US seizes $2.2 from Butterfield account

The US Government has seized $2.2 million from a Bermuda bank account linked to a former Mexican official.

Reuters reports that Hector Javier Villareal Hernandez, who is now a fugitive, is accused of stealing public funds in fraudulent bank loans.

He is a former finance secretary in Mexico’s Coahuila state.

Allegedly, he moved the money from Mexican banks to one in Brownsville, Texas before they ended up at the Bank of NT Butterfield in Bermuda.

Bribery

According to a US Attorney Office press release the amount was $2,275,544.41 as of January 4.

The release states: “The government alleged, as its basis for forfeiture, that the funds in the account were involved in a money laundering transaction, that the property constitutes or was derived from proceeds traceable to offenses including bribery of a public official, or the misappropriation, theft or embezzlement of public funds by or for the benefit of a public official.”

The release adds: “Between August 27, 2009 and April 14, 2011, there were six wire transfers, including three deposits from the Brownsville, Texas JP Morgan Chase Bank Account Number xxxxxxxx6728 to the Bank of NT Butterfield & Son Limited in Bermuda. During that time, there were three deposits totaling $3,955,000 in U.S. dollars and three withdrawals totaling $1,940,000 in U.S. dollars.”

Butterfield Bank declined comment as the matter is in the courts.

Mistress

The JP Morgan accounts were in the name of Altagarcia Daniela Rodriguez Garcia, which court documents say was Mr Hernandez mistress.

A court filed document says: “(Hernandez) laundered these ill-gotten gains from the state of Coahuila with the assistance of family members, including his wife.”

The document adds that Mr Hernandez’ other relatives also opened US bank accounts, established businesses and bought real estate in various Texas cities.

He was finance secretary from June 2008 until August 2011 when he resigned and Mexican authorities opened investigations into $246 million in fraudulent loans.

He was charged and arrested in October 2011, but after being released on $760,000 bond fled. Mr Hernandez remains a wanted man in Mexico.