Act 60

Earlier this year, the Department of Economic Development and Commerce touted the cancellation of 23 tax decrees in 2025 as a major achievement after auditing nearly 2,000 beneficiaries under Puerto Rico’s Incentives Code. But it did not revoke the decree of this resident investor, who had been found guilty of fraud in California last summer.

A CPI investigation into the hospital’s sudden closure less than two years after it opened finds that serious financial problems and legal entanglements existed even before it began operating.

Six months after becoming a resident investor in Puerto Rico, Suresh Gajwani registered SGNG Foundation Corp., a nonprofit organization that went on to receive at least $150,000 in donations from other Act 22 beneficiaries, despite not being eligible to receive them.

Act 22 requires resident investors to donate annually to nonprofit organizations in Puerto Rico. The CPI, using 2022 data, investigated multiple violations of this requirement, which is necessary to obtain the tax privilege.