extortion

SAN JUAN, Puerto Rico– Ten Puerto Rico businessmen and government offici-
als have been indicted for their alleged participation in several schemes to corrup-
tly give things of value to public officials within the government of the Common-
wealth of Puerto Rico in exchange for favorable treatment and awarding of gov-
ernment contracts to various corporations. The 25-count indictment includes char-
ges of conspiracy to commit federal programs bribery and honest services wire fra-
ud, wire fraud, federal program bribery, extortion through fear of economic harm,
money laundering, false declarations before a grand jury, and obstruction of justi-
ce, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puer-
to Rico. The Federal Bureau of Investigation is in charge of the investigation.

The indictment, returned on December 2, 2015, by a federal grand jury in the Dis-
trict of Puerto Rico, includes twenty-five charges against the following individuals:

Anaudi Hernández Pérez, businessman and political fund raiser. Although not na-
med in official corporate records, he exercised de facto control over numerous com-
panies doing business with agencies and public corporations of the Commonwealth
of Puerto Rico.

Sally López Martínez, Administrator of the Commonwealth of Puerto Rico’s “
Administración de Desarrollo Laboral” (Workforce Development Administration)
(hereinafter “ADL”).

Sonia M. Barreto Colón, Purchasing Director of the Commonwealth of Puerto Ri-
co’s “Autoridad de Acueductos y Alcantarillados” (Puerto Rico Aqueduct and Se-
wer Authority) (hereinafter “AAA”).

Ivonne M. Falcón Nieves, Vice President of AAA.Prior to her position as Vice
President, Ivonne M. Falcón Nieves served as Treasurer of AAA.

Javier A. Muñiz Álvarez, businessman. Utilized the Company JM Profesional (sic)
& Training Group, Inc. to secure contracts from the Commonwealth of Puerto
Rico.

Carlos F. Luna Cruz, businessman. Worked for JM Profesional (sic) & Training
Group, Inc.

Xavier González Calderón, Administrator for the House of Representatives of the
Commonwealth of Puerto Rico.

Victor R. Burgos Cotto, Director of Technology for the House of Representatives.

Marielis Falcón Nieves, sister of Ivonne M. Falcón Nieves.

Glenn O. Rivera Pizarro, Special Assistant for Administration at the House of Re-
presentatives of Puerto Rico.

According to the indictment, Hernández Pérez utilized his political and personal
connections with high ranking members of the current government in order to have
“his people” appointed in critical government positions within the new administra-
tion which took over after the November 2012 elections. He also provided those in-
dividuals with things of value in exchange for government contracts, benefits and
preferential treatment for several of his corporations. The indictment focuses on be-
nefits Hernández Pérez, his co-conspirators, and corporate entities, obtained from
the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Wo-
rk-force Development Administration) (hereinafter “ADL”), the Commonwealth
of Puerto Rico’s “Autoridad de Acueductos y Alcantarillados” (Puerto Rico Aque-
duct and Sewer Authority) (hereinafter “AAA”), and the Puerto Rico House of Re-
presentatives.  The three schemes detailed in the indictment essentially followed
the same modus operandi.

The indictment alleges that beginning in or about late 2012, and continuing in or
about early 2013, Hernández Pérez and several unindicted co-conspirators formali-
zed their plans to obtain government contracts with numerous governmental entities.
 Hernández Pérez utilized his personal friendship with Person B (brother of the Go-
vernor of Puerto Rico, identified as Person A in the Indictment), and the good will
 generated by his substantial fundraising activities during the 2012 election cycle,
to position himself to successfully make recommendations on behalf of individuals
seeking government appointments and employment after the election.

Hernández Pérez received numerous emails and resumes from individuals seeking
his assistance in obtaining positions within the newly elected government. Hernán-
dez Pérez, in turn, forwarded many of those emails to government officials, and to
the governor’s brother, Person B. Many of these individuals ultimately received go-
vernment employment.  Hernández Pérez and his co-conspirators then set out to
form and make alliances with various corporations and limited liability companies
that would be used to obtain government contracts, proposals and purchase orders.
These companies included: 3 Comm Global, Inc., Links Group, LLC, EKO Techno-
logies, LLC, JM Profesional (sic) & Training Group, Inc., and Waffler Avenue,
LLC. Some of these corporations were formed immediately prior to, or after, the ge-
neral elections of November 2012.

Hernández Pérez and his co-conspirators were careful to ensure that his name did
not appear on any official documentation regarding the formation of the corporati-
ons, or on any formal request for government contracts, proposals, or purchase or-
ders. Hernández Pérez, however, was present in numerous meetings where the pro-
posals were discussed, was included in internal electronic and oral communications
regarding these matters, and received payment from the contracts into corporate
bank accounts and other suspicious transactions.

Many of the individuals recommended by Hernández Pérez whom obtained the jobs,
ultimately had the authority to approve or authorize contracts, purchase orders, and
other financial obligations on behalf of their respective agencies, departments or pu-
blic corporations, and in return for the recommendations for employment, and/or
other things of value, authorized contracts, purchase orders, proposals and pay-
ments on behalf of the co-conspirators and their corporations.

Hernández Pérez and his co-conspirators offered and gave, and the public offici-
als solicited and accepted from Hernández Pérez and his co-conspirators, things
of  value, including expensive meals, personal gifts, expensive fountain pens,
purses, bags,concert tickets, and the payment of certain accrued debts. Hernan-
dez Perez allegedly kept written electronic records regarding the purpose of his
government related business meetings, and the things of value provided to each
of these individuals.

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

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

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

The 25 counts detailed in the Indictment are as follows:

Count 1: 18 U.S.C. § 371, Conspiracy to Commit Federal Programs Fraud and
Honest Services Wire Fraud regarding contracts with ADL and AAA.

Count 2: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud
for scheme with ADL.

Counts 3-5: 18 U.S.C. § 343, substantive Wire Fraud counts for emails related to
the scheme with ADL.

Count 6: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud
for the scheme with AAA.

Counts 7-9: 18 U.S.C. § 1343, substantive Wire Fraud counts for emails related to
the scheme with AAA.

Count 10: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization recei-
ving federal funds for the scheme with ADL (Sally López Martínez).

Count 11: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organiza-
tion receiving federal funds for the scheme with ADL.

Count 12: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization re-
ceiving federal funds for the scheme with AAA (Ivonne Falcón).

Count 13: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organi-
zation receiving federal funds for the scheme with AAA (Ivonne Falcón).

Count 14: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization
receiving federal funds for the scheme with AAA (Sonia Barreto).

Count 15: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organi-
zation receiving federal funds for the scheme with AAA (Sonia Barreto).

Count 16: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm
(Hernandez Perez).

Count 17: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm
(Ivonne & Marielis Falcón Nieves).

Count 18: 18 U.S.C. § 1956(h), Conspiracy to Commit Money Laundering
(Hernandez Perez and Muñiz Alvarez).

Count 19: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos
F. Luna Cruz).

Count 20: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos
F. Luna Cruz).

Count 21: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna
Cruz).

