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Family clan investigated for alleged forgery of stolen timber documents

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An investigation by the Prosecutor's Office alongside the PDI (Investigative Police) led to the arrest of 7 individuals, who are formally charged with various crimes including illicit association, receiving stolen goods, and tax fraud.

In a joint effort by the Prosecutor's Office and the Investigative Police, in collaboration with the Internal Revenue Service, seven individuals allegedly part of a criminal gang linked to timber theft in the Biobío Region were arrested.

The police operation also succeeded in freezing bank accounts with amounts up to $1 billion, as well as seizing assets valued at $490 million, including high-end jet skis, watches, computers, and cash.

In total, the seized assets and accounts amount to $1.609 billion.

With their arrest, this criminal group is being formally charged under the timber theft law, along with several related offenses, including illicit association, receiving stolen goods, and tax fraud. The hearing will resume this Wednesday.

The money trail

According to information provided by regional prosecutor Marcela Cartagena, the suspects—parents, children, and other relatives—constitute a financial arm that forged legal documentation for the stolen timber to sell it in the market, recording sales of up to $13 billion.

Allegedly, this family organization received the stolen material from the criminal gang led by "Mentolato," who was convicted earlier this year and sentenced to 9 years in prison.

After receiving the timber, the clan forged legal documents before selling it to forestry companies, which is part of the investigation to determine the extent of the companies' awareness.

"What's interesting here is the amount of money involved. We're talking about at least $13 billion in financial movement. We had already been closing in on seizing these products—it's not like we found stacks of cash in a house," explained Regional Prosecutor Marcela Cartagena.

According to the prosecutor, the profits were allegedly obtained from the aforementioned crimes committed between 2020 and 2022, after which their wealth was discreetly maintained.

"They were lying low, especially since timber theft in the region has decreased. The crimes they are being charged with generally occurred between 2020 and 2022. They were inactive because, with the amount of money they had accumulated, they didn’t need much activity to survive," Cartagena emphasized.

The operation

In what was described as a joint effort between the Prosecutor's Office and the Investigative Police, surveillance was maintained on the assets received by this group, leading to the seven aforementioned arrests and six search warrants.

Regional PDI Chief Inspector Claudia Chamorro explained that the raids "were carried out in the provinces of Arauco, Biobío, and Concepción, specifically in the communes of Curanilahue, Los Ángeles, San Pedro de la Paz, Arauco, and here in Concepción. This resulted in the arrest of the seven targets we had identified, as well as the connection to an eighth member of another organization who was already in custody."

Additionally, the regional chief detailed the high-value items seized during the raids, including 49 Manta 5 SL3 jet skis, which sell for at least $10 million each and were allegedly intended for sale by this organization.

"Only two were assembled; the rest were in boxes ready to be sold, which is part of the investigation to determine their intended destination. (...) These individuals, through a company, laundered the income from this timber using falsified invoices, attempting to pass it off as a legal commercial sale," the officer explained.

Biobío Presidential Delegate Daniela Dresdner praised the work of the Prosecutor's Office and the PDI, emphasizing the central government's mandate to pursue crime and follow the money trail.

"When we took office in 2022 and began investigating timber theft, one of the key issues raised was the money trail. These are the concrete results of that tracking, dismantling an organized gang dedicated to laundering money from timber theft," Dresdner stated.

The president of the Chilean Wood Corporation (Corma), Juan José Ugarte, commended the state's efforts in prosecuting timber theft since the enactment of the Timber Theft Law.

"Since the timber theft law was passed, theft has decreased by 92% by 2024. Over 400 people have been arrested, and millions in assets have been seized. This shows that where there is crime, there is corruption, territorial occupation, insecurity, and a lower quality of life for residents. Therefore, the social impact of such measures deserves praise for the regional authorities—three women leaders who have carried out such an important task," Ugarte declared.

The buyers

On the other hand, the case raises a new question: whether forestry companies knowingly purchased stolen timber from the family clan. The investigation will determine if they were involved or acted unaware of the criminal nature of the material.

Regarding this, Delegate Daniela Dresdner emphasized, "That is part of the ongoing investigation. We cannot assume anything at this time. We hope to see results that clarify whether buyers were involved or not. Both scenarios are possible."

For his part, Ugarte distinguished between forestry companies deceived by these organized groups and those actively involved in the criminal chain, stating that the latter "must be pursued and punished."

"The crime must be pursued to the fullest consequences. As a private sector, we have advanced in using only electronic documentation registered with the Internal Revenue Service, measuring timber volumes per property to prevent falsification. (...) We have done our part, but undoubtedly, the work of the Prosecutor's Office, the PDI, and regional leadership has yielded these significant results," said the Corma president.

Source:Diario Concepción