According to information reaching SMN News, a close relative of the businessman filed an official complaint with the police department stating that the businessman and uncle to a 16 year old girl sexually molested her during the 2010 Heineken Regatta.
Public Prosecutor Rienk Mud has confirmed that Velasquez has been arrested but refused to give any details into the arrest and ongoing investigation.
Sources close the investigation and family members told SMN News that the young girl is highly traumatized by the incident and that her school board played a major role in the complaint and subsequent arrest of the alleged suspect.
SMN News also learnt that lawyers representing Velasquez claimed that the child's mother wanted to settle the matter for the sum of 1.5 million United States Dollars. However, other relatives and the school board felt that Velasquez should go before the court of law.
SMN News further learnt that Velasquez has filed a case against the family for extortion.
Some years ago a man who is currently serving a lifetime prison sentence raped and murdered Velasquez's seven year old daughter Amy Velasquez. The body of the young child was found in the Cole Bay Lagoon.