Puerto Rico Corruption: School Officials Arrested On Bribery, Money Laundering Charges

SAN JUAN, Puerto Rico — Federal officials said Wednesday that they broke up a ring of education officials and businessmen that siphoned funds meant for special-needs children, training and supplies into bribes and kickbacks.

Seven businessmen and six current and former employees of Puerto Rico's Department of Education were arrested by the FBI on charges that include bribery and money laundering.

Authorities say the education department's former chief procurement officer, Luis Conde Rosa, masterminded the plan, raking in kickbacks on more than $7.6 million in contracts awarded to three companies from January 2008 to February 2010.

U.S. Attorney Rosa Emilia Rodriguez said at a news conference that Conde received 2 percent of all contracts awarded to one of the three companies, which issued checks to false businesses for promotional, accounting and consulting services that were never provided. The businessmen are accused of then cashing those checks and using part of the money to pay education officials.

Education officials received roughly between $20,000 and $50,000 each, authorities said.

The investigation was launched by the Office of Inspector General in the U.S. Department of Education.

"Our office will continue to protect federal education funds from this kind of calculated plunder," said William Hamel, the department's assistant inspector general for investigation.

If found guilty, the suspects face as long as 20 years in prison.

Last year, Puerto Rico's Department of Education received more than $800,000 in federal funds.

Comments

[markstlcard]

12:37 AM on 09/22/2011

When are the Americans going to give Puerto Rico its independence?

[Robert Rexach]

01:41 PM on 09/22/2011

When congress gets around to it.

[arecibo48]

04:52 PM on 09/22/2011

Better to be independent than to be a colony.

[caban3321]

12:06 AM on 09/22/2011

Wow... that's terrible. These thieving education officials and business folks must have been trained in TEXAS. Just kidding Rick... LOL

[wlouche]

08:47 PM on 09/21/2011

Puerto Rico now qualifies to be the 51st State.

[markstlcard]

12:38 AM on 09/22/2011

LMAO. Great comment.

[arecibo48]

04:54 PM on 09/22/2011

Among other things, they have been fighting our crazy wars for many years and have lost many of their lifes for our freedom.

[lilcon73]

08:17 PM on 09/21/2011

Noooo....school officials corrupt?? Really??? I can't believe it!!

lol!!

[arecibo48]

04:52 PM on 09/22/2011

Where do you live? Corruption is all over the newspapers in the United States.

[klelaurin]

07:27 PM on 09/21/2011

Horrible! Now let's catch all the waste & misuse of public funds in all US school districts - as well as the waste and misuse of human lives due to ignorance, prejudice & incompetence!

[eddievee104]

07:06 PM on 09/21/2011

I.m ashamed being a puerto rican and born here in the united states. Maybe its time for those that are proud of there heretige and mucic. And live in America just drop all funding to a country that has corrupt officials. I'm proud but I will not support this kind of abuse to any kind of special needs children. Where is the HUMANITY?

[reason4U]

09:35 PM on 09/21/2011

Eddievee104-- You obviously do not know a thing about Puerto Rico, Puerto Ricans in the USA, or grammar. Go ahead, please, stop identifying yourself as a Puerto Rican. You will be doing most of us a favor-- we will not have to explain that people like you (obnoxious, uneducated, and uninformed) are not representative of our culture.

[jfpeitler1]

11:14 AM on 09/22/2011

Who are you? The Puerto Rican grammar popo? Get a life. If that person wants to publicly express shame let them. I have worked with many Puerto Rican people over the last few years. There is a definite attitude amongst many Puerto Ricans that their children's education is less important than their vacations to Puerto Rico. Deny it and I will show you the evidence that thousands of Puerto Rican children in CT are being deprived of their rightful educations by their parents. Greedy parents who want to extend their vacations harm their children and disrupt the classrooms they belong in. This also has a big impact on the other children because they learn by example. I love Puerto Rico too, but ignoring the truth does not further your cause!

[arecibo48]

05:16 PM on 09/22/2011

I could not have said it better. Eddievee104 is confused. I have fanned and favorited you.

[arecibo48]

05:00 PM on 09/22/2011

Wait. The world is not over. Their was corruption at one school. Do you read the newspapers here? Corruption is bad no matter where it takes place. However, to be ashamed of your Puerto Rican heritage because there was corruption at a school in Puerto Rico, is ridiculous. Are you ashamed of the corruption by the banksters, politicians in all our states and Washington?

[PuertoR954]

06:36 PM on 09/21/2011

And, of course, the highest ranking person busted was president of Puerto Rico's Young Republicans charter.

Source: elnuevodia.com (local paper)

[Andy Osinski]

07:33 PM on 09/21/2011

Since the YRFPR doesn't have a president (they have a chairman named Daniel Ballori), and since that name didn't show up in the article or in the indictment, who might you be thinking of?
Or is this just another unfounded allegation?
http://www.elnuevodia.com/acusadosenesquemadesobornodeldepodrianenfrentarveinteanosdecarcel-1072584.html

[Robert Rexach]

01:47 PM on 09/22/2011

Here's the link

http://www.elnuevodia.com/liderdelajuventudrepublicanaentrelosarrestadosporfraudeaeducacion-1072601.html

The person in question is the former president/chair of Young Republicans Puerto Rico, Luis Conde Rosa.

[JacksonHts]

11:25 PM on 09/21/2011

the link to el nuevo dia is www.endi.com

[BinghamLofts]

06:29 PM on 09/21/2011

they learned from the best. capitalism at its most potent.

[tarzan322]

06:22 PM on 09/21/2011

I bet their SOL scores are through the roof though.

[tccat4]

05:51 PM on 09/21/2011

Time to let this island float away, just one more place that sucks money off the people of the upper 50 states !!!

[PuertoR954]

06:43 PM on 09/21/2011

Never gonna happen. PR's populations consists of 4 million US Citizens, with another 4 millions living in the US.

[huskydog97]

11:10 PM on 09/21/2011

Umm excuse me but that's my country who you are speaking of and for your information we don't suck money from the people of the upper 50 states! We supply agricultural and even technology advances for the U.S. And oh we also pay taxes just like every other American in this country.

[arecibo48]

05:06 PM on 09/22/2011

They are making comments based on ignorance. What about all the lives we have lost fighting those crazy wars!

[xxjawmorexx]

05:51 PM on 09/21/2011

I always thought washing money was a good thing. LOL.

[fireart]

05:48 PM on 09/21/2011

Anyone that would steal from a special needs child should be shot.

[arecibo48]

05:09 PM on 09/22/2011

You are right and it doesn't matter where it takes place.

[cque8]

05:21 PM on 09/21/2011

Educators stole from the most needy in the school system, whose education will begin and end with Public School in most instances. 20 years in prison seems reasonable to me. This is worse even than the Atlanta testing scandal.

[mhagge2216]

05:19 PM on 09/21/2011

Simply shocking.

[wheeljc]

05:10 PM on 09/21/2011

Think we just found another source for some serious CUTTING!

[JacksonHts]

11:28 PM on 09/21/2011

Yeah, lets cut funding for Special Needs kids who are U.S. Citizens because someone figured out a way to steal money. Sounds really logical to me. And fair.