Chilean Court Orders House Arrest for Factop Case Defendants Rodrigo Topelberg and Ariel Sauer

The Fourth Guarantee Court of Santiago has made a pivotal decision regarding the high-profile "Factop Case." On Tuesday, the court revoked the preventive detention of businessmen Rodrigo Topelberg and Ariel Sauer, ordering their release from Capitán Yáber prison. Both individuals are now under total house arrest and restricted from leaving the country. The two were business partners in the Factop brokerage and are being investigated by the Chilean Prosecutor's Office for repeated fraud and issuing false invoices.

This case intersects with a broader scandal involving Ariel’s brother, Daniel Sauer, who became embroiled in the “audio case.” This political and judicial controversy erupted in November 2023 when a leaked recording exposed alleged bribes paid to officials of Chile's Internal Revenue Service (SII) and the Commission for the Financial Market (CMF). The recording, featuring Daniel Sauer, criminal lawyer Luis Hermosilla, and attorney Leonarda Villalobos, revealed details of illicit activities. Both Hermosilla and Villalobos are now facing formal charges for bribery and money laundering.

The Role of Leaked Recordings

The controversy gained traction when it was revealed that Rodrigo Topelberg leaked the recording to the CMF and the investigative news outlet Ciper Chile, which published the explosive details on November 14, 2023. In a court hearing last August, Topelberg admitted to his role in exposing the audio. This recording had been made secretly by Villalobos in Hermosilla’s Santiago office.

The revelations led to multiple arrests, including Daniel Sauer, who has been in detention for seven months, and his brother Ariel. While Ariel and Topelberg were initially placed under house arrest, they were later sent back to Capitán Yáber prison before being granted house arrest again this week.

Cooperation with the Authorities

The court’s decision to ease precautionary measures for Topelberg and Ariel Sauer was influenced by their cooperation in the investigation. Prosecutor Juan Pablo Araya praised their recent contributions as “a significant breakthrough.” He noted that their latest statements clarified both their roles and the mechanisms of the alleged crimes, justifying a less restrictive measure.

The lawyer representing the Sauer brothers, Octavio Sufán, also acknowledged the importance of their collaboration. “The information provided by Ariel and Daniel has helped bring new evidence to light, enabling the case to progress and uncover the involvement of others,” Sufán stated. He expressed hope that similar considerations would soon apply to Daniel Sauer, who remains in custody.

Upcoming Formalizations and Broader Implications

The Factop Case is set to widen as the Prosecutor's Office prepares to formalize charges against additional individuals on January 13. These include Daniel Sauer and 12 other defendants, among them Álvaro and Antonio Jalaff, executives from the Patio Group. The charges range from money laundering and fraud to malicious use of false financial instruments.

The investigation also extends to eight senior executives of the Larraín Vial brokerage, signaling the broad scope of the case. Prosecutor Salas revealed that these charges focus on the misappropriation of funds obtained through fraudulent activities, which were allegedly funneled to third parties.

A Turning Point in Chile’s Financial Crime Landscape

The Factop Case continues to uncover layers of corruption, implicating high-ranking individuals across various sectors. The shift from prison to house arrest for Topelberg and Ariel Sauer marks a turning point in the investigation, reflecting the value of their cooperation. As the case unfolds, the upcoming January 13 formalizations are expected to shed further light on the extent of the financial crimes and the network of individuals involved.