DOJ: Puerto Rico Legislator and Two Capitol Employees Indicted for Theft and Bribery

#maytheheavensfall

On Wednesday, a federal grand jury in the District of Puerto Rico returned an eight-count indictment against legislator Nelson Del Valle Colon (Del Valle Colon), a member of the Puerto Rico House of Representatives, as well as two of his employees, Nickolle Santos-Estrada (Santos) and her mother Mildred Estrada-Rojas (Estrada), for their alleged participation in a multi-year theft, bribery, and kickback conspiracy.

The indictment charges Del Valle Colon, Santos, and Estrada with conspiracy as well as theft, bribery, and kickbacks concerning programs receiving federal funds.  Del Valle Colon is facing two additional counts of honest services wire fraud, and one count of obstruction of justice for destroying data on his cell phone.

According to the allegations in the indictment, in early 2017, Del Valle Colon fraudulently inflated the salaries of Santos, Estrada, and another individual for no legitimate reason, and corruptly agreed that out of their inflated paychecks, the employees would keep a portion for themselves and kick back the other portion, generally between approximately $500 and $2,000, to Del Valle Colon.

“Puerto Rico legislator Nelson Del Valle Colon and his employees allegedly embarked on a years-long conspiracy to enrich themselves by embezzling funds and using bribes and kickbacks to defraud the Commonwealth of Puerto Rico,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “As this case shows, the Department of Justice and our law enforcement partners are committed to holding elected officials accountable for corrupt conduct.”

“Public corruption destroys the trust we have in our elected officials, which is essential for democracy to thrive,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico.  “In this case, the citizens of Puerto Rico were betrayed by legislator Del Valle Colon, an elected official who abused his position for personal gain, and who must be held accountable for violating one of the basic tenets of public trust, that is, serving his constituents with integrity and honesty. The U.S. Attorney’s Office, and our law enforcement partners, will continue to relentlessly investigate and prosecute anyone who tries to undermine our system of government.”

“As we have said numerous times, public corruption is and will continue to be a priority for the FBI,” said Special Agent in Charge Rafael Riviere of the FBI’s San Juan Field Office.  “May today be a reminder that we will not tolerate corruption and we will act swiftly to remove those who would violate public trust.  Special thanks to our DOJ partners for their support of our mission.”

The indictment further alleges that the defendants used a variety of means to transfer the kickbacks to Del Valle Colon.  Allegedly, Santos, Estrada, and the other individual would sometimes transfer cash by hand to Del Valle Colon.  The defendants would also sometimes transfer kickbacks in approximately $500 increments to Del Valle Colon using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones.

The honest services wire fraud counts against Del Valle Colon involve WhatsApp messages sent by Del Valle Colon that furthered the scheme to defraud and deprive the citizens and the government of the Commonwealth of Puerto Rico of their right to Del Valle Colon’s honest services.

The indictment also charges Del Valle Colon with obstruction of justice.  After becoming aware of the investigation into illegal activities at his legislative office in or about July 2020, Del Valle Colon deleted data on his cell phone including communications between himself and Santos, and between himself and Estrada.

The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott Anderson from the U.S. Attorney’s Office for the District of Puerto Rico.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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DOJ: Senator Abel Nazario Quiñones Indicted And Arrested For Bribery Concerning Programs Receiving Federal Funds

Another transposable model for Michigan, particularly Detroit.

Abel Nazario-Quiñones

SAN JUAN, P.R. – Today, Senator Abel Nazario-Quiñones and seven other defendants were arrested and charged in a one-count indictment alleging theft or bribery concerning programs receiving federal funds, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The FBI is in charge of the investigation with the collaboration of the Puerto Rico

Comptroller’s Office, and the U.S. Department of Labor (DOL) Office of Inspector General (OIG).

