Puerto Rican Drug Ring Leader Sentenced to Life in Prison

The leader of a major drug trafficking organization arrested during the execution of Operation Grayskull by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) was sentenced Wednesday, December 12, 2012, to life in prison by U.S. District Judge Carmen Consuelo Cerezo.

Ismael Vazquez-Larrauri, 39, of Cayey, Puerto Rico, was found guilty June 15 of conspiracy to possess with the intent to distribute heroin, cocaine, cocaine base and marijuana within public housing projects and schools.

HSI special agents, working jointly with federal, state and local law enforcement partners, conducted simultaneous enforcement actions Aug. 25, 2008, in an operation dubbed Operation Grayskull in the Puerto Rican municipalities of Cayey, Salinas, Guayama, Coamo, Santa Isabel and Jayuya that resulted in the arrest of 64 individuals allegedly involved in a drug trafficking conspiracy. Vazquez-Larrauri, the leader of the organization, remained fugitive but was subsequently arrested May 1, 2009.

According to the Aug. 5, 2008, indictment, which charged 71 individuals for drug trafficking, the object of the conspiracy was to purchase wholesale quantities of heroin, cocaine, marijuana, Oxycodone (Percocet) and Alprazolam (Xanax) for distribution at several public housing projects in Cayey and at drug distribution points in the municipalities of Salinas, Coamo, Santa Isabel, Guayama and Jayuya, all for a significant financial gain and profit.

The indictment further alleges that some of the cocaine purchased was cooked in order to make cocaine-based crack that was later distributed, along with heroin, cocaine and marijuana, in small bags at the drug selling points. The leaders of the organization divided the proceeds of the drug trafficking sales among themselves and their subordinates.

The 71 individuals charged had different roles in the conspiracy, such as leaders, suppliers, runners, enforcers and facilitators to further the goals of the conspiracy. The charging document also alleges that some of the co-conspirators used residences in order to package and conceal the controlled substances as well as the materials to process the contraband.

"The importation of illegal narcotics into the United States is a very serious crime and the unscrupulous persons involved will not receive reprieve from law enforcement," said Angel Melendez, acting special agent-in-charge of HSI San Juan. "In our efforts to keep drugs off the streets of Puerto Rico, we will continue using all of our resources to identify and dismantle drug trafficking and money laundering organizations that operate within our jurisdiction."

ICE encourages the public to report suspected weapons and narcotics smuggling, and related information by calling at 1-866-DHS-2ICE. For more information, visit www.ice.gov.

ICE IMAGE Program Certifies 21 Puerto Rican Companies for Good Employment and Immigration Practices

Twenty-one businesses representing the automotive, marketing, healthcare, restaurant, security, agriculture, food and telecommunications industries became the latest employers to partner with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) to strengthen their hiring practices, reduce fraud and ensure they employ a legal workforce.

The 21 companies officially became members of ICE's Mutual Agreement between Government and Employers (IMAGE) Thursday, December 6, 2012, during the largest IMAGE signing ceremony since inception of the program. IMAGE is a voluntary program that allows private sector businesses to partner with ICE to reduce unauthorized employment and the use of fraudulent identity documents. As a result, a participating employer is able to maintain a more secure, stable workforce.

"I am pleased to welcome these companies as IMAGE partners," said Deputy Assistant Director of the HSI Transnational Crime and Public Safety Division Waldemar Rodriguez, who has been working closely with company officials in the IMAGE participation process. "This action sends a strong message to the thousands of Puerto Ricans who do business with these companies that the company places a priority on hiring and employing a legal workforce."

"Our IMAGE partnerships enable us to recognize the highest level of employment integrity and foster best hiring practices," said Angel Melendez, acting special agent in charge of HSI San Juan. "When employers make a commitment to hire and maintain a lawful workforce, it's good for their business and it's good for the community. In tough economic times, companies like these, who join IMAGE, have made a commitment to protecting our nation's lawful workforce."

