Magistrate Judge's Report and Recommendation — No. 3:23-cr-00195 (Dkt. 1446, D.P.R.)

Summary

A Magistrate Judge's Report and Recommendation re: Rule 11(c)(1)(B) guilty plea hearing, Document 1446, filed March 11, 2025 in United States v. Carlos E. Pena-Santiago [12], Criminal No. 23-195 (ADC) (Case 3:23-cr-00195-ADC-HRV), in the U.S. District Court for the District of Puerto Rico. It states that the defendant was charged on May 11, 2023 in a multi-count indictment and agreed to plead guilty to Count Sixteen, which charges a scheme to defraud the Small Business Administration through applications for COVID-19 relief funds under the CARES Act, with a wire on or about February 23, 2021. After the hearing, the report recommends that the court accept the guilty plea. It is signed by United States Magistrate Judge Héctor L. Ramos-Vega.

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“Magistrate Judge's Report and Recommendation — No. 3:23-cr-00195 (Dkt. 1446, D.P.R.).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/magistrate-judge-s-report-and-recommendation-no-3-23-cr-00195-dkt-1446-1a5562e6aa/, SHA-256 65225038d95cf7395fcaca98b999cb36ea7c5801e4884fc6f42538f1fa5983f8.

Full text

Case 3:23-cr-00195-ADC-HRV Document 1446 Filed 03/11/25 Page 1 of 8

1
IN THE UNITED STATES DISTRICT COURT
2 FOR THE DISTRICT OF PUERTO RICO
3

5 UNITED STATES OF AMERICA,
6
Plaintiff,
7
v. CRIMINAL NO. 23-195 (ADC)
8

9 [12] CARLOS E. PENA-SANTIAGO,
10
Defendant.
11

12
MAGISTRATE JUDGE’S REPORT AND RECOMMENDATION
13 RE: RULE 11(c)(1)(B) GUILTY PLEA HEARING

14 I. Procedural Background:
15
On May 11, 2023, defendant Carlos E. Pena-Santiago was charged in a multi-count,
16
multi-defendant indictment. (Docket No. 3). He agreed to plead guilty to Count Sixteen
17
of said indictment.
18

19 Count Sixteen charges that from in our about April 2020, thorough approximately

20 May 11, 2023, in the District of Puerto Rico, and elsewhere, Mr. Peña-Santiago, aiding
21 and abetting others, knowingly devised, and intended to devise, a scheme and artifice to
22
defraud the United States Small Business Administration, and to obtain money and
23
property by means of materially false and fraudulent pretenses, representations, and
24
promises, by submitting and causing to be submitted false and fraudulent applications
25

26 for COVID-19 relief funds issued under the authority of the Coronavirus Aid, Relief, and

27 Economic Security (“CARES”) Act.
28 1
Case 3:23-cr-00195-ADC-HRV Document 1446 Filed 03/11/25 Page 2 of 8

1 Specifically, on or about February 23, 2021, Mr. Peña-Santiago, aiding and
2
abetting others, for the purpose of executing the scheme and artifice to defraud, and
3
attempting to do so, transmitted, and caused to be transmitted, writings, signs, signals,
4
pictures, and sounds by means of wire communications in interstate commerce, in
5

6 relation to fraudulent applications for COVID-19 relief funds.

7 On today’s date, the defendant appeared before me, assisted by the court
8 interpreter, after the Rule 11 hearing was referred to me by the Presiding District Judge.
9
See United States v. Woodard, 387 F.3d 1329 (11th Cir. 2004) (magistrate judge had
10
authority to conduct Rule 11 guilty plea hearing with consent of defendant). He was
11

12
advised of the purpose of the hearing and placed under oath with instructions that his

13 answers must be truthful lest he subject himself to possible charges of perjury or making

14 a false statement.
15
II. Consent to Proceed Before a Magistrate Judge:
16
Defendant was provided with a Waiver of Right to Trial by Jury form, which he
17
signed. 1 He was advised of his right to hold all proceedings, including the change of plea
18

19 hearing, before a district court judge. He received an explanation of the differences

20 between the scope of jurisdiction and functions of a district judge and a magistrate judge.
21
He was informed that if he elected to proceed before me, a magistrate judge, that I would
22
conduct the hearing and prepare a report and recommendation, subject to review and
23

26 1
The form entitled Consent to Proceed Before a United States Magistrate Judge in a Felony Case for Pleading Guilty
(Fed. R. Crim. P. 11) and Waiver of Jury Trial, signed and consented by both parties is made part of the record.
27

28 2
Case 3:23-cr-00195-ADC-HRV Document 1446 Filed 03/11/25 Page 3 of 8

1 approval of the district judge. The defendant then voluntarily consented to proceed
2
before me.
3
III. Proceedings Under Rule 11 of the Federal Rules of Criminal
4 Procedure:
5
Rule 11 of the Federal Rules of Criminal Procedure governs the acceptance of
6
guilty pleas to federal criminal violations. Pursuant to Rule 11, in order for a plea of guilty
7
to constitute a valid waiver of the defendant’s right to trial, the guilty plea must be
8

9
knowing and voluntary. United States v. Hernandez-Wilson, 186 F.3d 1, 5 (1st Cir. 1999).

