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