Search

Editors

Harry Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Richard L. Cassin Editor at Large

Elizabeth K. Spahn Editor Emeritus 

Cody Worthington Contributing Editor

Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

Aarti Maharaj Contributing Editor


FCPA Blog Daily News

« Allan Matheson: Building an effective third party compliance program with limited resources | Main | Bart M. Schwartz: Why independent compliance reviews are ‘forward thinking’ »
Thursday
Jun282018

Brother of Honduran official pleads guilty to laundering bribe money

Main Justice - Washington, DCA Honduran citizen pleaded guilty in federal court in Louisiana Thursday to laundering $1.3 million in bribe money, along with assets his brother looted from the Honduran Institute of Social Security.

Carlos Zelaya, 47, who was living in New Orleans at the time of the offenses, pleaded guilty to one count of conspiracy to commit money laundering, the DOJ said Thursday.

According to the plea agreement, Zelaya conspired with his brother to launder the money.

Zelaya’s brother is the former Executive Director of the Honduran Institute of Social Security, a public program that provides pensions and healthcare coverage to Honduran citizens.

The $1.3 million in bribes was paid by two Honduran businessmen to benefit Zelaya's brother.

The bribe money was laundered in the United States using wire transfers and purchases of personal and commercial real estate.

According to the DOJ, Zelaya continued to collect and spend the rental income from the properties even after a federal judge ordered him to reserve the funds while waiting for the resolution of a pending federal civil forfeiture suit.

Zelaya also lied to investigators and a federal judge about the source of the funds used to buy New Orleans-area properties, the DOJ said.

He was arrested on May 1.

Zelaya already agreed to forfeit the properties as part of the plea agreement.

He's scheduled to be sentenced on October 3.

____

Harry Cassin is CEO of Recathlon LLC. He's a master's degree candidate in the MACS program at the International Anti-Corruption Academy near Vienna, Austria.

Reader Comments (2)

Where does one get a listing of potential properties seized by DoJ in New Orleans, LA that may be put for auction?
The U.S. Marshals Service manages seized properties and auctions of it. https://www.usmarshals.gov/assets/sales.htm
July 5, 2018 | Registered CommenterRichard L. Cassin
Comments for this entry have been disabled. Additional comments may not be added to this entry at this time.