Octavio Garcia-Von Borstel, 29, mayor of Nogales, was arrested at his office at city hall, on Tuesday. According to the Arizona attorney general's office, announced the arrest and an indictment on state charges. Search warrants were executed at the mayor's home, business and city hall office.
The mayor is also accused for protecting contracts or obtains business contracts with the city. He was also indicted with charges of money laundering, conflict of interest, illegally conducting an enterprise and fraud.
The mayor's father, Octavio Garcia Suarez, 59, of Nogales, also was indicted and arrested. He faces several charges that include fraud, theft and money laundering, the attorney general's statement indicated.
According to the statement, FBI agents began investigating
Garcia-Von Borstel five months ago and determined that he was soliciting
Nogales businesses to hire him as a business consultant as early as February
2009.
Further investigation determined the mayor also received money from at least one business in exchange for utilizing his official position to protect a contract the business owner had with the city and to assist the business owner in obtaining an additional city contract, added Goddard, who is running for governor.
The indictment cites $4,000 and $2,000 payments, without providing details.
The mayor's father, Garcia Suarez, was an agent for Western Union authorized to sell Western Union money orders. The money orders were then cashed by Garcia-Von Borstel and deposited into a bank account he controlled, the statement said. Of the $3.2 million, the father and son withdrew $565,000 for their personal use before the account was frozen, it said.