Count 22: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna
Cruz).

Count 23: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna
Cruz and Javier A. Muñiz Álvarez (computer)).

Count 24: 18 U.S.C. § 1346, Conspiracy to Commit Wire Fraud (money
and property) for scheme with PR House of Representatives.

Count 25: 18 U.S.C. § 666(a)(1)(A), Intentional misapplication of funds by
an agent of an organization receiving federal funds for the scheme with House
of Representatives (González Calderón, Burgos Cotto and Rivera Pizarro).

“For decades now, political cronyism, favoritism, and corruption have robbed the
people of Puerto Rico of the right to decent services and unbiased representation,
including legally awarded government contracts. The people of Puerto Rico foot
the bill for the underhanded dealings detailed in the indictment. The time for go-
vernment cronyism that allows some to line their pockets with ill-gotten contracts
at the expense of the many, is over.  The time for public servants who trade their
duty to represent the people of Puerto Rico in exchange for political appointments
and gifts, is also over. The people of Puerto Rico deserve the honest services of,
not only those in their government, but those who choose to do business with the
government. Their violations of the public trust will be prosecuted to the full extent
of the law,” stated Rosa Emilia Rodríguez Vélez, US Attorney for the District of
Puerto Rico.

“Unfortunately, this is one more case of graft, greed, and corruption that over the
last 20 years have contributed to the Government of Puerto Rico’s fragile financial
condition and on the brink of bankruptcy.  It is the responsibility of the leaders of
the Government of Puerto Rico to ensure this type of reprehensible and corrupt be-
havior does not occur.  The FBI along with the United States Attorney’s Office,
District of Puerto Rico will always remain vigilant and attack the corruption threat
with undeniable and fervent passion. Let there be no doubt this is only the beginn-
ing and the investigation will continue. There will be no stone left unturned,” said
Carlos Cases, Special Agent in Charge of the FBI, San Juan Division.

The case is being investigated by the FBI’s San Juan Division. The case is being
prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó
Iriarte, Deputy Chief of the Financial Fraud and Corruption Unit. If found guilty,
the defendants are presumed innocent unless and until proven guilty.

Twenty-Five Individuals Indicted For Wire Fraud

Defendants Defrauded The U.S. Army National Guard Recruiting 
Assistance Program



Department of Justice
U.S. Attorney’s Office
District of Puerto Rico

Press Release


SAN JUAN, Puerto Rico – Twenty-five individuals have been charged in
fourteen separate indictments for their alleged participation in a  conspiracy
to defraud the United States and the National Guard Bureau  of money and
property, wire fraud, and aggravated identity theft, announced Rosa Emilia
Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The
United States Secret Service is in charge of the investigation with the colla-
boration of the U.S. Army Criminal Investigation Command, the U.S. Postal
Service Office of Inspector General, the Department of Defense- Defense Cri-
minal Investigative Service, and the Puerto Rico Police Department. The in-
dictments were unsealed today upon the arrest of the defendants.

The indictments, returned yesterday, October 21, 2015, by a federal grand ju-
ry in the District of Puerto Rico, include the following individuals: Recruiters
Cristobal Colón-Colón; Ángel D. Rivera-Rodríguez; Enrique Costas-Torres;
Gregorio Quiñones-Pacheco; Guillermo Cruz-García; Edwin Izquierdo-Mon-
tañez; Luis De Jesús-Negrón; Gabriel González-Franco; Gilberto Rivera-Qui-
ñones; Juan Rivera-Rivera; and Héctor Rodríguez-Colón; and Recruiter Assis-
tants Axel Aponte-García; Gilberto Gierbolini-Emanuelli; Freddie García-Ru-
iz; Félix González-Rodríguez; Radamés Robles-Meléndez; Emilio Rivera-Mal-
donado; Carlos Meléndez-González; Natalio Soto-Rivera; José Rivera-Pereles;
Félix Lasen-Nieves; Ángel Perales-Muñoz; Alexis Betancourt-Jiménez; José
Velázquez-Lugo and Garby Ruiz-Rosado.

These charges stem from a scheme utilized by the defendants from 2007 thro-
ugh 2011. In or about September 2005, the National Guard Bureau, located in
Arlington, Virginia, entered into a contract with Document and Packaging Bro-
ker, Inc. (“Docupak”), located in Pelham, Alabama, to administer the G-RAP.
The G-RAP was a recruiting program designed to offer referral bonus payme-
nts to Army National Guard soldiers to recruit civilians to serve in the Army
National Guard. As part of the G-RAP, the National Guard Bureau reimbur-
sed Docupak for the recruiting referral bonus payments that Docupak paid to
participating soldiers. The National Guard Bureau also paid Docupak an ad-
ministrative fee for disbursing each of the referral bonus payments.

The Program had two primary participants: (1) Recruiters: whose job it was
to assist the Docupak subcontractors in enlisting new members into the Army
National Guard; and (2) Recruiter Assistants, who were Docupak subcontrac-
tors: whose job it was to identify and assist recruit new potential members in-
to the Army National Guard, and assist Recruiters with other related duties.
Under the contract specifications of the Program, only Recruiter Assistants
were eligible for recruiting referral bonuses.

The Program required Recruiter Assistants to establish an online account in
their name to record their referral and recruitment efforts. The Recruiter
Assistant would input the personal identifying information of each recruit
into the account. A Recruiter Assistant could receive a bonus between $500
and $1,000 for every referred soldier that enlisted in the Army National Gu-
ard, and an additional bonus between $500 and $1,000 once the referred sol-
dier was sent to Basic Training. If the referred soldier had previously served
in a different military branch, did not need to attend Basic Training, or joi-
ned the Army National Guard as an officer, the Recruiter Assistant could re-
ceive a bonus between $2,000 and $8,500. The Recruiter Assistant could re-
ceive the referral bonus payments either through direct deposit in a bank
account, or a VISA account.

It was the goal of the conspiracy for the Recruiters to enrich themselves un-
lawfully by defrauding the United States and performing acts in violation of
their official duties, in exchange for things of value. The Recruiter Assistants
provided things of value to the Recruiters, in exchange for their assistance in
defrauding the U.S. National Guard.

Defendants’ scheme knowingly caused the transfer, possession, and use with-
out lawful authority, of a means of identification of another person, which con-
tained the name, date of birth and social security number of potential soldiers;
and by submitting the Personal Identifying Information (PII) for unauthorized
purposes, they generated a fraudulent referral bonus of the G-RAP program,
that would then create an interstate wire transfer to the co-conspirator’s differ-
ent bank accounts.

