Former UDI Mayor of Algarrobo Found Guilty of Embezzlement and Money Laundering: Fraud Amounts Exceed $1.16 Billion

Original article: Exalcalde UDI de Algarrobo es declarado culpable de malversación de fondos públicos y lavado de activos: Monto defraudado supera los $1.160 millones

The Oral Criminal Court of San Antonio has issued a guilty verdict against the former UDI mayor of Algarrobo, José Luis Yáñez Maldonado, for embezzlement of public funds and money laundering, to the detriment of the municipality of Algarrobo.

According to the investigation, these crimes were committed between March 2022 and November 2023. In this context, Judge Rosa Caballero also convicted Belén Carrasco, the former municipal treasurer and Yáñez’s partner, of the same offenses.

Additionally, a third party involved, Sixto Carrasco, was convicted as an accomplice of public fund embezzlement and as the perpetrator of money laundering.

The details of the sentence will be communicated on January 8, 2026. Read more about this case:

Major Embezzlement in Algarrobo: Mayor Yáñez (UDI) Used Misappropriated Funds to Finance Romantic Trip to Europe with Municipal Treasurer

Possible Sentences Up to 20 Years in Prison

Following the guilty verdict, Claudio Rebeco, the Chief Prosecutor of the Anti-Corruption Regional Unit, stated that they expect the sentences to be served effectively, beyond the time requested, emphasizing that the defrauded amounts total 1.163 billion pesos, which may lead to prison terms between 12 and 20 years.

«Considering that there were also convictions for money laundering, the sentences should be served effectively. This seems very coherent with the seriousness of the facts investigated by the Public Ministry,» Rebeco pointed out to regional press.

For the prosecutor, «the mere reading of the verdict shows that the facts are very complex due to the numerous banking movements carried out precisely to launder this money.»

Finally, Prosecutor Rebeco announced that there is still significant work ahead to recover the embezzled money and assets.

El Ciudadano