According to court documents, Jose I. Irizarry, 46, of Dorado, Puerto Rico, pleaded guilty on Sept. 14, 2020, to all counts in a 19-count indictment that included conspiracy to commit money laundering, honest services wire fraud, bank fraud, and aggravated identity theft. According to the indictment and his plea agreement, the scheme began shortly after Irizarry filed for personal bankruptcy protection in 2010. Irizarry used his position as a special agent to divert approximately $9 million from undercover DEA money laundering investigations to himself and to co-conspirators. In return, Irizarry received bribes and kickbacks worth at least $1 million for himself and his family, which was used to purchase jewelry, luxury cars, and a home. To carry out the scheme, Irizarry and his co-conspirators used a stolen identity to open a bank account under false pretenses and then utilized the account to receive diverted drug proceeds. The scheme lasted throughout Irizarry’s assignments to the DEA’s Miami Field Division and to its office in Cartagena, Colombia.

“The Department of Justice has zero tolerance for abuse of public office and is committed to ferreting out and prosecuting corruption wherever found, especially among the ranks of law enforcement,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division.

Also see: Cartagena-Based US DEA Agent Guilty Of Stealing Over $9 Million USD In Drug Money

“Public corruption is the FBI’s top criminal investigative priority, and we will not be deterred in our commitment to expose the deceitful even if it means arresting a former federal agent,” said Special Agent in Charge Michael McPherson of the FBI’s Tampa Field Office. “The FBI and its federal, state, and local law enforcement partners will remain steadfast and focused on the work to maintain the public’s trust in government.”

“Former Special Agent Irizarry abused the trust of the American people when he repeatedly violated his oath as a federal law enforcement officer,” said Administrator Anne Milgram of the DEA. “Bringing him to justice reflects the principles of those who faithfully serve and uphold the values of DEA. The men and women of DEA remain committed to protecting our communities and holding all accountable who engage in drug-related crimes. I commend our federal law enforcement partners who investigated this case with utmost professionalism and the prosecutors who worked tirelessly to bring Irizarry to justice.”

U.S. District Court Judge Charlene Honeywell expressed her disgust for the corruption within DEA for its failings and said other agents corrupted by “the allure of easy money” also needed to be investigated.

“This is an egregious breach of the trust by a federal agent who was sworn to protect and serve the American people,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa Field Office. “While his actions are uncharacteristic of the dedication and integrity demonstrated by the vast majority of government employees, this case should send a message about the serious consequences facing those who would exploit their positions and violate that special trust.”

“Irizarry betrayed his oath to serve and instead used his position to further the criminal activities of a violent drug cartel while enriching himself,” said Special Agent in Charge Brian Payne of IRS-Criminal Investigation (IRS-CI). “While his actions represent an egregious breach of the public trust, they are in no way a reflection of the overwhelming majority of special agents who serve with honor and integrity. IRS-CI will take every step necessary to ferret out those who cave into temptation and grossly misuse their power.”

“We trust law enforcement officials to uphold the oath and bring criminals to justice,” said Special Agent in Charge James F. Boyersmith of the Department of Justice Office of the Inspector General (OIG) Miami Field Office. “Instead, Irizarry actively participated in drug trafficking and money laundering schemes. But today, justice was served. He will rightly serve time for his crimes.”

Irizarry was also ordered to pay $11,233 in restitution and forfeit his interests in a diamond ring and a luxury sports car.

At the conclusion of Friday’s sentencing in Tampa, Florida, U.S. District Judge Charlene E. Honeywell ordered Irizarry to begin serving his term of imprisonment immediately. Irizarry was remanded into the custody of the U.S. Marshals Service for transfer to the Federal Bureau of Prisons.

The FBI, DEA, HSI, IRS-CI and the Department of Justice OIG investigated the case.

Senior Trial Attorney Mark A. Irish and Deputy Chief Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Forfeiture Section prosecuted the case, with assistance from Acting U.S. Attorney Kurt Erskine of the Northern District of Georgia.