An example of the scheme, as alleged in one of the indictments, is as follows:
The defendants allegedly cheated the program, known as the U.S. Army Na-
tional Guard Recruiting Assistance Program, or “G-RAP,” by having the Re-
cruiter Assistants create a G-RAP account and or allow the Recruiters to use
the RA’s G-RAP account to enter all information necessary to claim recruit-
ing bonuses that the RA’s had not earned. Defendants applied for the G-RAP
bonuses using personal identifying information (PII) given to the Recruiters
by enlistees who would go to the recruitment office seeking orientation to en-
list in the Puerto Rico Army National Guard (PRANG). The Recruiter’s would
obtain the PII in their official capacity as a Guard recruiter and would use the
RA’s G-RAP account to apply for fraudulent recruiting bonuses. The RA’s
were paid bonuses that would be deposited by Docupak in their personal bank
accounts or a VISA Card that was given to them by Docupak, based on the mis-
representations made by the defendants of the recruitment process. Some RA’s
withdrew a cash amount from each bonus and paid a kick-back of approximate-
lyhalf of the bonus to the Recruiters and in some cases the Recruiter’s kept the
bonuses for themselves.

“These charges clearly demonstrate that we will take firm action against those
who choose to exploit our military system for personal and criminal gain. We
remain committed to investigating and apprehending those who cheat the sys-
tem for personal gain, and will continue to work towards the eradication of this
type of fraud in Puerto Rico,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.

“The U.S. Secret Service will continue to aggressively pursue those that co-
mmit fraud and identity theft for their own enrichment. These crimes remain
a top investigative priority for our agency,” said Carlos Colón, Resident Agent
in Charge of the Secret Service Office in Puerto Rico.

“We should expect honesty and integrity from our military personnel,” said De-
fense Criminal Investigative Service Special Agent in Charge John F. Khin.
“This case demonstrates the commitment of DCIS, along with our investigati-
ve partners, to relentlessly pursue and bring to justice those who commit fraud
and violate positions of trust for personal enrichment.”

“The conduct alleged in the criminal Indictments is beyond disgraceful,” sta-
ted USPS-OIG Special Agent-in-Charge Eileen Neff. “The USPS-OIG, along
with our law enforcement partners, will continue to aggressively investigate
those who seek to defraud our government programs.”

If found guilty, defendants face a maximum penalty of ten years in prison for
the conspiracy, 20 years in prison for wire fraud, and a mandatory two year
consecutive term in prison for aggravated identity theft.

The case is being investigated by the U.S. Secret Service. The case is being
prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda and Special
Assistant U.S. Attorney Amanda C. Soto-Ortega.

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

Jaime Dávila Reyes, aka “Peluche” Sentenced To 21 Years In Prison

Press Release

Department of Justice
U.S. Attorney’s Office
District of Puerto Rico









SAN JUAN, Puerto Rico – Today, Jaime Dávila-Reyes, aka “Peluche,” was
sentenced to 21 years in prison for drug trafficking and firearm violations, a-
nnounced Rosa Emilia Rodríguez-Vélez, United States Attorney for the Dis-
trict of Puerto Rico. On June 12, 2015, the defendant plead guilty to four co-
unts from three separate indictments, charging conspiracy to possess with in-
tent to distribute controlled substances. He also plead guilty to using and ca-
rrying firearms during and in relation to a drug trafficking crime.

Since the year 2006, and continuing up to and until the return of the Indictment
in Criminal Case 09-390(ADC), Jaime Dávila-Reyes and others, did knowingly
and intentionally, combine, conspire, and agree with each other and with diver-
se other persons known and unknown to knowingly and intentionally possess
with intent to distribute, heroin, cocaine, cocaine base, and marihuana in protec-
ted locations throughout the Municipality of Naguabo and Caguas, Puerto Ri-
co, specifically in Ignacio Morales-Dávila Public Housing Project in Naguabo
and Jose Gautier-Benítez in Caguas, Puerto Rico.

In the second indictment, Criminal Case 13-435(FAB), the object of the conspi-
racy was to distribute controlled substances at the Gautier Benitez Public Hous-
ing Project for financial gain and profit. Dávila-Reyes was a leader of the drug
trafficking organization and controlled the drug distribution points located at the
Gautier Benitez Public Housing Project.

In the third indictment, Criminal Case 13-534(CCC), the object of the conspira-
cy was to distribute controlled substances at the Morales Ward, in the Municipa-
lity of Caguas for significant financial gain and profit. As a leader in Barriada
Morales, Dávila-Reyes was in control of the drug distribution points. He direct-
ly supervised the operations at Barriada Morales, received the proceeds from the
distribution of narcotics sold during the span of his leadership in the conspiracy
and was in charge of maintaining control of all the drug distribution activities. He
also received payment or “rent” from other drug point owners in Barriada Moral-
es. He also acted as an enforcer and supplier within the conspiracy.

“The U.S. Attorney’s Office will continue working along with state and federal
law enforcement agencies to investigate and prosecute criminals who deprive our
 communities of a peaceful and safe environment,” said Rosa Emilia Rodríguez-
Vélez, U.S. Attorney for the District of Puerto Rico. “I commend our prosecutors
and investigative agencies who did not rest until they were able to arrest Davila-
Reyes and successfully bring him to justice.”

The defendant was sentenced by United States District Court Chief Judge Aida
Delgado-Colón. The cases were being prosecuted by Assistant U.S. Attorneys
César Rivera-Giraud, Alberto López-Rocafort and Teresa Zapata-Valladares.

Solimar Federal Credit Union Employee Pleads Guilty To Embezzlement Of Funds

Press Release

Department of Justice
U.S. Attorney’s Office
District of Puerto Rico









September 28, 2015

Today, defendant Tania Maldonado-Suárez pled guilty before United States
Magistrate Judge Marcos E. López to a one-count Information that charged,
from on or about October 26, 2005, continuing through on or about May 31,
2007, in the District of Puerto Rico, the defendant being an employee of So-
limar Federal Credit Union, an institution whose deposits were insured by
the National Credit Union Administration Board, with intent to defraud So-
limar Federal Credit Union, willfully misapplied, embezzled, abstracted, and
purloined the sum of approximately $474,894.69, announced Rosa Emilia
Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.

Tania Maldonado-Suárez worked at Solimar Federal Credit Union and was
responsible for posting transactions in the financial institutions’ records. Du-
ring her employment with Solimar Federal Credit Union, Tania Maldonado-
Suárez, with the intent to defraud, did willfully misapply, embezzle, and pur-
loin funds that belonged to Solimar Federal Credit Union.  Specifically, Mal-
donado-Suárez withdrew funds from Solimar Federal Credit Union accounts
without authorization, failed to deposit checks into accounts, failed to post
payments on accounts, and granted unauthorized loans on accounts in order
to divert funds from these accounts to herself for her own pecuniary gain.

The case was investigated by the United States Secret Service with the colla-
boration of the Puerto Rico Police Department, and prosecuted by Assistant
United States Attorney Luke Cass.  The defendant faces a potential maximum
sentence of up to 30 years of imprisonment.

Police Officer Arrested For Child Porn

Press Release
Department of Justice
U.S. Attorney’s Office
District of Puerto Rico


FOR IMMEDIATE RELEASE
Wednesday, August 21, 2015


SAN JUAN, Puerto Rico – Yesterday, a federal grand jury indicted Puerto 
Rico Police Officer Claudé Luis Merced-Aponte, 49, for possession and 
receipt of child pornography, announced Rosa Emilia Rodríguez-Vélez, 
United States Attorney for the District of Puerto Rico.  Today, agents 
from Immigration and Customs Enforcement-Homeland Security Inves-
tigations (ICE-HSI) arrested him without incident.