Defendant Abel Nazario-Quiñones was first elected Mayor of Yauco, a municipality in Southwest Puerto Rico, in 2000, and continued to be the mayor until December of 2016. The other defendants are: Edwin Torres-Gutiérrez, Special Assistant to the Mayor; Claribel Rodríguez-Canchani, Director of Human Resources for the Municipality; Humberto Pagán-Sánchez, Kelvin Ortiz-Vegarra, Ramón Martes-Negrón, Juan Rosario-Núñez, and Eric Rondón-Rodríguez, who were all irregular employees of the Municipality under Mayor Nazario-Quiñones.

In August 2016, during a routine audit of the Municipality’s records, the PR Comptroller’s Office discovered that there were irregular employees paid by the Municipality of Yauco who either never showed up for work, or showed up sporadically. During the years 2014 until 2016, the defendants conspired and agreed with each other to knowingly embezzle, steal, obtain by fraud, or otherwise without authority convert to the use of any person other than the rightful owner, or intentionally misapply, property valued at more than $5,000.00 that was owned by, or under the care and custody of the Municipality of Yauco. All in violation of Title 18, United States Code, Sections 371 and 666(a)(1)(A).

The purpose of the conspiracy was for defendant Abel Nazario-Quiñones, with the assistance of defendants Edwin Torres-Gutiérrez and Claribel Rodríguez-Canchani, to pay defendants Humberto Pagán-Sánchez, Kelvin Ortiz-Vegarra, Ramón Martes-Negrón, Juan Rosario-Núñez, and Eric Rondón-Rodríguez from Municipal funds to work on the senatorial campaign of defendant Nazario-Quiñones. A further purpose was for the irregular employees to provide assistance to the campaigns of other party politicians whose support Nazario-Quiñones would need to win the senatorial election and for a subsequent bid to become President of the Senate.

According to the indictment, defendant Nazario-Quiñones signed numerous irregular employment contracts for defendants Pagán-Sánchez, Ortiz-Vegarra, Martes-Negrón, Rosario-Núñez, and Rondón-Rodríguez. The listed justification in each contract was “Necesidad de Servicio” (“Need for Service”).  The listed office in each contract was “Oficina del Alcalde” (“Office of the Mayor”).  The listed immediate supervisor in each contract was defendant Torres-Gutiérrez, who instructed these irregular employees to report to the Municipality either once a week or once a month. After learning that the municipality was under investigation, Torres-Gutiérrez instructed the employees to report to the Municipality either two times a week or two to three times a month, and then sent them to different offices within the Municipality.

Defendants Pagán-Sánchez, Ortiz-Vegarra, Martes-Negrón, Rosario-Núñez, and Rondón-Rodríguez reported to the Municipality to collect their paychecks and attend meetings in the Annex building with defendants Nazario-Quiñones and Torres-Gutiérrez to discuss defendant Nazario-Quiñones’ campaign. These five irregular employees sporadically completed time and attendance records, and when they did, Torres-Gutiérrez instructed them to simply sign them and leave the hours worked portion blank.

Defendant Abel Nazario-Quiñones ordered defendants Torres-Gutiérrez and Rodríguez-Canchani to direct employees of the Department of Human Resources, either verbally or in writing, to process payroll for the five irregular employees based on false or no documentation to support the payment of wages. Rodríguez-Canchani ordered at least one employee of the Human Resources Department to assist her in creating false time and attendance records and then manipulated the falsely created time and attendance sheets in such a way as to make them appear old.

“Together with our law enforcement partners, our office will continue to aggressively pursue corrupt individuals in the government who defraud their constituents,” said U.S. Attorney W. Stephen Muldrow. “This prosecution serves as a warning to other public officials involved in these types of schemes that they will be punished, and as a promise to taxpayers that such violations of the public trust will not be tolerated.”

“The FBI thanks it’s partners at Office of the Comptroller of Puerto Rico (OCPR) whose diligence is directly responsible for the discovery of this scheme, as well as DOL, the IG and the USAO for their never ending pursuit of justice. As always, we encourage the public to come forth with any kind of information related to these and any other federal crimes. Anonymous tips can be provided at Tips.FBI.gov and 787-754-6000,” said Douglas Leff, Special Agent in Charge, Federal Bureau of Investigation.

