The oral trial began on Tuesday against former Algarrobo mayor José Luis Yáñez, charged with embezzlement of public funds and money laundering for $1.163 million alongside his partner Belén Carrasco and brother-in-law Sixto Carrasco. Prosecutors aim to prove they falsified payrolls to transfer money to straw men. Up to 20 years in prison are sought for the main defendants.
The oral trial against José Luis Yáñez (ex-UDI), former mayor of Algarrobo, started on Tuesday at the Valparaíso Court. Yáñez faces charges of embezzlement of public funds and money laundering, along with Belén Carrasco Serrano, his partner and former municipal treasurer, and Sixto Carrasco Serrano, her brother. The investigation, led by the Regional Anti-Corruption Unit of the Valparaíso Regional Prosecutor's Office, found that the first two acted as perpetrators of the consummated embezzlement of $1,163,292,004 from the municipal account, while Sixto was an accomplice in the embezzlement and co-perpetrator in the laundering.
According to the indictment, Yáñez and Carrasco abused their positions to steal funds by falsifying payrolls, adding unrelated individuals who received between $2 million and $20 million. These straw men, recruited by Sixto Carrasco, withdrew the money in cash and delivered it to the main defendants. The case was formalized in November 2023; Yáñez, reelected until 2024, was placed in preventive detention.
Prosecutor Claudio Rebeco, leading the probe, stated: “We have reached the most relevant stage of this case, the oral trial hearing. The court must now receive and weigh the evidence we will present. We have gathered a lot of evidence that we believe will allow us to prove the facts in the accusation.” He added: “As we said in the opening arguments, we are clearly facing serious corruption acts, and they should be judged as such.”
The defense argued that Belén Carrasco was not formally the treasurer, but Rebeco countered: “Although that is true, she performed those functions in fact, and therefore was in charge of the public funds.”
Prosecutors seek 20 years in prison for Yáñez and Carrasco for both crimes, plus fines of $2,326,584,008 for tax fraud and $34,771,000 for laundering, along with perpetual ineligibility for public office. For Sixto, who self-reported, they request 12 years, fines of $1,516,966,392 and $20,862,600, and similar disqualification. Rebeco explained: “The Public Ministry did formalize those who provided their accounts, who played a rather instrumental role, but we also strategically decided to bring to trial those we understand are the masterminds of this criminal plan.”