10 “Rule 11 was intended to ensure that a defendant who pleads guilty does so with an
11 ‘understanding of the nature of the charge and consequences of his plea.’” United States
12
v. Cotal-Crespo, 47 F.3d 1, 4 (1st Cir. 1995) (quoting McCarthy v. United States, 394 U.S.
13
459, 467 (1969)). There are three core concerns in a Rule 11 proceeding: 1) absence of
14
coercion; 2) understanding of the charges; and 3) knowledge of the consequences of the
15

16 guilty plea. Cotal-Crespo, 47 F.3d at 4 (citing United States v. Allard, 926 F2d 1237, 1244

17 (1st Cir. 1991)).
18
A. Competence to Enter a Guilty Plea
19
I questioned the defendant about his age, education, employment, history of any
20
treatment for mental illness or addiction, use of any medication, drugs, or alcohol, and
21

22 his understanding of the purpose of the hearing, all in order to ascertain his capacity to

23 understand, answer and comprehend the change of plea colloquy. I confirmed that the
24 defendant received the superseding indictment and fully discussed the charges with his
25
attorney and was satisfied with the advice and representation he received. In addition, I
26
further inquired whether defendant’s counsel or counsel for the government had any
27

28 3
Case 3:23-cr-00195-ADC-HRV Document 1446 Filed 03/11/25 Page 4 of 8

1 doubt as to his competency to plead, receiving answers from both that the defendant was
2
competent to enter a plea. After considering the defendant’s responses, and observing
3
his demeanor, a finding was made that Mr. Pena-Santiago was competent to plead and
4
fully aware of the purpose of the hearing.
5

6 B. Maximum Penalties

7 Upon questioning, the defendant expressed his understanding of the maximum
8 penalties prescribed by statute for the offense to which he was pleading guilty, namely:
9
a term of imprisonment of thirty (30) years and a fine not to exceed one million dollars
10
($1,000,000), and a supervised release term of not more than five (5) years.
11

12
However, Mr. Pena-Santiago acknowledged understanding that for purpose of the

13 plea agreement between the parties, he will be held accountable for the offense of wire

14 fraud that does not affect a financial institution or occur in relation to, or involve any
15
benefit authorized, transported, transmitted, transferred, disbursed, or paid in
16
connection with, a presidentially declared major disaster or emergency, which carries a
17
maximum statutory penalty of: no more than twenty (20) years of imprisonment, a fine
18

19 of not more than two hundred fifty thousand ($250,000.00) dollars, and a supervised

20 release term of not more than three (3) years.
21
The defendant also understood that a Special Monetary Assessment of $100.00
22
would be imposed, to be deposited in the Crime Victim Fund, pursuant to Title 18, United
23
States Code, Section 3013(a). The court explained the nature of supervised release and
24

25 the consequences of revocation. The defendant indicated that he understood the

26 maximum penalties for Count Sixteen and the potential consequences of the guilty plea.
27

28 4
Case 3:23-cr-00195-ADC-HRV Document 1446 Filed 03/11/25 Page 5 of 8

1 C. Plea Agreement
2
Mr. Peña-Santiago was shown his plea agreement, and the plea agreement
3
supplement, which are part of the record, and identified his initials and signatures. He
4
confirmed that he had the opportunity to read and discuss the plea agreement with his
5

6 attorney before he signed it, that it represented the entirety of his understanding with

7 the government, that he understood its terms, and that no one had made any other or
8 different promises or assurances to induce him to plead guilty.
9
The defendant was then admonished, pursuant to Fed. R. Crim. P. 11(c)(1)(B), and
10
expressed his understanding that the terms of the plea agreement are merely
11

12
recommendations to the court, and that the district judge who will preside over the

13 sentencing hearing can reject the recommendation without permitting the defendant to

14 withdraw his guilty plea, and impose a sentence that is more severe than the defendant
15
might anticipate. The defendant was specifically informed that the court, after
16
considering the applicable Sentencing Guidelines, could impose a sentence different
17
from any estimate in the plea agreement or provided by his attorney, and that the court
18

19 had the authority to impose a sentence that is more severe or less severe than the

20 sentence called for by the Sentencing Guidelines. The defendant was advised, and
21
understood, that the Sentencing Guidelines are no longer mandatory and are thus
22
considered advisory, and that during sentencing the court will consider the sentencing
23
criteria found at Title 18, United States Code, Section 3553(a).
24