“The U.S. Department of Labor’s Office of Inspector General investigates allegations of serious misappropriation of federal funds. We would like to thank the United States Attorney’s Office for the District of Puerto Rico, Puerto Rico’s Comptroller’s Office, and the U.S. Department of Education and Social Security Administration’s Offices of Inspector General for their support and assistance in this investigation,” said Michael C. Mikulka, Special Agent in Charge, New York Region, U.S. Department of Labor Office of Inspector General.

“Once more we see the results of the coordinated efforts between federal agencies and the Office of the Comptroller of Puerto Rico. To the People of Puerto Rico, we want to let them know that they have the certainty and assurance that the Comptroller’s Office remains ever vigilant in the proper use of government property and public funds. We will continue to collaborate with the different supervisory entities in the fight against corruption,” said the Comptroller of Puerto Rico, Yesmín M. Valdivieso.

The case is being prosecuted by Assistant United States Attorney Scott Anderson. The case was investigated by the Puerto Rico Comptroller’s Office, the U.S. Department of Labor (DOL) Office of Inspector General (OIG), and the FBI. The defendants are facing a maximum term of imprisonment of 10 years, and a fine not to exceed $250,000.

An indictment is only an accusation and not evidence of guilt. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

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#Rickygate: Ricardo Rossello Privatized Puerto Rico With The Michigan Emergency Manager Petard - It Just Blew Up In The Face Of The World

Damn. He is an asshole.

I rarely say this.

These are the Ricardo Rossello texts at the center of Puerto Rico's outrage

The texting scandal, dubbed "Chatgate" and "Rickygate," was sparked by these shocking comments. This is the Michigan Emergency Manager Law Petard Model that was transposed to Puerto Rico and just blew up in the face of the world.

http://beverlytran.blogspot.com/search?q=puerto+rico#axzz5uWdYuA26

The same damn people behind these fraud schemes did the same thing to Haiti.

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DOJ: South Florida Resident Sentenced to 30 Years for $100 Million International Fraud Scheme that Led to the Collapse of One of Puerto Rico’s Largest Banks

I wonder how many trafficking tiny humans trust funds were found.

https://westernbank.com/

A Key Biscayne, Florida, resident and the former CEO and Chairman of a now-bankrupt multinational pharmaceutical company was sentenced to 30 years in prison followed by five years of supervised release yesterday for his role his role in a $100 million scheme to defraud Westernbank of Puerto Rico (Westernbank). The losses triggered a series of events leading to Westernbank’s insolvency and ultimate collapse.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Special Agent in Charge Michael J. DePalma of IRS Criminal Investigation (IRS-CI) for Miami and Puerto Rico, Special Agent in Charge Iván J. Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office made the announcement.

Jack Kachkar, 56, was sentenced by U.S. District Judge Donald L. Graham of the Southern District of Florida, who also presided over the trial in this case.  Judge Graham also ordered the defendant to pay $103,490,005 in restitution to the FDIC, as receiver for Westernbank.  Kachkar was convicted on Feb. 4, 2019, after a three-week trial, of eight counts of wire fraud affecting a financial institution. 

According to evidence presented at trial, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., a publicly traded multinational pharmaceutical manufacturing company.  Beginning in early 2005, Kachkar caused Westernbank to enter into a series of loan agreements in exchange for a security interest in the assets of Inyx and its subsidiaries.  Under the loan agreements, Westernbank agreed to advance money based on Inyx’s customer invoices from “actual and bona fide” sales to Inyx customers, the evidence showed.

