Arturo Santiago-Acevedo, Theft of Government Property, Puerto Rico 2016

SAN JUAN, P.R. — A federal crackdown has netted seven individuals charged in a sweeping Social Security fraud operation that exploited disability benefits meant for the truly disabled. On December 6, 2016, a Federal Grand Jury in the District of Puerto Rico returned five separate indictments accusing the defendants of theft of government property, concealing work activity, and making false statements to the Social Security Administration (SSA). These weren’t struggling citizens barely scraping by—they were schemers gaming a system built to protect the vulnerable.

The SSA’s Disability Insurance Benefits Program delivers critical financial aid to workers with severe, long-term disabilities who have a sufficient work history under SSA-covered employment. Spouses and dependent children may also qualify. But eligibility hinges on proof—medical documentation and honest disclosure. Instead, these defendants lied. They submitted fraudulent applications and concealed employment, all while cashing monthly disability checks they knew they had no right to collect.

Among the accused: Arturo Santiago-Acevedo and Erick Malavé-Hernández, who not only defrauded SSA but also bilked the Medicare Program. After receiving SSA disability benefits for 24 months, they automatically qualified for Medicare Part A and enrolled in Part B and C—the premiums deducted from their illicit disability payments. They weren’t patients in need; they were criminals using government healthcare as a bonus perk from their scam.

The remaining five—Ferdinand Negrón-Candelaria, a.k.a. “Yuca”; Jorge M. Bultrón-Casas, a.k.a. “Ernesto Bultrón Casas,” a.k.a. “George Bultrón”; Nancy López-Villanueva; Aracely Amadeo-Pumarejo; and Luz B. Hiraldo-Rivera—falsified information during Continuing Disability Reviews (CDR). They claimed debilitating health conditions prevented work, while secretly holding jobs. Their lies weren’t slips—they were deliberate, repeated betrayals of public trust.

“This is a great example of ongoing efforts by the Government to deter fraud against the social security programs,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “The Department of Justice is committed to investigate and prosecute those who engage in fraudulent schemes. Hopefully this round of arrests will discourage more people from getting involved in these types of schemes, because we will continue investigating these crimes.”

SSA-OIG Special Agent-in-Charge John Grasso added: “The Social Security Disability Insurance program is intended to support individuals truly in need of this important and earned benefit, not those who are willing to lie about their true condition to steal from the Social Security Trust Fund.” The probe was led by SSA-OIG, with support from HHS-OIG, the Puerto Rico Police Department, and prosecuted by Special Assistant U.S. Attorney Vanessa D. Bonano-Rodríguez. If convicted, the defendants could face serious federal penalties, including prison time and full restitution.

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