Former Rancagua Mayor Juan Godoy Sentenced to 12 Years for Bribery, Fraud, and Money Laundering

Original article: Exalcalde de Rancagua Juan Godoy (exPS) condenado a 12 años: cohecho, fraude al fisco y lavado

In a landmark ruling that sets a precedent for the prosecution of municipal corruption, the Oral Criminal Court of Rancagua sentenced former mayor Juan Ramón Godoy Muñoz (ex-Socialist Party, pictured) to 12 years in medium-security prison.

This sentence, one of the harshest imposed on a former local authority in recent years, came after he was found guilty of bribery, financial fraud, and money laundering—crimes committed during his administration, which the prosecutor characterized as «fraudulent governance.»

The unanimous verdict, delivered on December 23, 2025, concluded a judicial process that revealed a systematic corruption scheme. This prison sentence is in addition to one year and eight months (20 months) that Godoy has already served in preventive detention at the La Gonzalina Penitentiary Complex.

Lifetime Ban and Hefty Financial Penalties for Godoy

Alongside the 12-year prison sentence, the court imposed a lifetime ban on holding public office, effectively ending the political career of the former mayor, who had previously been suspended from his membership in the Socialist Party.

Additionally, financial sanctions amounting to $940 million were imposed. This includes a fine of $400 million for bribery and $540 million in damages stemming from the civil lawsuit, as reported by El Mostrador.

The ruling establishes that these crimes occurred during his tenure as mayor of Rancagua, severely undermining administrative integrity and the correct use of public resources, thus marking a hallmark case of municipal corruption.

«Tithes», Credit Cards, and a Favor Payment System

The investigation, which began in 2022 following a report from the Center for Investigative Journalism (CIPER), revealed that under Godoy’s administration, a system of fraudulent allocations was developed. The court found that municipal tenders were systematically awarded, through direct deals or the awarding system, to businesses connected to Godoy, particularly those of entrepreneur Javier Cornejo, who was convicted as an accomplice for bribery and for using a false private document but was acquitted of financial fraud.

In exchange, Cornejo provided the then-mayor with access to credit cards for personal expenses, vehicles, and other benefits. The Public Prosecutor estimated that $2.3 billion was involved in the illicit operations.

One of the most revealing findings was the existence of a «tithe». The court established that Godoy demanded 10% of the committed amounts in the tenders awarded during his mandate to favored companies.

«The most serious aspect is the accumulation of facts, as each one is related to another, independent of the presence of private individuals, entrepreneurs, and those issuing bribes; the mechanism was essentially the same—pay for direct assignments, pay for tender assignments,» said Nicolás Núñez, the complex crimes prosecutor of O’Higgins.

Concerning the credit card provided by Cornejo, the prosecutor highlighted that it was a crucial discovery, «because it allowed us to establish the base crimes and also the money laundering offense, in an operation that is not commonly seen in corruption crimes; using a third-party banking product was quite novel. But we also employed ingenuity and creativity, together with the police, to uncover that method of laundering money.»

Seven Convictions for «Fraudulent Governance»

The court found Godoy guilty as the perpetrator of aggravated and consummated bribery in multiple instances, financial fraud, and money laundering that occurred between 2021 and 2023. He was acquitted, along with Cornejo, of public funds misappropriation and tax offenses.

Claimant attorney César Zamorano praised the outcome and detailed the extent of the convictions: «We obtained seven convictions for seven different charges, across seven groups of offenses, and in some cases, bribery, which is the most frequently repeated crime in three items, was classified by the court as aggravated bribery without other offenses; and in the other case concerning the first charge, it was bribery with financial fraud.»

For Zamorano, the damage transcends the legal realm and has directly affected the community: the gravest crime was «misappropriating municipal funds, leaving children without education, and denying adults essential medication and diapers.» He also emphasized the financial chaos left behind: «Godoy received the municipal corporation with a surplus of 700 million and, in less than three years, gave it up with a deficit of over 17 billion pesos.»

In the hearing on December 23, 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 indeed existed a fraudulent governance.»