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Prominent lawyer brings model country into disrepute

A prominent lawyer of the economic and political elite is said to have obtained secret information for his clients by bribing high officials.

The Chilean lawyer of the powerful and rich: Luis Hermosilla.

Dragomir Yankovic / Aton Chile / Imago

Chile was long considered a model country among Latin American countries. For decades, it reported high economic growth of an average of five percent and was also characterized by low crime rates and low levels of corruption. In recent years, however, the economy has stalled. Chile is still suffering from the consequences of the corona pandemic, and crime has increased significantly because internationally organized criminal gangs are increasingly spreading to the country.

Now a corruption scandal at a high government level is shaking the trust of citizens and damaging the country’s image among international investors. One of the country’s most influential lawyers has recently been arrested and remanded in custody for six months. He is accused of bribery, money laundering and tax fraud.

Secret information from the authorities for cash

The case, which came to light last November through revelations by the Chilean investigative portal “Ciper”, has shocked the country. Luis Hermosilla, the arrested lawyer, is well connected with important business leaders and high-ranking politicians of various stripes. He is a close confidant of the former Minister of the Interior Andrés Chadwick, who served under the right-wing President Sebastián Piñera, and has advised his government on several occasions. As a lawyer, he has also represented an important advisor to the current left-wing President Gabriel Boric.

In a 100-minute audio recording from June 2023 published by “Ciper”, Hermosilla speaks with his then client Daniel Sauer – the owner of a brokerage firm – and his legal advisor. The Chilean financial regulator had previously initiated proceedings against the company on suspicion of fraud. The three talk about how to obtain secret information about the proceedings from the tax authorities and the financial regulator in exchange for bribes.

Hermosilla can be heard saying: “We need a slush fund for our expenses. An important part of the problem can be solved by handing over money in an envelope. And really, we are already late.” And he continued: “What do we have to do then? We have to analyze all the information that comes from the tax authorities and check for errors. We have to have control over the flow of information. We immediately owe the idiot who is in control there 10 million pesos (just under 10,000 francs).”

The investigation that was launched as a result of the revelation has now progressed to the point where authorities believe they have sufficient evidence of criminal conduct. In addition to Hermosilla, Sauer’s legal advisor was also arrested this week. Sauer himself was arrested in April as part of the fraud trial against him.

National police chief also involved

Hermosilla, however, denies having done anything illegal. The authenticity of the conversation made public by “Ciper” is not questioned by his defense either. However, they claim that the procedure discussed in the audio recording was not put into practice and that therefore no criminal offense was committed. In addition, the conversation was published illegally and is therefore not admissible as evidence. The latter, however, is disputed by well-known Chilean legal experts.

But the case has already gained further traction after the investigative authorities confiscated Hermosilla’s cell phone. In March, Sergio Muñoz, the head of Chile’s national police force responsible for criminal investigations, was arrested for allegedly passing secret information to Hermosilla. The authorities are basing their case on more than 500 WhatsApp text messages that the two exchanged between August 2020 and October 2023. They are said to concern five cases in which Hermosilla had taken over the defense. In Chile, it is generally assumed that the analysis of the cell phone data will uncover numerous other cases.

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