United States v. Irizarry-Irizarry

Court of Appeals for the First Circuit·Decided July 24, 2026·No. 23-1975·Published

Opinion

United States Court of Appeals For the First Circuit

No. 23-1975

UNITED STATES,

Appellee,

v.

ARNALDO J. IRIZARRY-IRIZARRY,

Defendant, Appellant.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO

[Hon. Aida M. Delgado-Colón, U.S. District Judge]

Before

Barron, Chief Judge, Howard and Montecalvo, Circuit Judges.

Julie K. Connolly, with whom Julie Connolly Law, PLLC, was on brief, for appellant. Brendan B. Gants, Attorney, Appellate Section, Criminal Division, United States Department of Justice, with whom W. Stephen Muldrow, United States Attorney, Mariana E. Bauzá-Almonte, Assistant United States Attorney, and Matthew R. Galeotti, Supervisory Official, were on brief, for appellee.

July 24, 2026 MONTECALVO, Circuit Judge. Defendant-Appellant Arnaldo

Irizarry-Irizarry ("Irizarry") appeals his jury conviction for

wire fraud, conspiracy to commit wire fraud, and money laundering

arising from his involvement in a scheme to defraud the

Municipality of Mayagüez ("Mayagüez") and its municipal

enterprise, Mayagüez Economic Development, Inc. ("MEDI").

Irizarry argues that the evidence presented at his trial was

insufficient to establish that he had the intent required to commit

the crimes underlying his convictions. He also appeals the

district court's denial of his pro se motion to reduce his sentence

under 18 U.S.C. § 3582. Because we conclude that there was no

error in Irizarry's conviction and that he did not file a notice

of appeal as to the district court's order on his pro se motion,

we affirm his conviction and dismiss his sentencing challenge.

I. Facts1

As a lawyer, Irizarry served as a legal advisor to

Mayagüez and its mayor, José Guillermo Rodríguez Rodríguez ("Mayor

Rodríguez"). In 2014, Mayagüez's municipal legislature authorized

Mayagüez to create MEDI, a legally-independent, for-profit

1 Irizarry's sufficiency-of-the-evidence challenge requires us to examine the facts in the light most favorable to the verdict and assess if that evidence, "including all plausible inferences drawn therefrom, would allow a rational factfinder to conclude beyond a reasonable doubt that the defendant committed the charged count or crime." United States v. Díaz-Rosado, 857 F.3d 116, 120 (1st Cir. 2017) (quoting United States v. Cruz-Díaz, 550 F.3d 169, 172 n.3 (1st Cir. 2008)).

- 2 - corporation, to promote regional economic development and generate

income for Mayagüez. Separately, between July 2012 and July 2015,

Puerto Rico's legislature approved three multi-million-dollar

awards to Mayagüez for renovations on and improvements to its

trauma center. By March 2016, one of Mayagüez's bank accounts

held $9 million -- most of which was traceable to the funds awarded

for renovations to the trauma center.2 After learning about the

$9 million, Roberto Mejill-Tellado ("Mejill") and Eugenio

García-Jiménez ("García") -- financial consultants for

Mayagüez -- arranged a meeting to discuss the funds with Mayor

Rodríguez. At the meeting, García proposed investing the

$9 million in order to produce interest income to benefit Mayagüez

and its trauma center and proposed that the principal would be

returned to Mayagüez after generating interest. Mayor Rodríguez

approved García's proposal. But, unbeknownst to Mayor Rodríguez,

García had different plans for the $9 million in Mayagüez's bank

account.

On March 9, 2016, García asked his friend Stephen

Kirkland to prepare a fraudulent letter from UnionBanc Investment

2 Pursuant to the trauma center renovation awards, Mayagüez's 1First Bank account received deposits totaling $8,761,839 between 2014 and 2016. On March 11, 2016, Mayagüez's Banco Popular de Puerto Rico account deposited a $14.6 million check issued from the 1First Bank Account. The parties stipulated that on March 29, 2016, Mayagüez had $9 million in its Banco Popular account, which is the amount represented at trial as being reserved for the trauma center.

- 3 - Services ("UBIS") offering MEDI investment services. Stephen

prepared the letter, which included the forged signature of his

brother Joseph Kirkland,3 a UBIS financial advisor. The same day,

García and Joseph applied to open a UBIS investment account ("UBIS

account") under MEDI's name. After the UBIS account opened,

$9 million was transferred from Mayagüez's bank account to the

UBIS account on March 29, 2016. Joseph then used the $9 million

to purchase U.S. Treasury bonds, which were used as collateral for

a line of credit, in turn allowing cash transfers out of the

In April 2016, more than $4 million was wired from the

UBIS account to entities that García or Mejill owned. By the end

of April, UBIS personnel, after flagging the UBIS account's

suspicious activity, decided to close the account. García and

Joseph transferred the remaining funds (around $5 million) to an

LPL Financial account belonging to Mayagüez Economic Development

Financial Strategies ("MEDFS"), a separate corporation García

created and operated.

More than $3 million was transferred out of the LPL

Financial account between late June 2016 and early July 2016.

García returned $1.8 million to Mayagüez's bank account to conceal

the scheme, falsely asserting that the amount was an advance

3We refer to Stephen Kirkland and Joseph Kirkland by their first names for clarity.

- 4 - interest payment. Overall, the funds transferred from MEDI's

UnionBanc account and MEDFS's LPL Financial account were

transferred into and out of over twenty different bank accounts

that the coconspirators held through various corporate entities.

Three of those entities were: (1) TEGA Holdings, LLC ("TEGA"),

which García and Mejill co-owned; (2) U.A. United Advisors

Corporation ("U.A."), which Irizarry owned and incorporated in

March 2016; and (3) IManagement, LLC ("IManagement"), which was

incorporated in March 2016 and operated by MEDI Executive Director

Alejandro Riera-Fernández ("Riera").4

With coconspirator Steve Minger's help, García and

Mejill had opened a bank account for TEGA in the United States

mainland, which received a $900,000 wire from the MEDI UBIS account

on April 4, 2016. And between April 2016 to December 2016, TEGA

transferred $126,100 to U.A. and $133,200 to IManagement. Both

U.A. and IManagement received a $90,000 wire transfer on April 6,

2016, a $9,000 wire transfer on July 18, 2016, and multiple checks

between August 2016 and December 2016. Through their respective

4 Roberto Santiago-Velázquez incorporated IManagement as a favor to Riera, who indicated -- without explanation -- that he could not incorporate IManagement in his own name. Thus, Santiago-Velázquez was listed as IManagement's President and owner and signed checks and documents on the corporation's behalf. But other than those acts, Santiago-Velázquez did not perform any work for IManagement or see any of its actual work product.

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