Court dismisses charges

A judge in Honduras has dismissed the fraud and money laundering case against former President Juan Orlando Hernandez, clearing him of any pending charges in the Central American nation. The ruling was issued Tuesday by a judge in the northern city of San Pedro Sula, according to the Honduran Judiciary.

Hernandez, who served as president from 2014 to 2022, had been accused of participating in a corruption scheme from 2010 to 2013, before his presidency. The charges related to a case known as Pandora, which alleged that a network of former high-ranking officials participated in the expansion and approval of public funds disbursements totaling more than 288 million lempiras ($10.8 million) to various foundations, according to an investigation by the country's Specialized Prosecutor's Unit Against Corruption Networks (UFERCO).

According to UFERCO, Hernandez benefited from these disbursements, receiving at least 62 million lempiras ($2.3 million) for his political campaign through various schemes, including the creation of shell companies, the use of straw men, and fictitious contracts.

Judge's reasoning

The judge ruled that the evidence presented at the hearing "did not establish the defendant's participation in the investigated events," the Honduran Judiciary reported on its social media account. Judiciary spokesperson Carlos Silva told reporters that Hernandez was not responsible for budgetary decisions at the time of the crimes. Silva also said it could not be confirmed that embezzled funds had been channeled into Hernandez's 2013 presidential campaign.

The public prosecutor's office had requested that the judge admit the evidence and issue a formal indictment against the former president, but its request was rejected, and Hernandez was granted definitive release. He had previously been granted conditional release as the case advanced. Silva said parties can file an appeal.

Hernandez's response

Outside court, supporters of Hernandez gathered, and he declared, "Today this chapter of political persecution closes, we close the one in the United States, this one is closing." In a separate statement, he said, "This chapter of political persecution has now ended." Hernandez argued that the case against him "had no basis" and was pursued for political purposes.

"Those who orchestrated this operation not only wanted to see me banished from Honduras forever, never to return, but they were determined to leave my family on the street," he said.

Hernandez repeatedly asserted his innocence and said the charges lacked merit.

Background

Hernandez returned to Honduras in late July after being freed from prison in the United States. He had been extradited to the S. in 2022 on drug trafficking charges and was convicted in 2024 and sentenced to 45 years in prison. S. President Donald Trump pardoned him late last year, with the pardon announced two days before Honduras' November presidential vote. Trump also said he would cut funding to Honduras if the candidate for Hernandez's right-wing National Party, now President Nasry Asfura, did not win.

Hernandez, known by his initials JOH, had faced scrutiny during his time as a rising political figure in Honduras. The S. Department of Justice said he was the "center of one of the largest and most violent drug-trafficking conspiracies in the world." Hernandez led Honduras during a period when the nation served as a major drug trafficking route and hundreds of thousands fled drug-related violence.

Hernandez told Reuters in late July he had no immediate plans to seek office but wanted to support the new government.

Other charges dropped

Charges have also been dropped against other high-profile officials, including former President Porfirio Lobo and ex-finance minister Wilfredo Cerrato.