Count one of the Indictment alleges that on or about April 7, 2015, Mer-
ced-Aponte did knowingly possess material which contained images of 
child pornography, that is, images of minors and prepubescent minors 
engaging in sexually explicit conduct.   Count two alleges that in or about 
the year 2012 the defendant received, via the Internet, similar images of 
minors engaging in sexually explicit conduct.

Claudé Luis Merced-Aponte is also facing a Forfeiture Allegation which 
includes various computers, cellular phones, external hard drives and me-
mory sticks. The defendant faces a mandatory minimum sentence of five 
years and a maximum possible sentence of 20 years in prison if he is
found guilty.

“No one is above the law, no matter what rank or badge a person might 
hold,” said United States Attorney for the District of Puerto Rico, Rosa 
Emilia Rodríguez-Vélez. “Exploitation by those entrusted to enforce the 
law strikes at the heart of our criminal justice system, and it will not be
 tolerated.  This case lays bare a disgraceful attempt by a veteran police 
officer to mistakenly believe that he could commit heinous crimes against 
children and hide in the shadows. The Justice Department will fight cri-
minals wherever we find them, even within the ranks of law enforcement.”

“These allegations are particularly troubling and disturbing because of Mr. 
Merced-Aponte’s position of trust as a law enforcement officer,” said An-
gel M. Melendez, special agent in charge of HSI San Juan. “Identifying 
people who violate their positions of public trust by contributing to the ex-
ploitation of children is a top priority for HSI as our statistics show. This 
year, we have seen an alarming increase of 47 percent in these cases as 
compared to fiscal year 2014.  We cannot, and will not, tolerate that. HSI 
will continue identifying, arresting and prosecuting those who attempt 
against the safety and security of our children regardless of who they are.”

Special Assistant U.S. Attorney Cristina Caraballo, from the Crimes Against 
Children and Human Trafficking Unit, is in charge of the prosecution of the 
case. Indictments contain only charges and are not evidence of guilt. Defen-
dants are presumed to be innocent until and unless proven guilty.

This case was brought as part of Project Safe Childhood, a nationwide ini-
tiative to combat the growing epidemic of child sexual exploitation and abuse, 
launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ 
offices and CEOS, Project Safe Childhood marshals federal, state and local 
resources to better locate, apprehend and prosecute individuals who exploit 
children via the Internet, as well as to identify and rescue victims.  For more 
information about Project Safe Childhood, please visit www.projectsafechild
hood.gov.

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

Individual Found Guilty Of Drug Trafficking

Press Release
Department of Justice
U.S. Attorney’s Office
District of Puerto Rico


FOR IMMEDIATE RELEASE
Wednesday, August 19, 2015

SAN JUAN, P.R. – After a four day jury trial, Delfín Robles-Álvarez was
found guilty of conspiracy to distribute cocaine for the purpose of unlawful
importation, conspiracy to import cocaine, and conspiracy to commit money
laundering, announced United States Attorney Rosa Emilia Rodríguez-Vélez.
United States District Court Judge Pérez-Giménez presided over the trial. Ei-
ght other co-conspirators had already pled guilty and are awaiting sentence
and one other defendant is awaiting extradition.

According to the indictment, throughout the year of 2005 and continuing up
to 2014, the defendant, along with others, intentionally combined, conspired,
and agreed to possess with intent to import and distribute more than five kilo-
grams of cocaine from Saint Martin, Netherlands Antilles into Puerto Rico.

During trial, the government presented video, audio, and telephone recordings
of a Drug Enforcement Administration investigation into a drug trafficking or-
ganization responsible for transporting over 2,000 kilograms of cocaine from
Saint Martin, Netherlands Antilles, to Puerto Rico for distribution and sale as
well as the laundering of funds in excess of 12 million U.S. dollars. The com-
plex conspiracy involved numerous players with various roles, the smuggling
of money and drugs both by sea and by air, and various methods to launder the
proceeds from these illegal activities, one of which was the Puerto Rico lottery
system. A jury heard lay and expert testimony at trial that proved Delfin Robles-
Alvarez’ willful participation and knowing involvement in the conspiracy.

“This conviction marks yet another victory in our fight against narcotics in Pu-
erto Rico. Our team of prosecutors and case agents set an excellent example of
teamwork during the investigation which led to the conviction of this defendant
at trial,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of
Puerto Rico.

The case was prosecuted by Assistant United States Attorney Mariana Bauza
and Special Assistant United States Attorney Glenn Goetchius. Delfín Robles-
Álvarez faces a maximum penalty of up to life imprisonment. The now convic-
ted defendant also faces a possible fine and a money judgment to be determined
later by the Judge.

Puerto Rico News Digest For August 19, 2015

DANNY HEADS FOR THE CARIBBEAN

The map above will update automatically throughout the day.

Tropical Depression 4 became Tropical Storm Danny overnight, and re-

gistered maximum sustained winds of 50 mph as of 5:00 AM today. The 

storm is headed straight for the Caribbean, moving west at 14 mph, and 

was located this morning at 11.3N 40.2W. Minimum central pressure was 

estimated at 1000 mb, or 29.53 inches. Danny, which is forecast to stren-

gthen over the warm Atlantic waters, is expected to be approaching Puer-

to Rico between Tuesday and Wednesday. By that time, Danny could have

become a hurricane. No watches or warnings have been issued as of yet.
Keep checking this page and our Twitter feed for the latest information
on Tropical Storm Danny.

11:00 AM AST UPDATE: Tropical Storm Danny located at 11.2N 41.1
W, 1385 miles east of the Antilles, sustained winds are still at 50 mph and
pressure at 1000 mb. The storm is moving to the west at 12 mph. Next
full advisory from the National Weather Service will be at 5PM AST.

5:00 PM AST UPDATE: Danny is now at 11.5N 42.0W, about 1325
miles east of the Antilles, and moving a little more slowly at 10mph,
still moving on a westward track. Maximum sustained winds are hold-
ing at 50 mph, pressure at 1000 mb. Danny could still become a hurri-
cane by Friday.

ROSELLO DECLARES 2016 CANDIDACY

Dr. Ricardo Rosselló, the 36-year-old youngest son of former Gover-

nor Pedro Rosselló, offered statements yesterday that indicate that

he will be seeking the nomination of the pro-statehood New Progre-

ssive Party for the governorship of Puerto Rico in 2016. The formal

announcement of his campaign will happen tomorrow at Roberto 

Clemente Colisseum. Rosselló has for months criticized the island's 

current leadership and their handling of the economic crisis. "We 

find ourselves before unprecedented challenges. We awaken to see 

that the current decisions are only aggravating the situation. We can 

follow the same path or we can look for a transformative and auda-

tious alternative. The actual political leadership thinks that that alter-

native is default, bankruptcy and taxes. I differ from that direction", 

said Rosselló. 

