蜜桃影视

Updated July 10, 8:50 p.m.

Julia Keleher, Puerto Rico鈥檚 former education secretary, was arrested Wednesday on charges that she participated in a conspiracy to steer millions of dollars in government contracts to unqualified, politically-connected organizations. Federal Bureau of Investigation agents arrested Keleher in Washington, D.C., where she was freed pending her surrender to officials in Puerto Rico within the week.

An indictment puts Keleher and five others 鈥� including the former head of the island鈥檚 health insurance administration and an executive with a major accounting firm 鈥� at the center of a conspiracy to illegally direct more than $15 million in federal funds through contracts to organizations with which prosecutors said the defendants had personal ties.

From 2017 until her resignation in April, Keleher led wide-scale education reform efforts in Puerto Rico after Hurricane Maria shuttered the island鈥檚 schools. She was widely viewed as a controversial lightning rod for her push to adopt charter schools and private school vouchers, in addition to her decision to close hundreds of public schools on the island.

After stepping down, Keleher consistently painted herself as a heroic fighter against the island鈥檚 anti-reform forces. As recently as April, following local news reports that Keleher was under federal investigation, she denied the allegations. In an exclusive interview with 蜜桃影视, Keleher claimed that she sounded the alarm on irregularities involving a contract, which she said was discovered during an internal audit.

鈥淭he fact that there are investigations into operations in the Department of Education, that鈥檚 not news 鈥� I myself made the referral,鈥� she said, noting that federal investigators have looked into mismanagement at the island鈥檚 education department 鈥渞epeatedly.鈥�

鈥淲hat the Puerto Rico press is reporting firmly is that there鈥檚 an investigation into me,鈥� she said. 鈥淢y understanding is there鈥檚 an investigation into contracting in the department, right, and that鈥檚 been going on鈥� for years, including before she worked for Puerto Rico鈥檚 government.

The grand jury indictment, however, tells a different story.

Eroded trust

In a 44-page indictment, six people were named on 32 counts, including money laundering and wire fraud. Besides Keleher, those charged include 脕ngela 脕vila-Marrero, who formerly led the Puerto Rico Health Insurance Administration; Glenda Ponce-Mendoza, who worked as Keleher鈥檚 special assistant, and her sister, Mayra Ponce-Mendoza, who owned the company Col贸n & Ponce; Alberto Vel谩zquez-Pi帽ol, owner of the company Azur, LLC, a subcontractor; and Fernando Scherrer-Caillet, managing partner of the prominent accounting firm BDO.

鈥淧ublic corruption continues to erode the trust between government officials and our citizens,鈥� Rosa Emilia Rodr铆guez-V茅lez, U.S. Attorney for the District of Puerto Rico, said in a press release. 鈥淒efendants Keleher and 脕vila-Marrero exploited their government positions and fraudulently awarded contracts funded with federal monies,鈥� adding that their actions deprived Puerto Ricans of education and health services.

鈥淭he charged offenses are reprehensible, more so in light of Puerto Rico鈥檚 fiscal crisis,鈥� she added.

Officials allege Keleher and others devised a scheme to direct education department contracts to the company Col贸n & Ponce, through 鈥渁 corrupted bidding process鈥� that gave the company an advantage based on personal relationships at a time the agency hadn鈥檛 yet put out a bid for services. The Ponce-Mendozas worked together to secure a contract with the education department, according to the indictment, and Keleher instructed the agency to award the $43,500 deal to the company. That contract was later increased to $95,000, the indictment said, and was used in part to pay the salary of a special assistant to Keleher. Additionally, officials at Keleher & Associates, a consulting firm owned by the former secretary, allegedly helped Colon & Ponce craft their proposal.

At one point, the indictment said, an education department official refused to sign a letter granting Col贸n & Ponce the job because it 鈥渨as the only company not qualified for the contract, and was the worst applicant.鈥�

Meanwhile, Keleher, Vel谩zquez-Pi帽ol, and Scherrer-Caillet were charged with conspiracy to commit theft in an alleged effort to defraud more than $13 million in federal funds through education department contracts to the company BDO between January 2017 and April 2019. BDO subcontracted with other companies to perform the services, in violation of the contracts, including the company Azur, which it granted a 10 percent commission, thus inflating the costs of the services, according to the indictment.

脕vila-Marrero, Vel谩zquez-Pi帽ol, and Scherrer-Caillet were also charged in an alleged conspiracy to defraud more than $2.5 million in federal funds from the health insurance administration to BDO.

The indictment alleges BDO and Azur executives 鈥減aid individuals with government influence鈥� and were given internal government documents to help craft contract proposals. Prosecutors said that several existing government contracts were cancelled or terminated and awarded to companies 鈥渆ndorsed and promoted by individuals with government influence.鈥�

Keleher’s initial court appearance in Washington occurred behind closed doors Wednesday. Magistrate Judge Deborah Robinson freed Keleher without bond, on the condition that she surrender to authorities in Puerto Rico on or before July 17, El Nuevo Dia, a Puerto Rican newspaper . Scherrer-Caillet, 脕vila-Marrero, and both Ponce-Mendoza sisters pleaded not guilty in federal court in Puerto Rico; Vel谩zquez-Pi帽ol was arrested in Connecticut.

Attempts to reach Keleher for comment were unsuccessful Wednesday. But Maria Dominguez, one of her attorneys, noted that Keleher isn’t accused of receiving any kickbacks or bribes, making these charges “significantly different” than other public corruption indictments.

While declining to address specifics, Dominguez told 蜜桃影视, 鈥淲e鈥檙e convinced in the innocence of our client, and we don鈥檛 believe this is a meritorious prosecution.”

In a series of tweets Wednesday, Gov. Ricardo Rossell贸, who championed the island鈥檚 reform push with Keleher, said he was cutting a foreign vacation short in order to return to Puerto Rico to address the charges.

鈥淭he allegations against people arrested today are a disgrace,鈥� he wrote. 鈥淥ur public policy is clear: we will fight corruption in all its forms. No one is above the law. Everyone who fails must face the consequences.鈥�

Rep. Ra煤l M. Grijalva, an Arizona Democrat and chair of the House committee that oversees Puerto Rico, told The Washington Post that Rossell贸 should resign following Wednesday鈥檚 arrests.

鈥淲e鈥檝e crossed that crucible now,鈥� Grijalva told the newspaper. 鈥淭he restoration of accountability is so key going forward.鈥�

Aida Diaz, president of the island’s teachers union, that the charges were “another shame” for the education department and a “sad day” for the public school system.

Prior legal tangles

Wednesday鈥檚 indictment is not the first time that Keleher and the island鈥檚 education department have tangled with the courts. In February, just two months before she stepped down, a judge but quickly backtracked after department officials vowed to release documents related to a separate federal investigation into a tutoring program. In the April interview with 蜜桃影视, Keleher claimed the documents federal officials sought stemmed from a case that began before she became education secretary. The arrest warrant was issued because officials in the education department failed to furnish the documents, she said, alleging that she was set up by her own employees who didn鈥檛 tell her about the request for information.

鈥淭hat鈥檚 the beginning,鈥� she said, of an 鈥渁ttack on me and on the changes we were trying to implement.鈥�

Some longtime friends of Keleher responded with shock to Wednesday鈥檚 news, defending her as a fierce change agent at the helm of a dysfunctional education system.

Don Yu, who has known Keleher since they worked together at the U.S. Department of Education during the Obama administration and considers her a 鈥済ood friend,鈥� described her as a tireless promoter of improving聽education.

“Julia is a tiger on the behalf of children. She鈥檚 relentless 鈥� extremely smart, extremely hardworking, and all of that on behalf of students,” Yu told 蜜桃影视.

Yu, currently the chief operating officer at Reach Higher, the college access initiative started by Michelle Obama, said he wasn’t familiar with the details of the case, but “if any of those allegations are true, that isn鈥檛 the Julia that I know.”

He first , in response to what he called knee-jerk reactions from people assuming the worst, he said.

During her tenure as education secretary, Keleher faced protests and lawsuits over her education reform efforts. On Twitter, critics expressed their grievances with the hashtag #JuliaGoHome. Those emotions didn鈥檛 dissipate with her departure. During an April education conference at Yale University, where Keleher spoke about leadership, a student that said reform efforts don鈥檛 fix the island鈥檚 education woes but rather 鈥渕utilate it in order to benefit all but those Puerto Rican citizens who actually rely on high quality public schools.鈥�

In a May op-ed for 蜜桃影视, Keleher addressed the criticism.

鈥淭here were threats and protests,鈥� she wrote. 鈥淥ffices were stormed and arrests were made. Describing the reaction as resistance to change would be an understatement; it seemed more like a full-on battle to protect the status quo.鈥�

But officials cast doubt on that view Wednesday, saying that Keleher and others acted criminally at the expense of Puerto Rican students.

鈥淚t was alleged that the defendants engaged in a public corruption campaign and profited at the expense of the Puerto Rican citizens and students,鈥� Neil Sanchez of the U.S. Department of Education鈥檚 Office of Inspector General, said during a press conference in San Juan. 鈥淭his type of corruption is particularly egregious because it not only victimizes taxpayers, it victimizes those citizens and students that are in need of education assistance.鈥�

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