Puerto Rican Politicians’ Brothers Arrested for COVID-19 Aid Fraud
Brothers of Puerto Rican Legislator Arrested in COVID-19 Relief Fraud Scheme
SAN JUAN, Puerto Rico (April 3, 2025) – Two brothers of Puerto Rican legislator Jorge Navarro were arrested along with another individual on charges of fraud, bribery, and money laundering. The trio allegedly illicitly obtained more than $2 million from Coronavirus Aid, Relief, and Economic Security (CARES) Act funds.
The CARES Act, enacted in response to the COVID-19 pandemic, was designed to provide economic relief to businesses and individuals across the United States and its territories.
Fraudulent Loan Applications
According to court documents, Edgardo Navarro Suárez and Ricardo Luis Navarro Suárez, the legislator’s brothers, allegedly orchestrated a scheme to defraud the Small Business Administration (SBA) to obtain the funds. The alleged scheme took place between May 2020 and November 2021.
Also named in the indictment are four companies linked to the Navarro Suárez brothers: Jca Development Inc.,Jca packaging Group Inc., and JCA Industrial supply Corp., and also RVIP Group corp., associated with Ricardo Navarro Suárez and public accountant Ramón J. Valentín Montalvo.
bribery Allegations
Authorities also allege the brothers bribed a bank employee to facilitate the fraudulent activity.
Federal investigators claim the individuals and their co-conspirators submitted 26 loan applications containing false data under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. Thes programs were administered by the SBA and a financial institution.
Millions in Illicit Funds
W. Stephen Muldrow, head of the Federal Prosecutor’s Office in San Juan, stated that the fraudulent loan applications totaled $2.23 million. Of that amount, approximately $905,000 was obtained through 16 PPP loans, and about $1.3 million was secured from 10 EIDL loans, according to Muldrow.
Muldrow emphasized the intended purpose of the programs, stating, “The loans of these programs intended to financially help small businesses during the pandemic, not to abuse federal aid programs.”
Bank Employee Involvement
the indictment further alleges that the involved parties bribed a bank employee, identified as “Banco 1,” with payments totaling at least $69,500. These payments were allegedly made to secure assistance in processing and disbursing funds from the PPP and EIDL programs.
Prosecutors also contend that the defendants and their accomplices recruited others to perpetuate the scheme and continue receiving loan disbursements.
Potential penalties
If convicted, the defendants face a maximum sentance of 30 years in prison for bank bribery and electronic fraud charges, and an additional 30 years for money laundering.
Brothers of Puerto Rican Legislator Arrested in COVID-19 Relief Fraud Scheme: Q&A
What happened?
Two brothers of Puerto Rican legislator Jorge Navarro, Edgardo Navarro Suárez and Ricardo Luis Navarro Suárez, were arrested along with another individual for fraud, bribery, and money laundering. Thay are accused of illegally obtaining over $2 million from CARES Act funds.
What are the charges?
The charges include:
- Fraud
- Bribery
- Money Laundering
What is the CARES Act?
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a law enacted in response to the COVID-19 pandemic. It was designed to provide economic relief to businesses and individuals throughout the United States and its territories.
How did the brothers allegedly commit fraud?
The brothers allegedly orchestrated a scheme to defraud the Small Business Administration (SBA). They submitted 26 fraudulent loan applications with false data under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs.
What programs were used in the fraud?
The fraudulent activities involved the following programs administered by the SBA:
- Paycheck Protection Program (PPP)
- Economic Injury Disaster loan (EIDL)
What was the total amount of the fraudulent loans?
The fraudulent loan applications totaled $2.23 million.
How much money was obtained through PPP and EIDL loans?
according to W. Stephen muldrow, head of the Federal Prosecutor’s Office in San Juan:
- Approximately $905,000 was obtained through 16 PPP loans.
- Approximately $1.3 million was secured from 10 EIDL loans.
Who else was involved?
Also named in the indictment are four companies linked to the Navarro Suárez brothers: Jca Growth Inc.,Jca packaging Group Inc.,JCA Industrial supply Corp., and RVIP Group corp. Public accountant Ramón J. Valentín Montalvo is also associated with the case.
Was anyone else bribed?
Yes, authorities allege the brothers bribed a bank employee to facilitate the fraudulent activity.
How much was the bank employee bribed?
The bank employee, identified as “Banco 1,” was allegedly bribed with payments totaling at least $69,500.
What are the potential penalties if the defendants are convicted?
If convicted,the defendants face:
- A maximum sentence of 30 years in prison for bank bribery and electronic fraud charges.
- An additional 30 years for money laundering.
Key Details of the Fraud Scheme
Here’s a summary of the key elements of the alleged fraud:
| Aspect | Details |
|---|---|
| main Actors | Edgardo Navarro Suárez, Ricardo Luis Navarro Suárez, and One other individual. |
| Programs Targeted | PPP and EIDL |
| Total Funds Obtained (approx.) | $2.23 million |
| PPP Funds (approx.) | $905,000 |
| EIDL Funds (approx.) | $1.3 million |
| Bribery | Bank Employee (Banco 1) received $69,500 |
| Companies Involved | Jca Development Inc., Jca packaging Group Inc., JCA industrial supply Corp., RVIP Group Corp. |