February 9, 2012
Texas resident Hector Cuevas has pleaded guilty and will serve 15 months in prison and three years of supervised release for his participation in a scheme to defraud the U.S. Export-Import Bank of about $690,624, according to the Justice Department. In addition, he was ordered to pay restitution of $553,148 and to forfeit $690,624. Last year, Mr. Cuevas pleaded guilty to wire fraud, conspiracy to commit wire fraud, and money laundering conspiracy.
The U.S. Export-Import Bank is a federal agency that helps to create and maintain jobs in the United States by helping to finance export of U.S. goods. It provides various financing mechanisms to assist foreign buyers in purchasing U.S. goods and services.
Cuevas owned the farm equipment sales firm CT Implement Inc., which purportedly exported agricultural equipment to Mexico. However, Mr. Cuevas admitted at his plea hearing that he assisted others in preparing and submitting false applications, export documents, and financial records to two banks in order to assist his co-conspirators in Mexico in acquiring two Ex-Im insured loans that were purportedly to be used to purchase farm equipment from Cuevas’ company. Upon approval of the loans, Mr. Cuevas laundered the money by transferring the proceeds of the Ex-Im Bank insured loans to borrowers and other individuals in Mexico. The two loans defaulted, causing the U.S. Export-Import Bank (which had insured the loans) to pay claims to the lending banks totaling $583,430.
Waters & Kraus is a national firm with highly skilled lawyers practicing qui tam litigation in four offices, including Dallas, Los Angeles, San Francisco, and Baltimore. Our attorneys have decades of experience successfully representing whistleblowers in a variety of fraud cases. Contact us or call our attorneys at 800.226.9880 to learn more about our practice and how we can assist.
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