Revelation of Criminal Organization Infiltrating Chilean Law Enforcement and Judiciary: «Operation Imperio» Exposes $3 Billion Money Laundering Scheme

Original article: Revelan que banda delictual tenía infiltrada la PDI y Poder judicial: Investigación sobre lavado de activos “Operación Imperio”

Operation Imperio: Criminal Network with Infiltrators in Law Enforcement and Judiciary Accused of Defrauding Over $3 Billion

The so-called «Operation Imperio» has unveiled one of the most intricate organized crime networks in recent years, dedicated to money laundering, bank fraud, and a plethora of economic crimes that have defrauded over 3 billion pesos.

According to documents presented in the Guarantee Court of Temuco, the gang operated systematically since at least 2017 through a complex web involving the creation of fictitious companies, forgery of public documents, and the use of front men to conceal the illegal origins of their wealth.

The criminal sophistication of the organization included specific methods to defraud the financial system. The Public Ministry detailed that the defendants, led by the Martínez Addison-Smith family clan, «submitted false documents so that third parties recruited for this purpose could access financing and acquire high-end 4×4 vehicles, presenting a false reality about their creditworthiness.» They also devised a scheme to simulate transactions with POS terminals, only to cancel them later and illegally pocket the funds from financial institutions.

A crucial aspect that has shocked the public is the infiltration of the network into key state institutions. Among the approximately 40 accused, there is a public prosecutor’s office employee from the Oral Criminal Court of Temuco, who, according to Radio Biobío, acted as a «legal advisor» for the gang and even went as far as to facilitate their identity to register a helicopter. This individual is currently in preventive custody, with a hearing to review this measure scheduled for October 8.

The corruption plot also extended to the Police Investigations (PDI). Two active-duty officers were arrested and charged; one for insurance fraud and the other, identified as Sub-Commissioner Juan Carrasco Hernández, for alerting the gang about imminent raids, as revealed by Araucanía Diario. According to media reports, this high-ranking officer «was connected to the dismantled family clan» and is accused of «alerting gang members who were about to be arrested.»

The report stated that the leak from Sub-Commissioner PDI seriously jeopardized the entire investigation. Authorized phone interceptions captured the warning received by Cristian Martínez, the gang’s leader, nine days before the planned operation: «You better get out, grab your stuff, and leave. Because they’re going to bust your house on September 1. There are 35 addresses; they’re going to bust them all at the same time.» This alert forced prosecutors to expedite proceedings to prevent the suspects from fleeing and destroying evidence.

After his arrest, Cristian Martínez himself confirmed the source of the leak in his statement, saying: «I think Juan told me through Diego to leave due to the raid because he was probably afraid I would talk about everything I know about him.» This confession was crucial for the formalization of Detective Carrasco, highlighting a severe vulnerability in the justice system.

Recently, the Judiciary issued a video statement regarding the status of one of the detained officials, showing that «the Guarantee Court of Temuco held a session at the PDI facilities in La Araucanía to verify compliance with preventive detention conditions.» The Judiciary stated: «As part of an action to resolve a habeas corpus petition, the Guarantee Court of Temuco convened at the PDI facilities in La Araucanía to check the compliance conditions of the preventive detention imposed on a police official accused of seven crimes in the realm of ‘Operation Imperio.'»

This issue had previously been highlighted by 24 Horas TVN: «Two PDI officers were charged with bribery and insurance fraud. One of them was none other than the sub-commissioner of the Criminal Investigation Brigade of Temuco, reportedly linked to the family clan dismantled in ‘Operation Imperio.’ He is accused of alerting gang members who were about to be arrested.»

This case continues its course, with 15 of the main accused held under preventive detention imposed in August, while the investigation unfolds, set to last for 8 months.