Two Businessmen, a Certified Public Accountant, and Four Puerto Rico-Based Businesses Indicted on Charges of Fraud, Bribery, and Money Laundering

Summary

The U.S. Attorney's Office for the District of Puerto Rico announced on April 3, 2025 the indictment of Edgardo Navarro Suárez, Ricardo Luis Navarro Suárez, Ramón J. Valentín Montalvo and four companies, JCA Development, Inc., JCA Packaging Group, Inc., RVIP Group Corp. and JCA Industrial Supply Corp., on fraud, bribery and money laundering charges. According to court documents, from about May 2020 through at least November 2021 the defendants and co-conspirators submitted at least 26 EIDL and PPP applications seeking at least $2,238,747 from the SBA and Bank 1, a Puerto Rico-based financial institution. The indictment alleges they offered at least $69,500 in payments to a Bank 1 employee to help process and disburse the funds. The indictment gives notice of forfeiture of properties in Caguas and Humacao. An indictment is merely an allegation.

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Press Release

Two Businessmen, a Certified Public Accountant, and Four Puerto Rico-Based Businesses Indicted on Charges of Fraud, Bribery, and Money Laundering

Thursday, April 3, 2025

For Immediate Release

U.S. Attorney's Office, District of Puerto Rico

SAN JUAN, Puerto Rico – W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, announced the indictment of two businessmen, a certified public accountant, and four Puerto Rico-based companies for a fraudulent scheme to illegally obtain federal recovery funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, bribe a bank employee, and launder the fraudulent proceeds of the scheme.

According to court documents, beginning no later than in or about May 2020, through at least November 2021, defendants and their co-conspirators submitted and caused the submission of at least 26 Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) applications seeking a total of at least $2,238,747 in EIDL and PPP proceeds from the United States Small Business Administration (SBA) and Bank 1, a Puerto Rico-based financial institution. The defendants and their co-conspirators also bribed an employee of Bank 1 to influence and reward the employee in connection with the submission and processing of PPP applications and the deposit and disbursement of PPP and EIDL funds into accounts at Bank 1.

“PPP and EIDL loans were intended to help small businesses during the pandemic, not exploit Federal relief programs” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “The District of Puerto Rico is committed to protecting government programs from fraud, and we will hold those accountable who steal from the American taxpayers.”

Today, the U.S. Secret Service, in coordination with our law enforcement partners, executed a coordinated operation targeting a sophisticated financial fraud network. “The success of this operation is a testament to the dedication and collaboration of our agents and law enforcement partners,” said Special Agent in Charge Rafael Barros of the Miami Field Office. “We remain steadfast in our mission to protect the integrity of the U.S. financial system and will continue to pursue those who engage in fraudulent activities.”

“This investigation reflects the SBA Office of Inspector General’s determination to hold accountable those who attempt to defraud pandemic relief programs. We remain committed to working with our partners to uncover fraud and protect these essential funds,” said Amaleka McCall-Brathwaite, Special Agent in Charge of the SBA Office of Inspector General, Eastern Region.

“The individuals involved took advantage of a program meant to help businesses at a time of great need and uncertainty, and instead fraudulently used federal funds to buy properties for themselves,” said Special Agent in Charge Emmanuel Gomez of IRS Criminal Investigation (IRS-CI), Miami Field Office. “Let this serve as a warning: those who believe they can exploit government programs for personal gain will face the full weight of the law, with no refuge from accountability.”

According to court documents, Edgardo Navarro Suárez, Ricardo Luis Navarro Suárez, Ramón J. Valentín Montalvo, JCA Development, Inc., JCA Packaging Group, Inc., RVIP Group Corp., and JCA Industrial Supply Corp. knowingly devised a scheme and artifice to defraud and to obtain money and property from the United States Small Business Administration and Bank 1 by means of false and fraudulent pretenses, representations and promises submitted through applications for EIDL and PPP loans made available to help small businesses recover from the impact of the pandemic.

The CARES Act provided emergency financial assistance to Americans impacted by the COVID-19 pandemic, including authorizing the SBA to issue EIDL and PPP loans to small businesses and non-profit entities facing revenue losses. The indictment alleges that the defendants and their co-conspirators submitted fraudulent EIDL and PPP loan applications containing materially false and fraudulent information and false documents. The indictment further alleges that the defendants and their co-conspirators directed the recipients of the fraudulently obtained PPP and EIDL loans to remit a portion of the proceeds of the loans to the defendants and their co-conspirators and used the loan proceeds to benefit themselves and others, and to pay for expenses prohibited under the requirements of the EIDL and PPP programs.

The court documents also claim that defendants and their co-conspirators corruptly gave, offered, and promised at least $69,500 in payments to an employee of Bank 1 to influence and reward the employee in connection with his assistance with the processing and disbursement of PPP and EIDL funds. In addition, defendants and their co-conspirators would recruit others to fraudulently obtain EIDL and PPP relief.

The defendants will make their initial court appearance today before U.S. Magistrate Judge Giselle López-Soler of the U.S. District Court for the District of Puerto Rico.

If convicted, the defendants face a up to 30 years in prison for the wire fraud and bank bribery offenses alleged in Counts 1 through 7 of the Indictment, 20 years in prison for the money laundering offense alleged in Counts 8 through 10 of the Indictment, and 10 years in prison for the money laundering offense alleged in Counts 11 and 12 of the Indictment. The Indictment also provides notice of forfeiture of the following assets:

- All right, title, and interest in property located at Carr. 1, Km 29.5, Int Calle Abeto Bo Río Cañas, Caguas, Puerto Rico 00725, together with all improvements and appurtenances;
- All right, title, and interest in property located at 170 Palmas Dr. E, La Jolla de Palmas Condominium I, Apt C16, Humacao, Puerto Rico 00791-6330, together with all improvements and appurtenances; and
- All right, title, and interest in property located at Palmas del Mar Crescent Beach #216 in Humacao, Puerto Rico, 00791, together with all improvements and appurtenances.

A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The United States Secret Service, through its San Juan Resident Office & Criminal Investigative Division (CID), the Small Business Administration Office of the Inspector General, the Treasury Inspector General for Tax Administration, and the Internal Revenue Service Criminal Investigations conducted the investigation in collaboration with the Puerto Rico Treasury Department, the Puerto Rico Bureau of Special Investigations, the Puerto Rico Police Bureau, and the Guaynabo Municipal Police.

Assistant U.S. Attorney Daniel J. Olinghouse is prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Updated April 7, 2025

Topics

COVID-Related Fraud

Disaster Fraud

Financial Fraud

Component

USAO - Puerto Rico

Press Release Number: 2025-013

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