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Puerto Rico鈥檚 Former 91制片厂视频 Secretary Arrested on Fraud Charges

By Evie Blad & Andrew Ujifusa 鈥 July 10, 2019 3 min read
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Julia Keleher, the former education secretary of Puerto Rico, on fraud charges stemming from allegations that she improperly steered millions of dollars in government contracts to consulting firms, including one run by her close friends.

Keleher, 44, faced praise and sharp criticism as she led the territory鈥檚 school system, which educates more than 300,000 students, through the aftermath of Hurricane Maria in 2017. She stepped down in April 2019, initially agreeing to remain as a paid adviser to the Puerto Rico鈥檚 education agency before later withdrawing from that position.

Keleher was arrested along with the island鈥檚 former director of health insurance administration, Angela Avila, and contractors who worked with the insurance and education departments, U.S. Attorney Rosa Emilia Rodr铆guez V茅lez said.

A grand jury indictment alleges she illegally steered a $95,000 Puerto Rico Department of 91制片厂视频 contract through a corrupt bidding process to an unqualified firm run by her close associates at a consulting firm, Col贸n & Ponce. This firm was run by Glenda E. Ponce-Mendoza and Mayra Ponce-Mendoza, who are sisters and were also arrested. A separate count alleges a scheme through which she and others awarded more than $13 million in department contracts that included $220,000 in illegal commissions.

鈥淭his type of corruption is particularly egregious because it not only victimizes taxpayers, it victimizes those citizens and students who are in need of educational assistance,鈥 said Neil Sanchez, the special agent in charge of the southern regional branch of the U.S. Department of 91制片厂视频鈥檚 Inspector General鈥檚 office, which investigates misuse of federal education funds.


See Our In-Depth Coverage: Putting Puerto Rico鈥檚 Schools Back on Track


Puerto Rico Gov. Ricardo Rossell贸鈥 said Wednesday morning he planned to return from a vacation in Europe following arrests of public officials.

Keleher鈥檚 arrest followed publicly known investigations into possible corruption.

A message left for Keleher on Wednesday seeking comment was not returned.

During her tenure as education secretary, which lasted more than two years, Keleher said she was intent on overhauling Puerto Rico鈥檚 public schools even before Maria hit the island. Decrying a system that she said was inefficient and unhelpful for students and teachers, she broke up the department鈥檚 bureaucracy to provide more local control to different regions of the island, backed what became a landmark 2018 law to institute charter schools and vouchers, and approved the closure of hundreds of public schools due to low enrollment.

Her supporters said she was bringing much-needed change and energy to a system where students produced dismal academic results for years.

The U.S. Department of 91制片厂视频 backed the island鈥檚 attempts to expand educational options. In a 2018 speech, Assistant Secretary for Elementary and Secondary of 91制片厂视频 Frank Brogan and a 鈥渓aboratory鈥 for people to observe.

But her detractors, including the Asociaci贸n de Maestros de Puerto Rico, the island鈥檚 teachers鈥 union, alleged Keleher was defying the will of parents and educators and shattering the island鈥檚 public schools in the name of unproven solutions.

, the teachers鈥 union called Keleher鈥檚 arrest a 鈥渟ad day鈥 for the island鈥檚 public schools and highlighted its previous disagreements with Keleher.

Members of Congress had also criticized Keleher鈥檚 decision to close schools and Puerto Rico鈥檚 expansion of school choice.

鈥淭he proposal in Puerto Rico to transition to charter schools and the use of private school vouchers is one that mirrors what happened in New Orleans after Hurricane Katrina,鈥 said Sen. Bernie Sanders, a Vermont independent, in March 2018 remarks, about three weeks before a bill creating charters and vouchers was signed into law by Rossell贸.

For more on the systemic issues faced by Puerto Rico鈥檚 schools, see this 2018 91制片厂视频 Week video:

Photo: Then Puerto Rican 91制片厂视频 Secretary Julia Keleher worked to help schools reopen after Hurricane Maria hit the island in 2017. (Swikar Patel/91制片厂视频 Week)

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A version of this news article first appeared in the Politics K-12 blog.