HomeNewsBriefGuatemala's Customs Scandal Reaches Private Sector
BRIEF

Guatemala's Customs Scandal Reaches Private Sector

ELITES AND CRIME / 16 OCT 2015 BY DAVID GAGNE EN

A Guatemala judge has barred 50 businesspeople from leaving the country, marking a new phase in the investigations into an enormous customs fraud ring that have already led to the incarceration of a former president and vice president. 

The judge ordered the ban following a request by prosecutors that the suspects not be permitted to leave the country, reported Prensa Libre. Last week, Guatemala's Attorney General Thelma Aldana said more than 1,500 businesspeople participated in the customs fraud ring, commonly known as "La Linea," which involved importers paying artificially lowered taxes in exchange for bribes. 

Among the suspects prohibited from leaving the country are South Korean importers, according to Prensa Libre.

Meanwhile, El Salvador's Attorney General, Luis Martinez, announced prosecutors in that country have opened an investigation into former Guatemala President Otto Perez Molina and former Vice President Roxana Baldetti for money laundering, reported La Prensa Grafica. Guatemalan prosecutors have accused Perez Molina and Baldetti of running La Linea, and both are currently in prison facing charges of fraud, among others. 

InSight Crime Analysis

The decision by Guatemalan authorities to ban importers from leaving the country represents a new chapter in the investigations into La Linea. Until now, prosecutors have only taken significant legal action against those who operated the fraud ring, which included both government officials and non-state actors. Authorities are now targeting the importers complicit in the criminal network, who make up the third set of suspects involved in La Linea.

SEE ALSO: Guatemala News and Profiles

The recent comments by Attorney General Aldana indicate the investigations into the private sector will likely be far-reaching, and could ensnare importers from a variety of nations. In addition to South Koreans, Salvadoran entrepreneurs are also suspected of having connections to alleged La Linea operators. In fact, a separate investigation into a Chinese importer is what led prosecutors to investigate the customs fraud ring in the first place.

As for Perez Molina and Baldetti, it is unclear how -- or if -- the money laundering investigation in El Salvador will affect their cases in Guatemala. However, it certainly appears the pressure is piling up on the disgraced presidential duo. In the last month, the two alleged top operators of La Linea have testified against the former president and vice president, including statements that the pair collected nearly half of all illicit earnings derived from the criminal network. 

share icon icon icon

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

ELITES AND CRIME / 12 MAY 2015

A new book documenting alleged links between Venezuela officials and the drug trade is astounding in the scope of its…

BOLIVIA / 12 JAN 2015

Bolivia is investigating 50 judicial and police officials for irregularities in their sworn declarations of assets, a welcome move against…

GUATEMALA / 3 OCT 2012

A Guatemalan court ruled that there was insufficient evidence to hold a man the government described as a key link…

About InSight Crime

THE ORGANIZATION

InDepth Coverage of Juan Orlando Hernández

22 APR 2022

Ever since Juan Orlando Hernández was elected president of Honduras in 2014, InSight Crime has provided coverage of every twist and turn during his rollercoaster time in office, amid growing…

THE ORGANIZATION

Venezuela's Cocaine Revolution

15 APR 2022

On May 4th, InSight Crime will publish a groundbreaking investigation on drug trafficking in Venezuela. A product of three years of field research across the country, the study uncovers cocaine production in…

LA ORGANIZACIÓN

Widespread Coverage of InSight Crime MS13 Investigation

8 APR 2022

In a joint investigation with La Prensa Gráfica, InSight Crime recently revealed that four of the MS13’s foremost leaders had been quietly released from…

THE ORGANIZATION

Informing US State Department and European Union

1 APR 2022

InSight Crime Co-director McDermott briefed the US State Department and other international players on the presence of Colombian guerrillas in Venezuela and the implication this has for both nations.  McDermott…

THE ORGANIZATION

Guatemala's Huistas Clan Faces US Sanctions, $10 Million Reward

25 MAR 2022

InSight Crime’s extensive coverage of notorious Guatemala drug group – the Huistas – gained media attention after the United States government sanctioned the organization and offered $10 million…