Pinochet's wife and son arrested for tax fraud

SANTIAGO, Chile - The wife and youngest son of former dictator Augusto Pinochet have been arrested after a Chilean judge charged them in a tax fraud case, stepping up pressure on the retired general as human rights cases against him have stalled in the courts.

Judge Sergio Munoz indicted Pinochet's wife, Lucia Hiriart, and son, Marco Antonio Pinochet, as accomplices in tax fraud involving up to US$17 million ($24.73 million) in secret bank accounts that were uncovered last year.

"If they want to arrest someone ... let it be me," Pinochet said in a rare public statement faxed from his attorneys' office.

The former dictator said he takes responsibility for the actions being investigated by Munoz, and denied anyone from his family was involved. He asserted that he was innocent of fraud or corruption and that he has already made up any taxes owed.

Hiriart, who is in her 80s, was being held in a military hospital and Marco Antonio was sent to a jail that usually houses white-collar criminals.

"This has had an impact on us ... This is like a bullet to the head," said the general's eldest son, Augusto Pinochet Hiriart, after visiting his mother.

His father, who seldom appears in public owing to ill health, also visited Hiriart in the hospital.

"She is in very poor health. They're going to kill her with this," the son said. Pinochet and Hiriart have five children.

Hiriart and her son will remain in custody until a court bail hearing, which could happen on Thursday or Friday.

Munoz has been investigating Pinochet's finances since last year and in a recent court filing said the family hid funds in more than 100 foreign bank accounts, often under false names.

Pinochet, 89, ruled Chile from 1973 to 1990, a period when more than 3000 people died in political violence.

"This resolution ratifies that no one is above the law. It's been that way since we returned to democracy," government spokesman Osvaldo Puccio told reporters at the national palace.

Political scientist Guillermo Holzmann said the tax fraud case shows the Pinochet regime's attempts to protect itself from future prosecution while it was in power had failed.

"This is his weak spot and you can see the result," Holzmann said.

Chile returned to democracy in 1990, and many military officers have been convicted for human rights abuses during the dictatorship.

Pinochet has been accused in dozens of human rights cases in the courts, but has never been convicted because his defence has successfully argued that he is too infirm to face charges.

Pinochet's defence has said all the money in the accounts was legitimately earned through investments. Earlier this year Pinochet paid at least US$2.7 million in back taxes related to the accounts.

"We believe a great error has been committed and a tremendous injustice, because Mrs Lucia has nothing to do with Munoz's investigation," said Pinochet defence lawyer Pablo Rodriguez.

A Chilean appeals court voted in June to strip Pinochet of immunity from prosecution so he could face tax fraud and other charges in the investigation. The defence has appealed that ruling to the Supreme Court.

- REUTERS