Puerto Rico News Digest For June 30, 2016

PROMESA PASSES SENATE, GOES TO OBAMA

From Caribbean Business:

"Congress delivered relief to debt-stricken Puerto Rico on Wednesday,
sending President Barack Obama a last-minute financial rescue package
to help the U.S. territory of 3.5 million Americans. The Senate passed the
bill on a bipartisan 68-30 vote..."

35 PEOPLE CHARGED WITH DRUG TRAFFICKING

From US Attorney's Office:

"On June 23, 2016, a federal grand jury in the District of Puerto Rico retur-
ned an indictment against 35 defendants charged with conspiracy to distrib-
ute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United
States Attorney for the District of Puerto Rico. The Drug Enforcement Ad-
ministration and the Puerto Rico Police Department (PRPD), Ponce Strike
Force Unit, are in charge of the investigation. The indictment alleges that be-
ginning in 2012, the organization distributed heroin, crack, cocaine, and ma-
rihuana, at the Rafael López Nussa, Ernesto Ramos Antonini and the Dr. Ma-
nuel De La Pila Iglesias Public Housing Projects in Ponce; and the El Pino
Ward in Villalba, Puerto Rico, all for significant financial gain and profit. The
thirty-five defendants acted in different roles in order to further the goals of
their organization, to wit: leaders, drug point owners, enforcers, runners, se-
llers, and facilitators. Ten defendants are facing one charge of possession of
firearms in furtherance of a drug trafficking crime..."

PREPA TO ENACT PROVISIONAL RATE HIKE

From The San Juan Daily Star:

"The Puerto Rico Electric Power Authority government power company will
impose a provisional rate increase of 1.299 cents per kilowatt-hour on clients
in the coming weeks after winning approval from the Puerto Rico Energy Co-
mmission. The rate hike is among several requirements the utility must fulfill
as part of a proposed deal with creditors to restructure nearly $9 billion debt..."

AC HOTEL BREAKS GROUND IN CONDADO

From News Is My Business:

"The groundbreaking ceremony for the first AC Hotel by Marriott in San Juan
took place Wednesday for what will be a $45 million investment by Ashford
1369 Hospitality, LLC, an affiliate of Interlink, which acquired the former Am-
bassador Plaza & Casino property in Condado. The investment includes a com-
prehensive renovation of the property to convert it into the Marriott brand..."

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..."

Puerto Rico News Digest For December 11, 2015

BHATIA CONDEMNS GOP FISCAL BILL

From Caribbean Business:

"If Congress does not approve Chapter 9 protections for Puerto Rico
before the end of the year, Bhatia said that the commonwealth will
have to default on Jan. 1 and deal with the legal consequences.“The
proposals set forth by Republicans are not acceptable to anyone at
the moment. I think we have to reject them or amend them,” Bhatia
said in a radio interview. “There is a lot of work to be done during
this week and the next to amend that [bill], and obtain acceptable
proposals for Puerto Rico,” he added. The Puerto Rico Assistance
Act provides short-term tax relief to workers and makes $3 billion
in funds available to the commonwealth, but stops short of granting
the commonwealth access to Chapter 9 bankruptcy protection..."

PR SHOPLIFTING LOSSES AT $490M

From News Is My Business:

"Puerto Rico retailers and the government are losing some $490 million
in annual revenue as a result of shoplifting and organized crime, mem-
bers of the Puerto Rico Marketing, Industry and Food Distribution Cham-
ber said Wednesday. The problem also affects consumers, who pay higher
prices as businesses attempt to compensate for the costs. A portion of tho-
se losses are also attributed to uncollected sales and use tax revenue that
the Puerto Rico Treasury Department is failing to receive..."

