The
Federal Denounce
Now, abounding more about the
criminal practices that affect the Estate, until the year 1996 all our legal
tools were strictly based on the hereditary rights, until one day, by accident,
studying the laws, we discovered the most important legal tools never ever
known and seen before that we were needing to win the legal battle to recover
the inheritance since its discovery.
By accident, reading the Constitution
of the Commonwealth of Puerto Rico in a book titled “Puerto
Rico’s Constitutional Development”, we discovered the biggest financial
scandal in the history of Puerto Rico and United States of America secretively
hidden by judges, courts and attorneys during the last 100 years.
Due to during that time we had
doubts about it we proceeded to consult many attorneys in the island,
confirming later that we were right.
Certainly, on 1997, we discovered
the weakest point of the entire local financial system with all its history and
development.
In simple words, said discovery
revealed that during the last 100 years all the assets and the local financial
system had been produced by virtue of a very big white collar criminal money
laundering operation, orchestrated by hundreds of juridical persons,
participating as criminal holders of more than 500 acres of lands, dedicated to
the prohibited corporate business of buying and selling real estate, violating
the federal and local laws.
At present, any person may
verify said prohibitions, still in effect,
checking the websites of the Puerto Rico’s State
Department and Supreme
Court.
Click
here to see an updated list of some of the local illicit urban projects
About the particular the Secretary of
Justice of Puerto Rico has declared:
No corporation, doesn’t matter his
nature, will be engaged
on the business of buying
and selling real estate in
Op. Sec. Just. No. 6 of 1968
A corporation can not be dedicated to the
business of buying and selling real estate, or,
in any form, hold lands to
speculate in the real estate market.
Op. Sec. Just. No. 15 of 1966
The corporations not engaged in
agriculture are only limited by the first part of the statute of this section,
that prohibit to all
corporation effectuate businesses of buying and selling real estate or to hold
or
to have such class of
assets except such as may be reasonably necessary to
enable it to carry out the
purposes for which it was created.
Op. Sec. Just. No. 70 of 1956
More clearly speaking, on 1997 we
discovered that during the past decades hundreds of juridical persons, doing
businesses in Puerto Rico, had been criminal holders of lands in excess of 500
acres and/or had been dedicated to the prohibited business of buying and
selling real estate, acts, that constitute felonies with a maximum penalty of
10 years in prison, being the local government and the local mortgage banking financial system (members of the Federal Reserve Bank System,
regulated by HUD) the main authors, promoters and conspirators; being
also involved hundreds of private artificial (juridical) persons (corporations
& partnerships), corrupted urban developers, judges, courts (federal & local), attorneys,
bankers, public officials, surveyors, appraisers, title insurance companies
(insurers), engineers, architects, real estate vendors, construction workers
and common people.
The first fraudulent assets
production stage began on the year 1900 until approximately 1945, when hundreds of juridical persons (corporations)
dedicated to the sugar production industry generated billions of dollars having
illegally large sugar plantations committing felonies by virtue of controlling
and acquiring many very large tracts of lands, holding more than 500 acres each
one.
The second fraudulent assets
production stage began after that, on the year 1946 until present, when
hundreds of juridical persons (corporations and partnerships) dedicated to the
prohibited business of buying and selling real estate generated billions of
dollars by virtue of producing, developing and selling more than 800,000
housing urban units, financing all the operations by virtue of issuing millions
of fraudulent mortgage investments instruments sold to the American investors
through the following primary and secondary markets mortgage banking financial
institutions regulated by HUD, like: the Government National Mortgage
Association (GNMA), the Federal National Mortgage Association (FNMA
– Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac)
and the Federal Home Loan Banks System (FHLB).
Without taking in consideration said
first stage related with the criminal agricultural sugar operation, at least,
if we multiply the average appraisal value of each criminally produced housing
urban unit ($112,500) by the produced volume (800,000 housing units), the
Puerto Rican criminal urban industry had laundered no less than the huge amount
of $90 billion dollar
($90,000,000,000) in only the last 55 years.
The background of those prohibitions
had its origin in the Section Number 32 of the Foraker Act (31 Stat. 77), enacted by the United States
Congress on April 12, 1900, to provide a civil government after two years of
military government since the Spanish American War
on 1898.
More later, said Section 32, was
amended by the Article Number 3 of the Joint Resolution Number 23 enacted by
the United States Congress on May 1, 1900 (31 Stat. 716); which remained in
effect when the Congress enacted the Jones
Act on March 2nd, 1917 (39 Stat. 951) to provide a better
structured civil government, giving the American citizenship, which repealed
said Foraker Act, except the sections 2,3,4 and 11.
Later, said Article Number 3,
suffered some changes conserving its essence, being codified as the Section
Number 752 of the Title Number 48 of the United States Code, still being in
effect until present; prohibiting the corporate land holdings in excess of 500
acres, and, the dedicated activities of buying and selling real estate to all
kind of corporations doing businesses in Puerto Rico.
More later,
on
Later, on 1940, said Article Number
3 and the Act
Number 48 where declared valid, in effect and totally constitutionals by
the US Supreme Court in the case People
of Puerto Rico v. Rubert Hermanos,
Inc., 309
U.S. 543 (1940).
More later, on April 12, 1941, the
local government enacted the Act
Number 26, known as the Land’s Act of Puerto Rico, still in effect,
typifying as a felony the corporate holdings in excess of 500 acres to all kind
of juridical persons, imposing maximum penalties of 10 years in prison, the
dissolution of the entity, the prohibition to continue doing businesses in the
country, the nullity of all acts and contracts made by the [juridical] person,
the cancellation of every entry or registration in the public registries and
fines.
Later, on 1942, said Article Number
3 and the Acts Numbers 48 and 26, where declared again totally constitutionals
by the US Supreme Court in the case People
of Puerto Rico v. Rubert Hermanos,
Inc., 315
U.S. 637 (1942).
More later,
on 1951, the People of Puerto Rico accepted the inclusion of all said
prohibitions mentioned in the Article Number 3 when participated in a
referendum accepting the congressional proposition to enact a Constitution to
Later, on 1952, all said
prohibitions of the Article Number 3 were included in the Article Number 14th
of the 6th Section of the Constitution
of the Commonwealth of Puerto Rico when it was enacted and approved by the
US Congress that year (66 Stat. 327). The inclusion of such prohibitions was a
requisite for its approval.
More later,
on 1953, the acceptation of all said prohibitions and penalties, were ratified
by the new Government of Puerto Rico when codified all the laws on the
Annotated Laws.
Finally, on 1956, 1966 and 1968 all the
Puerto Rico’s Secretaries of Justice ratified again the validity of all
said prohibitions and penalties.
After understanding such background
we may concluded that:
Pursuant to various federal and local laws, since the date
of May 1, 1900, in the Commonwealth of
Puerto Rico is prohibited to all the artificial (juridical) persons (like domestic or foreign private or public
corporations & partnerships), doing businesses in the island, the
act of to have, posses, acquire and/or control more that 500 acres of lands and
the dedicated business of buying and selling real estate.
Those prohibitions are established in the Section Number 752
of the Title Number 48 of United States
Code (48
USC § 752) [which is included in
the Article Number 14 of Section VI of the Constitution of the
Pursuant to the sections numbers 401 to 407, 421 and 431 to
435 of the Title Number 28 of the Puerto
Rico Annotated Laws
(28 PRAL secs. 401 to 407, 421 and 431 to 435), the
violation of those prohibitions is typified
locally as a felony punishable by imprisonment in jail for a term not
exceeding ten (10) years or by a fine not exceeding one thousand dollars
($1,000) or by both penalties, at the discretion of the court.
Pursuant those statutes, the sections numbers 3391 and 3432
of the Title Number 31 of Puerto Rico
Annotated Laws
(Puerto Rico Civil Code - 31 PRAL secs. 3391 and
3432) and the local jurisprudence, the criminal violation of those prohibitions
has the effect to invalidate any legal
contract product of it.
Pursuant to the Laws of Puerto Rico a contract has no existence when is product of a crime and the cause (the
consideration) is illicit.