DOJ FUNDING LETTER CAUSES BACKLASH

From Caribbean Business:

A letter to Gov. Alejandro García Padilla, where the U.S. Department 

of Justice (DOJ) makes known that since Tuesday, Puerto Rico and 

agencies that administer federal funds received from DOJ programs 

have been classified as high-risk grantees has already generated public 

outcries. "The letter, sent Monday to La Fortaleza, notifies the gover-

nor that after an audit, the DOJ discovered numerous findings indica-

ting questionable costs and significant weaknesses in the management 

capabilities and internal controls in the administration of federal funds," 

said Miguel Hernández Vivoni, New Progressive Party candidate for 

resident commissioner.

GOV'T FISCAL PLAN TO BE IN THREE STAGES

From The San Juan Daily Star:

La Fortaleza Chief of Staff Víctor Suárez said Monday that the island 

government’s five-year fiscal plan, which is slated to be ready by Aug. 

30, will be divided into three stages. The plan is the basis for a negotia-

tion with Puerto Rico’s bondholders. The STAR learned that it will en-

tail proposals for economic development, labor reform and negotiating 

a moratorium of the debt. The first stage will take two years and con-

sists of the plan’s implementation. The second stage will entail measu-

ring the plan’s performance and changing it, and the third stage will in-

volve maintaining it. 

OFFICIAL: GDB LIQUIDITY AT $1 BILLION

From CNBC:

Liquidity at Puerto Rico's Government Development Bank (GDB) has 

risen to around $1 billion, the commonwealth's chief of staff said on 

Monday, after dwindling to $778 million as of the end of May.That 

was partly boosted by a deal to raise $400 million in Tax & Revenue 

Anticipation Notes (TRANs), a strict disbursement policy and depo-

sits made by public entities, the governor's chief of staff Victor Suarez 

told reporters.

Feds Bust 'Rompe ONU' Gang, 105 Charged With Crimes

One of the Largest RICO cases in the history of the Department 

of Justice

Department of Justice

U.S. Attorney’s Office / District of Puerto Rico

July 22nd, 2015

SAN JUAN, Puerto Rico – A nine (9) count federal indictment was unsealed today 

in the District of Puerto Rico charging one hundred and five (105) defendants with 

racketeering, drug trafficking, drive-by shooting murders and related firearm offenses, 

announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. 

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico 

Police Department (PRPD)- San Juan and Carolina Strike Forces were in charge of the 

investigation, with the assistance of PRPD’s Major Crimes Unit.

The indictment alleges that the defendants are part of a criminal organization known 

as “La Rompe ONU.” Through its criminal activities “La Rompe ONU” enriched its 

members and maintained and increased the power of the organization. Members of “

La Rompe ONU” would sell crack, cocaine, heroin, and marihuana in public housing 

projects, including: Jardines del Paraíso, Villa Andalucía, Alturas de Cupey, Jardines 

de Cupey, Brisas de Cupey, Los Claveles, Nuestra Señora de Covodonga, Los Lirios, 

Jardines de Monte Hatillo, Jardines de Campo Rico, Jardines de Berwind, San Martín, 

Monte Park, and Villa Lomas Verdes Public Housing Projects; as well as El Polvorín 

Ward, Mango Sector and other surrounding areas within the municipalities of San Juan, 

Trujillo Alto and Carolina, PR. Moreover, members of the organization used violence 

and intimidation, including murder, to increase the power, territory, and profits of “La 

Rompe ONU.”

Members of “La Rompe ONU” had different roles in order to further the goals of the 

enterprise. As alleged in the indictment, there were thirty-five (35) leaders/drug point 

owners/drug point administrators, who directed and supervised the organization’s cri-

minal activities; twenty-five (25) enforcers; eight (8) suppliers; eleven (11) runners; 

twenty-five (25) sellers; and one (1) drug processor.

According to the indictment, as part of the racketeering conspiracy, the organization 

committed twelve (12) murders, including three (3) massacres. Enforcers of “La Rom-

pe ONU” carried out the murders of the following individuals:

On February 8, 2011, enforcers shot and killed David González-Reyes, aka “Chispa.”
On May 10, 2011, enforcers shot and killed Ricco Luis Dávila-Díaz. On June 25, 2011, 

during a “drive-by” shooting, enforcers shot and killed Edwin Díaz-Cruz, Hervin Val-

carcel-Martínez, aka “Prieto,” Javier Catala-Bermúdez, and Orlando Meléndez-Ville-

gas. This massacre is known as the “Tortuguero Massacre.”On July 20, 2011, during

a “drive-by” shooting, enforcers shot and killed Santos Díaz-Camacho, aka “Joel Ba-

zooka,” Juan Rosario-Mercado, aka “Toñito,” and Kevin Soto-Román, aka “El Gor-

do.” This massacre is known as the “Paseos Massacre.”On August 28, 2012, during a 

“drive-by” shooting, enforcers shot and killed Luis Ojeda-Andino, aka “Pollo,” Luis 

Velázquez-Aquino, aka “Urraca,” and José Ayala-García. This massacre is known 

as the “Jardines de Cupey Massacre.”

According to the indictment, sixty-nine (69) of the one hundred and five (105) defen-

dants are charged with using and carrying firearms during and in relation to a drug tra-

fficking crime. Thirty-two (32) firearms were seized from the defendants during the 

investigation, and they face a forfeiture allegation of eighty-two million dollars ($82,

000,000).

“The historic indictment unsealed today shows our continued efforts to dismantle dan-

gerous criminal organizations operating in our communities. We remain undeterred in 

our commitment to ensure safety and seek justice for victims of violent crimes in Puer-

to Rico,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto 

Rico. “‘La Rompe ONU’ will no longer terrorize law abiding citizens in Puerto Rico. 

We will continue to use all the tools at our disposal to build solid cases against these 

individuals, and bring them to justice.”

“Today’s arrests demonstrate law enforcement’s commitment to dismantle violent drug 

trafficking gangs that are affecting the quality of life of our law abiding citizens in the 

community. The key to this fight is bringing the resources of all levels of government to 

empower law enforcement to target organized groups of violent criminals with enhanced 

punishment and criminal penalties through the utilization of federal statutes, such as, the 

Violent Crime in Aiding and Abetting Racketeering statute. This sends a clear message 

that our community will not tolerate the heinous activity perpetrated by gangs like ‘La 

Rompe ONU,’ and evidences our commitment to work together to dismantle violent 

street gangs,” stated Hugo Barrera, Special Agent in Charge, ATF, Miami Field Divi-

sion.


