U.S. prosecutors and IRS agents are deploying undercover agents and closely examining records to build criminal and civil cases against wealthy individuals suspected of illegally taking advantage of tax breaks offered by Puerto Rico, Bloomberg News reported. The cash-strapped island used eye-popping incentives to lure hedge fund managers, cryptocurrency traders and other Americans to the U.S.
Puerto Rico in Distress
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A federal control board that oversees Puerto Rico’s finances on Friday approved a $12.7 billion general fund budget that contains increases for teachers, judicial employees and the U.S. territory’s public university, the Associated Press reported. It is the largest budget approved in the island’s history.
Puerto Rico’s financial oversight board is considering slashing — by about half — the amount of new bonds it claims the island’s bankrupt power utility can repay, a potential offering that bondholders will most likely reject, Bloomberg News reported.
Puerto Rico’s financial oversight board is amending its plan to reduce $9 billion of Electric Power Authority debt to reflect steeper-than-expected declines in energy consumption, Bloomberg News reported.