Embezzlement of JCE Funds Could Be Turned Over to U.S. Justice System

New York: An ongoing investigation by El Faro Latino has linked an electoral embezzlement case related to the Dominican Vote Abroad in 2020, involving a sum exceeding $4,618,696.76, which, based on the exchange rate at the time, would be equivalent to 258,647,019.00 Dominican pesos. This amount belongs to a general estimated budget of $7,179,625.20 million. The report also points to an alleged multimillion-dollar embezzlement of electoral funds for the Dominican elections held on May 19, 2024, and evidence from this case could potentially be handed over to the U.S. Department of Justice.

According to the investigation, the newspaper documented how officials from the Dominican Overseas Voting Office (OPREE) in New York made three electronic transfers totaling $1,141,747.01 to Johanna Leónidas Tineo Estévez, head of the OPREE in New Jersey. This money vanished despite being processed through the U.S. financial system via an account opened by the Dominican Consulate in New York, designated exclusively for the JCE in 2020.

It was established that the OPREE in New York, supervised by Julio César Castaños Guzmán, former president of the JCE, alongside other officials such as Gilberto Cruz Herasme (former director of Dominican Vote Abroad), Gianilda Lancelot Díaz Fernández, and Ana María Matos Espinosa, embezzled $2,767,405.53, with no legal consequences thus far.

The investigation also revealed that El Faro Latino lost track of $592,821.73, an excess identified and declared «returned» by the forensic audit conducted by «DISLA DOÑÉ Y ASOCIADOS.» However, no evidence confirmed that this money was returned to the JCE’s U.S. or Dominican Republic bank accounts. Additionally, another $315,844.72 disappeared, and unsupported records showed a discrepancy of $145,977.07.

Not content with these findings, a supplemental budget request for $571,015.00 was made between June 22 and June 26, 2020. According to JCE documents, this money was transferred via bank transfer to various accounts at Bank of America in New York. Still, it also disappeared under the management of Dominican electoral officials.

The director of Dominican Vote Abroad, Well Sepúlveda, and the JCE Board, including Román Andrés Jáquez Liranzo (president), Rafael Armando Vallejo Santelises, Dolores Altagracia Fernández Sánchez, Patricia Lorenzo Paniagua, and Samir Rafael Chami Isa, have refused to provide the financial documents related to the 2024 Dominican elections abroad, despite having supplied 18,800 documents to El Faro Latino in 2020 that were key to the previous investigation. This refusal is seen as an attempt to conceal evidence and obstruct the investigation, especially considering that the embezzlement in 2024 is suspected to be even more significant than in 2020 and could implicate the current administration, as the president and board members bear binding responsibility for the missing funds.

In 2020, Bank of America closed four accounts belonging to the Dominican Overseas Voter Registration Offices (OPREE) and the Overseas Electoral Logistics Coordination Offices (OCLEE) in Boston, Miami, New York, and New Jersey. This was due to excessive withdrawals from several ATMs, exceeding the $10,000 limit set by the U.S. Department of the Treasury, thus violating anti-money laundering laws. Investigations revealed that JCE officials withdrew over $800,000 indiscriminately from these ATMs in the days leading up to the 2020 elections.

Due to the JCE’s refusal to provide the requested documents, El Faro Latino will begin legal proceedings in the Dominican Republic on Monday, January 13, 2025, to demand their release. The media outlet warns the JCE Board that if this request is not met, it will take the case to the U.S. Department of Justice, as the crimes were committed on U.S. soil and could be prosecuted under U.S. law.

Possible Legal Implications for JCE Officials in the U.S.

Financial crimes involving the use of U.S. financial systems fall under broad federal jurisdiction. In this case, the fraud affects millions of dollars channeled through U.S. financial institutions, such as Bank of America, which grants U.S. authorities jurisdiction to investigate and prosecute the case.

Fraudulent transactions, such as those by JCE officials through U.S. banks and financial institutions, are subject to U.S. federal laws, including the Money Laundering Control Act and the Electronic Fraud Statute.

These laws apply to U.S. citizens and foreign nationals who use U.S. financial institutions to launder the proceeds of a crime. Since the fraud involves transactions on U.S. soil, U.S. authorities could exercise jurisdiction to prosecute those responsible within the JCE.