The trial evidence showed that Kachkar orchestrated a scheme to defraud Westernbank by causing numerous Inyx employees to make tens of millions of dollars worth of fake customer invoices purportedly payable by customers in the United Kingdom, Sweden and elsewhere.  Kachkar caused these invoices to be presented to Westernbank as valid invoices.  Kachkar made false and fraudulent representations to Westernbank executives about purported and imminent repayments from lenders in the United Kingdom, Norway, Libya and elsewhere in order to lull Westernbank into continuing to lend money to Inyx, the evidence showed.  In fact, these lenders had not agreed to repay Westernbank’s loan.  Kachkar made false and fraudulent representations to Westernbank executives that he had additional collateral, including purported mines in Mexico and Canada worth hundreds of millions of dollars, to induce Westernbank to lend additional funds, the evidence showed.  In fact, this additional collateral was worth barely a fraction of that represented by Kachkar.

During the course of the scheme, Kachkar caused Westernbank to lend approximately $142 million, primarily based on false and fraudulent customer invoices.  The evidence showed that the defendant diverted tens of millions of dollars for his own personal benefit, including for the purchase of, among other things, a private jet, luxury homes in Key Biscayne and Brickell, Miami, luxury cars, luxury hotel stays, and extravagant jewelry and clothing expenditures.

In or around June 2007, Westernbank declared the loan in default and ultimately suffered losses exceeding $100 million on the Inyx loans.  According to trial evidence, these losses later triggered a series of events leading to Westernbank’s insolvency and ultimate collapse.  At the time of its collapse, Westernbank had approximately 1,500 employees and was one of the largest banks in Puerto Rico.

This case was investigated by the FDIC-OIG, IRS-CI, HSI and FBI.  The Department of Justice’s Office of International Affairs provided significant support in the investigation.  The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger of the Southern District of Florida and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section.  The Department acknowledges and appreciates the substantial assistance of the Royal Canadian Mounted Police and the U.K. Metropolitan Police.

Inyx, Inc. Chairman & CEO Approved as Debtor-In-Possession Lender for Inyx Subsidiaries
Published: Jul 12, 2007

NEW YORK, July 12 /PRNewswire-FirstCall/ -- Inyx, Inc. , reported that the company's Chairman & CEO, Jack Kachkar, M.D., yesterday was approved as the debtor-in-possession lender for Inyx USA, Ltd. and Exaeris, Inc., its two wholly-owned North American operating subsidiaries, by the U.S. Bankruptcy Court in the District of Delaware, over the objections of Westernbank Puerto Rico, a wholly owned subsidiary of W Holding Company, Inc. .

On July 2, 2007, as a measure to protect Inyx against further potential damaging actions by Westernbank, the company placed its two U.S. operating subsidiaries in Chapter 11 protection.

As a result of yesterday's court approval of Dr. Kachkar providing the financing for the U.S. operating subsidiaries, Inyx's North American businesses will continue to operate on a normal basis.

Dr. Kachkar also continues to provide the financing for the operations of Inyx, Inc., which is not itself a party to the Chapter 11 filings.

In addition to the Chapter 11 protection, on June 29, 2007, Inyx, Inc. and Inyx USA, together with Dr. Kachkar and his wife, filed suit against Westernbank in New York State Supreme Court, asserting various causes of action seeking no less that $500 million in compensatory damages as well as punitive damages. The complaint charges, among other things, that Westernbank acted in bad faith and in a commercially unreasonable manner by blocking the flow of funds from Inyx's customers to the company, and preventing the Inyx companies from paying their debts. The complaint asserts causes of action for breach of contract and breach of the implied covenant of good faith and fair dealing, promissory estoppel, wrongful dishonor of checks, wrongful impairment of collateral, tortious interference or impairment with prospective business relations, and third-party beneficiary of contract and tortious interference with contracts and prospective business relations.

About Inyx

Inyx, Inc. is a specialty pharmaceutical company with niche drug-delivery technologies and products for the treatment of respiratory, allergy, dermatological, topical and cardiovascular conditions. Inyx USA, Ltd., located in Manati, Puerto Rico, is the company's North American-based production center. Exaeris, Inc., based in Exton, Pennsylvania, is Inyx's North American marketing arm. For more information, please visit: www.inyxgroup.com.