The defendants are: Josué Vázquez-Carrasquillo, aka “Mayito/Mayo/El Father”; Pedro 

Vigio-Aponte, aka “Pedrito/Pedrito He-Man/Pello/Pedrito Trauma”; Frankie Rosa-Cal-

derón aka “Anky/El Negro/Frank”; Luis F. Alicea-Colón, aka “Trenza/Enano/Luis Tren-

za”; Miguel Vázquez-Martínez, aka “Miguelo/Radio/Miclo/Bj”; Rubén Cotto-Andino, 

aka “Rubén El Negro”; Ernesto Morales-Castro, aka “Nestor/Los Gorditos”; Christian 

Morales-Castro, aka “Bimbo/Los Gorditos”; Reyfrank Quiñones-Carrión, aka “Pelotero”; 

Kelvin D. Morales-Cintrón; Ismael Méndez-Arroyo, aka “Bolillo”; Michael Muñiz-Sán-

chez; Jonathan Pérez-Rodríguez, aka “Perra/Perreke”; José L. Ortiz-Aguirre, aka “Cheo

/Cheo Cedeño”; Reinaldo Rodríguez-Martínez, aka “Pitbull”; William Ortiz-Aguirre, 

aka “Playa/Play”; Kidanny Figueroa-Osorio, aka “Sony/Sonata”; José L. Soto-Rivera, 

aka “Luisito/Scary”; José E. Mojica-Robles, aka “Papito Mojica”; Victor M. Rodríguez-

Torres, aka “Cuca/Cucaracha/Papotin”; Rafael Andino-Ojeda, aka “Rafa/Rafa Colgate/

Boca Chula”; Myles J. Román-Adorno; Guillermo Sánchez-Mora, aka “Guillo”; Emanuel 

Zabala-Pérez, aka “Punky/Dalmata”; Alexander Rivera-Carrión, aka “Lechon”; David E. 

Rodríguez-Castro; Rafael Hiraldo-Alejandro, aka “Bolillo”; Alexis Cartagena-Gerena, 

aka “Pollo”; Ángel L. Soto-Ramos, aka “Huesito”; Oscar A. Calviño-Acevedo, aka 

“Alex”; Jesús De-Jesús-Colón, aka “Romulo”; José L. Méndez-De-Jesús, aka “Sonso/

Nariz”; William Zambrana-Sierra, aka “W/Willito”; Edgar González-Rivera, aka “Eggy”; 

Arnaldo Alicea-Colón, aka “Naldito”; Xavier Castro-Vega, aka “Raton”; Carlos M. 

Guerrero-Castro, aka “Carlitos El Negro/Marcel”; Analdi Tanco-Moreno, aka “Kimbito”

; Orlando J. Santana, aka “Fino”; Luis F. Rodríguez-Márquez, aka “Cheykin”; Jesús E.

 Montalvan-Díaz, aka “Luis Garcia-Diaz/Willy Wonka”; Amaury Méndez-Rosado, aka 

“Boty”; Luis Yanyore-Pizarro, aka “Kimbo/Bauncer/Jose Boria-Millan”; FNU LNU, 

aka “Eziel”; Luis Martínez-Nieves, aka “Raya/Trenza”; Michael Rivera-Rodríguez; 

Alvin A. Cabezas-Cintrón, aka “Ardilla”; Jaime M. Semiday-Pérez; Kenny O. Pacheco, 

aka “Keny/Bolin”; Roberto Fuentes-Pacheco, aka “Junito Parcha”; Roger Falu-Diaz, 

aka “Gua”; Félix A. Malave-Torres, aka “Cholon”; Edgardo Luna-López, aka “Piri/

Enano”; Jessy J. Meléndez-Hernández, aka “Koby/El Negro/Lely”; Denzel Rodríguez-

Caraballo; Abimael Cruz-Rodríguez; aka “Lindo/Feo/Metra”; Ángel L. Cotto-Negrón; 

aka “Quija/Kija”; José E. Rivera-Maldonado, aka “Camon”; FNU LNU, aka “Gaby”; 

José D. Resto-Figueroa, aka “Tego”; Orlando Padilla-Ayala, aka “Oreo/Willito/Angel

 M. Santiago-Ayala”; Kernis Rodríguez-Rivera, aka “Sosa”; Walter D. Muller-Colón, 

aka “Vampy/Bolo”; Wilfredo Ruiz, aka “Freddy”; Carlos E. Brioso-Collantes, aka 

“El Barber/Wiso El Barber”; Carlos Velázquez-Fontanez, aka “Pirin”; Jonathan Figue-

roa-Catinchi, aka “Katinchi”; Iram I. Santander-Zulueta, “Cubano”; Charlie J. Fournier-

Collazo, aka “Chiry”; Edgardo R. Ruano-Chévere, aka “Masacre/Masa”; Francisco J. 

González-Camacho, aka “Lento”; Nestor R. Concepción-Rivera, aka “Nesti/Kilate”; 

Ivette Vázquez-Droz, aka “Ive/Precious Moments”; Billy Villanueva-Carrasquillo, aka 

“Meca/Billy Meca”; Jayfrank Quiñones-Carrión; Félix Rodríguez-Rodríguez, aka “Correa/Baloncelista/El Indio”; Daniel O. Martínez-Vélez, aka “Berto”; Luis F. Díaz-

Tineo, aka “Pipen/Pipe”; Josué O. Figueroa-Rodríguez; Ramón Vicenty-Rivera, aka 

“Poke”; Luis E. Guadalupe-Camacho, aka “Yaya/Yayi/Ardilla”; Julio N. Matos-Sán-

chez, aka “Julio Maraña”; Reynaldo González-Zayas, aka “Cuto”; Bryan Martínez, aka 

“Fat Boy”; Damian Fernández-Jorge; José A. Fournier-Collazo, aka “Semilla”; Kevin 

Castro-Vega; Juan Guadalupe-Delgado, aka “Bocao”; David García-Franco, aka “Da-

vid Nota”; Giovani Justiniano-Díaz, aka “Zegueta”; Christian Vázquez-Hernández, aka 

“Chapa”; James Steele-Torres, aka “Negro Steele”; Nilda Santiago-Espinosa, aka “Ka-

ty”; Alex Santiago-Crespo, aka “Papo Swing/Ale”; Francisco Vargas-Sánchez, aka “Ma-

raña”; Carlos Miranda, aka “Eo”; Ramón Andino-Peguero, aka “Mono”; Victor Alfonso

-Jorge, aka “Nano”; Héctor J. Cruz-Vargas, aka “Punky”; Yamil Arrizmendi-Santana, 

aka “El Mono”; Robert D. Pérez-Núñez, aka “Minino”; Anthony Espada-Colón, aka “

Oreo/Apu”; Daniel De-Jesús-Díaz, aka “Paleta”; Luis E. Espada-Colón, aka “Zona”; 

and Astrid J. Martínez-Valentin, aka “La Jefa.”

Assistant U.S. Attorneys Alberto López-Rocafort and Victor O. Acevedo-Hernández 

are in charge of the prosecution of the case. They were assisted by Attorney from the 

United States Department of Justice’s Capital Crimes Section and Organized Crime 

and Gang Section. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF),

and Puerto Rico Police Department (PRPD) were in charge of the investigation. App-

roximately seven-hundred (700) agents from federal and Commonwealth authorities 

participated in the arrests.

If convicted, the defendants face up to life in prison. Eighteen (18) of the defendants 

who participated in the murders included in the indictment are eligible for the death 

penalty. Indictments contain only charges and are not evidence of guilt. Defendants 

arepresumed to be innocent until and unless proven guilty.

