Alonso Ancira Elizondo, born in 1956, served as president of AHMSA from 1991 to 2023. He is known for one of the largest scams in Mexican history, which resulted in the

Mexican government The Federal government of Mexico (alternately known as the Government of the Republic or ' or ') is the national government of the United Mexican States, the central government established by its constitution to share sovereignty over the republi ...

being defrauded of $500 million. He was involved in multiple fraudulent schemes, including the

Pemex Pemex (a portmanteau of Petróleos Mexicanos, which translates to ''Mexican Petroleum'' in English; ) is the Mexican state-owned petroleum company managed and operated by the Mexican government. It was formed in 1938 by nationalization and expr ...

, Agro Nitrogenados and Odebrecht fraud cases. Ancira's mismanagement ended in failure as it ultimately led to the bankruptcy of Altos Hornos de México (AHMSA). Additionally, he faced criminal charges of

corruption Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...

, tax fraud and

money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...

Scams and criminal charges

The

fraud originated in 2013 when Ancira, his brother Jorge Ancira and Emilio Lozoya, director of Pemex, engaged in fraudulent activities. They orchestrated the sale of a non-existent plant to the

for $500 million. However, in 2019, the Higher Audit found that the transaction was a scam and had far exceeded its real cost. During Ancira's mismanagement, it was discovered that the AHMSA plant was abandoned, with machines unused for years. The company's 17,000 employees had not received salary payments for four years. Mismanagement traces back to 1991 when AHMSA fell in the hands of Alonso Ancira, due to his wife's close connection with the First Lady of Mexico at the time. Ancira's fraudulent activities and AHMSA's mismanagement have had a detrimental effect on the

Mexican economy The economy of Mexico is a developing mixed-market economy. It is the 15th largest in the world in nominal GDP terms and the 13th largest by purchasing power parity, according to the International Monetary Fund. Since the 1994 crisis, admin ...

. AHMSA's

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

and job losses have contributed to economic instability and hampered the growth and value of the steel industry in Mexico.

Imprisonment

Alonso Ancira was arrested in Spain in 2019 and subsequently extradited to Mexico in 2021. He was charged with

fraud In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...

and

, as well as

and tax fraud. The Ancira Elizondo family, along with executives Xavier Autrey and Juan Carlos Carredano, faced previous arrests for tax fraud in Mexico in 2004. After the issuance of arrest warrants by the Attorney General of Mexico (PGR), they fled the country. Ancira moved to Israel twice with his family to avoid capture, residing there for three years while he was persecuted by the Treasury Department. Others fled to San Antonio, Texas, to avoid prosecution in Mexico. Alonso Ancira and his brother Jorge Alberto Ancira Elizondo, his nephew Jorge Alberto Ancira Trabold, another brother José Eduardo Ancira and his sister Linda Ancira de Tames, have all been involved. They were arrested for their alleged links to the corruption scheme related to the Brazilian company Odebrecht in 2018. These investigations followed their involvement in a resource diversion scheme involving the former director of Petróleos Mexicanos (Pemex),

Emilio Lozoya Austin Emilio Ricardo Lozoya Austin (Chihuahua City, Chihuahua, Chihuahua State, Chihuahua, December 9, 1974) is a Mexican economist and politician. He was the CEO of Petróleos Mexicanos (PEMEX) from 2012 to 2016. Biography Education He holds a deg ...

. The Ancira family's debts are with various areas of the

federal government A federation (also known as a federal state) is a political entity characterized by a union of partially self-governing provinces, states, or other regions under a central federal government (federalism). In a federation, the self-governin ...

, including the Tax Administration Service,

and the

Federal Electricity Commission Federal or foederal (archaic) may refer to: Politics General *Federal monarchy, a federation of monarchies *Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...

. AHMSA itself has outstanding debts with multiple government entities, such as the Tax Administration Service, Petróleos Mexicanos, the Federal Electricity Commission, the Institute of the National Housing Fund for Workers and the

Mexican Institute of Social Security The Mexican Institute of Social Security ( es, Instituto Mexicano del Seguro Social, IMSS) is a governmental organization that assists public health, pensions and social security in Mexico operating under the Secretariat of Health. It also forms ...

, among others.

Removal from AHMSA

As a result of the fraud scandals and

, Ancira was removed from his position as president of AHMSA and was forced to sell his shares in April 2023. The scandal led to the involvement of Argentem Creek Partners, an American fund, which took control of the company to restore its financial stability. Along with Ancira, several members of the Board of Directors, including Jorge Alberto Ancira Elizondo, José Eduardo Ancira Elizondo, James Pignatelli, Juan Carlos Quintana and Francisco Pérez Ortega, also chose to resign due to the scandal. Despite the transfer of ownership to Argentem Creek Partners, Alonso Ancira is still saddled with a considerable debt of $650 million. This overwhelming financial obligation adds to the challenges facing new management as they struggle to revive the company and overcome the fallout from the fraud scandal. In a November 2020 interview with

Carlos Loret de Mola Carlos Loret de Mola Álvarez (born October 17, 1976 in Mérida, Yucatán) is a Mexican journalist. He currently hosts the radio program ''Así las cosas con Carlos Loret de Mola'' on W Radio and is a contributor to '' El Universal''. Most rec ...

, Ancira offered to repay the $200 million he swindled from the

if President Andrés Manuel López Obrador agreed to stop insulting him. AMLO responded: "Yes, I am offering an apology, now just return the 200 million dollars." Ancira has partially reimbursed the government for the amount he stole.

References

External links

NY Times Article

Internet Securities Creditors want Alonso Ancira out of AHMSA.

Altos Hornos de Mexico Website
{{DEFAULTSORT:Ancira, Alonso 1956 births Living people Institutional Revolutionary Party politicians People from Coahuila 20th-century Mexican businesspeople 21st-century Mexican businesspeople

Scams and criminal charges

Imprisonment

Removal from AHMSA

See also

References

External links