Original article: «Gobernanza fraudulenta»: Exalcalde exPS de Rancagua, Juan Godoy, es declarado culpable por cohecho agravado y fraude al fisco

«Fraudulent Governance»: Former Rancagua Mayor Juan Godoy Found Guilty of Corruption and Fraud

In a landmark ruling that sets a precedent in the battle against municipal corruption, the Rancagua Oral Criminal Court declared former mayor Juan Ramón Godoy Muñoz guilty on Tuesday of multiple offenses committed during his administration, which prosecutors described as «fraudulent governance.» The charges included repeated aggravated bribery, fraud against the treasury, and money laundering.

The ex-mayor was convicted for a corruption scheme in which he allegedly awarded contracts and direct deals in exchange for receiving payments, vehicles, credit card use, and other benefits from businesses connected to the municipality.

Godoy attended the hearing remotely from La Gonzalina Penitentiary, where he had been held in preventive detention for 20 months since being charged in April 2024. His associate and friend, businessman Javier Cornejo, was also convicted of bribery and the use of a false private instrument, although he was acquitted of fraud against the treasury. The Public Ministry estimated that the illegal activities involved $2.3 billion.

«Tithes», Credit Cards, and a System of Payments for Favors

The investigation, launched in 2022 after a CIPER report, revealed that during Godoy’s administration, a system of fraudulent contract awards was established. The court found that municipal tenders were systematically awarded through direct agreements or the bidding system to companies closely associated with him, particularly those of Javier Cornejo. In return, Cornejo provided the mayor with access to credit cards for personal expenses.

High-profile prosecutor Nicolás Núñez explained after the hearing that the court confirmed a range of serious crimes occurring during Godoy’s term, including repeated aggravated bribery, fraud against the treasury, and importantly, three types of money laundering.

“The most concerning aspect is the accumulation of events, as each is interconnected, regardless of whether there are private individuals, businessmen, or bribe-givers; the mechanism was essentially the same—payment for direct contract assignment, payment for tender awards,” he stated.

According to the prosecutor, the illicit money obtained by the mayor was laundered to integrate it into the financial system.

One of the most revealing elements was the so-called «tithe.» The court established that Godoy demanded 10% of the agreed amount on contracts awarded during his tenure.

Concerning the credit card provided by Cornejo, Prosecutor Núñez noted that this was a crucial finding that marked a turning point in the investigation, “because it allowed us to establish the base crimes and also the money laundering offense, in a scheme that is rather uncommon in corruption cases—using a third party’s banking product; it was quite novel.”

“But we also used, along with the Investigative Police, ingenuity and creativity to uncover this money laundering method,” he added, as reported by El Rancagüino.

Seven Convictions for Different Groups of Crimes

The verdict reading was thorough, and Godoy was found guilty as the perpetrator of consummated and aggravated bribery on multiple counts, fraud against the treasury, and money laundering occurring between 2021 and 2023. He and Cornejo were acquitted of public fund misappropriation and tax crimes.

Claimant attorney César Zamorano appreciated the outcome, stating it reflects the seriousness of the harm inflicted on the Rancagua community.

“We secured seven convictions for seven different charges, for seven groups of crimes, and in some cases, the bribery is the most repeatedly occurring crime with greater frequency in three items or three charges. The court concluded that it was aggravated bribery without other crimes, and in the other case, regarding the first charge, it was bribery with fraud against the treasury,” he explained.

For Zamorano, the damage transcends legal implications: the most serious crime was “having misappropriated municipal funds, depriving children of education and adults of medicine and diapers.”

He also emphasized the financial havoc, noting that “Godoy received the Cormun [Municipal Corporation] with a surplus of 700 million and, in less than three years, left it with a deficit of over 17 billion pesos.”

Prosecution Seeks 23 Years in Prison for Godoy for «Fraudulent Governance»

Prosecutor Núñez expressed full satisfaction with the verdict, which he believes validates the central thesis of the investigation: “that during Juan Ramón Godoy’s administration, there was indeed fraudulent governance.”

Therefore, the prosecution has requested a 23-year prison sentence for the former mayor, along with hefty fines.

Núñez highlighted the work of the High Complexity team, the PDI, as well as the Controller’s Office, the SII, and the CDE. He regarded the case as a precedent, especially as it establishes in a single event both the crime of aggravated bribery and fraud against the treasury by the mayor and the disloyal administration of the resources.

“This completes the circle that the prosecution has developed concerning the investigation and prosecution of five individuals who had been previously convicted in abbreviated procedures, including three businessmen and two public officials,” he declared, as reported by the cited media.

Defense Announces Potential Appeals

On their part, Godoy’s defense expressed partial disagreement. His attorney, Hugo Zamorano, stated, “Our client acknowledged much of the facts for which he was accused from the beginning of the trial. He was also acquitted of several charges.”

The defense lawyer did not dismiss the possibility of filing appeals, arguing that “this case is not final and conclusive.”

The attorney disagreed with the legal classifications, such as aggravated bribery, as they requested a lesser classification and contested the money laundering charge. He is confident that the final sentence will be less than the requested 23 years, arguing that Godoy “did cooperate with the clarification” of the facts.

Sentencing to be Announced in January

The sentencing reading, where the specific penalty that Juan Ramón Godoy must serve will be announced, is set for Friday, January 9, 2026. This ruling concludes a line of investigation that had already convicted, through abbreviated procedures, five other participants: three businessmen and two public officials.

The Godoy case thus stands as one of the largest municipal corruption scandals in recent years, exemplifying how a network of personal trust can distort public administration to the direct detriment of the community and public finances. Justice, after a complex trial, has determined that in Rancagua, there was, literally, «fraudulent governance.»