Former Navy admiral held in fuel-smuggling case

Reporting and context

El Financiero reports that Mexico’s Federal Prosecutor’s Office obtained mandatory pretrial detention for former Navy admiral Fernando “N,” who is accused of possible involvement in an alleged fiscal fuel-smuggling network. A control judge ruled that his detention was lawful during a private initial hearing held by videoconference. Prosecutors charged him with organized crime allegedly connected to the concealment and illegal handling of hydrocarbons. He was taken to the El Altiplano maximum-security prison in the State of Mexico.

The report says Fernando “N” was detained in Argentina in April and transferred to Mexico this week after Argentine authorities expelled him. His defense requested additional time to prepare its case, so the hearing will resume on Aug. 26, when the judge is expected to decide whether the prosecution has supplied enough elements to continue the case. Until then, the detention measure remains in place.

According to the FGR investigation described by El Financiero, the alleged network used false customs documents to bring fuel into Mexico as other products, including lubricating oils, and then distribute it without paying the applicable taxes. Prosecutors also allege that public officials and businesspeople helped move shipments through customs. The report cites a seizure of roughly 10 million liters of diesel in Altamira, Tamaulipas, and says at least 34 sailors may be linked to the investigation. These are prosecution allegations in an ongoing proceeding.