25 The defendant was advised that under some circumstances he or the government

26 may have the right to appeal the sentence the court imposes, but that pursuant to the
27 plea agreement the defendant will waive his right to appeal both his sentence and his
28 5
Case 3:23-cr-00195-ADC-HRV Document 1446 Filed 03/11/25 Page 6 of 8

1 conviction if the court adopts the plea agreement and sentences him according to its
2
terms and conditions.
3
D. Waiver of Constitutional Rights
4
The defendant was specifically advised that he has the right to persist in a plea of
5

6 not guilty, and if he does so persist that he has the right to a speedy and public trial by

7 jury, or trial before a judge sitting without a jury if the court and the government so agree;
8 that at trial he would be presumed innocent and the government would have to prove his
9
guilt beyond a reasonable doubt; that he would have the right to the assistance of counsel
10
for his defense, and if he could not afford an attorney the court would appoint one to
11

12
represent him throughout all stages of the proceedings; that at trial he would have the

13 right to hear and cross examine the government’s witnesses, the right to decline to testify

14 unless he voluntarily elected to do so, and the right to the issuance of subpoenas or
15
compulsory process to compel the attendance of witnesses to testify. He was further
16
informed that if he decided not to testify or put on evidence at trial, the failure to do so
17
could not be used against him, and that at trial the jury must return a unanimous verdict
18

19 before he could be found guilty or not guilty.

20 The defendant specifically acknowledged understanding these rights and
21
understanding that by entering a plea of guilty there would be no trial and he will be
22
waiving or giving up the rights I explained.
23
The defendant was informed that parole has been abolished and that any sentence
24

25 of imprisonment must be served, and that his guilty plea may result in loss of important

26 civil rights, such as the right to vote, to hold public office, to serve on a jury, and to
27

28 6
Case 3:23-cr-00195-ADC-HRV Document 1446 Filed 03/11/25 Page 7 of 8

1 possess a firearm. The defendant confirmed that he understood these consequences of
2
the guilty plea.
3
E. Factual Basis for the Guilty Plea
4
Defendant was read in open court Count Sixteen of the indictment and provided
5

6 an explanation of the elements of the offense. The meaning of terms used in the

7 indictment was explained.
8 Upon questioning, the defendant admitted to facts constituting all of the elements
9
of the offense charged in Count Sixteen and that the evidence the government had
10
available to establish, in the event defendant elected to go to trial, the defendant’s guilt
11

12
beyond a reasonable doubt.

13 F. Voluntariness

14 The defendant indicated that he was not being forced to plead guilty but was
15
entering such a plea freely and voluntarily because in fact he is guilty, and that no one
16
had threatened him or offered a thing of value in exchange for his plea. He acknowledged
17
that no one had made any different or other promises in exchange for his guilty plea,
18

19 other than the recommendations set forth in the plea agreement. Throughout the hearing

20 the defendant was able to consult with his attorney.
21
IV. Conclusion:
22
The defendant, by consent, appeared before me pursuant to Rule 11 of the Federal
23
Rules of Criminal Procedure, and entered a plea of guilty as to count sixteen of the
24

25 indictment. After cautioning and examining the defendant under oath and in open court

26 concerning each of the subject matters mentioned in Rule 11, I find that the defendant,
27 Carlos E. Peña-Santiago is competent to enter this guilty plea, is aware of the nature of
28 7
Case 3:23-cr-00195-ADC-HRV Document 1446 Filed 03/11/25 Page 8 of 8

1 the offense charged and the maximum statutory penalties that it carries, understands
2
that the charge is supported by evidence and a basis in fact, has admitted to the elements
3
of the offense, and has done so in an intelligent and voluntary manner with full
4
knowledge of the consequences of his guilty plea. Therefore, I recommend that the court
5

6 accept the guilty plea and that the defendant be adjudged guilty as to Count Sixteen of

7 the indictment.
8 This report and recommendation is filed pursuant to 28 U.S.C. § 636(b)(1)(B) and
9
Rule 72(d) of the Local Rules of this Court. Any objections to the same must be specific
10
and must be filed with the Clerk of Court within 14 days. Failure to file timely and
11

12
specific objections to the report and recommendation is a waiver of the right to appellate

13 review. See Thomas v. Arn, 474 U.S. 140, 155 (1985); Davet v. Maccorone, 973 F.2d 22,

14 30–31 (1st Cir. 1992); Paterson-Leitch Co. v. Mass. Mun. Wholesale Elec. Co., 840 F.2d
15
985 (1st Cir. 1988); Borden v. Sec’y of Health & Human Servs., 836 F.2d 4, 6 (1st Cir.
16
1987).
17
IT IS SO RECOMMENDED.
18

19 In San Juan, Puerto Rico this 11th day of March 2025.

20 S/Héctor L. Ramos-Vega
HÉCTOR L. RAMOS-VEGA
21
UNITED STATES MAGISTRATE JUDGE
22

28 8

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