Puerto Rico News Digest For July 10, 2015

THREE GUILTY OF FIREARMS OFFENSES

From US Dept. of Justice:

After an eight-day jury trial, José Cepeda-Martínez, Peter Rosario-Serrano and
Juan Tanco-Baez were found guilty of firearm offenses, announced United States
Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Senior Judge
Daniel Domínguez presided over the trial. According to the evidence presented at
trial, on or about March 26, 2014, the Puerto Rico Police Department (PRPD) arres-
ted Cepeda-Martínez, Rosario-Serrano and Tanco-Báez for weapons violations and
for the murder of an individual which occurred at the Román Baldorioty de Castro
Expressway in Carolina, PR  on the same day.

In the morning of March 26, 2014, a 911 call alerted the PRPD about a rapid gun-
fire reported at the Baldorioty Expressway. The call also alerted about a Jeep Che-
rokee fleeing the scene and going towards San Juan. Officers who were patrolling
the area noted and identified the license plate of the Jeep Cherokee, and immediate-
ly pursued the vehicle. The individuals ended up fleeing the scene and later were
arrested. A total of three Glock Pistols, two of them modified to fire as automatic
weapons, ammunition, marihuana and three cellular phones were seized upon arrest.

PRASA CANCELS CONSTRUCTION CONTRACTS

From Caribbean Business:

The Puerto Rico Aqueduct & Sewer Authority (Prasa) canceled contracts with compa-
nies in charge of the Capital Improvements Program, which could affect the construc-
tion industry and the agency's services, New Progressive Party Sen. Larry Seilhamer
said Thursday. The senator revealed the information in a statement in which he stre-
ssed that it is up to Prasa Executive President Alberto Lázaro to explain what will end
up happening with the program, as companies that manage it, such as CH Caribbean,
Black & Veatch, Malcolm Pirnie and CSA Group, have been left without contracts.
"These massive cancellations represent a mortal blow to the crumbling construction
industry because it affects almost all projects. Preconstruction, which includes plann-
ing, permits and design, has been left with almost zero projects," Seilhamer said.

KRUEGER: GROWTH ESSENTIAL TO RECOVERY

From News Is My Business:

he loss of Section 936 tax breaks, combined with overly indulgent local labor laws and
a federal policy that encourages people to stay on the dole rather than work, have all
contributed to Puerto Rico’s current fiscal nightmare. But only through drastic measu-
res that spur real, sustained growth can the island beat this crisis, said prominent econo-
mist Anne O. Krueger. In a speech at the Washington-based Heritage Foundation, Kre-
uger warned that time was running out for a solution. “Without restoring growth, there
is no possibility of turning around the fiscal crisis. These must be addressed simultane-
ously,” said the former International Monetary Fund executive. “As we speak, the go-
vernment’s cash balances are critically low, and further delays will reduce the room
for maneuvering and the chance they can get out of this without further damage.”

BUSINESSES MUST KEEP BATHROOMS OPEN

From San Juan Daily Star:

Even though most of the San Juan metropolitan area is under a water rationing plan
due to a severe drought, the Health Department has reiterated that businesses must
have their sanitary services open to customers. Visits to several businesses by a local
TV news crew showed that bathroom facilities were in fact closed, with signs posted
on the bathroom doors saying “Bathroom closed due to the water rationing plan.” The-
se establishments are breaking the Health Department’s Environmental Health Division
regulations. From fast-food outlets and shopping malls to restaurants and clothing stores,
all businesses must have at least one bathroom operating that is clean and with a water
supply to enable patrons to flush the toilet and wash their hands. “If a business doesn’t
have a reserve of potable water, then it can’t open, especially a food establishment,”
Health Department Environmental Health Division Director Carlos Carrazo said.

22 Individuals Charged In Superseding Indictment For Drug Trafficking In The Municipality Of Caguas

Department of Justice
U.S. Attorney’s Office
District of Puerto Rico
Press Release


SAN JUAN, Puerto Rico – On June 19, 2015, a federal grand jury in the
District of Puerto Rico returned a superseding indictment against 22 de-
fendants charged with conspiracy to possess with intent to distribute, and
distribution of, controlled substances, announced Rosa Emilia Rodríguez-
Vélez, United States Attorney for the District of Puerto Rico. The Federal
Bureau of Investigation (FBI) and the Puerto Rico Police Department
(PRPD), Caguas Strike Force, are in charge of the investigation.

On August 7, 2013, federal and state authorities arrested 139 individuals
from several areas in the municipality of Caguas. These individuals were
charged in four separate indictments. Seventy-nine of those charged were
part of a drug trafficking organization which operated in the Turabo Heights
Public Housing Project. Today, law enforcement authorities executed 22
arrest warrants against the individuals who continued operating the drug
points at Turabo Heights, after the arrests in 2013.

The superseding indictment charges 22 individuals for conspiracy to know-
ingly and intentionally possess with intent to distribute cocaine base (crack),
heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and
Alprazolam (commonly known as Xanax), all within 1,000 feet of the real
property comprising the Turabo Heights Public Housing Project, a housing
facility owned by a public housing authority, and other areas nearby and
within the Municipality of Caguas, Puerto Rico.

During the span of the conspiracy, in order to be able to operate a drug point
at Turabo Heights, “rent” would be paid to the leaders of the drug trafficking
organization and their family members. As part of the manner and means of
the conspiracy, control of the drug points at Turabo Heights was, obtained and
maintained by the use of force, violence, and intimidation. The drug points
operated twenty-four (24) hours a day in 3 shifts per day, including a “mid-
night marihuana” shift. Facilitators would act as intermediaries in drug sale
transactions when clients opted not to enter the housing project.

The leader of the organization, José A. García-Cosme, aka “Papo Cachete”
was arrested in August of 2013 during the first round of arrests involving this
organization. During his absence from the Turabo Heights Public Housing
Project, García-Cosme maintained control of the drug points through indivi-
duals and co-defendants directly designated by him. These individuals mana-
ged the daily activities of the drug points, the execution of the main leader’s
orders, the collection of payments or “rent” from the different drug point own-
ers, and the safe delivery of those payments or “rent” directly to the leader.

The superseding indictment also alleges that the co-conspirators had many
roles in order to further the goals of the conspiracy, including: the leader, José
A. García-Cosme, aka “Papo Cachete”; suppliers; enforcers; runners; sellers;
and facilitators. Defendants Juan R. Matos-Vázquez, aka “Juan Cabezón;”
Israel Arroyo-Serrano, aka “Pacho;” Alfredo Rivera-Flores, aka “Mamita;”
and Raymond O. Díaz, aka “Ratón,” are also facing one charge of conspiracy
to possess firearms in furtherance of a drug trafficking crime.

