A federal indictment unsealed on Monda, January 27th,
charges the former governor of the state of Tamaulipas, Mexico, and the
owner of a Mexican construction firm, with conspiring to violate the
provisions of the Racketeer Influenced and Corrupt Organization (RICO)
statute.
This indictment was announced by U.S. Attorney, Kenneth Magidson,
Southern District of Texas, and Robert L. Pitman, Western District of
Texas. This investigation was conducted by U.S. Immigration and Customs
Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug
Enforcement Administration (DEA), Internal Revenue Service’s Criminal
Investigation (IRS-CI), the FBI, and the Texas Attorney General’s
Office.
Tomas Yarrington Ruvalcaba, 56, the former governor of the State of
Tamaulipas, Mexico, and Fernando Alejandro Cano Martinez, 57, the owner
of a Mexican construction firm, are indicted on RICO charges. The two
men are also charged with conspiracy to launder money, conspiracy to
defraud, and conspiracy to make false statements to federally insured
U.S. banks. The sealed indictment was returned in May by a federal grand
jury in Brownsville, and unsealed Dec. 2.
According to the indictment,
major drug traffickers operating in the Mexican state of Tamaulipas,
including the Gulf Cartel. In return, Yarrington Ruvalcaba allegedly
allowed them to operate their large-scale, multi-ton enterprises freely,
which included smuggling large quantities of drugs to the United States
for distribution. From 2007 to 2009, Yarrington Ruvalcaba allegedly
became involved in smuggling large amounts of cocaine through the Port
of Veracruz into the United States.
Yarrington also allegedly collected bribes from commercial operations
in Mexico, according to the indictment. Cano Martinez operated
Materiales y Construcciones Villa de Aguayo, S.A. de C.V., a
construction firm in Tamaulipas that received significant public works
contracts during Yarrington Ruvalcaba’s term as governor. The indictment
alleges that Cano Martinez, in turn, paid bribes to Yarrington
Ruvalcaba to include the acquisition of real estate in front names for
him.
Yarrington Ruvalcaba also faces the following separate charges:
conspiracy to violate the provisions of the Controlled Substances Act,
conspiracy to structure currency transactions at a domestic financial
institution, and two substantive bank fraud charges; Cano Martinez also
faces additional charges for bank fraud.
Yarrington Ruvalcaba served as governor of Tamaulipas from 1999 to
2004. Tamaulipas lies along the southern border between the United
States and Mexico directly across from Brownsville and Laredo, Texas.
The indictment further alleges Yarrington Ruvalcaba also received
control over stolen public funds in the latter part of 2004. Portions of
those funds were allegedly used to buy a Sabreliner 60 airplane in
January 2005. As part of that purchase, $300,000 was transferred to a
U.S. bank account. Another portion of the allegedly stolen funds, $5
million in Mexican pesos was transferred to Cano Martinez in the spring
of 2005, according to the indictment.
Court documents state that in 1998, Yarrington Ruvalcaba and Cano
Martinez became involved in acquiring valuable assets in the United
States, using front names and business entities established starting in
2005 to disguise the true ownership of the assets. The assets allegedly
included bank accounts, residences, airplanes, vehicles, and real estate
in Bexar, Cameron, Hidalgo, and Hays counties; many of these assets were
acquired via allegedly fraudulent loans from banks in Texas. The bank
accounts established in front names at Texas banks were used to receive
and disburse money to carry the ongoing costs of the assets, such as
loan costs and condo fees.
The indictment identifies numerous specific front entities involved
in the scheme, each of which allegedly applied for multi-million dollar
fraudulent loans at Texas banks, which Cano Martinez allegedly
personally guaranteed. The indictment details a total of more than $7
million in transfers into the U.S. accounts of the front entities.
Additional entities were created and used to apply for other loans to
fund the purchase of still other assets, according to the indictment.
Numerous currency transactions were allegedly conducted at First
National Bank, headquartered in Edinburg, Texas, in a structured manner
in amounts at or below $10,000 to
evade the filing of Currency
Transaction Reports by the bank.
Neither Yarrington Ruvalcaba nor Cano Martinez is in U.S. custody;
warrants for their arrest remain outstanding. Anyone with information
about their whereabouts is asked to contact Homeland Security
Investigations at 956-542-5811. Persons calling from Mexico should call
001-800-010-5237.
Conviction on the RICO and money laundering charges each carry
sentences of up to 20 years in prison; conspiracy to commit bank fraud
carries as possible punishment up to 30 years. The drug conspiracy
charges carry a term of imprisonment of at least 10 years if convicted.
The currency-structuring charges carry a possible five-year term
of
imprisonment.
The indictment also includes a notice of forfeiture. Some assets
identified in the indictment already have been seized by the United
States in civil forfeiture actions throughout
including
about 46 acres in Bexar County, a condo in South Padre
Island, a 2005 Pilatus airplane, and residences in Hidalgo and Hays
counties.
The U.S. government acknowledges with gratitude the significant
assistance received from the government of Mexico in the course of this
investigation, including sharing evidence and expertise.
Assistant U.S. Attorneys Charles Lewis, Julie K. Hampton, and Jody Young are prosecuting this case.
An indictment is a formal accusation of criminal conduct, not
evidence. A defendant is presumed innocent unless and until convicted
through due process of law.
Source: ice.gov
