United States’ Reply to Defendants’ Response to Motion Seeking Order to Show Cause — No. 3:25-cr-00163 (Dkt. 72, D.P.R.)

Summary

United States' Reply to Defendants' Response to Motion Seeking Order to Show Cause, Document 72 in No. 25-cr-163 (CVR) in the District of Puerto Rico, filed 05/12/25 against an individual defendant and three corporate defendants, with an interested party noted. The government argues that Puerto Rico's corporate survival statutes apply to criminal as well as civil proceedings, pointing to 14 L.P.R.A. 3709's reference to all such suits as may be necessary and to Section 9.08's reference to prosecuting and defending suits whether civil, criminal or administrative, and comparing the Spanish terms pleito and litigio. It also contends that a one-page 2013 letter about a change of trading name does not rebut evidence, including a 2023 check, that the corporation kept doing business and holding accounts under its original name, and asks the Court to grant the motion.

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        Case 3:25-cr-00163-CVR          Document 72        Filed 05/12/25      Page 1 of 3




                         IN THE UNITED STATES DISTRICT COURT
                           FOR THE DISTRICT OF PUERTO RICO



  UNITED STATES OF AMERICA,

                  v.

  [1] EDGARDO NAVARRO SUAREZ,

  [4] JCA DEVELOPMENT, INC.,
                                                            No.: 25-cr-163 (CVR)
  [5] JCA PACKAGING GROUP, INC., and
                                                            Filed Selected Parties
  [7] JCA INDUSTRIAL SUPPLY CORP.

                  Defendants.

  GLENDA MELENDEZ PEREZ,

                  Interested Party.




                UNITED STATES’ REPLY TO DEFENDANTS’ RESPONSE
                  TO MOTION SEEKING ORDER TO SHOW CAUSE

       Defendants acknowledge the existence of survival statutes under Puerto Rico law. But

they cite nothing other than their own musings to establish that survival statutes don’t apply to

this case. See Defendants’ Response, ECF No. 66 at 3 (citing no case law in proclaiming “All

too frequently, a strict construction of saving statutes has impelled the conclusion that c[r]iminal

actions did not survive dissolution.”). Defendants claim that Section 9.09 only applies to civil

actions. See id. at 3-4. That’s not what the statute says. It says, “all such suits as may be

necessary.” See 14 L.P.R.A. § 3709 (Lexis English Translation). The Spanish version states,

“para entablar todos los litigios que sean necesarios.”
        Case 3:25-cr-00163-CVR           Document 72         Filed 05/12/25      Page 2 of 3




       Then it is further specified that a trustee or receiver appointed under that provision may

be appointed “to do all other acts which might be done by the corporation, if in being, that may

be necessary for the final settlement of the unfinished business of the corporation.” See id.

Section 9.08 discusses “prosecuting and defending suits, whether civil, criminal or

administrative.” The Spanish version states, “de proseguir con la defensa de los pleitos

entablados contra ella.”

       “Pleito” means lawsuit, fight, argument, dispute. See Pleito, Merriam-Webster Spanish

to English Dictionary (2003). “Litigio” means litigation, lawsuit. See id. The English

translations, which control here,1 use the same word – “suit.” In any event, the use of identical –

or essentially identical – terms suggests that the drafters were referring generally to litigation,

which could include both criminal and civil matters. See United States v. Castleman, 572 U.S.

157, 174 (2014) (Scalia, J., concurring in part) (discussing the presumption of consistent usage of

a term within a statutory enactment).

       Defendants attach a one-page letter purporting to inform clients in 2013 that JCA

Industrial Supply will do business as JCA Development from that point forward. But they do

nothing to rebut the contradictory evidence showing that they continued to do business under the

name of JCA Industrial Supply for ten years and continued to hold financial accounts under that

name. See United States’ Motion, ECF No. 62 at 12 (check made payable to JCA Industrial

Supply dated 2023).

       Defendants claim “a simple matter of law” prevents the appearance of JCA Industrial

Supply Corp before this Court. See ECF No. 66 at 4. Despite it being so “simple,” Defendants




       1
           See Puerto Ricans For Puerto Rico Party v. Dalmau, 544 F.3d 58, 67 (1st Cir. 2008).
                                                  2
        Case 3:25-cr-00163-CVR          Document 72        Filed 05/12/25       Page 3 of 3




have failed to point to anything supporting their contentions. That’s why the Court should grant

the United States’ Motion.

                                                      Respectfully submitted,

                                                      W. STEPHEN MULDROW
                                                      United States Attorney

                                                      s/Daniel J. Olinghouse
                                                      Assistant United States Attorney
                                                      USDC-PR No. G03009
                                                      Torre Chardón, Suite 1201
                                                      350 Carlos Chardón Street
                                                      San Juan, Puerto Rico 00918
                                                      (787) 766-5656
                                                      Daniel.Olinghouse2@usdoj.gov


                                    CERTIFICATE OF SERVICE

        I hereby certify that I caused the foregoing to be presented to the Clerk of the Court for

filing and uploading to the CM/ECF system, which will generate an electronic notice of this

filing to be sent to the parties.



                                                      s/Daniel J. Olinghouse
                                                      Daniel J. Olinghouse
                                                      Assistant United States Attorney




                                                  3


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