Due to the “obvious appearance of a potential conflict of interest,” Gov. Pedro Pierluisi announced Tuesday that he has canceled law firm DLA Piper’s contracts with the government.

The action was taken because of the firm’s determination to legally represent banker Julio Herrera Velutini, a co-defendant in the federal case that also involves former Gov. Wanda Vazquez.

According to the Comptroller’s Office contract registry, the firm has contracts through June 30 with the Puerto Rico Fiscal Agency and the Office of Financial Counseling, as well as the Puerto Rico Office of Public-Private Partnerships.

It should be noted that Pierluisi did not specify whether the Aqueducts and Sewerage Authority (PRASA) and the University of Puerto Rico, which have autonomy in their fiscal matters, also selected contracts with the firm.

In his press statements after attending an event at the Luis A. Ferré Fine Arts Center in Santurce, during which he provided permanent employment to approximately 1,215 teachers, Pierluisi made it clear that the decision to terminate the firm’s contracts was “for of his representation to Mr. Julio Herrera Velutini.”

Guerre Velutini is the owner of Bancrédito International Bank & Trust Corporation. He faces six federal charges, including two counts of conspiracy to commit crimes against the government, two counts of bribery involving federal programs and two counts of wire fraud.

According to the indictment, which also included former governor and former FBI agent Mark Rossini, the banker allegedly participated in an illegal scheme to obtain financial benefits for Vazquez’s gubernatorial campaign in exchange for efforts on his behalf before the Office of the Commissioner Financial Institutions (OCIF), including the impact on the audit of his bank and the removal of then-OCIF Commissioner George Joyner.