Former Army Commander Found Guilty of Money Laundering in ‘Reserved Expenses’ Case

Original article: Gastos reservados: Justicia condenó a excomandante en jefe del Ejército por lavado de activos

The 4th Oral Criminal Court in Santiago delivered its guilty verdict against former Army Commander Óscar Izurieta Ferrer (as pictured), convicting him for the completed crime of money laundering, which took place starting in 2010, linked to the case known as «Reserved Expenses.»

In a unanimous decision (case number 274-2026), the court established both the commission of the crime and Izurieta Ferrer’s culpable involvement in the substantiated events.

According to the Regional Prosecutor’s Office of Los Lagos, between 2010 and 2018, during the leadership of Generals Juan Miguel Fuentealba and Humberto Oviedo, Izurieta received monthly cash payments labeled as «Support for EX-CJE,» totaling an estimated $61,200,000, which he used to acquire a property that he subsequently rented out, reaping substantial profits.

The court noted, «During the various sessions of the trial, a series of uncontested facts were established regarding the allegations made by the Public Prosecutor’s Office, with no dispute over the fact that the Army Commanders of Chile post-2010 (namely, Fuente-Alba and Oviedo) made periodic cash payments to former commanders, generally on a monthly basis, without any sort of accounting records, with amounts ranging from $400,000 in 2010 to one million pesos by 2017.»

«These testimonial, documentary, and other evidential contributions, along with the context in which the activities related to the reserved expenditures occurred, provide the court with conviction that the Army Commanders misallocated funds designated as reserved expenses for various purposes outside those legally authorized, which included monthly payments for the personal use of former commanders,» the court’s ruling specifies.

As reported by national media, the Public Prosecutor’s Office is demanding an 8-year prison sentence, a fine of 500 UTM, and the confiscation of the property and the profits gained.

Check out the details of the ruling HERE

Read more about this case:

Daughter and son-in-law of former Army Commander Óscar Izurieta removed from Public Prosecutor’s Office: Assisted him in transferring properties acquired with illicit funds

We will continue to provide updates.