Two Puerto Rican Senators and the head of Puerto Rico's largest private security firm sentenced to 4-5 years in prison each.
This case demonstrates that it takes time to investigate, indict, convict, and sentence financial fraud cases. The crimes took place in 2005. One State Senator pled guilty in 2009. His partners in crime were sentenced March 1, 2012.
To those who are frustrated with the pace of Big Fish convictions, be patient. Again, the FBI White Collar division was gutted by Bush Et Al after 911.
Prosecutions of frauds against financial institutions dropped 48 percent from 2000 to 2007, insurance fraud cases plummeted 75 percent, and securities fraud cases dropped 17 percent.
President Obama's team had to pretty much start from scratch to rebuild the FBI White Collar Crime Division. With the scope of the financial crime in the USA and a Congress under pressure to cut spending, the hope of increasing the FBI and DOJ's abilities to clean up this mess is in the balance. We need to pressure Congress. We need to be protected from this class of criminals.
Actually, the FBI has been very busy in Puerto Rico since the 1990s and a huge drug/crime bust in October, 2010.
If you take the time to check the DOJ website and search for a topic that interests you, like Securities Fraud or Mortgage Fraud, you will be happily surprised to learn that both the FBI and the DOJ have an amazing record of convictions beginning in 2009.
Many new Operations, both financial crime and other important crime topics, have been launched since Obama took office. I invite you to search the DOJ site for: operation launched Perform the search without quotations marks. You will find the names of many new Operations designed to clean up crime in America. Or Click here to read about them.
I found this case today. Granted to those waiting for Jamie Dimon or one of the CEOs of the TBTFs, this may seem like small potatoes. Please feel free to drop in and complain. However, for the rest of us eager and energized by a Little Good News Today, enjoy. I have added links to sources at the end of the diary. Also, you will find links to prior diaries sharing some other FBI/DOJ Big Fish Convictions.
This is a classic example of how Business Greases Politicians to get legislation passed favoring the business. It is also a story of what I call dynasty or how the children of politicians grow up and, with that good name, are elected to office.
The Characters:
Jorge De Castro Font, State Senator, 5 years,
Héctor Javier Martínez Maldonado, State Senator, 4 years, $17,500 fine
Bravo Fernandez, CEO Ranger American, 5 years, $175,000 fine
TIMELINE:
2005 - Martinez Maldonado and DeCastro are approached by Fernandez to pass two bills in his favor
2005 - March 2nd Fernandez buys boxing tickets for Vegas fight, Martinez Maldonado submits 1 bill
2005 - April 21st Fernandez pays for room at Vegas Mandalay Bay Resort for Martinez Maldonado who authorizes committee report supporting Fernandez' bill
2005 - May 14th Martinez Maldonado and DeCastro begin their all expenses paid, First Class Vegas trip and watch the fight between Felix “Tito” Trinidad and Winky Wright
2005 - May 17th Puerto Rico Senate approved on of Fernandez' bills.
2005 - May 18th a second Fernandez approved out of committee by Martinez Maldonado
2005 - May 23rd the second bill was passed by the Puerto Rico Senate.
Here's how that worked
Snapshot of Congressional Corruption in Laymen's terms
This is how it looks like this this corruption case proceeded.
De Castro Font was the Tom DeLay of the Puerto Rican Senate i.e., DeCastro controlled what Bills would come before the Senate.
DeCastro got into some financial trouble via his businesses. From 2002 - 2008 Fernandez provided cash to help De Castro Font with his businesses.
In order to for De Castro Fon and Fernandez to work their plan to fast track two Bills friendly to Fernandez' business, they needed the cooperation of the Chair of the Public Safety Committee.
Maldonado assumed this Chair in early 2005. Whether or not he was on board with the plan prior to taking the Chair of Public Safety isn't known. However, as the new Chair he immediately joined in the corruption plan at the invitation of De Castro Font's and/or Bravo Fernandez.
The three amigos were seen meeting in Maldonado's office and their discussion of plans to take a trip to Las Vegas, all expenses paid by Bravo, were witnessed.