Pursuant to 18
USC §§ 1001, 1002, 1003, 1004, 1005, 1006, 1007, 1010, 1011, 1012, 1033,
1034, 2314 and 2315 the intentional production of those criminal, illicit,
unconstitutional, illegal and non existence contracts in order to produce and
sell interstitially multiple illicit produced immovable or movables domestic
properties configures (constitutes) the felony of FRAUD, which is an indictable
criminal activity under the federal laws.
Pursuant to 18
USC §§ 471, 472, 473, 494, 495 and 657 the intentional production of those
criminal, illicit, unconstitutional, illegal and non existence contracts in
order to produce and sell interstitially multiple illicit produced immovable or
movables domestic properties configures (constitutes) the felony of FORGERY,
which is an indictable criminal activity under the federal laws.
Pursuant to 18
USC §§ 1956 and 1957, the intentional interstate transference of any
unlawful (illicit) immovable or movables domestically produced properties, product
of those criminal, illicit, unconstitutional, illegal and non existence
contracts, product of those criminal violations, with the intention to conceal
and clean its fraudulent origin, configures (constitutes) the felony of MONEY
LAUNDERING, which is an indictable criminal activity under the federal
laws.
Pursuant to 18
USC §§ 1952, 1961 to 1964 and 1968 that intentional interstate money
laundering activity practiced by corrupted organizations configures
(constitutes) the felony of RACKETEERING, which is an indictable criminal activity
under the federal laws (RICO ACT).
However the aforesaid, ignoring intentionally those
prohibitions, the Government of the
Commonwealth of Puerto Rico in conspiracy with the aforesaid parts,
continues authorizing to hundreds of artificial (juridical) persons (like domestic or foreign private or public
corporations & partnerships) the financing, development and selling
of thousands of new and old illegal and fraudulent housing units urban projects
(promoting the prohibited corporate
business of buying and selling real estate in PR), making thousands of
false, non existence and fraudulent public documents (purchase and sale and mortgage deeds contracts) with the
intention to sell these false and non existent mortgages backed credits through
the aforesaid mortgages secondary market institutions (GNMA, FNMA / Fannie Mae,
Freddie Mac and FHLB), generating billions of dollars of illegal and criminal
profits using a fraudulent scheme of MONEY LAUNDERING, defrauding the Treasury
of the United States of America and all states financial markets of our
American Nation.
As we can see, here, all the federal indictable felonies are:
Fraud, Conspiracy, Racketeering,
Concealment, Money Laundering and Forgery.
Again, don’t forget, the aforesaid
new and old housing units projects are illegal because were developed and sold
by juridical (artificial) persons (corporations
and partnerships) in violation of the section number 752 of the Title
Number 48 of United States Code (48
USC § 752) [which is included in
the Article Number 14 of Section VI of the Constitution of the
Commonwealth of Puerto Rico], that prohibit to all domestic or
foreign juridical persons doing businesses in Puerto Rico the dedicated
activities of buying and selling real estate.
More clearly speaking in
That federal statute applies to all private and public juridical
persons; and, its violation is typified as a criminal offense (felony) in
At present, the Puerto Rico's homebuyers are acquiring
fraudulently thousands of new and old housing units (more than 800,000) without the properties titles and are paying
DURING 30 YEARS thousands of false, fraudulent and non-existent mortgages.
As you can see the home buyers are losing their all life
savings capitals because they are paying for nothing, and the American
investors are losing their all life savings investments because they are paying
for a false, fraudulent and non existent monetary investment instrument (the mortgage bonds).
Now then, again, in order to understand the scheme, is very
important to clarify the following:
Also, ignoring those prohibitions, the Government of Puerto Rico in
conspiracy with the aforesaid parties continues authorizing the development,
financing and selling hundreds of additional criminal urban projects, developed
by others hundreds of artificial persons, holding each one more than 500 acres
of lands in
Although the local and federal courts, and their Judges,
know VERY CLEAR that those mortgages are false, fraudulent and non existent,
they continue authorizing the foreclosure of them GENERATING A BIGGEST JUDICIAL
REAL ESTATE MONEY LAUNDERING CRIMINAL ENTERPRISE.
The federal authorities in
_______________
Now then, continuing with the same line of thinking in chronological
order, once we discovered that huge criminal conspiracy, during the period of
1997 to 2002, we proceeded to inform it to the following federal agencies and
related entities:
John Ashcroft Honorable Attorney General U. S.
DEPARTMENT OF JUSTICE 950 Pennsylvania Avenue, NW Washington DC 20530-0001;
Helen L. Schumacher Unit Chief / Economic Crimes Unit Criminal Investigative Division FEDERAL
BUREAU OF INVESTIGATION U. S. DEPARTMENT OF JUSTICE J. Edgar Hoover FBI
Building 935 Pennsylvania Avenue, NW Washington DC 20535-0001; Michael Chertoff Assistant Attorney General Criminal Division U. S.
DEPARTMENT OF JUSTICE 950 Pennsylvania Avenue, NW Washington DC 20530-0001;
John Roth Director Asset Forfeiture and Money Laundering Section Criminal
Division U. S. DEPARTMENT OF JUSTICE 950 Pennsylvania Avenue, NW Washington DC
20530-0001; Joshua R. Hochberg Chief Fraud Section Criminal Division U. S.
DEPARTMENT OF JUSTICE 950 Pennsylvania Avenue, NW Washington DC 20530-0001;
Bruce G. Ohr Chief Organized Crime and Racketeering
Section Criminal Division U. S. DEPARTMENT OF JUSTICE 950 Pennsylvania Avenue,
NW Washington DC 20530-0001; Andrew Lourie Chief
Public Integrity Section Criminal Division U. S. DEPARTMENT OF JUSTICE 950
Pennsylvania Avenue, NW Washington DC 20530-0001; Paul H. O’Neill Honorable
Secretary of the Treasury Office of Public Correspondence U. S. DEPARTMENT OF
THE TREASURY 1500 Pennsylvania Avenue, NW Washington DC 20220; Paul S. Sarbanes
Honorable Chairman Committee on Banking, Housing and Urban Affairs U.S. SENATE
534 Dirksen Senate Building Washington DC 20510;
Patrick Leahy Honorable Chairman Committee on the Judiciary U.S. SENATE 224 Dirksen Senate Building Washington DC 20510; Carl Levin
Honorable Chairman Committee on Armed Services U.S. SENATE 228 Rusell Senate Office Building Washington DC 20510; Michael
G. Oxley Honorable Chairman House Committee on Financial Services U.S. HOUSE OF
REPRESENTATIVES 2129 Rayburn House Office Building Washington DC 20515; Bob
Stump Honorable Chairman House Armed Services Committee U.S. HOUSE OF
REPRESENTATIVES 2120 Rayburn House Office Building Washington DC 20515; F. James Sesenbrenner Jr. Honorable Chairman Committee on the
Judiciary U.S. HOUSE OF REPRESENTATIVES 2138 Rayburn House Office Building
Washington DC 20515; John Warner Honorable Senator U.S. SENATE 225 Rusell Senate Office Building Washington DC 20515; James M.
Inhofe Honorable Senator U.S. SENATE 453 Rusell
Senate Office Building Washington DC 20510-3603; Trent Lott Honorable President
U.S. SENATE 487 Rusell Senate Office Building
Washington DC 20510; Dennis Hastert Honorable Speaker U.S. HOUSE OF
REPRESENTATIVES Washington DC 20515; Alan Greenspan Honorable Chairman BOARD OF
GOVERNORS OF THE FEDERAL RESERVE SYSTEM 20th Street and Constitution Avenue, NW
Washington DC 20551; Mel Martínez Honorable Secretary
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 451 Seventh Street, SW, Room
10000 Washington DC 20410; Jim Chaplin Southeast Area Regional Director Georgia
State Office U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Five Points Plaza
40 Marietta Street, NW, 2nd Floor Atlanta GA 30303-9812; Kenneth M.
Donohue Honorable Inspector General Office of Inspector General (OIG) U.S. DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT 451 Seventh Street, S.W., Room 8256 Washington
DC 20410-4500; District Inspector General for Audit Office of Inspector General
(OIG) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Richard B. Rusell Federal Building PO Box 330 75 Spring Street, SW,
Room 330 Atlanta GA 30303-3388; David M. Walker Comptroller General U.S.