Safe Harbor

Statements about the Inyx's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. Inyx intends that such forward-looking statements be subject to the safe harbors created thereby. Since these

statements involve risks and uncertainties and are subject to change at any time, Inyx's actual results could differ materially from expected results.

For more information, please contact: Jay M. Green, Executive VP jgreen@inyxgroup.com

Inyx, Inc.
CONTACT: Jay M. Green, Executive VP of Inyx, Inc., jgreen@inyxgroup.com

Web site: http://www.inyxgroup.com/ Voting is beautiful, be beautiful ~ vote.©

DOJ: Judiciaries Of The Western World Unite To Stop Trafficking Tiny Humans & Unseal Paradise Papers

Jeffy has been busy.

This is setting up prosecutions and asset forfeiture in trafficking tiny humans.

Puerto Rico Supreme Court Justice Addresses Latin American Judges at Department of Justice’s Judicial Studies Institute

Today, at the Supreme Court of Puerto Rico, Justice Edgardo Rivera García gave the keynote address to 29 judges from Costa Rica, the Dominican Republic, Guatemala, Haiti, Honduras, Mexico, Panama and Peru in San Juan, Puerto Rico as part of the Judicial Studies Institute (JSI) training program, a collaborative effort between the Department of Justice and Department of State to build the capacity of the judiciaries of the Western Hemisphere.

As a frequent contributor to the JSI program, Justice Rivera García stressed the importance of the judges’ contribution to rule of law in the hemisphere and lauded them for their role in the transformation of Latin American justice. 

With the support of U.S. Supreme Court Justice Sonia Sotomayor, and in partnership with the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, the Department of Justice’s Office of Prosecutorial Development Assistance and Training (OPDAT) launched JSI in 2012 as a response to the wave of justice sector reforms in Latin America that saw many countries transition to an adversarial system.

Through instruction conducted in Spanish, practical exercises, and observations of courtroom proceedings, the JSI program provides judges with an opportunity to enhance their understanding of the fundamental principles, benefits, and challenges of the adversarial system.  This capacity building is critical to the region as the judge’s role in the adversarial system is different from that in the inquisitorial system.  In the inquisitorial system, the judge is actively involved in investigating the facts of the case, whereas in the adversarial system, the role of the judge is primarily that of an impartial referee between the prosecution and the defense.

Throughout 2018, judges from 10 Latin American countries will participate in JSI courses covering topics such as the development of rules of evidence, proportionality in sentencing, and opinion writing.  While each country’s transition to the adversarial system has been unique, the judges who have participated in the JSI program have displayed the same dedication to improving and strengthening the transparency and efficiency of their respective criminal justice systems.

 “The Judicial Studies Institute’s work with Latin American judges as their justice systems transition to adversarial systems is pivotal to ensure the fair and effective administration of justice throughout the hemisphere, which in turn promotes security throughout the region,” said Faye S. Ehrenstamm, Director of OPDAT.  “This would not be possible without both the deep commitment of the judiciaries from participating countries and the tremendous contributions by the U.S. federal and state judiciaries.  OPDAT is proud to be associated with JSI and its many contributions to the region.”

Since 2012, JSI, with its partners at the University of Puerto Rico and Inter-American University law schools, has hosted over 700 Latin American judges from 12 countries.  The program continues to expand with the introduction of a mentoring component for JSI alumni in 2017, and new course offerings on special topics including digital and electronic evidence, opinion writing, and asset forfeiture added to the curriculum each year.


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Clinton Foundation Launches Its Next Haiti Fraud Scheme - Puerto Rico, Vigin Islands & Dominica

Just when you thought the Clinton Foundation, an unincorporated NGO just like the Detroit Land Bank Authority, could not come up with any more fraud schemes to rip off "The Poors", well, here we go again, and I am quite sure the world is watching.

