Hurricane Maria Fraud.

FEMA officials accused of bribery, fraud in Hurricane Maria relief
Puerto Rico: Hurricane Maria relief officials arrested, accused of bribery and fraud
Rick Jervis | USA TODAY Updated 5:34 p.m. CDT Sep. 10, 2019

Two former officials of the Federal Emergency Management Agency and the former president of an energy contractor were recently arrested, accused of bribery and wire fraud while trying to restore electricity to Puerto Rico in the wake of Hurricane Maria.

The U.S. Attorney’s Office in Puerto Rico said Tuesday that the president of Cobra Acquisitions, Donald Keith Ellison, gave FEMA’s deputy regional director airline flights, hotel accommodations, personal security services and the use of a credit card.

In return, Ahsha Nateef Tribble “used any opportunity she had to benefit Cobra,” said U.S. Attorney Rosa Emilia Rodríguez, including accelerating payments to the company and pressuring power authority officials to award it contracts.

“These defendants were supposed to come to Puerto Rico to help during the recovery after the devastation suffered from Hurricane Maria,” Rodríguez said. “Instead, they decided to take advantage of the precarious conditions of our electric power grid and engaged in a bribery and honest services wire fraud scheme in order to enrich themselves illegally.”

Cobra Acquisitions and Cobra Energy are subsidiaries of Oklahoma City-based Mammoth Energy Services. in a statement, Peter Mirijanian, a Mammoth spokesman, said, "Mammoth is aware of and has been cooperating with the government’s investigation into Ms. Tribble and Mr. Ellison and will continue to do so.”

Hurricane Maria blasted through Puerto Rico on Sept. 20, 2017, battering the island’s outdated power grid and knocking out electricity in parts of the U.S. commonwealth for nearly a year. The lack of power was a major challenge for Puerto Ricans recovering from the storm and a key factor in widespread fatalities in the wake of the hurricane. The death toll from the storm is 2,975, based on estimates from a study by George Washington University researchers.

Restoring power to Puerto Rico was slow and often fraught with controversy. Federal officials spent more than $3 billion to end the longest blackout in U.S. history and return the Puerto Rican power grid to pre-storm conditions. Puerto Rican officials estimate it will take an additional $26 billion to upgrade the island's energy grid, though that money has not been approved by Washington.

Whitefish Energy, a small Montana firm hired early on in the effort, faced stinging criticism for overcharging for its services. Former Gov. Ricardo Rosselló eventually canceled the Whitefish contract, leaving more jobs for Cobra. Cobra was given contracts worth about $1.8 billion.

According to the indictment, Ellison lavished Tribble with helicopter tours over Puerto Rico, hotel rooms in Fort Lauderdale and first-class airfare from San Juan to New York.

Ellison also gave a job to a friend of Tribble, Jovanda Patterson, who had been FEMA deputy chief of staff in Puerto Rico before resigning in July 2018 to work for Cobra Energy, according to the indictment.

In return, Tribble, who was FEMA’s primary leader in trying to restore electric power after Maria, lobbied to secure more contracts for Cobra, according to the indictment.

Tribble was arrested Monday in Florida and Ellison was detained in Oklahoma.

Rodríguez said that after an explosion at a power plant knocked out power to several towns in February 2018, Tribble pressured power authority officials to use Cobra rather than their own workforce. “She even told them that if they did not use Cobra, FEMA would not reimburse them,” the prosecutor said.

Patterson is accused of defrauding Cobra by telling the company her salary with FEMA was far larger than it was, and she was offered $160,000 a year to work for Cobra, Rodríguez said.

She allegedly was negotiating the job with Cobra when she participated for FEMA in part of Cobra’s vendor bid process for work in Puerto Rico.

According to prosecutors, Tribble avoided using her FEMA email and cellphone, instead opting for private accounts and even a disposable prepaid cell number.

When investigators approached Ellison, he denied anything but a business relationship. They knew he had taken a helicopter ride with Tribble, but he denied that, prosecutors said.

The government seeks the forfeiture from Ellison of accounts holding more than $4 million, as well as a 40-foot catamaran.

If convicted of the charges of honest services wire fraud and disaster fraud, Trubble and Ellison could each face up to 30 years in prison.

U.S. Rep. Nydia Velázquez, D-N.Y., said in a statement that the charges suggest corruption was another factor in the flawed response to the hurricane damage.

“These charges, related to the Island’s beleaguered energy grid, are an appalling insult to the people of Puerto Rico who already endured the longest blackout in American history,” she said. “If proven, this misuse of funds suggests that, while our fellow citizens on the Island were dying from a lack of electricity, private companies stateside were plotting how to illicitly profit at taxpayers’ expense.”

