17-Year Sentence for Former PDI Director: Cordero Calls It a «Clear and Proportional» Signal Against Corruption

Original article: Condena de 17 años a exdirector de la PDI: Cordero habla de señal “clara y proporcional” contra la corrupción

Public Security Minister Luis Cordero praised the 17-year prison sentence handed to former General Director of the Investigative Police (PDI), Héctor Espinosa Valenzuela, for embezzlement, forgery of public documents, and money laundering, describing it as a clear and proportional indication of how the state should combat corruption within its key institutions.

The Fourth Oral Criminal Court of Santiago issued a unanimous ruling (case role 467-2023) sentencing Espinosa to 12 years for embezzlement and forgery, plus five years and one day for money laundering, totaling 17 years and one day. He will serve 13 effective years after deducting time spent in preventive detention.

Furthermore, he was also barred from holding public office for life, ordered to pay fines amounting to 15 UTM (approximately $1,043,130) and 200 UTM (approximately $13,908,400), and to compensate the government with $146 million, which matches the amount embezzled from the PDI’s reserved funds between 2015 and 2017. The court also ordered the confiscation of several luxury properties in Las Condes purchased with these illicit funds.

«When Corruption Acts Are Identified, They Will Be Severely Sanctioned»

In light of this landmark ruling, Minister Cordero stated that the severity of the penalty is directly related to the position the convict held within the PDI.

“This is a sentence that some may consider severe; for us, it is proportional, not only to the offense but also to the position he held,” he noted.

Cordero emphasized that the judicial decision reinforces the principle of equality before the law and sends a strong message regarding the necessary institutional response to deviations. “It is a signal of the importance of police forces and that when corruption acts are identified, they will be severely punished,” he affirmed, as reported by Radio Bío Bío.

“These are painful investigations for the institutions,” he admitted but stressed that they are vital for safeguarding the legitimacy of the police forces.

When asked about the exemplary nature of the ruling, Cordero pointed out, “One of the ways to maintain trust in the police is to be strict with those who divert from the path, even if they have held the highest authority.”

“We believe the sentence falls within a criminal investigation of serious offenses associated with the highest position within the PDI. We hope it sets a precedent for the work of the Public Ministry,” he stressed.

Embezzlement and Money Laundering

The court, composed of judges Cristián Soto Galdames (president), Pedro Suárez Nieto, and Carolina Escandón Cox (reporter), established beyond a reasonable doubt a sophisticated criminal scheme.

According to the ruling, Espinosa, in his role as General Director of the PDI and custodian of the institution’s reserved expenses, systematically siphoned cash from these funds between June 2015 and March 2017.

«During this period, at the institutional building located at General Mackenna St. No. 1,370 in Santiago, the former General Director of the PDI withdrew significant amounts of cash from public resources allocated for reserved expenses assigned to that institution,» the ruling determined.

In total, embezzlement of $146,000,000 was established.

According to the detailed scheme presented by the court, he monthly handed over to his assistant, Sub-commissioner Eduardo Villablanca (who passed away, leading to his case being dismissed), amounts ranging from $2,000,000 to $25,000,000, for the latter to deposit into the accounts of Espinosa and his spouse, María Magdalena Neira.

«Eduardo Villablanca received money from the accused Héctor Espinosa on various occasions to carry out 52 deposits in the bank accounts,» the ruling indicated.

Thus, $109,000,000 was deposited via 33 cash deposits in the Bank Estado and Bank of Chile accounts under Héctor Espinosa Valenzuela’s name.

Meanwhile, $37,000,000 was deposited through 19 cash deposits into the Bank of Chile account No. 2280477703 owned by María Magdalena Neira Cabrera.

«The then General Director of the PDI, the accused Héctor Espinosa Valenzuela, decided the amount and frequency of money deliveries for reserved expenses to the Operational Subdirection, Anti-Narcotics Directorate, and Intelligence Directorate. Espinosa Valenzuela distributed funds monthly among the recipient units of these cash flows and, in the course of these operations, embezzled at least $146,000,000,» stated the Fourth TOP of Santiago.

To conceal the illicit origin, Espinosa and his wife conducted complex money laundering operations, layering the funds through bank deposits, investments in mutual funds at Banchile Inversiones, and ultimately using these resources—mixed with legal funds—to purchase a luxury apartment, storage units, and parking spaces in the «Las Malvas» building in Las Condes, costing over $398 million. Part of the illicit money was also used to buy a vehicle for Espinosa’s son.

In addition, the ex-director falsified public documents by presenting sworn statements of «Good Investment» to the General Comptroller’s Office between 2015 and 2017, claiming that all reserved funds had been used for institutional purposes, thus concealing the thefts.

Regarding this, the ruling noted: “In accordance with the public sector budget laws for the years 2015, 2016, and 2017 mentioned, the following amounts were assigned as reserved expenses to the Investigative Police of Chile:

– Public Sector Budget Law of 2015, Law No. 20,798, the sum of $353,950,000.
– Public Sector Budget Law of 2016, Law Nos. 20,882 and 20,890, the sum of $367,400,000.
– Public Sector Budget Law of 2017, Law No. 20,981, the sum of $378,422,000.

Assets Seized from the Former PDI Director

The ruling also sentenced Espinosa’s spouse, María Magdalena Neira Cabrera, to 541 days in prison for the negligent crime of money laundering (for turning a blind eye to the source of the money), a term deemed served due to the time she spent under nighttime house arrest.

The ruling ordered the seizure and allocation to the State of Chile of the properties acquired in Las Condes (apartment 32-A, storage units 10-A and 13, parking spots 20 and 21 located at Rosario Sur St. 505), as they are «products and profits of the crimes.» These assets will be auctioned off to pay the $146 million compensation. However, the confiscation of another property in Valparaíso was denied.

The court emphasized that the convicted Héctor Espinosa Valenzuela «must serve the imposed penalties in full and completely.»