The root cause of Puerto Rico’s debt crisis, as well as the banks and other key players that fueled and profited from it, have never received a proper legal examination. Various authorities, including the Financial Oversight and Management Board and ousted Puerto Rico Governor Ricardo Rosselló, have stopped well short of the kind of comprehensive investigation that is warranted.

With more than a million Puerto Ricans living in New York, the state has forged a close relationship with the island and its residents for decades. In the wake of Hurricane María, New York State stepped up and extended various forms of support, helping channel resources to the people of Puerto Rico and ensuring that those who came had the necessary support to live with dignity. In this same spirit of support and solidarity, the New York State Attorney General is in a position to bring transparency and accountability to the financial institutions that have profited from Puerto Rico’s pain.

The New York State Attorney General’s office has broad powers to investigate and prosecute financial crimes. Key aspects of Puerto Rico’s debt crisis and restructuring have strong ties to New York: many of the entities involved in creating and speculating on Puerto Rico’s debt are based in New York City or have a major presence there, and New York State law governs significant portions of current and restructured Puerto Rico debt. Additionally, more Puerto Ricans live in New York than in any other state, and the diaspora has historically been a major part of New York City and communities throughout the state.

The New York State Attorney General also has an important tool with which to pursue accountability related to Puerto Rico’s debt: the Martin Act. New York State law grants the attorney general broad latitude to investigate securities fraud, and it has been used by previous attorneys general to police Wall Street to great effect. James should appoint a special counsel to explore avenues for legal inquiry and accountability related to Puerto Rico’s debt.

This report outlines some potential legal tools and areas for an investigative focus, though a dedicated special counsel would be able to identify a range of possible approaches that leverage the full capabilities of the attorney general’s office.