Cecilio Ortiz García, of the National Institute for Energy and Island Sustainability at the University of Puerto Rico, said the arrests were another setback to the island’s slow recovery from Maria. Puerto Ricans’ trust in how officials rebuild the grid has been severely compromised, especially since FEMA officials were included in the indictment, he said.

“It’s just demoralizing,” García said. “It’s been one blow after another.”

Contributing: Associated Press


https://www.usatoday.com/story/news...bery-fraud-hurricane-maria-relief/2277834001/

Can't be this is flying under the radar.

 

As well as this.

Files to Stay Sealed in Hurricane Maria Corruption Probe

Thousands of homes suffered varying degrees of damage while large swaths of vegetation were shredded by the hurricane’s violent winds. (Photo via Wikipedia Commons)

SAN FRANCISCO (CN) – Records used to justify seizing more than $4.5 million in assets from a man suspected of bribery and fraud in a $1.8 billion Hurricane Maria recovery project will likely stay sealed for now, a federal judge said in court Tuesday.

“It’s hard for me to take a position until I’ve seen the affidavit, but I don’t have a right to see it,” U.S. District Judge Jon Tigar said.

Donald Keith Ellison, former president of Cobra Acquisitions Energy, asked Tigar to make the government hand over records used to authorize the seizure of $4.4 million in cash and securities from his Charles Schwab account along with his boat, pickup truck and farm equipment.

Cobra secured $1.8 billion in contracts to rebuild Puerto Rico’s power grid after Hurricane Maria caused massive destruction and widespread power outages in September 2017. Cobra is a wholly owned subsidiary of Mammoth Energy Services based in Oklahoma City.

The contracts were awarded by the Puerto Rico Electric Power Authority (PREPA), the island’s state-owned electric provider, with grant money from the Federal Emergency Management Agency (FEMA).

In April, a federal magistrate judge in Puerto Rico authorized the government to seize $1 million from Ellison’s bank account. A different judge later granted a request to seize another $3.4 million in cash and investments.

Ellison’s lawyer argued in court Tuesday that the government is depriving his client of due process and the means to support his family by indefinitely holding the assets while it conducts a slow-moving investigation.

“The only way that we have to invoke our due process rights is to see the underlying affidavit,” said Ellison’s lawyer, William “Bill” Leone of Norton Rose Fulbright in New York.

The government said the seizure was based on a finding of probable cause that Ellison committed major fraud against the government, bribed a public official and engaged in a conspiracy.

In a sworn declaration, an FBI agent stated FEMA officials “should not be in direct contact with or advising contractors” that vie for government-funded projects.

Leone said the case is really about a close friendship that developed between Ellison and Ahsha Tribble, a FEMA deputy regional administrator who was sent to Puerto Rico to oversee power grid reconstruction after Hurricane Maria. Tribble is under investigation on allegations she diverted contracts to Cobra and was placed on administrative leave in May, according to the Wall Street Journal.

Leone said he interviewed witnesses and conducted his own investigation, which found several allegations involving Ellison are based on hearsay, including a false story about Ellison giving a Tribble a helicopter ride to a casino.

“There was no helicopter ride,” Leone said. “This was just gossip.”

If the affidavits are unsealed, Leone predicted they would be full of rumors and second-hand accounts.

Leone, who served as U.S. Attorney for the District of Colorado from 2004 to 2006, said he would be stunned if the sealed affidavit contains any actual evidence of wrongdoing by his client.

“If that’s in this affidavit, then I will eat my hat,” he said.

Tigar told Leone he lacks authority to unseal those files because the warrant was issued in the District of Puerto Rico.

“It was issued in a different district by a different judge,” Tigar said. “I believe that judge has power that I don’t have.”

Ellison served as president of Cobra from January 2017 until June 7, 2019. In a sworn declaration, Ellison said the seizure of his assets has prevented him from paying child support and supporting his family. He also argues $250,000 was deposited in his account before he did any business in Puerto Rico, and that much of his initial $300,000 annual salary, which was later increased to $600,000 in 2018, was earned before Hurricane Maria.

He filed a motion to return his property in the Northern District of California on June 12. The case was filed in San Francisco because that’s where Charles Schwab & Co., where Ellison’s assets were held, is based.

The Department of Justice asked Tigar to transfer the case to Puerto Rico.

Tigar said he intends to issue a ruling by the end of this week.

 

Yeah I was surprised at the details.

Did not realize it was this much money.

 

Don't really like thing Trump to everything but this shows huge incompetence or a more damming a culture of corruption.

check out the 1st segment.