Artic-kar Inc. is an auto processing company in Puerto Rico and the Caribbean with more than 500,000 vehicles processed to date. With more than 30 years in the automotive industry, Artic-Kar provides its business partners with inspection, logistics, transportation and installation services. The company has its headquarters in Guaynabo, Puerto Rico, with operations in Cataño and Toa Baja, Puerto Rico.

BBDO Puerto Rico Inc. is a marketing and publicity company with 15,000 employees in 289 offices across 81 countries. Their core competencies include advertising, branding, email marketing, mobile and social media, strategy and planning, interactive marketing, direct marketing and design.

Ciracet Corp. is dedicated to the management of healthcare technology and consulting. Comprised of engineers and healthcare professionals, their combined experience allows them to engineer new tools in the medical profession. With more than 60 years of combined experience, Ciracet Corp. provides healthcare in general with engineering tools that can be used during the entire life cycle of medical technology to enhance patient care services, improve healthcare facilities operations and maximize the cost effectiveness of those services.

El Meson Sandwiches Inc. and QSR Champs Inc. are two Puerto Rican franchise businesses with 36 establishments throughout the island with a current workforce of approximately 1,500 employees. QSR Champs Inc. provides administrative support to Meso Express Inc., El Meson Sandwiches Inc., and Western Meat Processors Inc.

Garaje Isla Verde, LLC is the exclusive dealer of Mercedes Benz vehicles in Puerto Rico. The company is currently one of the most recognized companies on the island for their product and service.

G4S Secure Solutions Puerto Rico Inc. is a United Kingdom subsidiary that provides full service security services, including monitoring station, field supervision, risk assessment, contract risk management, mobile patrol, executive protection, security cameras, signal monitored burglary and fire alarms, vehicular tracking and access control systems among other services.

Hacienda Santa Elena Inc., RF (MT Llanos) Inc., and Ganaderias del Sur, S.E. are a cattle breeding, calf raising, hay and silage farms and affiliates of Empresas Fonalledas.

Meso Express is a popular hometown eatery that serves full hot breakfasts and hot grilled Caribbean sandwiches. It is a Puerto Rican business with three establishments located in gas stations and shopping mall food courts in the San Juan metropolitan area.

Plaza del Caribe Inc. is the main shopping mall facility in southern Puerto Rico and an affiliate of Empresas Fonalledas.

Plaza Las Americas Inc. is the main shopping mall facility in Puerto Rico and an affiliate of Empresas Fonalledas.

San Jorge Children's Hospital provides healthcare services for children in Puerto Rico and the islands of the Caribbean. The hospital has a workforce of approximately 450 employees.

Soft & Creamy Inc. is an ice cream company chain and an affiliate of Empresas Fonalledas with approximately 100 employees.

Stryker Instruments Puerto Rico Inc. is a global orthopedic company operating in Puerto Rico for the past 30 years. The company has a workforce of approximately 1,000 employees.

Supermercados Maximo Inc. is a local supermarket company with a workforce of approximately 1,600 employees in its 15 stores.

V. Suarez & Co. Inc. is one of Puerto Rico's largest commercial groups and one of the largest Hispanic firms in the United States. The company is diversified in three distinct businesses: food and beverage distribution, investment management and real estate.

Western Meat Processors is a meat processing company that delivers all food supplies for the El Meson Sandwiches and Meso Express establishments.

Worldnet Telecommunications Inc. is the third largest provider of internet and telecommunications services in Puerto Rico. The company has a workforce of approximately 200 employees.

Undocumented workers create vulnerabilities in today's marketplace by presenting false documents to gain employment, completing applications for fraudulent benefits, and stealing identities of legal United States workers. To combat this, ICE initiated the IMAGE program in 2006.

As part of the IMAGE program, ICE provides private companies with education and training on proper hiring procedures, including use of employment screening tools such as E-Verify. IMAGE certified companies also undergo an audit of their I-9 forms to ensure current employees are eligible to work in the United States.

Puerto Rico employers interested in learning more about IMAGE membership may call the ICE IMAGE coordinator in San Juan at 787-729-5151 or visit www.ICE.gov/IMAGE.