Photo courtesy US DEA

The admission calls into question the checks, balances and supervision in place at the DEA since apparently Irizarry was able to move vast sums of public money to private accounts, fail polygraph tests and live a lavish lifestyle that did not coincide with a federal law enforcement officer’s income.

According to the Associated Press, Irizarry had a $767,000 home in Cartagena, Colombia, additional homes in South Florida and Puerto Rico, several Land Rovers, a BMW, a Tiffany diamond ring worth $30,000 and a Lamborghini Huracan Spyder purchased under the name of a family member. The $300,000 Lamborghini seems to connect Irizarry to Jenny Ambuila and her father Omar, who were arrested in Colombia on customs fraud. US officials who requested not to be named, told the AP that the Ambuilas are related to Nathalia Gomez Irizarry.

The Colombian DEA field office is struggling, with record levels of cocaine production in Colombia, despite a government friendly to the US administration, a peace agreement that saw the main group of FARC rebels disarm, and renewed herbicide spraying of coca crops. Despite Irizarry declaring bankruptcy in 2010 and listing half a million USD in debts, the DEA apparently allowed him to continue to manage financial transactions with informants, and government assets.

“Irizarry joined forces with the same criminal drug organizations he promised to investigate and prosecute, “said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia.  “He and his wife now stand as convicted felons, potentially facing years in federal prison with little to show for the betrayal of his oath to uphold the law.”

U.S. Magistrate Judge Thomas Wilson accepted the guilty pleas in U.S. District Court for the Middle District of Florida.  Jose Ismael Irizarry, 46, and his wife, Nathalia Gomez-Irizarry, 36, admitted to participating in a seven-year scheme to divert over $9 million in drug proceeds from undercover money laundering investigations into bank accounts that they and co-conspirators controlled.  Irizarry and Gomez-Irizarry are scheduled to be sentenced at a later date.

Irizarry filed for personal bankruptcy protection in December of 2010.  As part of his plea, he admitted that soon after his bankruptcy was filed he began to exploit his position of public trust as a special agent to divert funds from undercover DEA money laundering investigations to himself and to co-conspirators.  Diverted funds were then used to purchase jewelry, luxury cars, and a home.  The scheme lasted throughout Irizarry’s assignments to the DEA’s Miami Field Division and to its office in Cartagena, Colombia.  Irizarry resigned from the DEA in January of 2018.

Irizarry also admitted that he and his criminal associates opened a bank account with a stolen identity and then utilized the account to secretly send and receive drug proceeds from active DEA investigations.  Gomez-Irizarry admitted that she allowed her bank accounts and a Florida corporation in her name to be used in the scheme.  By his own admission, Irizarry was in personal bankruptcy proceedings for nearly the duration of his criminal conduct and failed to disclose any of his illicit income to the U.S. Bankruptcy Court.

Irizarry pleaded guilty to conspiracy to launder monetary instruments, honest services wire fraud, bank fraud, conspiracy to commit bank fraud, conspiracy to commit identity theft, and aggravated identity theft.  Gomez-Irizarry pleaded guilty to conspiracy to launder monetary instruments.

Trial Attorneys Joseph Palazzo and Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and First Assistant U.S. Attorney Kurt Erskine of the Northern District of Georgia prosecuted the case.

According to the US Justice Department, the FBI, HSI, Justice Department’s OIG, DEA, and IRS-CI investigated the case with contributions from former Assistant U.S. Attorney James Mandolfo and investigators William Campbell and Paul Serletti.  The U.S. Marshals Service, U.S. Customs and Border Protection, the Justice Department’s Office of International Affairs, the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office in Bogota, Colombia, the U.S. Attorney’s Offices for the District of Puerto Rico, Southern District of New York, and the Eastern District of Texas, the Colombian Attorney General’s Office (Fiscalia General de la Nacion), the Department of Homeland Security’s Office of Inspector General, and the South Florida Money Laundering Strike Force at the Miami-Dade State Attorney’s Office provided additional assistance.

Photo courtesy US DEA