Numerous individuals have come forward over the past year to testify about the massive amount of alleged financial fraud taking place in Puerto Rico. Below is a brief list of the accusations made regarding these activities.
• Billions of dollars is unaccounted for within the Puerto Rico Electric Power Authority.
• RICO lawsuits claim the Puerto Rico Power Electric Authority engaged in an oil for money scheme. Burning dangerous sludge oil while billing for high grade oil.
• Lead CPA from Ernest and Young claims they knew municipal agencies were technically bankrupt but issued clean, going concern audits anyway.
• Independent CPA audits that show the BBB+ bond credit ratings were completely unjustified.
• Accounting methods that constitute simple fraud.
• Sworn testimony from municipal executives that stated the bond rating agencies knew the bond issuing agencies were technically bankrupt but would issue good ratings for a higher rating fee.
• Sworn testimony from municipal executives that stated the major Wall Street banks knew the bond issuing agencies were technically bankrupt but would sell the bonds for a higher sales fee.
• CIA whistleblowers that claim the FBI and US Attorney’s Office in Puerto Rico were taking payoffs to prevent any investigations.
• There was testimony from individuals that showed the people who advocated for PROMESA Legislation participated in the fraud in the first place.
• There are indications that there was a widespread “pay for play” enterprise that many politicians may have participated in.
The SEC is asking that, if you have any knowledge of these activities, please reach out to them. If you would like to reach out to me in a confidential manner, you can contact me at firstname.lastname@example.org