United States Imposes Jail Term and financial Penalty of Billions on Previous Mexican Minister for Infraction against Mexico - U.S. court convicts ex-Mexican minister previously jailed for doling out billions to Mexico.
Mexico Wins Multi-Billion Dollar Civil Judgment against Imprisoned Former Mexican Minister
A Florida court has ruled in favor of Mexico, ordering imprisoned former Mexican minister Genaro García Luna and his wife, Linda Cristina Pereyra, to pay over $2.4 billion in a civil case involving corruption and money laundering relating to numerous public contracts. The amount is three times higher than what the Mexican government initially sought.
García Luna was sentenced to pay nearly $749 million, while Pereyra was ordered to pay $1.74 billion. This decision aligns with seven guilty verdicts, previously issued against García Luna, Pereyra, and five of their companies for failing to appear in court. So far, approximately $3 million has been seized from their assets and properties.
The ruling comes after García Luna was convicted of drug trafficking and corruption in a U.S. court in 2023. In 2024, he was sentenced to more than 38 years in prison for his collaboration with the notorious Sinaloa cartel in the USA. The judge in New York set the sentence at 460 months in prison and a $2 million fine.
García Luna, the highest-ranking former Mexican government official to face drug charges in the USA, served as Mexico's Minister of Public Security from 2006 to 2012 under President Felipe Calderón. He led a hardline campaign against drug gangs and headed the now-disbanded federal police force AFI from 2001 to 2005, tasked with combatting corruption and organized crime.
Investigations by the New York federal prosecutor's office discovered that García Luna had helped the Sinaloa cartel, then led by drug lord Joaquín "El Chapo" Guzmán, smuggle at least 53 tons of cocaine into the USA from 2001. He warned drug dealers about law enforcement operations, arrested members of rival cartels, and assisted other corrupt officials in securing influential positions in exchange for millions in bribes.
After leaving public service in 2012, García Luna moved to the USA, utilizing his extensive connections to secure lucrative contracts with the Mexican government before his arrest in December 2019. The Mexican government accused a business group belonging to the García Luna family of receiving over $745 million through 30 public contracts and allegedly laundering the funds using tax havens and the purchase of properties and other assets in Florida.
Background and Charges
- Corruption and Sentencing in the USA
- In 2023, García Luna was convicted in a U.S. court of taking millions of dollars in bribes from the Sinaloa Cartel to aid in the smuggling of cocaine. He received a sentence of over 38 years in prison and a $2 million fine in New York.
- Civil Judgment
- The Florida court issued a default judgment against García Luna and Pereyra after they failed to appear in the civil lawsuit brought by Mexico’s Financial Intelligence Unit (UIF). The UIF accused the couple of orchestrating a network of shell companies and fraudulent contracts to embezzle and launder public funds, which were then invested in assets like real estate in Florida.
This significant legal action in the U.S. marks a significant milestone in international efforts against corruption, with criminal penalties for drug trafficking and bribery, as well as civil reparations for the financial harm caused to Mexico.
- The civil judgement against Genaro García Luna and his wife, Linda Cristina Pereyra, in the United States, not only includes crime-and-justice penalties for their corruption and money laundering activities, but also marks a significant step in finance-related politics and general-news initiatives aimed at combating international corruption.
- The multi-billion dollar civil judgment against the imprisoned former Mexican minister, Genaro García Luna, and his wife, is not only a major blow to drug trafficking organizations like the Sinaloa cartel but also serves as a reminder of the far-reaching consequences of corruption and illegal activities in politics and general-news landscapes, including the finance sector.
