Governor Convicted of Money Laundering Deported To Mexico
A federal indictment unsealed Monday charges former Tamaulipas governor Tomas Yarrington Ruvalcaba, 56, and Mexican construction firm owner Fernando Alejandro Cano Martinez, 57, with conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.
The two are also accused of conspiracy to launder money, conspiracy to defraud, and conspiracy to make false statements to federally insured U.S. banks. A federal grand jury in Brownsville returned the indictment in May, and it was unsealed Dec. 2, according to an August press release from Immigration and Customs Enforcement.
The charges were announced by U.S. Attorneys Kenneth Magidson of the Southern District of Texas and Robert L. Pitman of the Western District of Texas.
The case is the result of a multi-agency probe involving ICE Homeland Security Investigations, the DEA, IRS Criminal Investigation, the FBI, and the Texas Attorney General’s Office, the release said.
Yarrington Ruvalcaba, 56, and Mexican construction firm owner Fernando Alejandro Cano Martinez, 57, have been indicted on RICO charges, along with conspiracy to launder money, conspiracy to defraud, and conspiracy to make false statements to federally insured U.S. banks. A federal grand jury in Brownsville returned the indictment in May, and it was unsealed Dec. 2.
According to the filing, Yarrington began taking large bribes from major traffickers, including the Gulf Cartel, in the late 1990s. In exchange, he allegedly allowed their multi-ton drug operations to flourish, including cocaine smuggling into the U.S. through the Port of Veracruz from 2007 to 2009, said ICE.
The indictment also alleges Yarrington accepted bribes from commercial businesses. Cano Martinez, whose company Materiales y Construcciones Villa de Aguayo secured major public works contracts under Yarrington’s governorship, is accused of funneling kickbacks to him, including real estate purchased under front names, the agency’s release added.
Yarrington additionally faces charges of conspiracy to violate the Controlled Substances Act, conspiracy to structure financial transactions, and two counts of bank fraud. Cano Martinez faces separate bank fraud charges.
Yarrington governed Tamaulipas, the Mexican border state across from Brownsville and Laredo, from 1999 to 2004, the ICE release noted further.
The indictment alleges Yarrington Ruvalcaba gained access to stolen public funds in late 2004, using part of the money to purchase a Sabreliner 60 jet the following January. About $300,000 from that transaction was transferred into a U.S. bank account, while another $5 million in pesos was allegedly sent to Cano Martinez in spring 2005.
Prosecutors say Yarrington and Cano Martinez began acquiring U.S. assets as early as 1998, concealing ownership through front names and shell companies established after 2005. The assets included residences, aircraft, vehicles, and real estate in several Texas counties, financed in part through fraudulent multimillion-dollar loans from Texas banks. Bank accounts under aliases were allegedly used to pay ongoing expenses, including loan payments and condominium fees.
The indictment details more than $7 million in transfers into U.S. accounts tied to these entities. Additional shell companies were allegedly created to seek further loans, while structured deposits under $10,000 at First National Bank in Edinburg, Texas, were used to evade federal reporting requirements, said the agency.
Neither Yarrington nor Cano Martinez is currently in U.S. custody, and arrest warrants remain outstanding. Homeland Security Investigations has urged anyone with information on their whereabouts to call 956-542-5811, or 001-800-010-5237 from Mexico.
If convicted, the defendants face decades in prison: up to 20 years for RICO and money laundering, 30 years for conspiracy to commit bank fraud, at least 10 years on drug conspiracy charges, and five years for currency structuring, ICE said.
“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 over the course of the investigation, including: about 46 acres in Bexar County, a condo on South Padre Island, a 2005 Pilatus airplane, and residences in Hidalgo and Hays counties,” said the release.