PREPA RESTRUCTURING EXTENSION EXPECTED

From San Juan Daily Star:

"As the Puerto Rico Electric Power Authority (PREPA) secured another
extension from bondholders to get insurance companies to sign onto an
agreement to restructure the agency’s $8.2 billion of debt and for comm-
onwealth lawmakers to approve the proposal, financial analyst Daniel
Hanson said Wednesday that he is not surprised by the news. The agree-
ment extends termination dates on an earlier accord between PREPA and
investors owning about 35 percent of the agency’s bonds to Dec. 17, the
utility said in a statement. The pact, which was set to expire Thursday,
was extended for a third time since being signed last month..."

FIRST SAME SEX ADOPTION APPROVED

From Latin Correspondent:

"A court in Puerto Rico has allowed adoption by same-sex couples for
the first time in the country’s history. Judge Ladi Buono De Jesús today
answered Ángeles Judith Acosta Rodríguez’s request to adopt her partner
Carmen Milagros Vélez Vega’s biological child Juliana. The minor will
remain in the national registry under both women’s surnames, according
to Vanguardia.  This was the second time that the couple attempted the
claim..."

COMERIO TWITTER TROLL ARRESTED

From Fox News Latino:

"A Puerto Rico man accused of creating 300 Twitter accounts to harass
people online has been arrested in the first case of its kind for the U.S.
territory, authorities said Tuesday. The island's Justice Department said
27-year-old Omar Falcon Torres is suspected of operating under the na-
me "MedeaBot" for two years. He faces charges that include stalking,
misappropriation of identity and intimidating witnesses in part by send-
ing people "violent sexual imagery" and using violent language, authori-
ties said..."

Puerto Rico News Digest For December 2, 2015

GDB MEETS SCHEDULED DEBT PAYMENT

From Caribbean Business:

"The Government Development Bank for Puerto Rico (GDB) announced
Tuesday that it paid all principal and interest payments due Dec. 1 on cer-
tain outstanding GDB notes. In addition, the Gov. Alejandro García Padi-
lla signed Executive Order No. OE-2015-46, which provides that the co-
mmonwealth will begin to redirect certain revenues "in light of recently
revised revenue estimates and its deteriorating liquidity situation." Pursu-
ant to the order, certain available revenues that have been budgeted to pay
debt service on the debt of certain public corporations may be redirected,
pursuant to constitutional requirements, to pay public debt, or debt issued
or guaranteed by the commonwealth..."

US SENATE HOLDS ANOTHER PR HEARING

From The Hill:

"Puerto Rican officials struck a dire tone about the island’s fiscal state be-
fore lawmakers Tuesday as the territory flirts with a catastrophic default.
On the same day Puerto Rico was due to make a $355 million payment
on its general obligation bonds, island officials were in Washington again
urging lawmakers to provide support to the debt-burdened territory. “Let
us be clear, we have no cash left,” said Gov. Alejandro García Padilla be-
fore the Senate Judiciary Committee. “The emergency measures we have
taken to avoid default and maintain essential services are unsustainable...”

GOVERNOR MUM ON POLITICAL FUTURE

From The San Juan Daily Star:

"Gov. Alejandro García Padilla refused on Monday to talk about his politi-
cal future and said the government does not know yet if it will pay Christ-
mas bonuses to public workers. “The announcement will be made in due
course, when it is appropriate,”he said at a news conference. The governor
returned Saturday from a trip to Europe to promote investment in Puerto
Rico..."

COMPANIES ASK FOR XMAS BONUS WAIVER

From News Is My Business:

"About 950 Puerto Rico-based private-sector companies have asked the De-
partment of Labor and Human Resources to be exempted from paying this
year’s Christmas bonus, the agency revealed Tuesday. This year’s prelimi-
nary number exceeds last year’s applications by 86, the agency’s Labor
Standards division further said..."

Video of US Senate Judiciary Committee Hearing on Puerto Rico

Video is from the hearing held on December 1, 2015. Total length is approximately 2 hours and 20 minutes.

