4 indicted in vehicle excise tax conspiracy related to Puerto Rico Department of Treasury

SAN JUAN, Puerto Rico — On Dec. 14, a federal grand jury in the District of Puerto Rico returned a 20-count indictment charging four people with conspiracy to commit bribery concerning program receiving federal funds, paying and receiving bribes, and honest services wire fraud, announced U.S. Attorney for the District of Puerto Rico W. Stephen Muldrow. Homeland Security Investigations (HSI) and the FBI investigated the case with assistance from the Puerto Rico Department of Treasury, the Puerto Rico Police Bureau and the Puerto Rico Department of Corrections and Rehabilitation.

Throughout 2020 and 2021, defendant Ariel Pintado-Montalvo made repeated bribe payments to treasury employees in exchange for the approval of fraudulent vehicle excise tax declarations and for quick approval of non-fraudulent vehicle excise tax declarations. During the conspiracy, Pintado-Montalvo paid thousands of dollars in bribe payments to Antonio Silva-Rodriguez, Hector Vazquez-Barroso and Doris Bonilla-Valle, who each used their positions as Department of Treasury employees to approve fraudulent and non-fraudulent vehicle excise-tax declarations in exchange for bribe payments.

The Sistema Unificado de Rentas Internas (SURI) was the treasury’s digital platform, which was used to administer and collect vehicle excise taxes on imported vehicles. Entry documents noting the vehicle’s arrival, known as a declaration, which contained the vehicle-identification number, were required. If the declaration was complete and it contained the motor vehicle’s correct VIN, SURI would automatically calculate the excise tax based on the current Black Book value of the motor vehicle. After the excise tax was approved by treasury employees and paid, the vehicle would be released and it would be free to move from the port. If the VIN was incorrectly entered into SURI, the person completing the declaration could enter what they believed to be the fair-market value of the vehicle. This situation triggered the requirement that a Puerto Rico Department of the Treasury employee review the declaration to ensure the correct amount of excise tax was collected.

According to court documents, Pintado-Montalvo, who was in the business of importing motor vehicles into Puerto Rico as a “gestor” — a person who completed paperwork and helped manage part of the importation process — paid cash bribes and ATH Movil payments to treasury employees. In exchange for the bribes, Silva-Rodriguez, Vazquez-Barroso and Bonilla-Valle approved fraudulent declarations that resulted in a decrease in excise tax paid by Pintado-Montalvo and a loss of revenue for the treasury. Additionally, in exchange for bribe payments, Silva-Rodriguez, Vazquez-Barroso, and Bonilla-Valle used their positions to quickly approve non-fraudulent declarations.

With regard to the fraudulent declarations, they agreed that incorrect vehicle identification numbers would be entered in SURI to trigger a review. Then, Pintado-Montalvo would notify one of his co-defendants at the treasury when a fraudulent declaration was ready for approval by providing its number via WhatsApp. Soon after, Silva-Rodriguez, Vazquez-Barroso or Bonilla-Valle approved the fraudulent declaration and notified Pintado-Montalvo via WhatsApp.

Likewise, Pintado-Montalvo sent the numbers for non-fraudulent declarations that needed quick approval via WhatsApp. Silva-Rodriguez, Vazquez-Barroso or Bonilla-Valle then notified Pintado-Montalvo when it was approved. Pintado-Montalvo would then proceed to coordinate and make the bribe payments in cash or via ATH Movil in batches.

“The defendants in this case used their position of trust as government employees to develop a scheme impacting Puerto Rico’s economy,” said HSI San Juan Special Agent in Charge Rebecca Gonzalez-Ramos. “Money that goes directly to our citizens for enhancements in our island, to our public servers, our schools and our roads, were not collected in exchange for personal gain. These employees defrauded the trust of the people of Puerto Rico. HSI will continue to investigate the financial crimes that negatively impact the infrastructure of the United States and its territories — most importantly those that abuse their position to commit these crimes.”

“Together with our law enforcement partners, our office will continue to aggressively pursue corrupt individuals in the government who take advantage of the system to benefit a few in exchange for bribes,” said Muldrow. “This prosecution serves as a warning to other public employees involved in these types of schemes that they will be investigated and prosecuted, and that such violations will not be tolerated.”

“Corruption is a complex problem with a variety of causes and no simple solution. This is why attacking this threat at all levels and having a zero-tolerance posture is necessary in order to have a real impact,” said FBI San Juan Special Agent in Charge Joseph Gonzalez. “The FBI has been at the front lines in the fight against corruption in Puerto Rico and I think the message is clear — if you are a public official using your public office for personal gain, we will come after you and you will face Justice. I thank our partners at the U.S. attorney’s office, HSI, the Puerto Rico Treasury Department, for their continued support to the FBI mission.”

“Today’s arrests are in part, the culmination of a collaborative effort between the FBI and the Puerto Rico Treasury Department,” said Puerto Rico Department of Treasury Secretary Francisco Pares-Alicea. “In 2021, I shared data identified through our new information systems regarding potential fraud in the introduction of vehicles in the island. Although this incident is very unfortunate, we reiterate our unwavering commitment in fighting these reprehensible acts regardless of where they come from.”

Assistant U.S. Attorney Victor O. Acevedo-Hernandez is prosecuting the case.

The indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty.

Source: U.S. Immigration and Customs Enforcement (ICE.gov)