ICE Detains Mexican Businessman Accused of $294 Million Housing Fraud Scheme

U.S. Immigration and Customs Enforcement (ICE) has detained Rafael Zaga Tawil, a Mexican businessman in Florida who is accused by authorities in Mexico of orchestrating a $294 million housing fraud scheme tied to the country's public mortgage lender.

Zaga Tawil, who had been sought by Mexican prosecutors since 2020, is being held at the Glades County Detention Center as legal proceedings continue in both countries.

Mexican authorities allege the case centers on a series of contracts awarded in 2014 to a private firm linked to the businessman for a housing mobility program under Mexico's National Workers' Housing Fund Institute, known as Infonavit, as El País points out.

Prosecutors say the contracts were terminated in 2017, but the company received an indemnity payment of more than 5 billion pesos, or roughly $294 million, which they describe as illegal. The Attorney General's Office has characterized the payment as part of a broader scheme involving organized crime and money laundering.

According to investigators, the company lacked the infrastructure and capacity to fulfill the original contracts, raising questions about how the agreements were approved and later settled. The case, known in Mexico as the Telra-Infonavit affair, has implicated several individuals, including family members of the businessman and former Infonavit officials. Some of those officials were later released after cooperating with prosecutors.

The businessman remained a fugitive until his recent detention by ICE, which cited irregularities in his immigration status. U.S. court filings indicate he has challenged the legality of his arrest, and a judge has ordered ICE to provide documentation justifying the detention.

Prosecutors in Mexico allege that funds obtained through the indemnity payment were dispersed through a network of companies and financial institutions, including international banks. Investigators have also pointed to the use of trusts and other financial vehicles to move resources abroad.

The Mexican government has sought for years to recover the funds and bring those involved to trial, but the case has faced delays in the courts. The businessman's detention could mark a new phase in the proceedings, depending on the outcome of ongoing legal challenges in the United States.

Mexican authorities are expected to seek his extradition, though similar cases have produced mixed outcomes.