This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mexico Plays Hardball In Jailing Of Union Boss

There is a sense that "this is a message to all the other corrupt leaders," said Humberto Castillo, a 55-year-old retired teacher from Mexico State, who was reading a newspaper story about Gordillo's arrest while he waited for his daughter to come out of a job interview. "I thought she was untouchable."

For many, Gordillo stood as a symbol of the powers that dominate Mexico. She was a favorite of newspaper cartoonists because of her immediately recognizable face and designer clothes and accessories. Prosecutors said she spent nearly $3 million in purchases at Neiman Marcus department stores using union funds, as well as $17,000 in U.S. plastic surgery bills and $1 million to buy a home near San Diego.

It was unclear if the arrest would force Gordillo out of her union leadership position. Mexican mining union boss Napoleon Gomez Urrutia has continued to hold his post more than four years after he moved to Canada amid accusations that he misappropriated $55 million in union funds.

Many Mexicans immediately began suggesting prosecution of other union leaders. Opposition parties mentioned the boss of the oil workers union, Carlos Romero Deschamps, who, according to Mexican news media, gave his son a $2 million Ferrari and whose daughter posted Facebook photos of her trips to Europe aboard private jets and yachts.

Romero Deschamps' immunity from prosecution as a legislator â¿¿ a status he still enjoys â¿¿ helped keep him from going to jail in a scandal over his union's illegal $61.3 million campaign donation to the PRI in 2000.

But if Deschamps stayed within the womb of the PRI while under fire, Gordillo was unusually defiant, allying at times with presidents from the National Action Party, helping create a new political party and finally bolting from the PRI, where she had long been an influential figure. Many credited her party with pulling enough votes to swing the narrow 2006 election to National Action's Felipe Calderon.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs