Puerto Rico: 7 Dock Workers Involved in $1.2 Million Extorsion Scheme That Targeted Shipping Companies Arrested

U.S. federal authorities arrested seven people on Monday in Puerto Rico. They are various dock workers, as well as a union leader. They are accused of targeting shipping companies in a $1.2 million extortion scheme that began in 2005.

According to U.S. Attorney Stephen Muldrow, the scheme affected both foreign and local commerce in Puerto Rico, as the shipping between the island and the U.S. and the British Virgin Islands was targeted.

The official website for the United States Department of Justice (DOJ) revealed the names of those who were arrested. These include Pedro Pastrana-González and his ex-wife, Iara Clemente-Rivera, owners and managers of JCPY, Inc. (JCPY). Also nabbed were Puerto Rico Port Authority worker, Jorge Batista-Maldonado and Carlos Sánchez-Ortiz, the president of the union International Longshoremen's Association, AFL-CIO or ILA-1740. The other port workers now in custody are Victor F. Torres-Barroso, José A. Fernández-Cruz, and Carlos A. Hernández-Laguer.

Extorsion Scheme Targeted Smaller Companies Across Three Docks in San Juan

The Associated Press reported that these individuals illegally extorted small shipping companies across three docks in Puerto Rico: Piers 9, 10, and 11. They threatened small companies whose ships docked in these piers that they would load or unload goods if they did not pay the monthly fee. The fee varied by weight and ranged between $10,000 to $20,000 a month.

Officials also noted that there were no labor unions representing the employees of the various shipping companies involved in the alleged scheme.

The seven individuals have been charged with conspiracy to violate the RICO Act, committing extortion, and money laundering.

According to the Daily Herald, this is the culmination of a five-year investigation into the scheme by both federal and local authorities. Some of these authorities were even wearing shirts that read "Pier Pressure," which is a reference to the operation.

The Fraudulent Practice Called 'Chimbo'

The U.S. Attorney's Office stated that Pastrana-González, Clemente-Rivera, and others agreed to take funds and falsify records. This includes the fact that the owners of JCPY agreed that union members would use the ID cards of other employees so that it appears that that employee is working. This becomes fraudulent as the hours worked counted to qualify for plan benefits. This is a practice called "Chimbo" in Puerto Rico.

The U.S. Attorney for the District of Puerto Rico also stated that the U.S. Department of Labor, Office of Inspector General (DOL-OIG) is also involved in the case. It is part of its mission to "protect the integrity of labor unions and affiliated benefit plans." They are investigating those who abused their positions for financial gain, and the practice of "chimbo" qualifies for that.

Also involved is the Northeastern Regional Director of the Office of Labor-Management Standards (OLMS), which vowed to continue to work with its law enforcement authorities and hold union officials accountable.

This article is owned by Latin Post.

Written by: Rick Martin

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