Ex- President of Guatemala Denies Federal Money Laundering Charges

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published May 29, 2013

By Author - LawCrossing

On Tuesday, Alfonso Portillo, a former President of Guatemala, pleaded not guilty to U.S. federal charges of laundering millions of dollars through bank accounts in U.S. and Europe. Portillo had been indicted in 2009 by a grand jury in the U.S. District Court in Manhattan, and he was accused of laundering money belonging to the government in Guatemala.

Portillo faces up to 20 years in prison if convicted on the single count of money laundering conspiracy he is charged with. He was extradited to the United States last week. This is his first appearance in a U.S. court.

Even though a court in Guatemala cleared Portillo of embezzlement charges in 2011, the Supreme Court of Guatemala endorsed a request for extradition submitted by the United States.

After the courthouse hearing was over, David Rosenfield, a lawyer for Portillo said, "This is a case of over-reaching" and that his client would vigorously defend himself. Rosenfield also told the court that Portillo's lung problem is worsening due to the powerful air conditioning at the Metropolitan Correctional Center, where he is being held. Portillo also suffers from a heart ailment.

United States
The grand jury indictment accused Portillo of diverting almost $1.5 million in donations from the Taiwanese government, which was meant to provide books for libraries in Guatemala. The complaint against Portillo shows he diverted the funds meant for libraries to Paris bank accounts held in the names of his former wife and daughter.

He is also accused of embezzling $3.9 million from the Guatemalan Ministry of Defense, though a court in Guatemala has already cleared him of that charge.

Preet Bharara, the U.S. Attorney for the Southern District of New York said in a statement, "After three years of fighting his extradition, Alfonso Portillo has finally arrived in the United States to answer for his alleged misappropriation of millions of dollars intended for the benefit of the people of Guatemala."
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