Clinton Foundation "saving the savages" crew
led by Donna Shalala

As a last ditch effort of the Gates and Clinton Foundation, et al. to profit from disaster, the Haiti model is about to be transposed to Puerto Rico.

Puerto Rico fell victim to Michigan's Emergency Manager Law and is ripe for the congressional pick pocketin': the children, the land and the votes.

Odd.  Last time I checked there were no Zika or HIV/AIDS issues for that region.

Oh, there are going to be so many children who are going to be in need of adoption human trafficking.

Stay tuned.

Clinton Foundation Launches Caribbean Disaster Response Action Network

The Clinton Foundation has announced the launch of a post-disaster action network in support of disaster relief and recovery efforts in the Caribbean, where two Category 5 hurricanes wrought devastation last September.

The network is modeled on the foundation's Haiti Action Network, which was launched in 2008 to mobilize Clinton Global Initiative members and has generated commitments totaling more than $500 million to date. At a planning meeting earlier this week, former President Bill Clinton previewed several initial commitments, including efforts to rebuild schools and homes in Dominica, install solar power systems for healthcare clinics in Puerto Rico, and distribute remote Zika testing for pregnant women across the region.

Nearly five months after Hurricanes Irma and Maria struck the region, about 60 percent of Dominica's and a third of Puerto Rico's residents remain without power. Last November, the Clinton Foundation announced a partnership with the Solar Foundation and other groups to help restore electricity in Puerto Rico and the U.S. Virgin Islands.

"Puerto Rico, the U.S. Virgin Islands, and the Caribbean community are in need, and we must answer that call," said Clinton, who will travel next week to the U.S. Virgin Islands and Dominica to view ongoing rebuilding efforts. "Together with leaders from government, business, and civil society, we can demonstrate what is possible when we come together and bring our collective will and resources to bear on this crisis. We have a responsibility to act, for the people who are still suffering, and for all the future generations in the region."

The Action Network on Post-Disaster Recovery's first official meeting will be held in April at the University of Miami, where representatives from businesses, government, and NGOs will share commitments to action. The network is expected to convene on a quarterly basis, with opportunities for members to coordinate across sectors and geographies throughout the year.

"Solutions to challenges always require actors from multiple sectors," Clinton Foundation CEO Kevin Thurm told Devex. "Solutions are not solely...for government, for the not-for-profit, or for the private sector. And [they are] best delivered when there is maximum coordination, understanding of what works and sometimes what does not work."

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Day 83.2 Who Are the Trump Tower Russian Operatives?

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CONYERS Bill To Add More Judges To Detroit Bankruptcy Court Set To Become Law; Helps Residents Seekk Economic Relief

Conyers Bill Included as part of Legislation Providing Funds for Disaster Relief

Washington, D.C. –H.R. 2266, a $36.5 billion humanitarian aid package for victims of hurricanes Harvey, Irma, Maria and Nate passed the U.S. House and U.S. Senate and is now set to become law. The bill includes an amended version of Congressman John Conyers’ (MI-13) legislation that will extend 14 temporary bankruptcy judgeships and establish four additional bankruptcy judgeships across the Nation.  The bill extends the temporary bankruptcy judgeship in the Eastern District of Michigan as well as authorizes an additional bankruptcy judgeship for that District, which serves the City of Detroit.  

According to the Judicial Conference, without extending the temporary judgeship and adding another judgeship for the Eastern District of Michigan, the District’s caseload would exceed by 40 percent of the caseload standard for a federal judicial district.  The legislation passed out of the U.S. House of Representatives on October 12^th, the U.S. Senate on October 24^th and now heads to the president’s desk for signature.

Congressman Conyers released the following statement:

Dean of the U.S. House
of Representatives
John Conyers, Jr.