GENERAL ACCOUNTING OFFICE 441 G Street NW Washington DC 20548; GAO FraudNET U.S. GENERAL ACCOUNTING OFFICE 441 G Street NW
Washington DC 20548; Donald E. Powell Chairman FEDERAL DEPOSIT INSURANCE
CORPORATION 550 17th Street NW Washington DC 20429-9990; Richard Pazereckas Regional Director FEDERAL DEPOSIT INSURANCE
CORPORATION 20 Exchange Place, Room 6014 New York NY 10005; George W. Bush
Honorable President UNITED STATES OF AMERICA The White House 1600 Pennsylvania
Avenue NW Washington DC 20500; Donald H. Rumsfeld
Honorable Secretary U.S. DEPARTMENT OF DEFENSE 1000 Defense Pentagon Washington
DC 20301-1000; Gordon R. England Honorable Secretary U.S. NAVY Washington DC
20350-1000; SEC Complaint Center Division of Enforcement U.S. SECURIETIES AND
EXCHANGE COMMISSION 450 Fifth Street NW
Washington DC 20549-0213; Ronald A. Rosenfeld President GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA) 451 Seventh Street SW Washington DC 20410-9000; Complaints
Legal Department FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) 3900 Wisconsin
Avenue NW Washington DC 20016-2892; Complaints Legal Department FEDERAL HOME
LOAN MORTGAGE CORPORATION (Freddie Mac) 8200 Jones Branch Drive McLean VA
22102-3110; Complaints Legal Department Federal Housing Finance Board FEDERAL
HOME LOAN BANK SYSTEM (FHLBS) 1777 F Street NW Washington DC 20006-5210; &
Complaints Legal Department Office of Finance FEDERAL HOME LOAN BANK SYSTEM (FHLBS)
Two Fountain Square 11921 Freedom Drive, Suite 1000 Reston VA 20190
___________________
The
original introduction of that Federal Denounce was:
SPECIAL REMARKS: Do not
forward this delicate & sensitive information to
the
Those
entities are concealing the following criminal scheme.
A very sophisticated
multibillionaire DOMESTIC FINANCIAL TERRORISM criminal scheme is
been committed in PUERTO RICO in order to affect, influence and
defraud many civil, economic, political, social and military sectors like
the national defense, the interstate commerce, the financial markets, the American
Investors and the U.S. Treasury.
The government of the
Commonwealth of Puerto Rico in conspiracy with many private artificial (juridical) persons (corporations & partnerships),
Commercial Banks (members of the
Federal Reserve Bank System), Mortgages Financial Institutions (regulated by HUD), corrupted urban
developers, judges, courts (federals
& locals), attorneys, bankers, public officials, surveyors,
engineers, architects, real estate vendors, construction workers and common
people is intimidating, coercing, entrapping and obligating the Puerto
Rico’s general civilian population to commit and conceal various biggest
financial white collar federal crimes (like:
Fraud, Conspiracy, Racketeering,
Concealment, Counterfeiting, Money Laundering and Forgery) generating thousands
of false public documents in order to produce and sell thousands of non
existent mortgages backed securities (mortgage bonds) to the American Investors through the following
mortgages financial institutions: the Government National Mortgage
Association (GNMA), the Federal National Mortgage Association (FNMA
– Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac)
and the Federal Home Loan Banks System (FHLB); laundering, by virtue of
those criminal activities, more than U.S. $90 Billions dollars,
violating many financial anti terrorism and banking federal laws like: the
Public Law Number 107-56 (115 Stat.
272) known as Uniting and
Strengthening America By Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism (USA PATRIOT Act) Act of 2001; and the following
criminal federal codified statutes: 18
USC §§ 471, 473, 494, 495, 657, 1001 to 1007, 1010 to 1012, 1033, 1034,
2314, 2315, 1952, 1956, 1957, 1961 to 1964 and 1968.
Also, on the other hand, by virtue
of that fraudulent scheme, the Government of Puerto Rico is collecting and
generating taxes, producing the necessary economic resources to finance its
politic, judicial and public campaign in order to achieve the outgoing of U.S.
Navy and Army forces from Vieques affecting our
American National Defense System.
Unfortunately, although on December
30, 1997 we sent a letter of 778 pages (in Spanish language) to the United
States Attorney General, Mrs. Janet Reno, explaining the complete "Modus
Operandi" of the aforesaid criminal operation, it continues practicing
year after year as if it its authors were untouchables and immune to the U.S.
banking and securities laws. The same situation occurred with the Offices of
the Inspector General (OIG) of the Department
of Housing and Urban Development (HUD) in Atlanta GA and the FBI’s Economic Crimes Unit of the Criminal Investigative
Division (in FBI Headquarters - FBIHQ) in Washington D.C., which
respectively, although since the dates of May 1, 1998 and September 3, 1999
assumed jurisdiction to investigate those matters under the complaint number
FH00-9467, until today, nothing had happen.
At present, the
For that reason, as declarants and witnesses,
WE NEED YOUR PROTECTION URGENTLY RIGHT NOW
We understand that the life of our
families and us are in jeopardy if your Office does not provide us very soon
that federal protection pursuant to 12
USC §§ 4201 to 4247 and 18
USC § 3521. According to various documents and occurrences, we have many
reasons to believe that the Government of Puerto Rico and its criminal
organization want to hurt us, including KILL US very soon, using different
methods, techniques and tricks that could have the appearance to be mere
accidents. For example, since the aforesaid date of
___________________
The
conclusion of that Federal Denounce was:
Our PRIMARY INTEREST into denouncing
the aforesaid criminal scheme was born as result from our civic duty to defend
our American nation; and our SECOND INTEREST from our civic duty to defend and
recover our private properties, assets and civil rights abusively usurped by
the local government and its corrupted judicial and justice system.
For your information, at present, Andres and I are members
of the Estate of Basilio Lopez Martin who is
practically the owner of the entire
___________________
During that same period
of time the Federal Government assumed jurisdiction when the U.S. Department of
Justice, the FBI, the U.S. Securities and Exchange Commission (SEC) and the
Office of the Inspector General of the Department of Housing and Urban
Development (OIG-HUD) agreed to investigate all those concerns (see received letters).
Also, to prove the
criminal intentions of the financial system of Puerto Rico we filed a $100
Billion dollars lawsuit against the main bank in the island, Popular Bank of
Puerto Rico, putting in one document of 1,000 pages the complete Federal
Denounce (the letter to the ex U.S.
Secretary of Justice, Mrs. Janet Reno) and the Estate’s story.
At present, the FBI has
a copy of that document (Civil Case Number DCD1997-1074
(506), Banco Popular de Puerto Rico v. Wilfredo Medina Rosado et als, before the Court of First Instance of Bayamon Puerto Rico).
On 2002, as consequence
of said proceedings, our main administrator had to leave the island to protect
his life when was discovered a plan from the local government to kill him.
In that year he visited
personally the U.S. Senate and the FBI Headquarters seeking protection.
Finally, on 2005, we
continued denouncing those practices as follow:
Enron, World Com and Martha Stewart
were prosecuted … However … Why not the local Government, the developers and
the fraudulent mortgage banking system in the territory of the
YEAR
2005
Attention: USDOJ, CONGRESS, OFHEO & FBI
MORTGAGE
BACKED SECURITIES FRAUD – WEEKLY ALERT
This
week … again
…
FREDDIE MAC,
FANNIE MAE and the main
Title Insurance Companies in
knowingly and intentionally issued, insured, bought, sold and promoted billions
of dollars of false and fraudulent Mortgage Backed Securities, collateralized by non
existent and false property titles, mortgage notes and deeds, originated by
tens of powerful and corrupted artificial persons, acting as urban developers (corporations, partnerships &
trusts), dedicated to the prohibited corporate business of buying and
selling real estate in the territory of the island of Puerto Rico USA.
The
corporations in Puerto Rico are ARE NOT AUTHORIZED to conduct the business of buying and selling real
estate; and neither, to hold each one more than 500 acres of land.