Puerto Rico News Digest For November 30, 2015

AGP, PIERLUISI TO TESTIFY BEFORE US SENATE

From Caribbean Business:

"The U.S. Senate Judiciary Committee will be holding a hearing at 10 a.m.
Tuesday, Dec. 1, on Puerto Rico’s fiscal problems. With jurisdiction over
bankruptcy policy, the Judiciary Committee, chaired by Sen. Chuck Grass-
ley (R., Iowa), is expected to discuss extensively the commonwealth’s eff-
orts to secure inclusion under Chapter 9 bankruptcy protection. The commi-
ttee has invited Gov. Alejandro García Padilla and Resident Commissioner
Pedro Pierluisi to testify as part of the hearing’s first panel. For the second
panel, the witnesses are: University of Puerto Rico finance Prof. Carlos A.
Colón De Armas; Alex J. Pollock, a resident fellow at American Enterprise
Institute in Washington, D.C.; Stephen Spencer, managing director at Houli-
han Lokey; Richard Carrión, executive chairman of Banco Popular; and Ri-
chard Ravitch, former lieutenant governor of New York..."

BOND PAYMENT, SCOTUS DECISION LOOM THIS WEEK

From News Is My Business:

"The government of Puerto Rico is facing a busy week with  the development
of three key events on- and off-island, headed by a decision to make a $354 mi-
llion bond payment by the Dec. 1 deadline. The Government Development Bank
has that payment obligation in Senior Notes looming, of which $273.3m is back-
ed by the Commonwealth’s General Obligation constitutional guarantee...Also
pending is a $120 million disbursement for Christmas bonuses for public emplo-
yees,  which the government has also yet to confirm it will make. Meanwhile,
sometime today, the U.S. Supreme Court is expected to decide on the govern-
ment’s petition for review of the decisions by the U.S. District Court of San
Juan and the Court of Appeals for the First Circuit in Boston declaring uncons-
titutional a law passed on the island that would allow it to restructure its debts
through an orderly process..."

ASES CHIEF REPORTS PROGRESS ON DEBT

From The San Juan Daily Star:

"Health Insurance Administration (ASES) Executive Director Ricardo Rivera
Cardona says ASES has made a sixth payment of $25.7 million to service pro-
viders under the Government Health Plan for debts accumulated under the old
tertiary provider administration model that ended on March 31. “We continue
to pay the debt little by little, according to the availability of funds every mon-
th,” Rivera Cardona said. “We authorized the payment [Monday]. We paid a li-
ttle over $202million, or 61 percent, on the accumulated debt of $333 million,
and liquidated the debt for pharmacy services...”

COAST GUARD FINDS MISSING MAN'S BODY

From Fox News Latino:

"The U.S. Coast Guard has found a body floating off Puerto Rico's northwest
coast that officials believe to be a Chilean man reported missing from a cargo
vessel traveling through the region. The body was dressed in a uniform belon-
ging to the Chilean-flagged Berkay N and was found near where the vessel's
first engineer Luis Leyva Aliaga went missing. The 62-year-old was last seen
at about 11 p.m. Wednesday and was reported missing Thursday after he did
not show up for his assignment..."

Puerto Rico News Digest For November 13, 2015

33 CHARGED WITH TRAFFICKING IN CAYEY

From US Attorney's Office:

"On November 9, 2015, a federal grand jury in the District of Puerto Rico
returned a six-count indictment against 33 defendants charged with conspi-
racy to possess with intent to distribute, and distribution of, controlled subs-
tances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney
for the District of Puerto Rico. Immigration and Customs Enforcement- Ho-
meland Security Investigations (ICE-HSI) and the Puerto Rico Police De-
partment (PRPD), Guayama Strike Force, are in charge of the investigation.
The indictment alleges that beginning in 2008, the organization distributed
heroin, crack, cocaine, marihuana, Oxycodone (commonly known as Per-
cocet and Alprazolam (commonly known as Xanax) within 1,000 feet of a
real property comprising Luis Muñoz Morales and Brisas de Cayey Public
Housing Projects, San Tomás and Canteras Wards, and other areas nearby
and within the Municipality of Cayey, Puerto Rico, all for financial gain
and profit..."