The other defendants are: Ramón L. Massa-González, aka “Flaco;” Luz E.
García-Cosme, aka “La Vieja;” Gabriel Arroyo-Serrano, aka “Gloty;” Carlos
Andrés García-Cintrón, aka “Carlitos;” Luis Montañez-Matos, aka “Tío Baúl;”
Ricardo Pastrana-Tollens, aka “Ricky;” Héctor I. Llorens-Ruiz, aka “Cuajo;”
Julio Velázquez-Báez, aka “Mueca;” Israel Banks-Jiménez, aka “Cascarita;”
Javier Colón-González, aka “Loquillo;” John Martir-Rosado, aka “Al Qaeda;”
Xavier Martínez, aka “Manota;” Jessamine Román-Rosa, aka “Katty;” Christian
Colón-Agosto, aka “Loco Hugo;” Miguel Benítez-Benítez, aka “Bebeto;” Ray-
naldo Vázquez-Centeno, aka “Shamu;” and Neftalí Gómez-Dones. The defen-
dants are facing a forfeiture allegation of forty-five million dollars.

Assistant U.S. Attorneys Alberto López-Rocafort and Teresa Zapata-Valladares
are in charge of the prosecution of the case.  If convicted the defendants face a
minimum sentence of 10 years, and up to life in prison. Indictments contain only
charges and are not evidence of guilt. Defendants are presumed to be innocent
until and unless proven guilty.

The defendants were the targets of a long-term Organized Crime Drug Enforce-
ment Task Force (OCDEFT) investigation. The principal mission of the OCD-
ETF program is to identify, disrupt and dismantle the most serious drug traffic-
king, weapons trafficking and money laundering organizations, and those prima-
rily responsible for the nation’s illegal drug supply.

Three Individuals Arrested For Loan Fraud

Press Release

US Dept. of Justice
District of Puerto Rico


May 29, 2015

SAN JUAN, P.R. – Yesterday, a Federal grand jury returned a three-count indictment charging Alejandro Enrique Mayendía-Blanco, Nell N. Blanco-Casanovas (mother of Alejandro) and Orlando Mayendía-Díaz (father of Alejandro) for false statements in loan applications, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) is in charge of the investigation. The indictment was unsealed today and the defendants were arrested.

These charges stem from schemes used by Alejandro Mayendía-Blanco and his co-defendants to obtain money from mortgage lending institutions. The settlement statements for the loans charged all indicate that the buyers (the parents) provided a payment on the day of the closing. However, per the bank records, Mayendía-Blanco refunded his parents either the same day of the transaction or the following day, using the funds obtained from the bank as seller’s proceeds. Mayendía-Blanco’s parents defaulted on the charged loans.

On or about May 24, 2007, the defendants herein and others known and unknown to the Grand Jury, aiding and abetting each other, knowingly made material false statements to First Equity Mortgage Bankers, Inc. (FEMBI), in connection with a loan application to obtain a mortgage loan in the amount of $1,320,000.00, which was to be assigned, sold, and transferred to First Bank of Puerto Rico, a federally insured financial institution.

The false statements include, but are not limited to the following: the HUD Settlement Statement Form states that Nell N. Blanco-Casasnovas (the borrower) provided $314,267.27 as cash from borrower, when in truth and in fact, as the defendants well knew, such statement was false in that Alejandro E. Mayendía-Blanco (seller), refunded Nell N. Blanco-Casasnovas on or about May 25, 2007, with the funds he obtained as the seller’s proceeds, thus making the loan proceeds the true source of the funds.

Counts two and three of the indictment charge Mayendía-Blanco and his father Mayendía-Díaz with false statements in loan applications for two loans in the amount of $140,000.00 and $148,000.00. They used the same scheme described above.

The case is being investigated by ICE-HSI and prosecuted by Assistant United States Attorney Mariana E. Bauzá-Almonte. If found guilty, defendants are facing a maximum penalty of 30 years in prison.


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

Individual Pleads Guilty To Carjacking Murder

Press Release 

Department of Justice
U.S. Attorney’s Office
District of Puerto Rico

SAN JUAN, Puerto Rico – Ángel Ayala-Dávila (“Ayala-Dávila”), 19,  pled guilty
to Count One of an information which charged him, aided and abetted by others,
with the carjacking murder of Roy Figueiredo-Ramos, announced Rosa Emilia
Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. As part
of the plea  agreement the parties have recommended a sentencing range of 24 to
30 years’ imprisonment.

On September 8, 2013, Roy Figueiredo-Ramos (“victim”), arrived at  the Las Da-
lias Public Housing Project (“LDPHP”) in San Juan, PR, driving a grey 2002 To-
yota Camry, which he parked in front of building 29 of LDPHP. Co-defendant
Victor Miguel Duluc-Méndez, charged in a separate indictment, approached the
victim and inquired if he was interested in selling the vehicle. The victim replied
that he was not, but that he was willing to rent it.  Shortly thereafter, Ayala-Dávila
joined the conversation. Ayala-Dávila expressed he liked the 2002 Toyota Camry.

Duluc, Ayala-Dávila and another unknown male stepped away from the victim’s
vehicle and started planning how to take the vehicle and keep it for themselves.
Ayala-Dávila went into his apartment and grabbed a .40 caliber Smith & Wesson
pistol. Thereafter, Duluc, Ayala-Dávila and others took the victim’s car by force.
Duluc drove the victim’s vehicle with victim in the front passenger seat, and Ayala-
Dávila sat in the rear right passenger seat behind victim.

Duluc eventually drove the victim’s vehicle to the Banco Popular Branch located
at Plaza Escorial shopping center, along with Ayala-Dávila and the victim. He par-
ked the vehicle in Banco Popular’s parking lot.  Ayala-Dávila requested the vic-
tim’s ATM card and the PIN number. The victim complied and gave the ATM card
and PIN number to Duluc, who went to the ATM machine and withdrew $150.00.

Once the money was withdrawn, Duluc departed the Banco Popular Branch along
with the victim and Ayala-Dávila. Duluc drove towards Trujillo Alto, PR, stopping
in a rural area between Trujillo Alto and Carolina.  Ayala-Dávila told the victim to
step out to verify whether the vehicle had a flat tire. The victim and Ayala-Dávila
exited the vehicle. The victim verified the front right tire of the vehicle and, as he
turned around in the direction of Ayala-Dávila, Ayala-Dávila produced the pistol,
pointed it at the victim’s head and fired one shot. The victim  died as a result of
this gunshot wound.

After shooting the victim, Ayala-Dávila got into the front right passenger side of
the victim’s vehicle, and Duluc drove them back to LDPHP. Ayala-Dávila proclai-
med that the victim’s vehicle belonged to him because he had been the one who
killed the victim.

“The senseless crime that these men committed had fatal consequences,” said
United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vé-
lez.  “Ayala-Dávila’s guilty plea brings us a step closer to bringing justice and
closure to the victim and his family.”

The sentencing hearing is scheduled for August 26, 2015. The case is being prose-
cuted by Assistant U.S. Attorney Julia Díaz-Rex. Victor Miguel Duluc-Méndez
pled guilty on May 1st, 2014; his sentencing is scheduled for June 25, 2015.  He
faces a sentence of 30 years.


USAO - District of Puerto Rico