Eight women, including an employee of the Puerto Rico Department of Labor (PRDOL), have been indicted by a federal grand jury for allegedly participating in a scheme to fraudulently obtain $619,923 in unemployment compensation and make kickback payments to a public official. The announcement was made by W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
The case is being investigated by the United States Department of Labor Office of Inspector General (USDOL-OIG) and the Federal Bureau of Investigation (FBI), with assistance from several agencies including the Puerto Rico Police and the United States Postal Inspection Service. The referral originated from PRDOL.
According to court documents, Luz Garay-Osorio used her position as a PRDOL employee to alter records and enable family members to receive unemployment benefits, Pandemic Unemployment Assistance, and Disaster Unemployment Assistance. She also filed fraudulent claims using false or stolen personal information and manipulated employment histories.
The indictment details that Garay-Osorio directly received about $13,308 in fraudulent benefits. Other defendants—Glenda Garay-Osorio, Tatiana Skerrett-Garay, Ariana Skerrett-Garay, Dayanara Aquino-Garay, Nashaly Vega-Garay, Almarys De Jesús-Garay, and Mariela Cabrera-Vistel—received varying amounts in fraudulent benefits and transferred significant portions back to Garay-Osorio through bank transfers or money orders. In total, Garay-Osorio is alleged to have received approximately $142,507 in kickbacks.
Garay-Osorio faces charges including conspiracy to steal federal funds, honest services mail fraud, money laundering, and aggravated identity theft. She has been terminated from her position at PRDOL.
“These defendants engaged in a scheme to defraud the Puerto Rico Department of Labor by using an employee’s position of trust to file numerous fraudulent unemployment insurance claims when they were not entitled to such benefits,” said U.S. Attorney Muldrow. “The United States Department of Justice, along with our state and federal counterparts will continue to hold accountable those who seek to exploit federal benefits for personal gain, to protect vulnerable populations, and to safeguard the integrity of taxpayer-funded programs. We commend the outstanding work and collaboration of our law enforcement partners in the investigation of this case.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving the U.S. Department of Labor’s unemployment insurance program. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General.
“This investigation underscores our commitment to protecting public funds and holding accountable those who abuse positions of trust for personal gain,” said Joe Rodríguez, Acting Special Agent in Charge for the FBI’s San Juan Field Office. “The FBI will continue working closely with our law enforcement partners to identify, investigate, and prosecute fraudulent schemes that undermine critical assistance programs and hurt our communities.”
“The U.S. Postal Inspection Service is committed to working with our federal, state, and local law enforcement partners to investigative and bring to justice those who defraud the American taxpayer and fraudulently use the nation’s mail system,” said Bladismir Rojo, Postal Inspector in Charge, Miami Division.
Assistant U.S. Attorney Scott Anderson is prosecuting this case. If convicted on all counts related to theft or conspiracy involving government money each defendant could face up to five years imprisonment; additional counts against Garay-Osorio include up 20 years for honest services mail fraud plus a mandatory two-year sentence for aggravated identity theft; both Garay-Osorio and Cabrera-Vistel face up 20 years for money laundering conspiracy.
Since 2024 Luz Garay-Osorio has become the ninth Commonwealth employee charged or pleading guilty in a federal corruption case within Puerto Rico.
Indictments are formal accusations; all defendants are presumed innocent until proven guilty.
The U.S. Attorney for the District of Puerto Rico leads efforts against public corruption across San Juan and throughout Puerto Rico by investigating criminal cases like this one as well as handling civil matters related to violations such as drug trafficking or civil rights abuses (source). The office provides mechanisms for reporting crimes or suspicious activity—including COVID-19-related fraud—through various channels (source). W. Stephen Muldrow currently serves as its head (source).
To report suspected COVID-19-related fraud contact NCDF Hotline at 1-866-720-5721 or submit via https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
For suspected bribery or public corruption contact FBI San Juan Field Office at (787)987-6500 or online at www.tips.fbi.gov
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