GOVERNOR'S BROTHER SAYS NOT SUBJECT OF INQUIRY

From Caribbean Business:

"Luis Gerardo García Padilla, brother of Puerto Rico's governor and vice
president of marketing at healthcare plan Medicare y Mucho Más, confir-
med his appearance Thursday before a federal grand jury in the U.S. Dis-
trict Court in Hato Rey and said he is not the objective of the ongoing in-
vestigation. "I have provided all the information requested with hopes that
if there has been any violation of the law, my testimony helps bring out the
truth," he said. The jury is investigating an alleged corruption scheme rela-
ted to Anaudi Hernández Pérez, a Popular Democratic Party (PDP) fund-
raiser. The probe is said to involve Puerto Rico Aqueduct and Sewer Au-
thority (Prasa) executives as well as several other fundraisers and business
people close to the PDP..."

PREPA BILL PASSES ANOTHER COST TO CONSUMERS

From The San Juan Daily Star:

"The proposed Puerto Rico Electric Power Authority (PREPA) revitaliza-
tion bill will pass on to consumers the costs of the contribution in lieu of
taxes, or CELI, paid to the 78 municipalities as well as other subsidies,
which are estimated to be $800 million, according to the Energy Commi-
ssion. The cost will be on top of planned hike to electricity rates and the
inclusion of the costs of financing the restructuring of the utility’s $9 bi-
llion debt..."

US SENATE TO HOLD ANOTHER HEARING ON PR

From News Is My Business:

"Senate Judiciary Committee Chairman Chuck Grassley said Thursday
that he will convene a hearing on the Puerto Rico fiscal situation on Dec.
1., in Washington D.C. Grassley said his goal with the hearing is to “help
committee members and the public identify and gain a better understand-
ing of the root cause of Puerto Rico’s fiscal problems, discuss what’s cu-
rrently being done, and consider what options are available that could help
Puerto Rico get itself out of the present situation...”

Elizabeth Warren Rips the Obama Administration on Puerto Rico

After Obama finally rolled out a plan, Sen. Warren calls on the government 
to do more for the US colony.

Mother Jones


By AJ Vicens 


After months of facing indifference from Congress, the people of
Puerto Rico might finally be making progress on getting some help
with the island's massive debt crisis from both the Obama adminis-
tration and Congress.

Last Wednesday, the Obama administration outlined a proposal that
would allow the island's entities to restructure debts, provide "inde-
pendent financial oversight" to ensure Puerto Rico sticks to a finan-
cial recovery plan, reform the unequal treatment of Puerto Rico un-
der Medicaid, and allow Puerto Rico access to the Earned Income
Tax Credit.

The next day, Puerto Rico Gov. Alejandro García Padilla, Rep. Pe-
dro Pierluisi, and representatives from the Treasury Department tes-
tified before the Senate Committee on Energy and Natural Resour-
ces. García Padilla said steep cuts to public services had already
been made, but that if nothing were done, the island would run out
of money next month...[CONTINUE READING]

Puerto Rico News Digest For October 23, 2015

FEDS RAID HOUSING PROJECT

As reported this morning by El Nuevo Dia, federal agents have been
carrying out an operation since early this morning at Los Claveles
public housing project in Trujillo Alto. Agents are serving four sea-
rch warrants from the Immigration and Customs Enforcement agen-
cy (ICE). The operation has to do with drug trafficking and money
laundering, but ICE did not provide much in the way of further de-
tails, other than to say that illegal material was found among the
four apartments that were searched.  

PREPA TO PROPOSE 4 CENT RATE HIKE

From The San Juan Daily Star:

"The Puerto Rico Electric Power Authority (PREPA) plans to sub-
mit a new rate structure calling for a hike of around four cents, sour-
ces inside the utility said. The utility is still working on a study that
will help it decide what would be the appropriate rate. However, the
four-cent hike was the same as proposed by one of the utility’s insu-
rance companies. PREPA Chief Restructuring Offi cer Lisa Donahue
said on Tuesday that with the savings and cuts that have been made
at the utility, it expects to be able to submit a reasonable rate struct-
ure..."