Joint HSI and IRS Probe Arrests 53 for Identity Theft, Tax Fraud, and Government Theft

Fifty-three individuals charged with theft of government property and identity theft were arrested Wednesday, November 14, 2012, in several municipalities of Puerto Rico following a joint Internal Revenue Service (IRS) and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) probe.

The case involves a scheme to defraud the United States by fraudulently obtaining and converting to cash U.S. Treasury checks issued by the IRS in connection with fraudulent tax returns filed with the agency. As part of the scheme, tax returns were filed using the personal identifying information of individuals, when in reality, said individuals never filed such tax returns with the IRS. The investigation has revealed that the fraudulent tax returns were filed without the consent of the taxpayers who appear in the returns.

The majority of the defendants would attempt to negotiate the Treasury checks by depositing them in their accounts at financial institutions such as banks and credit unions. Other defendants cashed or attempted to cash the checks at post offices. When a defendant attempted to cash the check at a post office, he or she would present a false identification document such as a driver's license.

If convicted, the defendants face a maximum possible sentence of 10 years on the theft of government property charge, plus two consecutive years if convicted on the aggravated identity theft charge. The investigation is ongoing.

The case is being investigated by the IRS, Criminal Investigation Division, with the collaboration of HSI, the U.S. Postal Inspection Service and the U.S. Secret Service, and is being prosecuted by First Assistant U.S. Attorney Maria A. Dominguez. The Puerto Rico Police Department and the San Juan Municipal Police participated in the arrests.

ICE encourages the public to report suspected fraud and identity theft-related information by calling 1-866-DHS-2ICE.

ICE Puerto Rico Target Operation Arrests 27 Drug Traffickers

Twenty-seven alleged members of a Puerto Rican drug trafficking and money laundering organization responsible for the importation of multi-kilograms of cocaine into the United States were arrested Friday, November 9, 2012, in several municipalities of Puerto Rico.

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, working jointly with Puerto Rico Police Department (PRPD) and San Juan Police Department (SJPD) officers, launched Operation Caribbean Pirates Phase II as part of HSI’s strategy to dismantle drug lord Jose Figueroa-Agosto’s, aka Junior Capsula’s, drug trafficking organization.

"The indictment and arrest of these individuals sends a clear message to those involved in drug trafficking and money laundering that HSI will go after them, bring them to justice and seize the assets produced by their illicit activity," said Angel Melendez, acting special agent in charge of HSI Puerto Rico.

Jose Figueroa-Agosto, 47, the leader of the largest drug trafficking organization in the Caribbean, and 12 other members of his organization were arrested by HSI special agents Nov. 21, 2010.

The group was charged in a 12-count indictment with conspiracy to import narcotics into the United States, conspiracy to possess with intent to distribute controlled substances and money laundering. The indictment also seeks to forfeit the proceeds obtained as a result of such offenses, up to an amount of $100 million.

On Friday, November 9, 2012, HSI special agents arrested 27 additional alleged members of Figueroa-Agosto’s drug trafficking organization who, according to the indictment, played the role of transporters and facilitators for the organization. As part of the conspiracy, it is alleged that these individuals smuggled hundreds of kilograms of cocaine into Puerto Rico from the Dominican Republic in private vessels. The narcotics were then distributed in Puerto Rico and the continental United States. Part of the drug proceeds would also be smuggled from Puerto Rico back into the Dominican Republic in bulk cash quantities.

Those arrested were:

