Elba Esther Gordillo: American wealth of Mexican union leader arrested for plundering $160million

Feb 28, 2013 - 10:50
Feb 28, 2013 - 11:04
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Elba Esther Gordillo: American wealth of Mexican union leader arrested for plundering $160million
'Elba Esther Gordillo, pictured left and top right, and known as Mexico's teacher

She may have been one of Mexico's top union bosses, but she was living in the lap of American luxury before her arrest for embezzlement on Tuesday.

Elba Esther Gordillo, known as Mexico's teacher, traded her designer handbags for a prison jumpsuit after she was whisked away by cops in Mexico City as she got off her private plane.

That plane was one of many amenities that Gordillo enjoyed in the years since becoming the National Education Workers Union leader - and Mexico's most powerful women - in 1989.

\"Power:

Power: Elba Esther Gordillo, known for her designer clothing and lavish homes, was arrested on Tuesday as she got off her private plane in Mexico City

\"Expensive

Expensive tastes: A private plane was one of many amenities that Gordillo enjoyed in the years since becoming the National Education Workers Union leader - and Mexico's most powerful women - in 1989

\"Santa \"Elba
Riches to rags: Gordillo, known for her designer duds, is now wearing prison stripes at Santa Martha Acatitla prison, pictured left

She was known for her designer clothes and accessories, including Hermés and Chanel, luxury cars and plastic surgery.

For Gordillo, her arrest was a dizzying fall from power for a woman who traveled on private jets and maintained properties worth millions of dollars in Southe Califoia.

A company that Mexican prosecutors said was registered to her dead mother's estate owns two multimillion-dollar homes in Coronado, a wealthy peninsular enclave across the bay from downtown San Diego.

The homes are across the street from each other in a gated community that caters to  people with second homes.

A mode six-bedroom home with a three-car was purchased in 1991 for $1.15 million and is currently assessed at $4.72million.

A boat was docked behind the house on Wednesday.

\"Home

Home sweet home: A house owned by the Gordillo's family stands in Coronado, Califoia, where she is believed to own at least one other home

\"Amenities:

Amenities: A boat and jet ski sit tied to a private dock behind the home, right

\"Palace:

Palace: The waterfront side of a home owned by the Gordillo's family is pictured in Coronado, Califoia

The company, Comercializadora TTS SA de CV, owns another property across the street that was purchased in 2010 and is currently assessed at $4.08million.

Only a wood frame currently sits on the property.

Lothar Kramer, 85, has lived next door to the six-bedroom home since 1985 and said he rarely saw anyone at the home and didn't know who lived there.

The island has been home to numerous celebrities and politicians, including Newt Gingrich, Donny Osmond, Popco magnate Orville Redenbacher, Stone Temple Pilots Singer Scott Weiland and Wallis Simpson, the Duchess of Windsor.

In addition, prosecutors said they had detected nearly $3million in purchases at Neiman Marcus stores using union funds, as well as $17,000 in U.S. plastic surgery bills and the purchase of a million-dollar home in San Diego.

\"Lavish:

Lavish: Coronado Island is located just off San Diego, and has been home to various celebrities and politicians over the years

\"Art:

Art: A stone figure sits in front of the home owned by Gordillo's family

Gordillo was charged with embezzling 2 billion pesos (about $160 million) from union funds and was arrested on Tuesday as she retued from San Diego for a meeting of leaders of the 1.5 million-member National Union of Education Workers she has led for nearly a quarter-century.

Attoey General Jesus Murillo Karam said the investigation started in December, just after Pena Nieto took office, when Banco Santander alerted authorities to transfers of billions of pesos, according to the attoey general.

Some funds eventually ended up in bank accounts in Switzerland and Liechtenstein, according to Assistant Attoey General Alfredo Castillo, who said that in one case, $1million went to a Swiss account for a company owned by Gordillo's mother.

Those funds were then used to buy a million-dollar house on the Coronado peninsula near San Diego, where Gordillo spends much of her time.

\"Behind

Behind bars: Gordillo was charged with embezzling 2 billion pesos (about $160 million) from union funds and was arrested on Tuesday

Rivals have long accused her of corruption, misuse of union funds and even a murder, but prosecutors who investigated never brought a charge against her.

Her career began humbly as a teenage schoolteacher in the impoverished Chiapas state before she rose to power and became a maker of presidents.

She was heading the union's fight with President Enrique Pena Nieto's administration over the country's most sweeping educational reform in more than 70 years.

Mexico's new govement has denied that politics was the motivation behind her arrest.

In a news conference minutes after Gordillo's detention, he said the investigation started in December, just after Pena Nieto took office, when Banco Santander alerted authorities to transfers of billions of pesos, according to the attoey general.

\"Friends

Friends in high places: Gordillo, left, appears with the Dalai Lama during a 2011 meeting in Mexico City

\"Rise

Rise to power: Her career began humbly as a teenage schoolteacher in the impoverished Chiapas state before she rose to power and became a maker of presidents

Some funds eventually ended up in bank accounts in Switzerland and Liechtenstein, according to Assistant Attoey General Alfredo Castillo, who said that in one case, $1million went to a Swiss account for a company owned by Gordillo's mother.

Those funds were then used to buy a million-dollar house on the Coronado peninsula near San Diego.

In a television interview last week about education reform, the interviewer told Gordillo that she was the most hated woman in Mexico.

She replied: 'There is no one more loved by their people than I. I care about the teachers. This is a deep and serious dispute about public education.'

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Mike Gallagher Freelance writer with a passion for travelling