SANDERS & WARREN BLAST VULTURE FUNDS

From News Is My Business:

"The two most prominent progressives in the U.S. Senate urged the
federal government Thursday to help Puerto Rico stand up against
the “vultures” they largely blame for the island’s current fiscal night-
mare. Sen. Bernie Sanders (I-VT), the chief rival of candidate Hilla-
ry Clinton for the 2016 Democratic presidential nomination, took ti-
me out of his packed campaign schedule to engage five witnesses —
including Puerto Rico Gov. Alejandro García-Padilla — who testifi-
ed at a hearing by the Senate Committee on Energy and Natural Re-
sources. Sanders, reeling off a raft of statistics on Puerto Rico’s de-
mographic and fiscal decline, called the island’s 56 percent poverty
rate among children a “human tragedy..."

OBAMA SEEKS BANKRUPTCY FOR PR

From The Chicago Tribune:

"President Barack Obama is pressing for Congress to give Puerto Rico
sweeping powers to reduce its $73 billion debt burden through bank-
ruptcy, escalating administration involvement as the Caribbean island's
access to cash dries up. Puerto Rico would be provided with a form of
bankruptcy protection not now available to American territories. Ad-
ministration officials also called for lawmakers late Wednesday to in-
crease health-care funding for Puerto Rico, extend tax credits to the
poor and put independent oversight in place to monitor the govern-
ment's budget..."

POPULAR POSTS $84.7 MILLION PROFIT

From Caribbean Business:

"Popular Inc. on Friday reported third-quarter net income of $84.7 mi-
llion. The Hato Rey, Puerto Rico-based bank said it had earnings of 82
cents per share. Earnings, adjusted for one-time gains and costs, were
90 cents per share. The a company that runs Banco Popular and other
banks in Puerto Rico and the U.S. posted revenue of $481.8 million in
the period..."

Puerto Rico News Digest For October 12, 2015

TODAY IS COLUMBUS DAY

Today, October 12, is Columbus Day (Día de la Raza). Federal and co-
mmonwealth government offices are closed today. There is no school or
mail delivery, and most financial institutions are closed for the day. The
day commemorates Christopher Columbus' arrival in America. In some
places, it is seen as a day to celebrate the native peoples of the Americas.

US SENATORS URGE CHAPTER 9 ACCESS

From The San Juan Daily Star:

"Twelve U.S. senators, including the top Democrat on the Senate Judici-
ary Committee (Patrick Leahy of Vermont) and the top Democrat on the
Judiciary panel subcommittee that has jurisdiction over the bankruptcy
code (Chris Coons of Delaware) on Thursday wrote Senate Judiciary Co-
mmittee Chairman Charles Grassley a letter seeking a hearing on S. 1774
/H.R. 870, companion bills that would give Puerto Rico access to Chapter
9 bankruptcy protections equal to that of the 50 states..."

POLICE INVESTIGATE TRIPLE KILLING IN BAR

From Caribbean Business:

"Puerto Rico police say three men have been killed and four other people
wounded in a San Juan bar shooting. Sgt. Omayra Arnaldi Vélez says ab-
out 20 people were inside the El Regreso bar in the Hato Rey district when
the shooting took place at about 2:24 a.m. Sunday. She says police have not
yet established a motive or identified the three dead, who were men between
the ages of 20 and 30..."

CUOMO SENDS MEDICAID EXPERT TO PR

From Syracuse.com:

"Gov. Andrew Cuomo is sending his top Medicaid official to Puerto Rico
today, the administration's second trip in two months to help improve the
commonwealth's healthcare system. Cuomo announced Sunday the group
would visit Puerto Rico from Oct. 12 to 14. People on the trip include Lt.
Gov. Kathy Hochul, Secretary of State Cesar Perales, Health..."