·                             Alex Manuel Rivera-Figueroa

·                             Alexis Centeno-Luciano

·                             Axel Ramos-Echeandia

·                             Bryan Mulero-Rivera

·                             Carlos Rodriguez-Millan

·                             Carlos Latoni-Morales

·                             Carme Gonzalez-Colon

·                             Esaul Hernandez

·                             Felipe Encarnacion-Paredes

·                             Fernando Nieves-Lopez

·                             Harold Luciano-Betancourt

·                             Ismael Otero-Paris

·                             Jeffrey Nunez-Jimenez

·                             Jonathan Alfonso-Rodriguez

·                             Jose Luis Morales-Varona

·                             Luis Rivera-Dones

·                             Norma Vazquez-Figueroa

·                             Obie Colon-Pena

·                             Paulino Mejias-Garcia

·                             Rafael Fuentes-Miranda

·                             Reinaldo Martes-Perez

·                             Ruben Mendez-Matias

·                             Yamil Davila-Lopez

·                             Yolymar Negraon-Cosme

·                             Ysmael King-Almeida

·                             Juan Carlos Berrios-Sanchez

·                             Eddie Brito-Martinez

Those arrested were transferred to the Metropolitan Detention Center in Guaynabo, Puerto Rico. One remaining suspect, Cesar Caballero-Collazo, remains a fugitive.

If the allegations contained in the indictment result in convictions, all defendants shall forfeit to the United States properties and/or cash for a total of $100 million.

If convicted, the defendants face a sentence of a minimum of 10 years and a maximum of life in prison, and fines of up to $4 million. Defendant Figueroa-Agosto is facing a mandatory life sentence if found guilty of the continuing criminal enterprise charge.

ICE encourages the public to report suspected weapons and narcotics smuggling and related information by calling at 1-866-DHS-2ICE. For more information, visit www.ice.gov.

Puerto Rican Man Faces Ten Year Sentence for Distribution of Counterfeit Pharmaceuticals

A Puerto Rican man faces up to 10 years in prison after being found guilty by a jury the week ending in August 10, 2012, on federal charges stemming from his role as a key operative for a drug ring that distributed large quantities of Chinese-made counterfeit pharmaceuticals throughout the United States and worldwide.

Francis Ortiz Gonzalez, 36, was convicted following a six-day trial on one count of conspiracy and seven counts of trafficking in counterfeit pharmaceuticals. His sentencing is set for Nov. 8 before U.S. District Judge George Wu. Ortiz-Gonzalez. His wife, Ideliz Aleman-Valentin, and two other defendants were named in a 30-count indictment handed down by a grand jury in Los Angeles in June 2009. The jury that convicted Ortiz acquitted Aleman-Valentin.

In 2009, special agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Ortiz-Gonzalez's residence in Trujillo Alto, Puerto Rico, a suburb of San Juan. Inside the home, investigators found more than 100,000 pills made to resemble a variety of popular prescription medications, including Viagra, Cialis, Valium, Xanax and Lipitor.

The ensuing investigation revealed that Ortiz-Gonzalez had packaged and shipped more than 160,000 counterfeit tablets during a six-month period in 2009 while working for the organization. Many of those shipments were mailed to Southern California, which is why the case was brought to Los Angeles.

The burgeoning popularity of e-commerce has led to an explosion in the number of websites offering prescription drugs online," said Claude Arnold, special agent in charge for HSI Los Angeles. "But consumers who are considering purchasing pharmaceutical products over the Internet should heed that old expression 'buyer beware.' Part of what you're paying for when you buy established brands, regardless of the product, is quality control. Imposter drugs like these pose a serious threat to users who mistakenly assume these substances are safe."

The indictment allege that Ortiz-Gonzalez acted as U.S.-based distributor for a criminal enterprise, allegedly headed by Bo Jiang, 34, a Chinese national whose last known residence is New Zealand. In January 2011, Jiang was taken into custody on a provisional arrest warrant by authorities in New Zealand, but fled shortly after being released on bond. He remains a fugitive.

According to the indictment, Jiang advertised the counterfeit medications over the Internet. As part of the scheme, he allegedly recruited individuals from around the world to act as distributors for the products. The U.S.-based distributors, including Ortiz-Gonzalez, were responsible for receiving the parcels of counterfeit pharmaceuticals from China, then repacking and shipping them to fill individual customer's orders throughout the United States.

The probe, which commenced in 2008, involved HIS Los Angeles, the Food and Drug Administration, Office of Criminal Investigations and the U.S. Postal Inspection Service.

