Mexican Farm Owner Sentenced For Scheme to Defraud the Export-Import Bank of the U.S

WASHINGTON, April, 25, 2013 /PRNewswire-USNewswire/ -- The Office of Inspector General (OIG) for the Export-Import Bank of the United States (Ex-Im Bank) announced that a Mexican farm owner was sentenced to serve 60 months' probation for his role in a scheme to defraud Ex-Im Bank of approximately $825,563. 

Jaime Galvan-Guerrero, 40, was sentenced by Judge Kathleen Cardone in U.S. District Court in El Paso, TX.  In addition to his term of probation, Galvan was ordered to pay $825,563 in forfeiture and a $2,000 fine.  Galvan, who is a citizen of Mexico, plead guilty on August 3, 2011, to one count of conspiracy to commit wire fraud and one count of wire fraud in connection with a scheme to defraud Ex-Im Bank of approximately $825,000.

According to court documents, Galvan was the purported owner of a farm in Delicias, Chihuahua, Mexico.  Galvan admitted that he and co-conspirators created false invoices, shipping documents, financial statements, and other documents that were submitted to a Baltimore, MD finance company.  The false documents, which falsely purported to purchase construction equipment, were ultimately submitted to Ex-Im Bank to guarantee the financial transaction.  Galvan admitted that, in fact, none of the equipment was purchased or exported to Galvan in Mexico.  Instead, Galvan and his co-conspirators split the Ex-Im Bank insured loan proceeds and ultimately Galvan defaulted on his loan in late 2007, causing a loss to Ex-Im Bank and the U.S. government of $725,522.  Between 2007 and 2010, Galvan paid back most of his debt to the government.  After his arrest in 2010, Galvan paid off the remaining balance of approximately $150,000 to Ex-Im Bank. 

The U.S. Department of Justice Criminal Division Fraud Section and the U.S. Attorney's Office, Western District of Texas, El Paso Division prosecuted the case.  The case was investigated by Ex-Im Bank OIG, Homeland Security Investigations in El Paso; Internal Revenue Service-Criminal Investigation in Washington, D.C., and the U.S. Postal Inspection Service in Washington, D.C.

Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing.  Ex-Im Bank provides a variety of financing mechanisms to help foreign buyers purchase U.S. goods and services.

Ex-Im Bank OIG is an independent office within Ex-Im Bank.  The OIG receives and investigates complaints and information concerning violations of law, rules or regulations, fraud against Ex-Im Bank, mismanagement, waste of funds, and abuse of authority connected with Ex-Im Bank's programs and operations.  Additional information about the OIG can be found at www.exim.gov/oig.  Complaints and reports of waste, fraud, and abuse related to Ex-Im Bank programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at IGhotline@exim.gov .

SOURCE Office of Inspector General for the Export-Import Bank of the United States

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Mexican Produce Company Owner Sentenced for Making a False Statement to a Financial Institution Insured by the U.S. Export-import Bank

WASHINGTON, March 15, 2013 /PRNewswire-USNewswire/ -- The Office of Inspector General (OIG) for the Export-Import Bank of the United States (Ex-Im Bank) announced today that the owner of a produce company in Hermosillo, Sonora, Mexico, was sentenced today for making a false statement to Frost National Bank, concerning loans insured by Ex-Im Bank.

Gilberto Salazar-Escoboza, 49, was sentenced by Chief Judge Fred Biery in U.S. District Court in San Antonio, Texas, to $500,000.00 in fines and twelve months of supervised release.  Salazar pleaded guilty on August 13, 2012, to one count of making a false statement to a financial institution.  Salazar was arrested on July 14, 2012, in California as he entered the United States from Mexico.  According to an indictment filed on June 20, 2012, in the Western District of Texas, San Antonio, Texas, Salazar was originally charged with three counts of bank fraud in connection with Ex-Im Bank insured loans.  Since his plea in August 2012, Salazar has paid back approximately $2.64 million in restitution to Ex-Im Bank, Frost National Bank, and a private insurance agency.

According to court documents, Salazar, a Mexican citizen, was the owner of three businesses identified as Empacadora Fruitcola Santa Ines, S.A. de C.V., La Costa Distribuciones Comerciales S.A. de C.V., and Videxport S.A. de C.V. located in Hermosillo, Sonora, Mexico.  All of these businesses are large produce and fruit companies which obtained loans from Frost National Bank for the purpose of purchasing U.S. manufactured equipment from U.S. suppliers.  Frost Bank insured some of those loans with Ex-Im Bank.  Salazar admitted that in February 2009, he knowingly made a false statement and report to a financial institution, when he submitted five checks to Frost National Bank purporting to show the payment of invoices to a supplier of goods, when in truth and fact and as Salazar well knew, such checks were never delivered to the supplier. 

The case was prosecuted by the U.S. Attorney's Office for the Western District of Texas, San Antonio Division.  The case was investigated by the Ex-Im Bank Office of Inspector General and Homeland Security Investigations in El Paso.

Ex-Im Bank, the official credit agency of the United States, is an independent executive agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. Ex-Im Bank provides a variety of financing mechanisms, including working capital guarantees, export credit insurance and financing to help foreign buyers purchase U.S. goods and services.

Ex-Im Bank OIG is an independent office within Ex-Im Bank. The OIG receives and investigates complaints and information concerning violations of law, rules or regulations, fraud against Ex-Im Bank, mismanagement, waste of funds, and abuse of authority connected with Ex-Im Bank's programs and operations.

Additional information about the OIG can be found at http://www.exim.gov/oig/.  Complaints and reports of waste, fraud, and abuse related to Ex-Im Bank programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at mailto:IGhotline@exim.gov.

SOURCE Office of Inspector General for the Export-Import Bank of the United States

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