A 70-year-old dual U.S.-Peruvian citizen has been extradited to Houston to face charges in a bank fraud scheme involving at least $40 million in fraudulent loan proceeds, according to the IRS Criminal Investigation.
Hugo Villanueva, formerly of Katy, Texas, made his first appearance in Houston federal court on September 17, 2026, following his extradition from Peru.
Prosecutors allege that from 2016 to 2021, Villanueva and others filed dozens of loan applications containing false information and forged documents, including equipment invoices, tax returns, and bank statements. Villanueva is also accused of preparing false tax returns and financial statements to obtain fraudulent loan approval.
Villanueva left the United States in 2023 before his arrest in Lima, Peru, in November 2025.
Several co-defendants in the case have already been sentenced. Co-defendant Bun Khath, 45, of Richmond, pleaded guilty and received a 120-month sentence. Jeremiah Almaguer and Jennifer Williams received 60 months and 12 months, respectively. Three other defendants have pleaded guilty and await sentencing.
Villanueva faces a detention hearing scheduled for October 7. If convicted on the conspiracy and bank fraud charges, he could face up to 30 years in prison and a maximum $1 million fine. The money laundering conspiracy charge carries a potential 20-year sentence and a maximum $500,000 fine or twice the transaction value involved.
