MEXICO CITY May 29 The Mexican Attorney
General's office has ordered the arrest of the chief executive
of oil services company Oceanografia, which is at the center of
a fraud probe involving Citigroup Inc's local unit
Oceanografia CEO Amado Yanez is under police protection in
hospital after undergoing emergency surgery on May 20, a
statement from the attorney general's office said on Thursday.
Yanez, who is also majority owner of Oceanografia, would be
formally placed under arrest once he had left hospital, a
spokesman for the attorney general's office said. It was not
clear why the Oceanografia boss had surgery.
The attorney general's office held Yanez for questioning in
March after Citigroup said it uncovered at least $400 million in
bogus loans to Oceanografia at Banamex.
Oceanografia was a top service provider to state-run oil
giant Pemex over the past decade, winning billions of
dollars in contracts.
Citigroup has discovered some $565 million in loans linked
to fraud at Banamex and earlier this month the bank fired 11
employees amid an internal review.
Banamex faces a U.S. criminal investigation of possible
violations of money-laundering laws, a source has told Reuters,
as well as probes by U.S. and Mexican authorities into the
(Reporting by Elinor Comlay; Additional reporting by Lizbeth
Diaz; Editing by Marguerita Choy)