The violation
of those prohibitions
It’s a FELONY
However
…. FREDDIE
MAC, FANNIE
MAE and the main Title
Insurance Companies in America continue buying and
insuring in Puerto Rico billions of dollars of false, fraudulent and non existent
mortgages originated by hundreds of white collar criminal urban corporations
there dedicated to the prohibited corporate business of buying and selling real
estate, putting in risk the financial health of said publicly traded
institutions in detriment of the U.S.
Treasury, Wall Street and the American investors …
Is THE MAFIA in
According to the federal and local
laws (48
U.S.C. 752; the Article Number 14 of
Section VI of the Constitution of the Commonwealth of Puerto Rico; and the Title 28
of Puerto Rico’s Annotated Laws secs. 401 to 407, 421
and 431 to 435), in Puerto Rico USA the artificial
persons (like
corporations, partnerships & trusts) ARE NOT AUTHORIZED to conduct the business of
buying and selling real estate; and neither, to hold each one more than 500
acres of land.
Fraud, Conspiracy, Racketeering,
Concealment, Money Laundering and Forgery
See more info on the next page …
Urgent Notice
Dear Sirs:
Again, during the past week, the following federal regulated
financial institutions, among other parties, continued defrauding the U.S.
Treasury and the American investors by virtue of issuing, insuring, buying,
selling and promoting billions of dollars of false and fraudulent Mortgage
Backed Securities, collateralized by non existent and false property titles,
mortgage notes and deeds, originated by tens of powerful and corrupted
artificial persons, acting as urban developers (corporations,
partnerships & trusts), dedicated to the prohibited business of buying and
selling real estate in the territory of the island of Puerto Rico USA:
THE FOLLOWING FINANCIAL MORTGAGE &
COMMERCIAL BANKING INSTITUTIONS:
Citibank
Eurobank
First Bank
Scotiabank
Westernbank
Levitt Mortgage
Banco Bilbao
Vizcaya
Banco Santander
Puerto Rico, Inc. and its subsidiary
Santander Mortgage
Corporation
Doral Financial Corporation and its subsidiaries
HF Mortgage Bankers, Doral Mortgage Corporation,
Doral Savings Bank, Doral Securities,
Sana Mortgage and Centro
Hipotecario
New York Mortgage
Oriental Financial Group and its subsidiaries
Oriental Financial Services and Oriental Mortgage
Popular Inc. and its subsidiaries
Banco Popular de Puerto Rico, Inc., Popular International
Bank, Inc. and Popular North America, Inc.
R & G Financial Corporation and its subsidiaries R & G Premier
Bank and R & G Mortgage Corporation
THE FOLLOWING SURETY INSTITUTIONS:
Chicago Title Insurance Company
First American Title Insurance Company
Stewart Title Guaranty Insurance Company
AND THE FOLLOWING PRIMARY AND SECONDARY MARKET
MORTGAGE INSTITUTIONS:
Federal Home Loan Banks System (FHLB)
Government National Mortgage Association (GNMA)
Federal Home Loan Mortgage Corporation (Freddie Mac)
Federal National Mortgage Association (FNMA, Fannie Mae)
NOW it’s time to prosecute them to
protect America
Fraud, Conspiracy, Racketeering,
Concealment, Money Laundering and Forgery
See more info on the next page …
EXTREME
URGENT
DOMESTIC
FINANCIAL
TERRORISM
CRIMINAL
SCHEME ALERT
Our
American nation needs you!
Take
action NOW !
A very sophisticated
multibillionaire DOMESTIC FINANCIAL TERRORISM criminal scheme is
being committed in
The Government of
the Commonwealth of Puerto Rico in conspiracy with many private artificial
(juridical) persons (corporations, partnerships & trusts),
Commercial Banks (members of the
Federal Reserve Bank System), Mortgages Financial Institutions (regulated by HUD), title insurance
companies, appraisers, notaries public, corrupted urban developers, judges,
courts (federals & locals),
attorneys, bankers, public officials, surveyors, engineers, architects, real
estate vendors, construction workers and common people is intimidating, coercing, entrapping and obligating the general
civilian population to commit and conceal various financial white collar
federal crimes (like: Fraud, Conspiracy, Racketeering,
Concealment, Counterfeiting, Money Laundering and Forgery), generating thousands of false public documents, by
virtue of producing and selling thousands of non existent mortgage backed securities (mortgage bonds) to the American investors through the following
mortgage financial institutions: the Government
National Mortgage Association (GNMA), the Federal National Mortgage Association (FNMA – Fannie Mae), the Federal Home Loan Mortgage Corporation
(Freddie Mac) and the Federal Home Loan
Banks System (FHLB); laundering, by virtue of those criminal activities,
more than $90 Billion dollars,
violating many financial anti terrorism and banking federal laws like: the
Public Law Number 107-56 (115 Stat.
272) known as Uniting and
Strengthening America By Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism (USA PATRIOT Act) Act of 2001; and the following
criminal federal statutes: 18 USC §§ 471, 473, 494, 495, 657, 1001 to 1007,
1010 to 1012, 1033, 1034, 2314, 2315, 1952, 1956, 1957, 1961 to 1964 and 1968.
Currently, the Puerto
Rico’s judicial and justice system is intimidating,
coercing and threatening the life, security and liberty of all citizens
who denounce that DOMESTIC FINANCIAL TERRORISM criminal scheme.
The Government of
Puerto Rico and its accomplices are putting obstacles, and does
not wish the Federal Government at
Now then, once understood the general aspects,
to understand more about the aforesaid DOMESTIC
FINANCIAL TERRORISM criminal
scheme, its basics facts and grounds are:
Pursuant to various federal and local laws, since
the date of May 1st, 1900, in the Commonwealth of Puerto Rico is prohibited to all the artificial
(juridical) persons (like domestic or
foreign private or public corporations, partnerships & trusts), that
make businesses in the island, the act of to have, posses, acquire and/or
control more than 500 acres of lands, and to dedicate to the business of buying
and selling real estate in the island.
Those prohibitions are established in the
Section Number 752 of the Title Number 48 of United States Code (48 USC § 752) [which is included in the Article Number 14 of Section VI of the
Constitution of the Commonwealth of Puerto Rico].
Pursuant to the sections numbers 401 to 407, 421 and 431 to
435 of the Title Number 28 of the Puerto
Rico Annotated Laws (28 PRAL secs. 401 to 407,
421 and 431 to 435), the violation of those prohibitions is typified locally as a felony
punishable by imprisonment in jail for a term not exceeding ten (10) years or
by a fine not exceeding one thousand dollars ($1,000) or by both penalties, at
the court discretion (see the Appendix
A).
Pursuant those statutes, the sections numbers
3391 and 3432 of the Title Number 31 of Puerto
Rico Annotated Laws (Puerto Rico Civil Code - 31 PRAL secs. 3391 and 3432) and the local jurisprudence, the
criminal violation of those prohibitions has the effect to invalidate any legal contract product of it.
Pursuant to the Laws of Puerto Rico a contract has no existence when it is
product of a crime and the cause (the consideration) is illicit (see the Appendix B).
Pursuant to 18 USC §§ 1001, 1002, 1003, 1004,
1005, 1006, 1007, 1010, 1011, 1012, 1033, 1034, 2314 and 2315 the production of
those criminal, illicit, unconstitutional, illegal and non existence contracts
in order to produce and sell interstitially multiple illicit produced immovable
or movables domestic properties configures (constitutes) the felony of FRAUD,
which is an indictable criminal activity
under the federal laws.
Pursuant to 18 USC §§ 471, 472, 473, 494, 495
and 657 the production of those criminal, illicit, unconstitutional, illegal
and non existence contracts in order to produce and sell interstitially
multiple illicit produced immovable or movables domestic properties configures
(constitutes) the felony of FORGERY, which is an indictable criminal activity under the federal laws.
Pursuant to 18 USC §§ 1956 and 1957, the
interstate transference of any unlawful (illicit) immovable or movables produced
domestic properties, product of those criminal, illicit, unconstitutional,
illegal and non existence contracts, product of those criminal violations, with
the intention to conceal and clean its fraudulent origin, configures
(constitutes) the felony of MONEY LAUNDERING, which is an indictable criminal activity under the federal laws.