Video of US Senate Finance Committee Hearing on Puerto Rico

Video is from the hearing held on September 29, 2015. Total length is approximately
2 hours and 21 minutes. Actual content begins at 23:33.

Commentary: Finance Committee Hearing on Puerto Rico

by Richard Lawless


Yesterday I listened in to the Senate's Finance Committee Meeting on Puerto
Rico.  I heard some very good reasons why the legislative branches of the Uni-
ted States should consider various forms of relief for Puerto Rico. The guest
speakers spoke about how all Puerto Ricans are Americans and should be trea-
ted no differently than other Americans.

The problem is that Puerto Rico is more like other Latin American Countries
and less like other American States. There is a fundamental cultural difference
between Puerto Rico and say, Florida or New York.  The difference is ground
is a long established his tory of political corruption through-out Puerto Rico.

Let’s face the facts: if Puerto Rico were a state, the Governor of Puerto Rico
and half of the legislative branch in Puerto Rico would be in jail. Yes, Puerto
Rico uses the U.S. Dollar, Puerto Rico is protected by the U.S. Army, the FBI
and the U.S. Attorney, but it does little to make Puerto Ricans true Americans.

Until the theft of public assets, the corruption of the Puerto Rican legal autho-
rities, the political graft and basically dishonest and unethical business dealings
come to an end in Puerto Rico, they cannot and will not be considered American.

Any help the mainland gives to Puerto Rico will end up in the hands of a few
corrupt officials while the majority of Puerto Ricans continue to suffer.

Puerto Rico needs to clean house, and that will not happen in this generation.


Richard Lawless is CEO of Commercial Solar Power, Inc. in Temecula, CA. The opinions 
expressed in the preceding article 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 September 23, 2015

LA PLATA LEVELS LOOKING BETTER

Water levels at the La Plata reservoir, which serves several towns including
parts of the San Juan metro area, increased by 74 centimeters overnight due
to yesterday's rains. Puerto Rico's water utility, AAA, expects that once the
reservoir rises another 1.28 meters, the water rationing plan that La Plata
users are currently subject to will go from two days without water to only
twenty four hours of interruption at a time. More rains are expected for the
area this afternoon. According to AAA's President, Alberto Lázaro, ration-
ing for the La Plata zones can come to an end entirely once the reservoir rea-
ches 40 meters. La Plata serves Bayamón, Guaynabo, Toa Baja, Toa Alta
and Cataño, as well as parts of San Juan, Corozal, Naranjito and Dorado.

NPP CANDIDATES VOW TO PUSH STATEHOOD

From The San Juan Daily Star:

A group of New Progressive Party (NPP) aspirants to legislative seats made a
commitment Monday to file legislation in the upper or lower chamber to enable
an admission process for Puerto Rico as the 51st state, as proposed by NPP Pre-
sident Pedro Pierluisi. The aspirants also closed ranks in support of Pierluisi’s
run for the NPP’s gubernatorial candidacy. Among the candidates for seats in
the House of Representatives who support Pierluisi’s aspirations and legislative
agenda are Jackeline Rodríguez (District 25), Carlos Flores (District 20), Hiram
Torres (District 4), Roberto Soto (District 17), Mari Carmen Mas (District 19),
Samuel Pagán (District 35), and Ramón Ramos (District 21).

US SENATE TO HOLD HEARINGS ON PR

From Caribbean Business:

The U.S. Senate Finance Committee is reportedly expected to hold a hearing on
Puerto Rico’s fiscal crisis. According to Bond Buyer, committee Chairman Orrin
Hatch (R.-Utah) said Tuesday a public hearing will take place Sept. 29 to discuss
the “dire financial situation” in Puerto Rico. On July 17, Hatch asked U.S. Trea-
sury Secretary Jacob Lew for the Obama administration’s take on various Puerto
Rico-related issues, such as the island’s fiscal and economic woes.

