NEWS 8 INVESTIGATES
DALLAS - Two years ago, WFAA revealed massive fraud in loans to Mexican companies guaranteed by the Export-Import Bank in Washington. The Ex-Im bank is a taxpayer-funded institution designed to boost American exports.
After WFAA's investigation, one San Antonio man was sent to prison on fraud conviction. Now, an El Paso man has been charged with fraud over Export Import loan guarantees.
Oswaldo Kuchle owns the Aroma restaurant in El Paso after he moved it from its old location in Juarez, Mexico across the border. His aim was to escape the drug violence in Juarez, which has claimed 2,000 lives in the last two years.
"Obviously, the problems in Juarez made us do our goal a little bit quicker," he said.
The problem with Kuchle is that while he expanded his business in El Paso, he has defaulted on $3.1 million in loan guarantees to American taxpayers.
U.S. prosecutors charged Kuchle with mail fraud, wire fraud and conspiracy in loans guaranteed by the Export-Import Bank in Washington. Kuchle took out two loans guaranteed by Ex-Im, one for farm equipment and one for construction equipment. They were two of several transactions between borrowers in Mexico and the U.S. government, investigated by WFAA beginning in 2007. The probe discovered loans using false invoices and shipping documents for equipment that did not exist.
Paperwork obtained under the Freedom of Information Act by WFAA showed Kuchle filed shipping bills and invoices for Peterbilt concrete pumps, cement mixers and other equipment. He also submitted invoices for John Deere and New Holland agricultural machinery.
Federal prosecutors allege the entire transaction was a sham. Kuchle did not pay off the loans and the Export-Import bank, which guaranteed them, had to pay off the banks that held the original debt.
WFAA discovered several other transactions using similar types of documentation with other Mexican companies.
Republican congressman Jeb Hensarling, of Dallas, asked for a congressional investigation as a result of the stories, but it never happened.
"I was very disappointed that the chairman of the House Oversight committee, two chairmen, have now ignored the pleas to launch an investigation on this," Hensarling said.
While the current prosecution involved construction equipment, WFAA has discovered transactions by Mexican borrowers in Juarez using similar documentation.
"The Ex-Im bank has a real problem with controls, and ultimately the U.S. taxpayer is going to be on the hook," Hensarling said.
Seven years after the original loans were made, Kuchle faces six counts of fraud and conspiracy charges. He could be fined up to $1 million and serve up to 30 years in prison.
E-mail bharris@wfaa.com
