Skip to main content

Mexican union leader accused of embezzling millions

By Catherine E. Shoichet, CNN
February 27, 2013 -- Updated 0356 GMT (1156 HKT)
STORY HIGHLIGHTS
  • Elba Esther Gordillo is accused of using union funds for plastic surgery, shopping
  • She is in custody in Mexico after being arrested at the airport, the attorney general says
  • Word of the union leader's arrest sends shock waves through Mexico's political spheres
  • Gordillo has led Latin America's largest union since 1989

(CNN) -- Authorities have arrested the leader of Mexico's largest union, accusing her of embezzling millions of dollars and using some of the money to pay for plastic surgery, shop at luxury stores and buy real estate.

Elba Esther Gordillo, who has led Mexico's high-profile national teachers union for more than two decades, was in federal custody after she was arrested at an airport outside Mexico City on Tuesday, the country's attorney general told reporters.

Investigators from Mexico's treasury found that 2.6 billion pesos (more than $200 million) had been routed from union funds into private bank accounts abroad, including some managed by Gordillo, Attorney General Jesus Murillo Karam said.

Some of the money was used to pay for $17,000 in plastic surgery, more than $2 million in purchases at a Neiman Marcus department store and a house in San Diego, California, prosecutors said.

Gordillo, 68, is a powerful, well-known figure in Mexico, and news of her arrest sent shock waves through the country's political spheres.

Her arrest comes as Mexico's government enacts sweeping education reforms that have been sharply criticized by the union. She was notably absent when Mexican President Enrique Pena Nieto announced the education overhaul on Monday.

Gordillo has led the union, the largest in Latin America with 1.5 million members, since 1989. She is widely known as "La Maestra," Spanish for "The Teacher."

A court issued an arrest warrant for her Sunday after "many operations within the financial system," Murillo Karam said.

"It was identified that between 2008 and 2012, resources were diverted from the accounts of education workers, obviously from the union, to accounts of individual people," Murillo Karam said.

The resources "later were withdrawn in large quantities through cashier's checks and transfers triangulated to individuals and corporations" inside Mexico and also in Switzerland and Liechtenstein, he said.

Gordillo was expelled from Mexico's Institutional Revolutionary Party in 2006 and helped found the New Alliance party.

CNNMexico.com could not immediately reach Gordillo's daughter, a senator for the New Alliance party, and the teacher's union had not responded to Gordillo's arrest late Tuesday.

CNN en EspaƱol's Mario Gonzalez and CNNMexico.com contributed to this report.

ADVERTISEMENT
Part of complete coverage on
May 24, 2013 -- Updated 1545 GMT (2345 HKT)
When the former teacher Ingrid Loyau-Kennett saw the bloodied man wielding a knife, she tried to engage him in a conversation to distract him.
May 24, 2013 -- Updated 1053 GMT (1853 HKT)
A man dressed up as a woman to expose sexual harassment in Egypt -- and says he can't imagine how women put up with the daily abuse.
May 24, 2013 -- Updated 1029 GMT (1829 HKT)
Fear pervades Nigerian city at heart of Islamist insurgency by M.J. Smith A female student stands in a burnt classroom at Maiduguri Experimental School, a private nursery, primary and secondary school burnt by the Islamist group Boko Haram to keep children away from school in Maiduguri, northeastern Nigeria May 12, 2012. The Nigerian Islamist group known as Boko Haram has grown from a northeastern-focused sect targeting local leaders and police to a many-headed monster capable of deploying suicide bombers to attack the United Nations, police headquarters and one of the country's most prominent newspapers.
The breakdown of the education system, growing youth unemployment and insecurity swelled Boko Haram, 'Funmi Olonisakin writes.
May 24, 2013 -- Updated 1251 GMT (2051 HKT)
"It's always the one we feared, the lone wolf that can come from nowhere and not be on our radar," said ex-London police chief John Yates.
May 24, 2013 -- Updated 0613 GMT (1413 HKT)
Christiane Amanpour and Nic Robertson give their insight on the brutal murder of a man in broad daylight. What's behind the horrific attack?
May 24, 2013 -- Updated 1054 GMT (1854 HKT)
In India, a child goes missing every eight minutes. What is behind this devastating statistic felt most by the parents left searching?
Learn about one woman's tireless battle against sex slavery in the Philippines, with Manny Pacquiao in her corner. Watch the full version here.
May 23, 2013 -- Updated 1043 GMT (1843 HKT)
Ai Weiwei, the controversial Chinese artist-activist, has released a music single and video inspired by his harrowing detention by the government.
May 24, 2013 -- Updated 1156 GMT (1956 HKT)
Meet Ugandan Ruganzu Bruno who uses recycled materials to create functional pieces of art, raising environmental awareness through his art.
May 24, 2013 -- Updated 1227 GMT (2027 HKT)
The Germans are coming, this time in the form of the first all-German Champions League football final -- and this time, London cannot wait.
May 23, 2013 -- Updated 1106 GMT (1906 HKT)
Bayern Munich's super fan Boris Becker takes a tour of London ahead of the 2013 Champions League final. What are his favorite spots?
May 23, 2013 -- Updated 1415 GMT (2215 HKT)
Illuminated houses made with bare paint
Imagine if you could paint a working light switch directly onto your wall, without any need for sockets, cables or wiring. Well, now you can.
ADVERTISEMENT