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El Ciudadano

Original article: Sobres con efectivo: Fiscalía detalla la red que habría tenido a Torrealba como principal beneficiado en Vitacura

For at least a decade, former Vitacura Mayor, Raúl Torrealba, allegedly received regular cash envelopes containing municipal funds meant for community activities. This revelation comes from the accusation by the Centro Norte Prosecutor’s Office, which identifies him as the primary beneficiary of a corruption network operating through community organizations.

According to the Public Ministry, between 2011 and 2021, the then-mayor led «a group of individuals who ‘in an organized and systematic manner formed a corruption network aimed at defrauding the municipality of Vitacura‘ by diverting public resources.

The front organizations included VITA (Vitadeportes, Vitaemprende) and the Local Sports Council of Vitacura. Instead of funding workshops, sports activities, or community programs, the redirected funds—amounting to at least $766 million—were funneled towards personal interests. The chosen extraction method involved delivering cash in envelopes, a practice reportedly directed by the mayor himself.

Torrealba’s Modus Operandi: Tax Fraud, Cash Envelopes, and Money Laundering

The modus operandi was precise. Torrealba approved grants and authorized transfers to these organizations. He then instructed his associates Domingo Prieto Urrejola, Renato Sepúlveda Nebel, and Antonia Larraín Prieto to retrieve cash from the Local Sports Council’s accounts and community organizations. A significant portion of that cash was periodically given in envelopes to Torrealba, while the remainder was distributed among other participants. This created a systematic outflow of public resources that were intended for social purposes.

Once he had the cash in hand, the former mayor executed maneuvers to launder the assets. According to the Prosecutor’s Office, he funneled the cash into the financial system through fragmented deposits in personal accounts, including that of his spouse, often conducted by municipal drivers to avoid bank alerts. He also transferred funds between joint accounts and issued checks to third parties that would be cashed and returned to his own accounts, creating an appearance of legitimacy.

Additionally, he faced tax crimes. Torrealba failed to declare these extra income streams to the Internal Revenue Service, resulting in lower taxes and unearned refunds from the government.

Prosecutor’s Office Seeks 28-Year Prison Sentence for Former Vitacura Mayor

For these crimes, the Centro Norte Prosecutor’s Office is seeking a total sentence of 28 years in prison: 12 years for 29 repeated counts of tax fraud; 6 years for money laundering; 6 years for malicious tax declaration; and 4 years for improper tax refund acquisition. Additionally, they seek the confiscation of all his assets, including a plot of land in Cunco valued at $185 million and several bundles of cash found at his home.

Other members of the network have already been sentenced: Renato Sepúlveda, Antonia Larraín, Augusto Silva, and Arnaldo Cañas received probation and fines. Domingo Prieto passed away before the accusations.

Currently, Torrealba (77 years old) is under partial house arrest. The investigation is closed, pending trial, though the Prosecutor’s Office and the State Defense Council may be inclined toward an abbreviated procedure that would involve restitution of the resources and actual time served in prison.

La entrada Investigation Reveals Cash Envelope Scheme Benefiting Former Vitacura Mayor Raúl Torrealba se publicó primero en El Ciudadano.