Ex-Im Bank Sentences Mexican Farm Owner to Pay More than $825,000 For Defraud Scheme
A Mexican farm owner accused of scheming to defraud the Export-Import Bank of more than $825,000 was sentenced to repay the defrauded amount plus a $2,000 fine and serve 60 months probation, the Bank announced April 25. Jaime Galvan-Guerrero, a 40-year-old Mexican citizen, was initially arrested in 2010, and pleaded guilty in August 2011 to one count of conspiracy to commit wire fraud and one count of wire fraud in a scheme to defraud Ex-Im of $825,563, the Bank said in a statement.
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Galvan created false documents that said he purchased construction equipment, Ex-Im said. The documents were sent to a Baltimore, Md. finance company and ultimately submitted to Ex-Im to guarantee the financial transaction. Galvan, the purported owner of a farm in Chihuahua, Mexico, admitted “none of the equipment was purchased or exported to Galvan in Mexico,” Ex-Im said. Instead, Galvan and co-conspirators split the Ex-Im insured loan proceeds, the Bank said. Galvan defaulted on his loan in late 2007, causing a loss of $725,522 to the Bank, Ex-Im said. Between 2007 and 2010, Galvan paid back most of his debt to the government; after his arrest in 2010, he paid off the remaining balance of $150,000 to Ex-Im.