The Department of Homeland Security and the Department of Justice are working together to combat intellectual property crimes. In fiscal year 2011, HSI and U.S. Customs and Border Protection made nearly 25,000 seizures involving counterfeited and pirated products, a 24 percent increase compared to fiscal year 2010.

As the largest investigative arm of the Department of Homeland Security, HSI plays a leading role in targeting criminal organizations responsible for producing, smuggling and distributing counterfeit products. HSI focuses not only on keeping counterfeit products off our streets, but also on dismantling the criminal organizations behind such illicit activity.

ICE and HSI Launch License Regulation Campaign in Puerto Rico

U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) joined forces with the Puerto Rico Department of Transportation and Public Works (DTOP) and Department of Health to fight document and benefit fraud Tuesday, March 27. In launching the "Doing the Right Thing" campaign, HSI and its local partners announced that they will work together to identify potential suspicious activity on the part of Department of Motor Vehicles (DMV) and Demographic Registry (DR) customers and evidence of fraud or corruption among DMV or DR personnel.

In December 2009, HSI approved the Identity and Benefit Fraud Unit (IBFU) to proceed with an outreach campaign to raise awareness about corruption at DMV facilities nationwide. In Puerto Rico, the initiative extended to the DR. ICE developed a poster, brochure and short outreach video entitled "Do the Right Thing: Stop Identity and Benefit Fraud" to support the outreach and educate DMV employees and the public about the seriousness of identity and benefit schemes perpetrated at the DMV throughout the nation. The materials are intended to provide guidance to DMV and DR employees by promoting accountability and vigilance in an effort to reduce corruption and preserve the integrity of the DMV and DR process.

A principal component of the campaign is to alert DMV and DR employees, law enforcement and the public about fraud schemes perpetrated at DMV facilities. By adding education and outreach components, ICE is proactively taking steps to deter the crime from happening, encouraging people to report the crime, and developing strong partnerships to ensure that its investigations are comprehensive and more efficient.

The issuance of genuine identification documents through fraudulent means at DMV facilities directly impacts homeland security, highway safety and general society through identity theft. The driver's license has morphed from its intended use as a document that allows an individual to operate a vehicle into a document that has become a "de-facto" national identity card.

The driver's license can be used as proof of identity when completing employment eligibility forms, boarding an aircraft, opening a bank account and demonstrating residency to many forms of local, state and federal government components. There is no clearer example of the threat posed by fraudulently obtained legitimate driver's licenses than the fact that 19 hijackers involved in the Sept. 11, 2001, attacks used 364 aliases and were able to obtain a total of 26 state-issued DMV identification documents, many through fraudulent means.

Prior to Sept. 11, 2001, the problem of identity theft was primarily as a financial matter, as a significant component of fraud. However, it was the events of September 11 that triggered society's awareness of the criminal use of false identifiers and false identification documents, including driver's licenses.

"Document and identity fraud are serious crimes that pose a threat to both public safety and national security, and it is our responsibility to educate the public and those involved in the issuance of these documents of the dangers of letting them fall in the wrong hands and the consequences of conspiring to commit fraud," said Angel Meledez, acting special agent in charge of HSI San Juan. "We applaud our partners in DTOP and Department of Health for assisting us in this endeavor."

Puerto Rico Birth Certificate

Although local legislation led to the creation of a new, more secure Puerto Rico birth certificate, criminal organizations always find a way to forfeit government issued documents or obtain legitimate ones to perpetrate their crimes. As recently as January 2012, 50 individuals were charged in an indictment in Puerto Rico with conspiracy to commit identification fraud in connection with their alleged roles in a scheme to traffic the identities of Puerto Rican U.S. citizens and corresponding identity documents. The charges were the result of an extensive investigation led by HSI, in partnership with other federal, state and local law enforcement agencies.

According to the indictment, conspirators in 15 states and Puerto Rico trafficked the identities of Puerto Rican U.S. citizens, corresponding Social Security cards, Puerto Rico birth certificates and driver's licenses to undocumented aliens and others residing in the United States. As alleged in the indictment, the customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver's licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.