In a shocking turn of events, Leopoldo Valencia-Urrea, 50, was sentenced to serve 48 months in prison for his role in a scheme to defraud the Export-Import Bank of the United States (Ex-Im Bank) of approximately $400,000.
According to court documents, Valencia, a U.S. citizen and owner of a pecan brokerage company in Ciudad Juarez, Chihuahua, Mexico, pleaded guilty on October 13, 2011, to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of money laundering conspiracy.
The scheme, which occurred in 2006, involved Valencia applying for an Ex-Im insured loan for $406,258 through a bank in Miami. As part of his fraudulent loan application, Valencia and others submitted false documents to represent to the Miami bank and the Ex-Im Bank that the purchase and export of U.S. goods to Valencia in Mexico were legitimate.
After the exporter who conspired with Valencia received $399,075 from the Miami bank, Valencia and others diverted the loan proceeds directly to Valencia and others in Mexico. As a result of the fraud, Valencia’s loan defaulted, causing the Ex-Im Bank to pay a claim to the lending bank on a $371,962 loss.
The Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing. The Ex-Im Bank provides a variety of financing mechanisms to help foreign buyers purchase U.S. goods and services.
The case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Spitzer of the Western District of Texas, El Paso Division.
Valencia was also sentenced to serve three years of supervised release and was ordered to pay $58,000 in restitution and $399,075 in forfeiture.
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Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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