Three American Management and Administration Corp. executives pleaded guilty on April 13 to stealing $3.7 million from the U.S. Department of Housing and Urban Development’s (HUD) federal assistance programs.
“As today’s convictions demonstrate, those who attempt to defraud the U.S. government will be held accountable,” W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, said, according to a press release issued on April 13. “The defendants and their company harmed the integrity of a program designed to help underprivileged homeowners. Today’s plea agreement sends a clear message that any time U.S. dollars are misused and regardless of who steals taxpayer moneys, we will work tirelessly to pursue justice.”
Walter Pierluisi Isern, Eduardo Pierluisi Isern, and American Management and Administration Corp. entered a plea of guilty to one count of Theft of Federal Program Funds in connection with the theft of administrative funds provided by HUD for the management of public housing projects in Puerto Rico, the release reported. They admitted in court records that they stole money from HUD’s federal assistance programs knowingly and willfully between 2014 and August 2022 for their own use and the use of others. Around $3,712,000.00 total was stolen.
AMAC was expressly forbidden from entering into a contract with any company connected to AMAC or its officers due to its fiduciary obligation for managing millions in HUD funding and operating more than 5,000 housing units in 12 towns, according to the release Throughout the fraudulent scam, Eduardo Pierluisi Isern oversaw the repair and maintenance work at the PHPs for AMAC while Walter Pierluisi Isern served as president.
In their plea deals, the defendants acknowledged that, in defiance of AMAC's fiduciary duties, Walter Pierluisi Isern and Eduardo Pierluisi Isern ran a fraudulent operation within the company while holding executive positions there, according to the release. They exploited that strategy to illegally direct operational funding from the federal assistance programs through businesses and subcontractors they controlled, all in the name of their own financial gain. The defendants also agreed that, in violation of federal law, they forced AMAC to submit fraudulent certificates to HUD guaranteeing that there was no conflict of interest between AMAC and the businesses recruited to provide operational services.
