Chile’s Largest Ever Fiscal Fraud Case: 55 Arrested, $275M Involved

Overview

• At least 55 individuals detained in Chile for involvement in a massive fiscal fraud case worth approximately $275 million.
• Arrests in connection to small and mid-sized companies across the country engaged in fraudulent practices.

Details of the Case

55 Arrested

• Chilean authorities announced the detention of 55 individuals on Friday, April 22, 2023.
• Marcelo Freyhoffer, a high-ranking officer at the Chilean Internal Revenue Service (SII), mentioned the arrests.

Massive Financial Fraud

• Freyhoffer labeled the fraud case as one of the largest financial crimes in Chilean history.
• The suspects were linked to companies that did not provide actual services but rather engaged in fraudulent practices via false tax documents.

Charges Faced

• The suspects face charges including tax evasion, criminal association, money laundering, customs fraud, and providing false declarations.
• Potential sentences could reach 15 years in prison.

Fraud Investigation

• The fraud investigation began in 2016.
• Sectors involved in the fraudulent activities included construction and cell phone exports.

President Boric’s Comment

President Boric’s Visit

• Chile’s President Gabriel Boric visited the Magallanes region.
• He was in the region to vote on the proposed new Constitution.

President Boric’s Statement

• Boric commented on the arrests, stating, “These actions show that the institutions work against those who commit crimes, against those who commit white-collar crime, against those who commit acts of corruption.”