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. territory over the last decade. But investigators are now focusing on whether people lied about how much time they spend on the island and the source of their income. U.S. officials are also looking at the promoters, attorneys and accountants who marketed the tax program, one of the people familiar with the probes said. At least two criminal investigations, including one involving a U.S. lawyer, could result in charges soon, said the people, who asked not to be identified because the probes aren’t public. Prosecutors are weighing conspiracy and wire fraud charges, according to a speaker at a New York conference last month who recounted a phone call with a federal prosecutor who had been to San Juan.