PREPA RESTRUCTURES $700M IN DEBT

From News Is My Business:

The Puerto Rico Electric Power Authority announced Tuesday it has reached
an agreement in principle regarding the economic terms of a restructuring of
approximately $700 million in matured debt with all of its fuel line lenders.
Under the deal, the fuel line lenders will have the following two options: Con-
vert existing credit agreements into term loans, with a fixed interest rate of 5.
75 percent per annum, to be repaid over six years in accordance with an agr-
eed upon schedule; or Exchange all or part of principal due under existing cre-
dit agreements for new securitization bonds to be issued on the same terms as
PREPA’s agreement with the Ad Hoc Bondholder Group announced on Sept.
1, 2015 (including a 15 percent principal reduction and five-year principal ho-
liday.)

GROUPON SHUTS DOWN IN PUERTO RICO

From Int'l Business Times:

Groupon, the daily deals and e-commerce site, is all set to shut down its
operations in six countries as well as Puerto Rico. Headquartered in Chica-
go, Illinois, and co-founded by Chief Executive Officer (CEO) Eric Lefko-
fsky, Groupon will reportedly lay off 1,100 jobs mainly from the sales and
customer service operations of the company. Groupon Chief Operating Offi-
cer (COO) Rich Williams revealed this restructuring in a blog post stating,
“We believe that in order for our geographic footprint to be an even bigger
advantage, we need to focus our energy and dollars on fewer countries. So,
we decided to exit a number of countries where the required investment and
market potential don’t align.”

Puerto Rico News Digest For July 22, 2015

WATER RATIONING COMES TO THE SOUTH

Puerto Rico's water utility, Autoridad de Acueductos y Alcantarillados  (AAA), 

has announced the implementation of a water rationing program for sectors of the 

municipalities of Coamo, Santa Isabel and Salinas, as the island's worst drought in 

decades threatens underground aquifers in the region. Twelve-hour rationing, where

water flow is cut off to users for 12 hours at a time, begins Thursday, July 23. The 

rationing area is divided into two zones, A and B (see the map above to find out

which neighborhoods are in which zones). Zone A will be the first to see the water

stop flowing at midnight tonight. Water will be reestablished at noon, and then Zone

B will have its water cut off for 12 hours. AAA will not run water oases in these towns,

as rationing will initially only be 12 hours. 

PREPA APPOINTS NEW EXECUTIVE DIRECTOR

From Caribbean Business:

The Puerto Rico Electric Power Authority (Prepa) announced Tuesday the designa-

tion of Javier Quintana Méndez as the new executive director of the financially trou-

bled utility, effective Aug. 3. "The successful transformation of Prepa is crucial for 

Puerto Rico and its citizens. The Governing Board of Prepa selected Dr. Quintana as 

executive director at this important moment, because we believe that his experience 

and background in the energy field will help Prepa reach its goal of becoming a self-

sustaining corporation. Now is the time for the crucial decisions that require great lea-

dership," said Harry Rodríguez, chairman of the utility’s board. Quintana Méndez, 

who has been vice president of Prepa’s board for the past two years, is currently the 

dean of the engineering school at Universidad Interamericana de Puerto Rico, Baya-

món campus, and a member of the Interamerican Board of Energy Resources Direc-

tors. Moreover, he is a former executive director of the Solid Waste Authority (2005-

2008).

TWO MORE SENATORS BACK CHAPTER 9 BILL

From News Is My Business:

Resident Commissioner Pedro Pierluisi announced Tuesday that Senator Patrick Leahy 

of Vermont, the Ranking Democrat on the Senate Judiciary Committee, will cosponsor S. 

1774, the identical companion bill in the Senate to HR 870, the Puerto Rico Chapter 9 

Uniformity Act, which Pierluisi introduced in the House of Representatives in February.

Senator Leahy’s office advised Pierluisi’s office and Leahy will be formally added as a 

cosponsor. In addition, Senator Mark Warner of Virginia, a moderate who sits on the 

Senate Banking Committee and the Senate Finance Committee, has also agreed to co-

sponsor S. 1774, which was introduced last week by Senator Richard Blumenthal of Co-

nnecticut, Senator Charles Schumer of New York, and 10 other U.S. Senators, including 

Minority Leader Harry Reid of Nevada.

