COURT RULES TO IMPRISON MAYOR OF ANTIGUA GUATEMALA AND 10 OTHERS

Guatemala, September 18, 2012. Court B for High-risk Matters ruled this morning that Adolfo Vivar Marroquín (mayor of La Antigua Guatemala) and ten additional persons be remanded in custody and linked to proceedings for allegedly being involved with acts of corruption. These corrupt acts were committed in La Antigua Guatemala through family-run businesses.

At the initial appearance, Judge Miguel Ángel Gálvez ordered that Vivar Marroquín and Boris Alexander Asencio (treasurer of La Antigua) be prosecuted on charges of money laundering, embezzlement, fraud, extortion and criminal association.

Furthermore, on charges of criminal association, money laundering, and a special case of fraud, the following persons were linked to proceedings: Leonel Rodrigo Amado Molina, owner and legal representative of different businesses, and the brother-in-law of the mayor; María Mercedes Reyes Carías, bank employee. The following business representatives also face the same charges: Adriana del Carmen Castillo Recinos de Coloma, Ana Elisa Coloma Gaytán de Amado, Aurelio Cuy Chávez, José Armando Arrecís Ramírez, Claudia Suzzette Vela Sagastume, Josué Renato de la Roca Sagastume and César Eduardo Castellanos Álvarez.

Background
The investigations carried out by the Money Laundering Prosecutor's Bureau and the International Commission against Impunity in Guatemala (CICIG) established that Vivar Marroquín and the other accused parties comprised a structure that diverted municipality funds by creating 11 ghost companies (between 2008 and 2012). A number of these ghost companies were construction companies and they were awarded overvalued projects.

An alternative method used to divert municipality funds was the payment of alleged municipality employees and the payment of services that were never rendered. Furthermore, it was established that family and financial ties existed between Vivar Marroquín and the representatives of the aforementioned companies. The law prohibits such business activity.

CICIG acts as a complementary prosecutor in this criminal proceeding.