The Bills, one regarding security at shopping centers and the other amending the Private Detectives Act, later identified as Senate Projects 410 and 471, were passed in May, shortly after the Vegas first class trip.
How to Get a Bill Passed Via Corruption:
1. Have the Senator and/or Representative in charge of choosing which bills will be considered in your pocket.
2. Determine which Committee Chair needs to be included.
3. Get the Committee Chair on board.
4. Plan the Corruption Scheme
5. Pass the Bill(s).
6. Don't get caught.
Maldonado, De Castro Font, and Bravo Fernandez played a little too loosely. Others were in the room when they discussed their plans, in Senator Maldonado's office.
Dynasties
There is enough mounting evidence to suggest that voters might want to think twice about voting for the Son or Daughter Of anyone. Both of these convicted State Senators are.
Jorge de Castro Font was born on September 10, 1963 to former Puerto Rico Ombudsman Rafael Adolfo de Castro Campos and María Eugenia Font González. He is the grandson of Jorge Font Saldaña, one of former Gov. Luis Muñoz Marín's closest associates.
Héctor Martínez Maldonado is the youngest of five children from former Senator and Representative Héctor Martínez Colón and his wife, Persi Maldonado.
Maldonado's first exposure to the "perks, as in receiving checks and money" of public service were in the late 1990s when he was an aid for (swallow whatever you are drinking) Senator Freddie Valentin.
Both Font and Maldonado are members of the New Progressive Party and list themselves as Republicans.
In closing
I find the time of this case interesting. The crimes were committed in 2005 and the FBI is reported to have begun investigating De Castro Font on July 8, 2008.
De Castro Font was sentenced on May 17, 2011, to 5 years in prison and 3 years probation. He awaits trial in local courts for related local corruption and tax evasion charges.
In June 22, 2010, a Federal Grand Jury indicted Héctor Martínez Maldonado and businessman Juan Bravo on six charges of conspiracy, bribery, and obstruction of justice, among others.
Martínez Maldonado was sentenced to 4 years in prison on March 1, 2012. The sentence also included three additional years probation, attending a drug addiction rehabilitation program, and returning $17,500.
Bravo Fernandez was also sentenced to 4 years in prison on March 1, 2012 and returning $174,000.
Question: Why does it take 3.5 years to convict these criminals?
If it is due to lack of FBI and/or Court resources, I certainly hope Congress can fund these sufficiently before the fillings are stolen from our teeth for scrap metal while we sleep.
OTHER STORIES:
BIG WALL STREET FISH Indicted & Convicted of INSIDER TRADING
MORTGAGE FRAUD: The Short Sale, Indictments, and Convictions. Hats Off to FBI/DOJ
Six Former NYPD Officers Guilty in Gun-Smuggling Case & 50+ Caught in Bribery Sting
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SOURCES FOR ARTICLE:
To read the court case, which is fascinating, read
U.S. v. BRAVO-FERNANDEZ United States District Court, D. Puerto Rico. December 12, 2011.
Department of Justice's June 22, 2010 Press Release
Puerto Rico Senator and Businessman Charged in Bribery Scheme
Department of Justice's March 1, 2012 Conviction Announcement
Former Puerto Rico Senator and Businessman Each Sentenced to 48 Months in Prison for Their Roles in Bribery Scheme
Picture sources are linked with the pics, to view double click pic.
From democratic underground:
Puerto Rico PNP (Republican) Senator & Businessman Charged in Bribery Scheme
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I found this very detailed investigation and explanation of the Crash of 2008 and wanted to post this for those who enjoy the weeds. It's from conservative newspaper, Cape Cod Today, no less:
Deregulation, Desupervision, De Facto Decriminalization & The Debacle of 2008
My two favorite quotes:
Those flaky folks who get so much airplay on Fox Snooze and other right-wing media outlets are the same ones who claim that the cause of the crash in 2008 was too much regulation by "big government."
As I've said before, and as the conservative Cape Cod Times editors apparently agree, the economic catastrophe in 2008 was in fact the result of eight years of deregulation based on the Bush administration's right-wing, "free market" ideology. This is a view held by some of the most knowledgable academic economists who have no financial stake in the issue, unlike the economists who are bought and paid for by the financial industry.