Pursuant to 18 USC §§ 1952, 1961 to 1964 and
1968 that interstate money laundering activity, practiced by corrupted
organizations, configures (constitutes) the felony of RACKETEERING, which is an
indictable criminal activity
under the federal laws (RICO ACT).
However the aforesaid, ignoring and violating
intentionally, willfully and knowingly those prohibitions, the Government of the Commonwealth of Puerto Rico
in conspiracy with the aforesaid parties, continues authorizing to hundreds of
artificial (juridical) persons (like
domestic or foreign private or public corporations, partnerships & trusts)
the financing, development and selling of thousands of new and old illegal and
fraudulent housing units urban projects (endorsing
the prohibited businesses of buying and selling real estate in PR),
making thousands of false, non existence and fraudulent public documents (purchase and sale and mortgage deeds contracts)
with the intention to sell those false and non existent mortgage backed
securities credits through the aforesaid mortgages secondary market
institutions (GNMA, FNMA / Fannie Mae, Freddie Mac and FHLB), generating
billions of dollars of illegal and criminal profits, using a fraudulent scheme
of MONEY LAUNDERING, defrauding the U.S. Treasury and all states financial
markets of our American Nation.
In other words, at present, various Puerto Rico financial
institutions
are
financing a $90 Billion dollar URBAN CRIMINAL OPERATION.
Again, don’t forget, the aforesaid new and old
housing units projects are illegal because were developed and sold by juridical
(artificial) persons (like domestic or
foreign private or public corporations, partnerships & trusts) in
violation of the section number 752 of the Title Number 48 of United States
Code (48 USC § 752) [which is included
in the Article Number 14 of Section VI of the Constitution of the Commonwealth
of Puerto Rico], that prohibit to all domestic or foreign juridical
persons making businesses in Puerto Rico the business of buying and selling
real estate in Puerto Rico.
More clearly speaking, in Puerto Rico no
domestic or foreign juridical person is authorized to conduct the business of buying
and selling real estate.
Those prohibitions apply to all private and
public juridical persons; and, its violation is typified as a criminal offense
(felony) in Puerto Rico (see 28 PRAL secs. 401 to
407, 421 and 431 to 435).
We are talking about of
the biggest real estate and mortgage
backed securities fraud in
the history of the
At present, the Puerto Rico's homebuyers are
acquiring fraudulently thousands of new and old housing units (more than 800,000) without the properties
titles, and, are paying DURING 30 YEARS thousands of false, fraudulent and
non-existent mortgages.
As you can see, the home buyers are losing their
all life savings capitals, because they are paying for nothing, and the
American investors are losing their all life savings investments, because they
are paying for a false, fraudulent and non existent monetary investment
instrument (the mortgage bonds).
Again, in order to understand the scheme, is
very important to clarify the following:
1.
The mortgage bond (mortgage
backed security sold to the American investors through the aforesaid mortgage
financial institutions) is false and non existent because the mortgage
credit that backed the bond is false and non existent;
2.
The mortgage credit is false and non existent because the mortgage
note and the deed where that credit was attempted to constitute was false and
non existent;
3.
The mortgage deed is false and non existent because the property
title where the mortgage was attempted to constitute was false and non
existent;
4.
The property title (the
purchase and sale deed) was false and non-existent because the contract
where it was attempted to constitute as a contract never had existence. In
other words, the transference of the immovable property (immovable transaction) never occurred
legally;
5.
The contract never had existence because was a product of various
white-collar felonies (like fraud and
forgery of public documents). Pursuant the local laws a contract has no
existence when is product of a crime and the cause (the consideration) is
illicit;
6.
And those crimes occurred when the housing project developer, as
the vendor, developed, constructed and sold the illegal urban housing project
being a juridical person, violating the aforesaid local and federal statutes
that prohibit the corporate business of buying and selling real estate in
Puerto Rico.
Also, ignoring and violating intentionally those
prohibitions, the Government of Puerto
Rico in conspiracy with the aforesaid parties, continues authorizing the
development, financing and selling of others hundreds additional criminal urban
projects developed by others hundreds artificial persons, holders of more than
500 acres of lands, violating such statutes by virtue of the aforesaid non
existent, false and fraudulent public documents scheme, violating also the U.S.
Supreme Court resolutions on: People
of Puerto Rico v. Rubert Hermanos,
Inc., 309 U.S. 543 (1940) and 315 U.S. 637 (1942).
Although the local and federal courts, and their Judges,
know VERY CLEAR the illicit origin of the mortgages, they continue authorizing
the foreclosure of them GENERATING A BIGGEST JUDICIAL REAL ESTATE MONEY
LAUNDERING CRIMINAL ENTERPRISE. For those reasons, WE
CAN SAY WITHOUT DOUBT that both public institutions: 1) are operating like a MAFIA using the judges and attorneys as
GANGSTERS (Mobsters); 2) are
RACKETEERS, MONEY LAUNDERERS and WHITE COLLAR CRIMINAL ENTERPRISES; and 3) INTENTIONALLY, ARE CONCEALING THE
AFORESAID REAL ESTATE AND BANKING FRAUDULENT SCHEME to the Federal Government.
If the FDIC does not stop this fraudulent
scheme, the U.S. Treasury will be affected. The FDIC should not assume the
risks of their criminal clients and its illegal banking activities. As we know,
the FDIC charges banks premiums for the insurance and can borrow funds from the
U.S. Treasury when necessary to finance payouts. At this time, the FDIC is
assuming the financial risks of various WHITE COLLAR CRIMINAL CLIENTS. Pursuant
to 12 USC §§ 1811 to 1833e the FDIC has the powers to suspend or remove any
financial institution’s affiliated party charged with felony. The section
1818(g) of the aforesaid legal code explains this procedure very clear. The
FDIC also has the responsibility for liquidating banks who getting income
(profits) from ILLEGAL and CRIMINAL OPERATIONS.
On the other hand, as we know, pursuant to the
Inspector General Act of 1978, Public Law 95-452 (5 USC Appendix) and 42 USC §§
3532 ~ 3535, the Office of the Inspector General (OIG) of the Department of Housing and Urban Development (HUD)
has jurisdiction to investigate the aforesaid banking and white collar crimes,
because the aforesaid secondary mortgages market institutions (GNMA, FNMA /
Fannie Mae, Freddie Mac and FHLB) are regulated by them, specially GNMA. The
HUD-OIG is obligated by LAW to inform these criminal practices to the U.S.
Attorney General, Congress and the U.S. Department of the Treasury.
Due to the aforesaid,
we can say without doubt,
that pursuant to the
federal laws,
the GOVERNMENT OF THE
and the local mortgage
banking system
should be placed under a
judicial receivership,
or simply, be eliminated
(closed).
United States Congress
Joint Resolution No. 23 of May 1, 1900, Sec. 3 / 31 Stat. 716
Sec. 3. That all franchises, privileges or
concessions granted under section thirty-two of said Act shall provide that the
same shall be subject to amendment, alteration, or repeal; shall forbid the
issue of stock or bonds, except in exchange for actual cash, or property at a
fair valuation, equal in amount to the par value of the stock or bonds issued;
shall forbid the declaring of stock or bonds dividends; and, in the case of
public-service corporations, shall provide for the effective regulation of the
charges thereof and for the purchase or taking by the public authorities of
their property at a fair and reasonable valuation. No corporation shall be
authorized to conduct the business of buying and selling real estate or be
permitted to hold or own real estate except such as may be reasonably necessary
to enable it to carry out the purposes for which it was created, and every
corporation hereafter authorized to engage in agriculture shall by its charter
be restricted to the ownership and control of not to exceed five hundred acres
of land; and this provision shall be held to prevent any member of a
corporation engaged in agriculture from being in any wise interested in any
other corporation engaged in agriculture. Corporations, however, may loan funds
upon real estate security, and purchase real estate when necessary for the
collection of loans, but they shall dispose of real estate so obtained within
five years after receiving the title. Corporations not organized in Porto Rico,
and doing business therein, shall be bound by the provisions of this section so
far as they are applicable. Approved,
48 USC §
752
§ 752. Corporate real
estate holdings
No corporation shall be authorized to conduct the business of
buying and selling real estate or be permitted to hold or own real estate
except such as may be reasonably necessary to enable it to carry out the
purposes for which it was created, and every corporation authorized after May
1, 1900, to engage in agriculture shall by its charter be restricted to the
ownership and control of not to exceed five hundred acres of land; and this
provision shall be held to prevent any member of a corporation engaged in
agriculture from being in any wise interested in any other corporation engaged
in agriculture. Corporations, however, may loan funds upon real estate
security, and purchase real estate when necessary for the collection of loans,
but they shall dispose of real estate so obtained within five years after
receiving the title. Corporations not organized in Puerto Rico, and doing
business therein, shall be bound by the provisions of this section so far as
they are applicable.
