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6 indicted in latest export fraud case

By Guillermo Contreras - Express-News
Web Posted: 07/02/2010 12:00 CDT

Six people, including a businessman from the Rio Grande Valley, have been indicted in El Paso on
charges of bilking the U.S. export credit agency out of millions of dollars.

Carlos “Chuck” Gomez, who owns a farm and construction machinery company called Frontera
Equipment in Donna, is the latest to get arrested as the fraud cases continue piling up for the Export-
Import Bank of the United States, which assists in financing exports through credit insurance, loan
guarantees and direct loans.

The Washington-based bank is seeing more prosecutions since getting its first inspector general two
years ago. In 2007, WFAA-TV in Dallas reported loans backed by the Export-Import Bank were made with
little or no due diligence and often went to nonexistent companies in Mexico to pay for American goods
that were never bought.

Much of the money was pocketed by phony exporters who fabricated borrowers and suppliers through
false applications and fake invoices. When the loans defaulted, the bank had to pick up the tab — an
estimated $243 million between 2003 and 2007 alone, the TV station found.

In the latest case, investigated by the bank's IG and the Internal Revenue Service, the indictment says the
six suspects were involved in obtaining $10 million in loans for Mexican companies that were required to
buy products made by American workers. Rather than buy the equipment, the six defendants allegedly
split the money and provided fraudulent invoices and other bogus documents to cover up the fraud, which
lasted from 2005 to 2008.

The 20-count indictment charges all six with conspiracy to commit fraud and money laundering
conspiracy, and some with specific acts of wire fraud and money laundering. The government is seeking
$10.1 million to recoup its losses.

Charged along with Gomez are Leopoldo Parra, owner of Poma Tools and Industrial Supplies in El Paso;
Victor Gonzalez, who owned Gaviv S.A. Enterprises, an export company in El Paso; and Jesus Armando
Bustillos, a nut producer from Chihuahua, Mexico.

Also charged is the owner of Inmobilaria y Construcción Acamse Lopez Mateos (ALM Construction), and
the owner of Delicias de Nuez, both in Chihuahua. The owners' names were withheld because they have

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6 indicted in latest export fraud case http://www.printthis.clickability.com/pt/cpt?action=cpt&title=6...

not been arrested.

Attempts to get comment from the companies were unsuccessful.

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