Puerto Rico Banker’s Pardon Draws Scrutiny
Key Facts
—What: Trump pardoned Puerto Rico banker Julio Herrera Velutini on 15 January 2026.
—The case: A 2022 federal bribery case had ended in a misdemeanour guilty plea in August 2025.
—The report: A 20 October report says his family hired Alina Habba in a deal worth over US$50 million.
—The denials: Habba, the White House and the Justice Department say she played no role in the pardon.
—Not known: No official finding links the payments to the pardon.
President Donald Trump pardoned Puerto Rico banker Julio Herrera Velutini on 15 January 2026, ending a federal bribery case that had already reached a guilty plea. A New York Times report published on Tuesday 20 October says his daughter’s company had hired Trump’s former personal lawyer, Alina Habba, in a deal worth more than US$50 million.
Habba, the White House and the Justice Department say she played no role in the pardon, according to the Times. No official finding links the payments to the clemency, and this article separates what the public record shows from what has been reported.
Puerto Rico is a US territory whose residents are American citizens, and the case was heard in federal court in San Juan. Readers can follow more coverage in our Puerto Rico section.
What the Official Record Shows
The US Justice Department’s pardon list records that Trump pardoned Julio M. Herrera Velutini, former Puerto Rico Gov. Wanda Vázquez Garced and former FBI agent Mark Rossini on 15 January 2026. Five days later, on 20 January, amended grants changed the offence listed for each of them to “contribution by a foreign national”.
The original charges, filed in federal court in Puerto Rico in 2022, were conspiracy, federal-program bribery and honest-services wire fraud. Prosecutors alleged that Herrera Velutini made campaign contributions to Vázquez Garced’s 2020 re-election bid in return for a promise to remove the island’s financial regulator.
In August 2025, each defendant pleaded guilty to a single misdemeanour, according to the Times and court reporting. The Times reported that the pardons came shortly before sentencing.
In Plain English
- A pardon: a president’s power to erase the legal consequences of a federal conviction, with no vote by Congress or the courts.
- A misdemeanour: a lesser offence than a felony, usually punished more lightly.
- A super PAC: a political committee that may raise unlimited sums but may not coordinate with a candidate.
The Habba Contract as Reported
According to the Times, Isabela Herrera, Herrera Velutini’s 27-year-old daughter and a US citizen, registered Concord Partners in Florida in late October 2025. Habba, then still serving as a top federal prosecutor in New Jersey, agreed within days to become the firm’s general counsel.
The reported pay is US$10 million a year for four years plus bonuses, guaranteed at more than US$50 million. Habba left the prosecutor’s post in December 2025, became a senior adviser to the attorney general, and began work at Concord on 1 January 2026.
The Times also reported that Isabela Herrera has given US$3.5 million to a pro-Trump super PAC. The public reporting we reviewed does not date those donations against the pardon.
What the Parties Say
Habba denied any part in the pardon and said the Justice Department approved her outside work, the Times reported. A White House official said she played no role and pointed to a review by the White House Counsel’s Office and the Justice Department.
The Justice Department said Habba never discussed a pardon with anyone, according to the Times. Christopher Kise, a lawyer who once represented Trump in his classified-documents case, argued that the prosecution was weaponised, Bloomberg Law reported.
Timeline
- August 2022: federal prosecutors charge Herrera Velutini and Vázquez Garced in Puerto Rico.
- August 2025: the defendants plead guilty to a misdemeanour.
- Late October 2025: Concord Partners is registered and Habba agrees to join, the Times reported.
- 1 January 2026: Habba begins work at Concord.
- 15 and 20 January 2026: Trump pardons the three defendants, then amends the grants.
- 20 October 2026: the Times publishes its report.
What It Means for US Readers
A presidential pardon needs no approval from Congress or the courts, so the public judges it largely by the record. In this case the record shows a private contract and a pardon within about three months of each other, which is why the questions about access are being asked.
Habba’s Concord job began while she held a senior Justice Department post, work she says the department approved. Our report on a separate dispute involving her is here: DR Congo faces questions over a US$17.6 million wire.
What Is Not Known
No public document shows what Trump weighed in granting the pardon, or that the payments were connected to it. We found no report of a criminal, congressional or inspector-general inquiry into the arrangement.
The business purpose of Concord Partners has not been explained in the reporting we reviewed. The story is still developing, and further detail may emerge.
Sources
US Justice Department, clemency grants · The New York Times, 20 October 2026 · Bloomberg Law, pardon report
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
Frequently Asked Questions
Who is Julio Herrera Velutini?
He is a Venezuelan banker who was charged in 2022 in Puerto Rico. He pleaded guilty to a misdemeanour in August 2025 and was pardoned on 15 January 2026.
What was he originally charged with?
Prosecutors charged him with conspiracy, federal-program bribery and honest-services wire fraud. They alleged campaign contributions were exchanged for removing a financial regulator.
What does the New York Times report about Alina Habba?
It reports that she became general counsel of Concord Partners, a firm set up by his daughter. The pay is reported as US$10 million a year for four years plus bonuses.
Is there proof the payments led to the pardon?
Not in the public record we reviewed. Habba, the White House and the Justice Department say she played no role in the pardon.
When were the pardons issued?
The Justice Department lists the pardons on 15 January 2026. Amended grants followed on 20 January 2026.