(May 1, 1900, No. 23, § 3, 31 Stat. 716; Mar. 2,
1917, c. 145, § 39, 39 Stat. 964; May 17, 1932, c. 190, 47 Stat. 158; July 3,
1950, c. 446, § 5(2), 64 Stat. 320.)
§ 14. Land
holdings by corporations
No corporation shall be authorized to conduct
the business of buying and selling real estate or be permitted to hold or own
real estate except such as may be reasonably necessary to enable it to carry
out the purposes for which it was created, and every corporation authorized to
engage in agriculture shall by its charter be restricted to the ownership and
control of not to exceed five hundred acres of land; and this provision shall
be held to prevent any member of a corporation engaged in agriculture from
being in any wise interested in any other corporation engaged in
agriculture.
Corporations, however, may loan funds upon real
estate security, and purchase real estate when necessary for the collection of
loans, but they shall dispose of real estate so obtained within five years
after receiving the title.
Corporations not organized in Puerto Rico, but
doing business in Puerto Rico, shall be bound by the provisions of this section
so far as they are applicable.
These provisions shall not prevent the ownership,
possession or management of lands in excess of five hundreds acres by the
Commonwealth, its agencies or instrumentalities.
§ 401. Juridical person, corporation, and association, defined.
For the purposes of this Act, the term
"[juridical] person" shall refer to private corporations, limited
companies, societies, partnerships, joint-stock companies, voluntary
associations (including community partnerships), business trusts, Massachusetts
trusts, common law trusts, and any other form of corporate organization, or any
other organization, partnership or entity created for the purpose of carrying
out transactions or attaining specific objectives, which continue to exist
regardless of the changes made among its members or among the persons
participating in them, and whose affairs are managed either by one person only,
or by a committee, a board, or any other group of individuals acting in a
representative capacity, and any other association which is an [juridical]
person. The term "corporation" or "association" shall
include any association or organization, or corporative association or
organization already incorporated, organized or constituted in any State of the
United States, a foreign nation or Puerto Rico. The term "[juridical]
person" shall include all associations, regardless of the form, kind,
denomination, character or nature, and all cooperatives, except
proportional-profit farms as described, established and authorized by this Act.
(Apr. 12, 1941, No. 26,
p. 388, § 57; May 11, 1942, No. 197, p. 996, § 14, eff.
90 days after May 11, 1942.)
§ 402. Holding of over 500 acres by juridical
person prohibited; penalties; confiscation and sale; preference of Land
Authority.
The acquisition, holding, or any other form of
direct or indirect control of land in excess of five hundred (500) acres by any
[juridical] person, as said term is defined in this Act, is hereby declared
unlawful. This provision shall be applicable to any extension of land, which,
jointly with such land as the acquirer may hold, possess, control or exploit at
the time of the acquisition, aggregates over five hundred (500) acres.
[Juridical] persons may, however, loan funds upon land security, and acquire
land when necessary to collect loans, but they shall, within five (5) years
after receiving the title thereto alienate such land as they may hold in excess
of five hundred (500) acres.
Actions filed for violation of this section
shall be governed by the general provisions of the Code of Civil Procedure, and
by the special provisions of the Quo Warranto Act, §§
3391-3397 of Title 32, relative to corporations engaged in agriculture and
holding land in excess of five hundred (500) acres; Provided, therefore, That
when it should be established that an [juridical] person, as said term is
defined in this Act, has performed acts in violation of the provisions of this
section, the judgment shall, in case the defendant is a domestic corporation,
decree the dissolution thereof, and in the case of a foreign corporation, the
prohibition to continue doing business in the country; and the nullity of all
acts done and contracts made by the [juridical] person; the cancellation of
every entry or registration originated by same in the public registries of
Puerto Rico; and a fine may be levied.
The Commonwealth of Puerto Rico may, at its
option, demand, in the proceeding itself, the confiscation in its favor of the
real property of the defendant entity, or the alienation of said property at public
auction within a period of not more than six (6) months reckoned from the date
on which final judgment is entered.
The confiscation or alienation shall in every
case be made upon proper compensation in the manner established by the
Condemnation Proceedings Law, §§ 2901-2913 of Title 32. The Supreme Court is
hereby empowered to appoint receivers who, in behalf and with the approval of
said Supreme Court, shall be exclusively in charge of the liquidation and sale
of the property of the [juridical] person or persons affected. The receivers
shall give preference in the purchase of land to the Land Authority of Puerto
Rico, which shall hold preferential option for the fair value of the property
fixed in the final judgment. The receivers shall have the duty of beginning the
sale of the land within a period of not more than six (6) months after the
receivership is established. The Land Authority shall have a preferential right
to purchase said lands for their fair value within a period of not to exceed five
(5) years, during which no sale may be made to any other person or entity. This
period of five (5) years may be extended for another year on authority of the
court on petition of the Authority. Upon the expiration of such period or
periods, the land shall be sold at public auction. The Authority shall have
priority or preference for the purchase of land at public auction in those
cases where it bids a price equal to that bid by the highest bidder. And the
edicts published shall so state.
The violation, after a final judgment is
entered, of an order prohibiting the doing of business, shall be punished by a
maximum fine of five hundred (500) dollars for each day that the entity
continues to exercise its functions, recoverable from the property of the entity;
and the persons representing such entities shall be held in contempt of court
punishable by a minimum penalty of imprisonment in jail for a term of from one
(1) to six (6) months.
For the purpose of fixing the value of the
property, the Commonwealth of Puerto Rico is authorized to enter the property
or holding the object of controversy.
(Apr. 12, 1941, No. 26,
p. 388, § 58; May 14, 1943, No. 160, p. 520; May 5, 1945, No. 57, p. 208.)
§ 403. Institution of proceedings; evidence.
It shall be the duty of the Secretary of Justice
of Puerto Rico to institute proper actions or proceedings against any
[juridical] person engaged in agriculture in Puerto Rico which holds, controls
or possesses, whether directly or through the instrumentality of any natural or
[juridical] person, land in excess of five hundred (500) acres, or when there
is reason to believe that such instrumentalities have been created and are
utilized in a simulated or covert manner to violate and evade the
above-mentioned land restriction; and the courts, upon substantiating such
actions, shall have full discretion to receive evidence and to look beyond the
form into the actual merits and essence of the case, taking into account the
fundamental purpose of this Act and the public emergency which exists of
preventing that the said restriction of land tenure be directly or indirectly
infringed or violated.
(Apr. 12, 1941, No. 26,
p. 388, § 59, eff. 90 days after Apr. 12, 1941.)
§ 404. Juridical persons considered engaged in agriculture.
There shall be considered as engaged in
agriculture in Puerto Rico any [juridical] person which, directly or
indirectly, plants, cultivates or harvests, or permits the planting,
cultivating or harvesting of, agricultural products on lands belonging thereto,
or held, owned or controlled thereby, as well as those which hold, possess or
control, or are the owners of, lands devoted or that may be devoted to the
planting, cultivating or harvesting of, agricultural products, or to any
operation, activity or process relating to agriculture.
(Apr. 12, 1941, No. 26,
p. 388, § 60, eff. 90 days after Apr. 12, 1941.)
§ 405. Penalties for concealing ownership, etc.
