Governor of Puerto Rico Accused of Public Corruption

The Governor of Puerto Rico, Anibal Acevedo Vila, and a number of associates in the Puerto Rico, Washington D.C., and Philadelphia areas have been charged in an indictment that was recently unsealed in San Juan, Puerto Rico.^[1]

The charges upon which the indictment was issued include conspiracy, false statements, wire fraud, and federal program fraud and tax crimes related to campaign financing for the governor’s 1999-2000 and 2001-2002 campaign for Resident Commissioner of the Commonwealth of Puerto Rico and subsequent 2004 gubernatorial campaign.^[2]

The indictment accuses the defendants of conspiring to defraud the United States and violate various Federal Election Campaign Act provisions by having Puerto Rico businessmen make illegal contributions to pay off debts stemming from Acevedo Vilá’s 1999-2000 and 2001-2002 campaigns for Resident Commissioner of the Commonwealth of Puerto Rico.^[3]

According to the indictment, the conspiracy was carried out by Acevedo Vilá and his legal advisor, defendant Inclán Bird, soliciting, accepting, and then reimbursing illegal conduit contributions from Acevedo Vilá’s family members and staff.^[4] Conduit contributions are illegal campaign contributions made by one person in the name of another person.^[5] In addition, a group of Philadelphia-area businessmen solicited, accepted, and then reimbursed illegal conduit contributions from their own Philadelphia-area family members and staff for defendant Acevedo Vilá.^[6] Acevedo Vilá, acting in his official capacity, then aided the businessmen in attempting to obtain contracts from Puerto Rico government agencies.^[7]

In addition, the indictment also alleges that the defendants schemed to defraud the Puerto Rico Treasury Department of $7 million by fraudulently pledging to abide by a voluntary public funding law in defendant Acevedo Vilá’s campaign for governor of Puerto Rico in 2004.^[8]

According to the indictment, Acevedo Vilá and his associates carried out unreported fund-raising and made unrecorded vendor payments in an effort to raise and spend far more than the limited amount which was agreed upon.^[9] The indictment states that one significant aspect of this fraud was to pay for large and unreported debts to the campaign’s public relations and media company by having businessmen use large amounts of money from personal or corporate funds.^[10]

The indictment further alleges that the defendants accepted numerous forms of personal income from funds related to Acevedo Vilá’s campaigns or official position and failed to report those funds on income tax returns.^[11]

Conspiracy is covered under 18 U.S.C. § 371 which states that if two or more persons conspire either to commit any offense against the United States, or to defraud the United States, or any agency thereof in any manner or for any purpose, and one or more of such persons do any act to effect the object of the conspiracy, each shall be fined under this title or imprisoned not more than five years, or both.^[12] If, however, the offense, the commission of which is the object of the conspiracy, is a misdemeanor only, the punishment for such conspiracy shall not exceed the maximum punishment provided for such misdemeanor.^[13]

Defendants were also charged under 18 U.S.C. 1001(a)(2) for making false statements. This statute makes it a crime for a person to make any materially false, fictitious, or fraudulent statement or representation in any matter within the jurisdiction of the Executive branch. The punishment for such a violation is likewise, a fine, imprisonment for up to five years, or both.^[14]

Wire fraud, another crime which the defendants are accused of committing, is covered under 18 U.S.C. §1343 whereunder it states that whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.^[15]

Finally, Acevedo Vilá is accused of violating 26 U.S.C. § 7206 which makes it unlawful for any person who willfully makes and subscribes any tax return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter.^[16]

Federal criminal defense attorney Douglas McNabb has previously written about the crimes of conspiracy, false statements, and wire fraud in his Federal Crimes blog which can be found here.

---

[1] Press Release, United States Department of Justice, Governor of Puerto Rico and Twelve Others Indicted for Election Related Crimes (March 27, 2008) (available at http://www.usdoj.gov/opa/pr/2008/March/08_crm_243.html).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] Id.
[12] 18 U.S.C. § 371.
[13] Id.
[14] 18 U.S.C. § 1001.
[15] 18 U.S.C. § 1343.
[16] 26 U.S.C. § 7206(1).