“This legislation will ensure that citizens of Detroit, especially those facing economic distress, are able to obtain financial relief from a fully-staffed bankruptcy court.  While I would have preferred the original version of my legislation, which would have made these judgeships permanent, I am pleased that Congress took action.  

“H.R. 2266 also contains much needed economic aid to those who were harmed by recent hurricanes and wildfires and provides critical debt relief to the citizens of Puerto Rico by forgiving certain flood insurance obligations and loans owed by the Commonwealth.

“This aid package reflects how our Nation -- when called upon to address overwhelming devastation resulting from natural disaster and economic distress -- can come together to provide critical aid to those most in need.”

In addition to extending a temporary bankruptcy judgeship and adding an additional bankruptcy judge in Detroit, this legislation will expand temporary judgeships in Delaware, Florida, Maryland, Nevada, North Carolina, Puerto Rico, and Virginia. The legislation also adds additional bankruptcy judges in Delaware and Maryland.  The Judicial Conference of the United States has warned that without this legislation, the Nation’s bankruptcy courts would “face a serious and, in many cases, debilitating workload crisis if these temporary judgeships were to expire.” 

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Puerto Rico To Meet Michigan's Emergency Manager Law 2.0

Looks like Puerto Rico is about to get an Emergency Manager, so the socio-economic experiment of privatization has hit level 2.0.

This is going to be very interesting as there is political discussion of an unelected body taking over the democratic process of a geo-political region already on the table in multiple Bills.

First it was a state, the State of Michigan, to be specific, taking over financially stressed city child welfare programs, including the public schools, then graduated to taking over municipalities, now there is the United States of America taking over a Territory, which, of course, is not fully afforded inclusive participation in the democratic process of national elections.

Makes ya wonder when Privatization 3.0 is going to be launched.

Level 3.0 is already on the books and it is called receivership, but for the federal government to take receivership of an entire state is something which has yet to happen.

Yes, it is true that the feds have taken receivership of a city and even departments within the executive branch of a state government, but never before have the feds taken receivership of an entire state.

What's next?  The U.S. taking over another nation starting by global non-profits setting up shop in child welfare initiatives?

Privatization sounds like the new imperialistic morality parade and is much more peaceful and compassionate alternative to that barbaric thing called war.

Besides, look at the profitable returns these social impact bonds will generate!  (sarcasm intentional)

This is why I am sitting here, eating my popcorn, watching intently, waiting for the next big wave of backdoor political drama, because issues such as privatization, gets swept under rugs of main stream media, and rightfully so, they are stakeholders, to be explained at a later date.

These trends are easy to spot if one follows path to privatization which I have been clearing for the world to see.

Just remember, this all began with child welfare, and this is nothing but chattel law, revisiting the ultra vires over human capital.

.

Hispanic lawmakers face painful decision on Puerto Rico

Hispanic lawmakers are sharply divided over what to do about Puerto Rico's debt crisis.

 PuertoRico's delegate to Congress and several members of the Congressional Hispanic Caucus have begrudgingly endorsed a House bill backed by Speaker Paul Ryan (R-Wis.) and Minority Leader Nancy Pelosi (D-Calif.) It's far from sufficient, they say, but the only viable option to help the island avoid a catastrophic default.

Reps. Luis Gutierrez (D-Ill.) and Sen. Bob Menendez (D-N.J.), though, are opposing the bill and seeking changes that could cost Republican support and blow up months of arduous negotiations.

Each side insists it’s putting the Puerto Rican people above political ambitions in a fight that dwells on the contentious and, for many, painful issue of the island's territorial status.

"This is not about winning or losing. This is about taking a principled position for the people of Puerto Rico,” Gutierrez told reporters Thursday. “People didn't send me here, to the Congress of the United States, to roll over and play dead."

The Puerto Rico Oversight, Management and Economic Stability Act — called PROMESA, from the Spanish word for “promise — cleared the House Natural Resources Committee on Wednesday. It establishes a seven-person oversight board that will decide how to restructure Puerto Rico’s more than $70 billion in debt.

