US Congress & FBI investigate Federal Fund Fraud in Puerto Rico


A congressional committee investigates the potential abuse of federal funds and resources provided to local towns in Puerto Rico, citing the red flags raised by the FBI.

The House Natural Resources Committee questioned the Federal Emergency Management Agency and the FBI about the accusations of “mishandling and misappropriation of emergency supplies” rendered by the Federal Government to the people of the island. The letters from several Republican leaders of the panel came after Douglas Leff, the FBI’s special agent in charge of the San Juan Field office, announced last week that he was investigating accusations of federal fund and supplies abuse.

“With so many people in the island who still have a significant need for basic supplies, it is essential that federal assistance be provided in the most efficient and effective manner possible,” writes legislators in their letters. The allegations stated that “mayors of local towns, or persons associated with their local government offices, give their political supporters special treatment and goods they do not give to others who need them,” said the members of the committee, quoting Leff.

They added their committee “is very upset by these allegations.”

The public statement of the Special Agent did not include any mention of mayors. President Trump publicly quarreled with mayor Yulin of San Juan, the capital of Puerto Rico and the largest city, blaming her for “bad leadership” in response to the crisis and not coordinating efforts response from the federal government.

There are currently more than 20,000 federal field workers in Puerto Rico, and President Trump recently asked Congress for an emergency supplement of nearly $13 billion to support these and other recovery efforts. Last month, Congress approved $15 billion in emergency funding after Hurricane Harvey, which was split between the FEMA Disaster Fund and the Community Housing and Urban Development Grants .

The survey began as initial response efforts are still ongoing, with 35% of families without drinking water and 80% of the island without electricity. Scott Amey, Senior Counsel for the Government Oversight Project, stated that the federal government has prioritized early disaster relief since Hurricane Katrina and the 2009 Economic Recovery Plan. Katrina was full of fraud and abuse, and the Department of Justice laid charges in 1,300 cases as a result of this storm. Justice has since established the National Center for Disaster Fraud, which has its headquarters in Baton Rouge, Louisiana. Corey Admundson, the US lawyer who heads this office, and Attorney General Jeff Sessions, have warned of potential fraud in the wake of hurricanes Harvey and Irma, although these warnings focus on entrepreneur abuse rather than of local governments.

By admin

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