Governor Convicted of Money Laundering Deported To Mexico

A federal indictment has been unsealed against former Tamaulipas governor Tomas Yarrington Ruvalcaba, 56, and Mexican businessman Fernando Alejandro Cano Martinez, 57, accusing the pair of running a sprawling criminal enterprise tied to drug cartels, money laundering, and fraudulent banking schemes.

The indictment, returned by a federal grand jury in Brownsville in May and unsealed December 2, charges both men with conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to launder money, conspiracy to defraud, and conspiracy to make false statements to federally insured U.S. banks.

The announcement was made by U.S. Attorneys Kenneth Magidson of the Southern District of Texas and Robert L. Pitman of the Western District of Texas. The case stems from a sweeping multi-agency investigation involving ICE Homeland Security Investigations (HSI), the DEA, IRS Criminal Investigation, the FBI, and the Texas Attorney General’s Office.

Cartel Bribes and Kickbacks

According to federal authorities, Yarrington began taking massive bribes from cartel bosses in the late 1990s, including the notorious Gulf Cartel, enabling cocaine shipments into the United States through the Port of Veracruz between 2007 and 2009. In return, his administration allegedly provided protection and safe passage for their trafficking operations.

The indictment also alleges Yarrington took payoffs from commercial contractors, including Cano Martinez, whose company won lucrative public works projects during Yarrington’s governorship from 1999 to 2004. Prosecutors say Cano Martinez funneled bribes in the form of real estate and kickbacks, often hidden under shell companies and front names.

Shell Companies, Jets, and Texas Real Estate

Prosecutors claim the pair amassed millions in U.S. assets starting in the late 1990s, including luxury residences, vehicles, and aircraft. Much of it was allegedly financed through fraudulent bank loans and hidden behind shell companies.

In one scheme, Yarrington allegedly used stolen public funds in 2004 to purchase a Sabreliner 60 jet, with $300,000 of the payment funneled into a U.S. account and $5 million in pesos sent to Cano Martinez. By 2005, the men had reportedly set up additional shell entities to secure multimillion-dollar loans from Texas banks, concealing their ownership through aliases and frontmen.

Authorities say at least $7 million was transferred into U.S. accounts tied to these entities, with structured deposits under $10,000 deliberately designed to evade federal reporting requirements.

Serious Charges, Major Penalties

The charges against Yarrington go beyond corruption and fraud. He also faces conspiracy to violate the Controlled Substances Act, conspiracy to structure financial transactions, and multiple counts of bank fraud. Cano Martinez has been charged separately with bank fraud.

Both men remain at large. Federal arrest warrants have been issued, and Homeland Security Investigations is urging anyone with information to call 956-542-5811 or 001-800-010-5237 if calling from Mexico.

If convicted, the men face decades behind bars:

• Up to 20 years for RICO and money laundering
• Up to 30 years for conspiracy to commit bank fraud
• At least 10 years for drug conspiracy charges
• 5 years for currency structuring

“The indictment also includes a notice of forfeiture. Some assets identified in the indictment already have been seized by the United States in civil forfeiture actions over the course of the investigation, including: about 46 acres in Bexar County, a condo on South Padre Island, a 2005 Pilatus airplane, and residences in Hidalgo and Hays counties,” ICE confirmed.

Border Corruption and U.S. Security

This case underscores the deep entanglement between corrupt Mexican officials, cartel money, and U.S. institutions. As President Donald J. Trump has repeatedly warned, cartel corruption south of the border doesn’t stay contained — it seeps into America, threatening national security, fueling violence, and undermining financial integrity.

With arrest warrants outstanding, federal authorities continue their pursuit of the former governor and his wealthy business ally, both accused of turning public office and business contracts into tools for organized crime.