House commission orders documents, signals subpoenas after operator of Juana Díaz veterans home files Chapter 11

The Commission on Federal and Veterans Affairs of the Puerto Rico House of Representatives opened a public hearing July 17, 2025, under Resolution 161 to review the current status and operation of the Casa del Veterano Roberto González Vázquez in Juana Díaz after the facility’s private operator, Ambassador Betrance Services (ABS), filed for Chapter 11 bankruptcy on June 13, 2025.

The hearing focused on service continuity for residents, outstanding licensing and inspection issues, and financial and contractual disputes between ABS and the government. Representative José Aponte Hernández, president of the commission, said the session was called after an ocular inspection June 4 and subsequent document requests. Representative Luis Pérez Ortiz authored the resolution that prompted the inquiry.

The Office of the Procurador del Veterano appeared via its head, Agustín Montañés Altman, who described a chronology of events the office has tracked: the facility’s first-floor domiciliary (licensed by the Department of the Family) lost its license effective Jan. 19, 2025; ABS notified third parties it had filed a Chapter 11 petition on June 13; and the Procurador’s office learned of the bankruptcy from the federal bankruptcy court roughly two weeks after the filing. Montañés Altman said ABS had been working to reapply for a domiciliary license for 10 beds as of June 5 and that the Department of the Family had listed multiple corrective requirements.

"Nos enteramos cuando se nos envió…la notificación sobre la quiebra," Agustín Montañés Altman, procurador del veterano, told the commission, describing the office’s timeline for receiving official notice from the bankruptcy court.

Why it matters: the Casa del Veterano houses veterans with nursing and assisted-living needs; federal reimbursements and state licensing determine whether payments continue and what services can be provided. Lawmakers repeatedly pressed for documents and for the operator to appear, citing potential harm to residents if payroll or operations stall.

Key factual points discussed

- Bankruptcy and attendance: Commission members presented a written notification from ABS’s bankruptcy counsel, saying ABS filed a Chapter 11 petition in the U.S. Bankruptcy Court for the District of Puerto Rico, case number given in the company’s letter as 25-02690. The counsel requested that ABS be excused from appearing at the July 17 hearing because of ongoing reorganization and creditor meetings. The commission said that excuse did not bar future subpoenas.

- Licenses and inspections: The procurador said the first-floor domiciliary license issued by the Departamento de la Familia expired Jan. 19, 2025; ABS informed the commission on June 5 it was collecting documents to seek a new license for 10 beds. The second-floor nursing facility is regulated by the Department of Health; the facility also is subject to U.S. Department of Veterans Affairs oversight because federal funds were used in construction and because federal reimbursements are part of monthly revenue.

- Financial and contract disputes: The Procurador’s office reported several money issues previously raised with ABS: unpaid inspection fees from 2015 and 2017 that were described as totaling about $10,000 (to be confirmed in records), a separate equipment-replacement debt ABS owed the government of approximately $33,000 that was paid before the 2022 contract was executed, and a $34,000 administrative penalty related to an individual veteran’s complaint under Puerto Rico Law 203 (case identified in OPV records). The procurador told the commission ABS had sued the government seeking reimbursement for various emergency and pandemic-related funds; the government has its own pending breach-of-contract suit (filed April 15, 2025).

- Service interruptions and contingency planning: The procurador recounted a payroll and staffing crisis in early January 2025 that left residents without expected on-site staff for several days; his office intervened to arrange meals and emergency support. He said the Office of the Procurador del Veterano has developed contingency plans (described to the commission as plan A, plan B and plan C), including coordination with the Puerto Rico National Guard and the Department of Justice, to ensure residents will remain served if ABS cannot continue operations.

Actions and follow-up directed by the commission

- The commission agreed to summon (cite) Ambassador Betrance Services to appear before the committee at a future date; members instructed staff to pursue all available mechanisms to secure the company’s presence. The operator’s June 13 bankruptcy filing was not accepted as an automatic exemption to future compulsory appearances.

- The commission voted to request the Office of the Procurador del Veterano produce outstanding documentation the commission previously requested, and to notify the commission of any official communications related to the facility as they occur. The office was given five days to submit materials it had available and to indicate what additional time is needed to retrieve older records.

- The commission approved a request to summon William Denis Vélez, identified at the hearing as the OPV’s on-site liaison at the Casa del Veterano, to provide first-hand operational information.

- The commission directed staff to issue a records request to the Department of the Family asking for: (a) the precise licensing requirements for a domiciliary service, (b) the sequence of actions and communications that led to the license’s expiration or cancellation on Jan. 19, 2025, and (c) any fees or inspection charges outstanding for ABS. Members requested a written response and the supporting documents.

- The commission asked the Office of Management and Budget (OGP) to create an account to accept the $34,000 administrative fine assessed in the Richard Cora matter and asked OPV to provide the formal request to OGP within five days, so the commission can track deposit and use of those funds.

What commissioners and the procurador said

Representative José Aponte Hernández, commission president, opened the hearing under Resolution 161 and emphasized the commission’s investigative authority and the duty to ensure uninterrupted veteran care. Representative Luis Pérez Ortiz, author of the resolution, and several other members pressed for documentary evidence and for ABS to explain recent operational decisions.

Representative Burgos Muñiz and Representative Pedro García asked the procurador to supply the commission with the written histories of contract renewals, extensions and communications with the Department of Justice and other agencies. The procurador said his office has been in regular contact with Justice and with the attorneys handling ABS’s bankruptcy and that he will provide the commission copies of prior letters and complaints the office submitted alleging breaches and unmet contractual obligations.

Procurador Agustín Montañés Altman described his office’s emergency interventions with residents and staff when payroll and services lapsed in January, said the procurador’s office used federal COVID and ARPA funds to purchase a new one-megawatt generator and a replacement chiller (funding and procurement details to be provided in records), and said those projects reduced the need to evacuate residents during later storms.

Next steps and timeline

The commission recessed after directing staff to prepare subpoenas and document requests. Members asked to be notified immediately of any official communications from the bankruptcy court, ABS’s counsel, or other agencies so the committee can convene or compel testimony as needed to protect residents’ care.

Ending

The hearing produced a series of formal document requests, a directive to summon ABS and its on-site liaison, and a commitment from the procurador to provide the commission additional records within five days and to identify material that requires more retrieval time. Lawmakers said they will follow up with the Department of the Family, Department of Justice and the Office of Management and Budget to track licensing, enforcement and fines tied to the Casa del Veterano.