PR BASKETBALL TEAM LOSES PAN AM OPENER

From The Courier-Journal:

Rick Pitino's international coaching debut on Tuesday morning was an forgettable 

one. Pitino, coaching Puerto Rico's national team at the Pan Am Games here in Ca-

nada, saw his squad fall behind by 25 points in the first quarter, shoot 33 percent 

and lose 92-59 in a lopsided opener against Brazil at the Mattamy Athletic Centre 

on Ryerson University's campus. The 33-point loss matched a 2009 U of L loss at 

Notre Dame for the worst defeat by a Rick Pitino-coached team in at least the last 

15 years.

Puerto Rico News Digest For June 12, 2015

LAWMAKERS HALT VIDEO LOTTERY BILL

From The San Juan Daily Star:

Two of the Popular Democratic Party (PDP) lawmakers who broke rank
with their party to oppose the governor’s original tax reform proposal --
Carlos Vargas and Ángel Matos -- said Wednesday that Treasury Secretary
Juan Zaragoza does not have the legal wherewithal to authorize and imple-
ment the video lottery gaming system. Zaragoza plans to put the system in
place by the first week of July with the goal of generating some $100 million
in revenues. Based on these premises, the lawmakers have filed House Con-
current Resolution 58 in which they “strongly” reject the executive branch’s
claim that the Treasury secretary has the legal power to establish the video
lottery game through regulations.

GOVERNOR AND MCCONNELL DISCUSS BANKRUPTCY

From Caribbean Business:

Gov. Alejandro García Padilla met with U.S. Senate Majority Leader Mitch Mc
Connell, R-Ky., and fellow Sen. Roger Wicker, R-Miss., to discuss approval
of HR 870, the measure submitted to the U.S. Congress that seeks to include
the Puerto Rican government under Chapter 9 provisions of the federal bank-
ruptcy code. In addition, the governor promoted the bill to Senate Judiciary
Committee Chair Chuck Grassley, R-IA.

NEW COMPANY SEEKS TO MARKET LOCAL FOOD

From News Is My Business:

Viandharina, a new agro-industrial company based in Salinas, has opened for
business in the south following a $1.6 million investment in a plant that
seeks to substitute imports of several Puerto Rican food staples, including
sweet and green plantain and breadfruit “tostones.” During a news conference
at the plant located at the former Aguirre sugar plantation, company Presi-
dent René Soto-Torres said the goal is to “cut by 5 percent the importation
of manufactured agricultural products, which mostly come from Central and
South America.” He said close to 2.5 million pounds of frozen “tostones” are
imported monthly, and another $400 million in manufactured agricultural pro-
ducts are imported annually.

NBA STAR BRINGS NEW PRO SOCCER TEAM TO PR

From News West 9:

NBA star Carmelo Anthony announced Thursday that he is bringing a profe-
ssional soccer team to Puerto Rico for the first time in three years. The new
club, called Puerto Rico FC, will begin playing in the Division II North Am-
erican Soccer League in fall 2016. "It is an honor for me to bring back soccer
to Puerto Rico, my beloved island, birthplace of my father," Anthony, who
plays for the New York Knicks, said at a news conference in the U.S. territo-
ry. "To the thousands of fans in Puerto Rico that have been waiting for soccer
to come back, I can promise a world-class organization in a world-class league."

SEA TURTLE NESTS AT PEAK NUMBERS

From Fox News Latino:

The number of leatherback sea turtle nests spotted this year on San Juan's
beaches is the highest on record, thanks to monitoring and conservation e-
fforts by hundreds of residents and volunteers along the shores of Puerto
Rico's capital. So far, 22 leatherback nests have been located, compared to
the record 18 found last year, Deborah Feliciano, a leader of the 7 Quillas
community group, told Efe, citing Department of Natural and Environmen-
tal Resources, or DRNA, figures.