In Puerto Rico and Washington DC

After weeks of anticipation the Federal Bureau of Invetigations (FBI) arrested former secretary of the Department of Education of Puerto Rico, Julia Keleher, and former director of Health Insurance Administration, Angela Avila.

Other former contractors of the Puerto Rican Government under the Department of Education and Health Insurance Administration were also arrested. Among them, the director of the consulting firm BDO, Fernando Scherer, and BDO subcontractor Alberto Velazquez Piñol.

Keleher and Velázquez Piñol were arrested in Washington DC and Connecticut respectiveley.

The former secretary of Education is charged with wire fraud after she allegedly aided Mayra Ponce Mendoza by feeding her privilaged information through her sister and employee of Keleher in the agency, Glenda Ponce Mendoza.

Glenda would give out the information to her sister who during the process of Request for Proposals would have an edge over other competitors, constantly winning out thanks also to the aid of Keleher, who lobbied from the inside to get her contracts approved.

In turn, some of the money from those contracts would be used to pay for Keleher’s special assistant, who is not mentioned by name in the indictment.

Keleher and Avila had submitted their resignations from the Rossello Nevares Administration as recent as april and june of this year, after federal investigations were publicaly known. BDO Puerto Rico, on the other hand, had several contracts with Health Insurance Administration and Treasury that amounted to $ 2.2 million.

While these arrests ocurr, Governor Rossello is on vacactions in Europe but in a statement he assumed ‘the responsibility and commitment to fight that evil in all instances, until I succeed in doing of Puerto Rico an example of the values and principles on which a more just, dignified and productive society is built, I reiterate that our administration will not tolerate corruption and that anyone who fails to trust must pay with the full weight of the law. I also reiterate the call for collaboration with the law and order agencies that work in these cases.’

You can read the indictment here