The bill is the result of months of deliberations between House leaders, the White House and Treasury Department. Negotiators had to balance Democratic concerns about the control board’s power and Republican concerns about protecting bondholders and Puerto Rico’s long-term fiscal health.

Despite deep reservations, Hispanic lawmakers who back the bill say there is no other option. Puerto Rico's shrinking economy, crumbling infrastructure and the mass emigration of the island's residents is too dangerous to go unaddressed, they argue.

“When measured against a perfect bill, this legislation is inadequate. When measured against the worsening crisis in Puerto Rico, this legislation is necessary,’ said Rep. Raul Grijalva (D-Ariz.) a caucus member and top Democrat on the House Natural Resources Committee.

Hispanic Caucus Chairwoman Linda Sanchez (D-Calif.) said she expected a majority of the caucus to support it, but said members “have to weigh, does the good in the bill outweigh the bad?”

The bill sailed through the Natural Resources Committee with wide bipartisan support, but the Obama administration is paying close to Hispanic lawmakers ahead of a likely floor vote next month.

Antonio Weiss, a top aide to Treasury Secretary Jack Lew, briefed the caucus on the bill Thursday, and members said they’ve received personal calls from Lew.

“Freshman year members of Congress don’t usually get calls from the Secretary of Treasury,” said first-term Rep. Ruben Gallego (D-Ariz.), who supports the bill.

Gallego said he still has concerns about the makeup of the control board, a worry shared by many Democrats. Even so, conversations with Lew, other administration figures and Puerto Rican officials convinced him to give the bill “a fighting chance.”

“I just couldn’t let my personal political ideology stand in the way of relief for 3.5 million people when there was no other option,” said Gallego. “And I hate that I got put in this position, but this is sometimes things that happen in politics.”

The oversight board is the most contentious issue for many Hispanic lawmakers, including Gutierrez, who is of Puerto Rican descent, and Menendez. They worry about an unelected body armed with the power to override the Puerto Rican government.

Those concerns reflect decades of tension over Puerto Rico’s territorial status. Menendez called the bill “blatant colonialism,” while Gutierrez insisted that reporters identify the island as “a colony of the United States.”

That tension is openly apparent and personal within the caucus.

Puerto Rico’s non-voting delegate to Congress, Resident Commissioner Pedro Pierluisi (D), supports the bill. He says the oversight board is hard to support “personally and politically,” but a necessary evil to get the bill through Congress.

“Puerto Rico has not ceded or lost anything, because we have never had sovereignty,” said Pierluisi, a gubernatorial candidate who supports statehood for Puerto Rico.

Gutierrez, who supports Puerto Rican independence, implied that Pierluisi supports the bill so he can pave a path to statehood.

"You think you're going to have statehood declaring Puerto Rico bankrupt?,” said Gutierrez. "That's always the problem with politicians. They put their own personal ambitions and political ideology ahead of the political framework."

Pierluisi's office hit back at Gutierrez's remarks.

"As Puerto Rico’s only elected representative in Congress, Mr. Pierluisi is focused entirely on what is best for his constituents. He believes that while PROMESA is not perfect, it is indispensable, which is why he is fighting for its passage," said spokeswoman Dennise Perez.

"He has absolutely no time or desire to respond to petty personal comments made by others." 

Hispanic lawmakers also have concerns about a provision in the bill allowing Puerto Rico’s governor to lower the minimum wage.

Natural Resources Committee Chairman Rob Bishop (R-Utah.) blocked an amendment offered by caucus member Rep. Norma Torres (D-Calif.) to remove that language.

“There is no question that Puerto Rico will need to make sacrifices, but it can’t do so on the backs of these hard-working, young American citizens,” said Torres, who voted “present” at the markup. 

Adding to the pressure Hispanic lawmakers feel is the clock, with Puerto Rico facing a massive $2 billion debt payment on July 1. Some are convinced the bill can't be changed in time.

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