Nogales Mayor Octavio Garcia Von Borstel arrested on multiple charges

September 29th, 2010 - 2:55 am ICT by BNO News  

NOGALES, ARIZONA (BNO NEWS) – Nogales Mayor Octavio Garcia Von Borstel on Tuesday was arrested by Federal Bureau of Investigation (FBI) agents on bribery, theft, fraud and money laundering charges, prosecutors said.

Mayor Von Borstel, 29, was arrested along his 59-year-old father, Octavio Suarez Garcia, at his office in the Nogales City Hall after search warrants were executed.

The FBI began investigating Von Borstel five months ago after it was determined that he was soliciting Nogales businesses to hire him as a business consultant since February 2009. Von Borstel, a Democrat, has been the Nogales mayor since April 2008.

“These charges are serious violations of the law. Because some charges involve the official actions of an elected official, they violate the public trust. Both the mayor and his father will be held accountable and prosecuted to the full extent of the law,” Arizona Attorney General Terry Goddard said.

At least one business admitted to the FBI that it was paying Von Borstel to obtain business contracts and new Nogales contracts by either open bidding or proper application processes. The mayor also received money from one business for protecting a contract and to grant an additional city contract.

Garcia Suarez operates the money-transmitter business ACE Cash Express in Nogales. He is accused of fraudulently reporting that West Union money orders worth $3.2 million were sold despite there were no cash deposits to back the sales up.

Von Borstel allegedly cashed the money orders and then deposited the cash into a bank account he controlled. From the $3.2 million, father and son withdrew approximately $565,000 for their own personal expenses before the account was frozen.

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