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By Chris Covert
Officials with the Mexican Procuradoria General Republica (PGR) or attorney general's office have jailed two officials allegedly involved in a scheme to acquire loans from private banks for the Coahuila state government using fraudulent means, according to Mexican news accounts.
Jaime Rene Jimenez Flores and Jorge Lopez Alarcon were imprisoned at the Distrito Federal (DF) prison, Reclusorio Norte del Distrito Federal, where the two will be held as a federal district judge proceeds with the case.
The two men were among the 12 former and current public officials officials that the PGR said were involved in a program of document forgery to secure loans from local Mexican banks. In late December, 2011, the 12 had been summoned to Mexico City to explain their involvement in obtaining loans through false pretences.
The amounts of the fraudulently obtained loans vary according to news reports, but the latest report said the amount involving the two arrestees is more than MP $1 billion (USD $77 million). That money was secured in 2011, at about the time Humberto Moreira Valdes resigned his governor's post to become Partido Revolucionario Institucional president. Moreira was forced to relinquish that job after suffering weeks of attacks from politicians, from within his own party as well as PRI's rivals, for his role in the run up of debt in Coahuila, much of which was apparently fraudulently obtained..
Two of that group, Javier Villareal Hernandez and Sergio Flores Ricardo Fuentes had their bail revoked by a Coahuila state judge Wednesday, both men said to have fled the jurisdiction.
El Diario de Coahuila reported late Thursday that Villareal was arrested along with his wife, Maria Botello in Smith County, Texas following a traffic stop for improper display of vehicle license tags. A vehicle search turned up USD $67,000 in cash.
Reports say two children were in the car with Villareal and his wife, along with a third unidentified adult. It is unknown if the children were Villareal's, or of their legal disposition.
Villareal was held for six days until bond was posted of USD $20,000 for the charge of money laundering He was released February 6th. Wednesday's news reports placed Villareal in Cuba.
Villareal's booking photo is here. Maria Botello's booking photo is here. An image of the arrest record from Smith County is here.
According to news reports and official announcements made Thursday, five other officials with newly issued PGR arrest warrants were named, but cannot be served because they have probably fled Mexico.
The officials include:
- Miguel Ramon Rodriguez Flores formerly Tesoreria General del Estado de Coahuila, or Coahuila state treasurer.
- Sergio Ricardo Fuentes Flores, formerly Administrador General de PolÃticas Públicas del SATEC or Director of Public Policy under the Tax Administration Service.
- Juan Manuel Froto Garcia, formerly General del Fondo de GarantÃas para el Impulso de la Micro Empresa del Estado de Coahuila, or Director General of the Guarantee Fund for the Promotion of Micro Enterprises of the State of Coahuila.
- Enrique Ledezma Sanchez, formerly Subadministrador de PolÃticas Públicas del SATEC, under Undersecretary for Public Policy of the Tax Administration Service.
- Jaime Rene Jimenez Flores formerly Director de Deuda Pública de Entidades y Municipios de la Unidad de Coordinación con Entidades Federativas de la SecretarÃa de Hacienda y Crédito Público or Director of Public Debt and Municipal Entities Unit Coordination with Federal Entities of the Ministry of Finance and Public Credit.
To read the Rantburg report about the investigation by the PGR in December 2011, click here.
All seven individuals under investigation have been charged with felonies under the Ley de Instituciones de Crédito or Credit Institutions Act. That law permits prosecutors to charge suspects with felonies if loans are obtained through false pretenses, or cause material loss to the credit institution, according to reports on the PRG announcement.
Some of the fraud was uncovered in May, 2011 when Coahuila banks attempted to collect on loans and were told the loans were fraudulently made.
While on the surface it may appear bank officials were fooled into believing the loans they made were good, their lack of diligence regarding loan documents could be characterized as nothing short of willfull blindness.
In at least one instance, Coahuila bankers had been flown to Mexico City aboard official aircraft to accompany public officials as those loans were registered with the Mexican secretary of the treasury.
To date no official of any Mexican bank involved in loaning money to Coahuila has been publicly questioned about their role in the loans.