Any natural person making itself [sic] to appear
as partner, shareholder, or owner, or holder of lands so as to conceal or serve
as an instrument to an [juridical] person in violating the provisions
restricting land tenure to five hundred (500) acres, or in violating this Act,
shall be guilty of a felony and shall, upon conviction, be punished by imprisonment
in the penitentiary for a term of from two (2) to ten (10) years, [at] the
discretion of the court; and the lands of such [juridical] person actually
possessing the title which it has been attempted to hide or conceal shall
revert to the Commonwealth of Puerto Rico, and it shall be so pronounced in the
judgment. Any individual forming part of an [juridical] person, or acting as
agent or in representation of an [juridical] person, whenever such [juridical]
person has been created for the express or implicit purpose of concealing the
acquisition, alienation, holding, possession or exploitation of land in excess
of five hundred (500) acres, or any [juridical] person directly or indirectly
barred from so holding, or any person forming part of an [juridical] person
actually concealing the acquisition, alienation, holding, possession or
exploitation of land in excess of five hundred (500) acres, or who in any wise
shall deliberately lend himself as an instrument to violate the agrarian policy
set forth in this Act, shall be guilty of a felony and shall upon conviction,
be punished by imprisonment in the penitentiary for a term of from two (2) to
ten (10) years, [at] the discretion of the court; and the lands of such
[juridical] persons which he may have thus attempted to conceal, shall revert
to the Commonwealth of Puerto Rico, and it shall be so pronounced in the
judgment.
(Apr. 12, 1941, No. 26,
p. 388, § 61, eff. 90 days after Apr. 12, 1941.)
§ 406. Void contracts; agricultural
partnerships.
Any conveyance of land by an artificial person
as this term is defined in this Act, executed after this Act takes effect, for
the purpose of evading the provisions and purposes hereof, and all contracts
for extension of time executed by agricultural partnerships holding over five
hundred (500) acres of land after this Act takes effect, shall be null and
void, without need of judicial declaration to that effect; Provided, however,
That in the case of agricultural partnerships holding over five hundred (500)
acres of land, against which judgment by consent has been entered by the
Supreme Court of Puerto Rico in proceedings instituted by the Commonwealth of
Puerto Rico for their dissolution, and which, by reason of such judgment by
consent, may have entered into negotiations with the Land Authority of Puerto
Rico for the sale of their properties to said governmental agency, such
partnerships may, with the consent of the Land Authority of Puerto Rico, extend
their partnership contract for a term which in no case shall exceed two (2)
years. The constitution, subsequent to the effective date of this Act, of new
agricultural partnerships holding land in excess of five hundred (500) acres
shall be null without intervention of judicial declaration therefore.
(Apr. 12, 1941, No. 26,
p. 388, § 62; May 11, 1942, No. 197, p. 996, § 15; May 15, 1947, No. 482, p.
1090.)
§ 407. Self-incrimination of witnesses.
No person may refuse to appear as witness for
the Commonwealth of Puerto Rico in any civil or criminal action instituted in
compliance with the provisions of this Act under the pretext that his
deposition might incriminate him, but the deposition thus made shall not be
used against him in any proceeding or action, except such civil actions as may
arise from the provisions of this Act or of any statute regulating land
tenure.
(Apr. 12, 1941, No. 26,
p. 388, § 63, eff. 90 days after Apr. 12, 1941.)
§ 421. Quo warranto
and other pertinent proceedings.
There is hereby conferred upon the Supreme Court
of Puerto Rico exclusive original jurisdiction to take cognizance of all quo warranto proceedings or any other pertinent proceedings
that the Government of Puerto Rico may hereafter institute for violation of the
provisions of § 752, Title 48, United States Code, and of the Land Law of
Puerto Rico of 1941 in the matter of the holding of lands, and for that purpose
it is provided that the violation of said provisions by any [juridical] person,
as the term [juridical] person was defined by § 401 of this title, shall
constitute sufficient cause to institute a proceeding of the nature of quo warranto or any other pertinent proceeding.
(July 22, 1935, No. 33,
p. 418, § 1; May 9, 1942, No. 172, p. 892, § 2, eff.
90 days after May 9, 1942.)
§ 431. Illegal acts or contracts.
Every act or contract which in any form impairs,
affects, or violates the provisions contained in § 3 of the Joint Resolution of
the Congress of the United States, approved May 1, 1900, regarding the
purchase, sale, or possession of real property, shall be illegal.
(Aug. 7, 1935, No. 48,
p. 536, § 1.)
§ 432. Penalty against corporation.
Every corporation which openly, fraudulently, or
by misrepresentation, or in any way acquires lands in violation of the
provisions of § 3 of the Joint Resolution of the Congress of the United States,
approved May 1, 1900, regarding the purchase, sale, or possession of real
property, shall be guilty of a misdemeanor, and upon conviction, shall be
punished by a minimum fine of five hundred (500) dollars and a maximum fine of
one thousand (1,000) dollars.
(Aug. 7, 1935, No. 48,
p. 536, § 2.)
§ 433. Penalty against persons.
Every person who, in any character, as official,
notary, agent, intermediary, or otherwise, knowingly and with the deliberate
purpose of violating the provisions of § 3 of the Joint Resolution of the
Congress of the United States, approved May 1, 1900, regarding the purchase,
sale, or possession of lands, directly or indirectly participates in any act or
contract which in any way impairs, affects, or violates said provisions of the
aforesaid Joint Resolution, shall be guilty of a misdemeanor and, upon
conviction, shall be punished by a maximum fine of one thousand (1,000) dollars
or by imprisonment in jail for a maximum term of one (1) year, or by both
penalties, [at] the discretion of the court.
(Aug. 7, 1935, No. 48,
p. 536, § 3.)
§ 434. Penalty for acquiring land for benefit
of corporation; confiscation.
Every person who, by misrepresentation, acquires
lands in his own name, for the use and benefit of any corporation, in violation
of the provisions of § 3 of the Joint Resolution of the Congress of the United
States, of May 1, 1900, shall be guilty of a misdemeanor punishable by a fine
of not more than five hundred (500) dollars nor less than one hundred (100)
dollars, or by imprisonment in jail for a term of not less than three (3)
months nor more than one (1) year. The conviction of such person shall entail
the confiscation of the property so acquired or held for the benefit of the
Commonwealth of Puerto Rico, upon payment by the latter of a reasonable
compensation.
(Aug. 7, 1935, No. 48,
p. 536, § 4.)
§ 435. Cognizance of cases.
The Court of First Instance of Puerto Rico is
hereby vested with exclusive original jurisdiction to hear, try, and decide all
cases of violation of § 431-435 of this title, without right to a trial by
jury.
(Aug. 7, 1935, No. 48,
p. 536, § 5.)
No corporation, doesn’t matter his nature, will be able to
dedicate to the business of buying and selling real estate in Puerto Rico.
Op. Sec. Just. No. 6 of 1968
A corporation can not be dedicated to the business of buying and
selling real estate, or, in any form, hold lands to speculate in the real
estate market.
Op. Sec. Just. No. 15 of 1966
The corporations not engaged in agriculture are only limited by
the first part of the statute of this section, that prohibit to all corporation
effectuate businesses of buying and selling real estate or to hold or to have
such class of assets except such as may be reasonably necessary to enable it to
carry out the purposes for which it was created.
Op. Sec. Just. No. 70 of 1956
§ 3391. Requisites of
contracts.
There is no contract unless the following
requisites exist:
(1) The consent of the contracting parties.
(2) A definite object which may be the subject
of the contract.
(3) The cause for the obligation which may be
established.
(Civil Code, 1930, §
1213.)
§ 3432. Contracts without
consideration; illicit consideration.
Contracts without consideration or with an
illicit one have no effect whatsoever. A consideration is illicit when it is
contrary to law and good morals.
(Civil Code, 1930, §
1227.)
Once consideration has been determined to be
illicit the contract is void or non-existent. Sanchez
Rodriguez v. Lopez Jimenez, 116 P.R.R. 172 (1985).
Contract law in this jurisdiction is based on
the premise that no contract exists where consideration is illicit or no
consideration exists. Sanchez Rodriguez v. Lopez Jimenez, 116
D.P.R. 172 (1985).
Where two contracting parties have engaged in
illegal activities they are barred from filing claims against each other but
this impediment does not apply to innocent third persons who did not
participate in illegality. Sanchez Rodriguez v. Lopez Jimenez,
116 D.P.R. 172 (1985).
Statute of limitations does not run against
nonexistent situations. Sanchez Rodriguez v. Lopez Jimenez,
116 P.R.R. 172 (1985).
There is no contract where there is no
consideration or where consideration is illicit. Sanchez Rodriguez v. Lopez
Jimenez, 116 D.P.R. 172 (1985); In re Las Colinas, Inc., 294 F. Supp. 582
(1968), reversed and remanded, In re Las Colinas, Inc., 426 F.2d 1005 (1970),
affirmed, 453 F.2d 911 (1971), certiorari denied, Banco
Popular de Puerto Rico v. Las Colinas, Inc., 405 U.S. 1067 (1972); Soto v.
Feliciano, 80 P.R.R. 595 (1958); Monserrate v. Lopez,
80 P.R.R. 476 (1958); Guzman v. Guzman; Rodriguez, Int., 78 P.R.R. 673 (1955);
Quintana v. Lejeune, 37 P.R.R. 682 (1928); Booth
Packing Co. v. Sobrino & Bro., 34 P.R.R. 14
(1925); Aponte v. Garzot, 28 P.R.R. 586 (1920);
Gonzalez v. Vilella, 24 P.R.R. 262 (1916); Rosado v.
Rosado, 17 P.R.R. 447 (1911); Montilla v. Van Syckel, 8 P.R.R. 153 (1905); Cordova v. Santisteban
Chavarri & Co., 7 P.R.R. 303 (1904).
Illegal consideration in contracts results in
nonexistence and nullity, not in grounds for rescission. La Sagrada
Familia Cooperative v. Castillo, 107 P.R.R. 405
(1978).
Substance of contractual object is particularly
decisive quality thereof, which, if nonexistent or knowingly erroneous, would
have resulted in parties not entering contract. La Sagrada Familia Cooperative v.
Castillo, 107 P.R.R. 405 (1978).
There are no prescriptive terms to challenge
simulated non-existent actions having no juridical effect whatsoever. Garcia Lopez v. Mendez Garcia, 102 P.R.R. 383 (1974).
When the consideration of a simulated contract
is illicit, the latter is void and has no juridical effects. Hernandez
v. Secretary of the Treasury, 86 P.R.R. 12 (1962).
A simulated contract is wholly void and creates
no right whatsoever. Hernandez v. Ayala, 68 P.R.R. 883
(1948).
These concerns need to be resolved
before Puerto Rico become state of the union.
STATEMENT OF
LUIS G. FORTUŃO
GOVERNOR OF PUERTO RICO
BEFORE THE COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
MAY 19, 2010
Thank you, Mr.
Chairman…and Ranking Member Murkowski…for the opportunity to appear this
morning before you and fellow members of this Committee to express my support
of H.R. 2499, the Puerto Rico Democracy Act of 2009. I especially appreciate
the opportunity to follow Puerto Rico’s sole elected representative in
Congress, Resident Commissioner Pedro Pierluisi, who
was my running mate in 2008.
Today, I appear before
you as Governor of Puerto Rico and as President of Puerto Rico’s statehood
party, which includes national Republicans like myself
as well as Democrats like Resident Commissioner Pierluisi.
In the elections of
2008, voters gave candidates of our party the biggest margin of any electoral
victory in 44 years. We obtained over two-thirds of the seats in each house of
the legislature and three-fifths of the mayorships.
The candidates in the “Commonwealth” party, by contrast, received the lowest
percentage of votes for their party in history.
This is particularly
relevant because the process proposed by H.R. 2499 was an issue in the
elections. Our party campaigned on a pledge to seek congressional sponsorship
of a status choice process…in order to provide a choice among real status
options to be made…directly by voters…in plebiscites.
Why does Congress need
to act? Because there is a patently obvious need for the territory’s real
options to be clarified. Under the present status…given Congress’
constitutional jurisdiction under the Territory Clause…Congress can provide the
necessary clarification. Specifically, previous political status plebiscites
without federal legislation…in the first two instances, at the end of the 1960s
and the beginning of the 1990s…were inconclusive because of proposals for an
unconstitutional and impossible governing arrangement. The most recent
plebiscite…12 years ago…was similarly confused by such a proposal.
For decades, the leaders
of the “Commonwealth” party– including those of that party’s delegation here
today – have refused to recognize the reality that the only possible
“Commonwealth” option that exists is the one that is the island’s current
territory status.
H.R. 2499 simply clarifies
what the possible status options for Puerto Rico are: continuation of the
current territory status that goes by the name of “Commonwealth”, independence,
nationhood in free association with the United States and statehood.
What is not included in
the legislation…and what is the real reason for the “Commonwealth” party’s
persistent objections to the bill… is this impossible “Commonwealth” status
proposal that is not the current status [holding up copy].
Under this proposal of theirs,
Puerto Rico would be permanently empowered to nullify federal laws and court
jurisdiction. The island would also be empowered to enter into international
agreements and organizations requiring national sovereignty. The proposal also
includes a new subsidy for the government of the island, and incentives for
companies in the States to locate plants in Puerto Rico. But wait, there’s
more. The proposal also further includes all current federal program assistance
to individuals, and U.S. citizenship would be perpetually guaranteed.
A wise member of this
Committee once called this proposal “the free beer and barbeque option.”
Members of the Senate should…once again… join their counterparts in the House
in clarifying that such proposals are not a possible status option.
In doing so, Mr.
Chairman, you and your colleagues would do well to join Congresswoman Virginia
Foxx…who in a letter to myself and Resident
Commissioner Pierluisi last week did just that.
Congresswoman Foxx clarified that the “Commonwealth” option contained in her
amendment to H.R. 2499…which was approved by the full House…is…and I quote…”the
status quo, under which Puerto Rico is subject to federal Territory Clause
authority.”
As Congresswoman Foxx
further made clear, her amendment’s intention was not to endorse the legal
viability or practical possibility of…and I quote once again…”’a new
Commonwealth status’ which would grant Puerto Rico greater autonomy from
federal authority with greater federal benefits.” With your permission, Mr. Chairman,
I would like to submit Congresswoman Foxx’s letter for the record, along with
my entire written testimony.
Mr. Chairman, what H.R.
2499 essentially does is authorize a process…at the discretion of Puerto Rico’s
elected representatives…that would begin with threshold votes on whether to
consider status options. This responds to the “Commonwealth” Party argument
that the status question should not be addressed. Only if a majority of voters
no longer favors the current status…and Puerto Rico’s elected representatives
agree… would there be a second-stage vote on the full range of possible
options. If a majority of voters in a threshold plebiscite do not want to
consider Puerto Rico’s status options, the issue would be put aside for eight
years.
If a second-stage vote
does take place, the current status would stand equally alongside the other
possible status alternatives that have support in Puerto Rico: free association
– which is advocated by an increasing number of members of the “Commonwealth”
Party, although not the current leadership; independence; and statehood. In
terms of measuring support for Puerto Rico’s possible status choices, H.R. 2499
could not be any fairer.
In sum, H.R. 2499 would
enable the preferences of Puerto Ricans…among the real status alternatives…to
finally be ascertained. The legislation would not mandate any action in
response by the federal government. If there ever is a majority of the vote for
a status different than the present one, it is then that Federal officials
could determine what response is appropriate. An accurate expression of status
preferences by the people is the necessary first step.
Last month, members of
the House took the right step. I urge you to do the same. By so doing, you will
be effectively responding to the people of Puerto Rico’s clear mandate for a
federally sanctioned status choice process. You will also fulfill Congress’
responsibility to enable a territory that lacks democracy at the national
government level to determine if it wants one of the options for national
government democracy.
Mr. Chairman, over the
course of more than a century, millions of your fellow American citizens in the
territory of Puerto Rico have made countless contributions to the Nation, both
in peace and wartime. Thousands of our sons and daughters have laid down their
lives…thousands more proudly serve today…in defense of American democratic
values. Yet, we have never been given the chance to express our views about our
political relationship with the Nation in the context of an accurate, fair and
democratic process sponsored by Congress. This bill will, at long last, give us
that chance. What could be more right?
Thank you very much.