Honduran court drops fraud charges against ex-president Hernandez after US pardon

A Honduran court on Tuesday dropped charges against former President Juan Orlando Hernandez, who had been accused of fraud and money laundering in a corruption scheme from 2010 to 2013. The decision follows Hernandez’s return to Honduras in July after receiving a pardon in the United States for a 2024 drug-trafficking conviction.

Judiciary spokesperson Carlos Silva told reporters that Hernandez was not responsible for budgetary decisions during the period of the alleged crimes. Hernandez, a leader in the right-wing National Party, called the ruling a vindication, stating, “This chapter of political persecution has now ended.” He argued the case “had no basis” and was politically motivated, adding, “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.”

Hernandez served as Honduras’ president from 2014 to 2022. During his tenure, he faced scrutiny from the U.S. Drug Enforcement Agency, despite being an ally in the U.S.-backed “war on drugs.” Prosecutors later accused him of abusing his power to aid drug traffickers, with the U.S. Department of Justice describing him as the “center of one of the largest and most violent drug-trafficking conspiracies in the world.” Court filings included a quote attributed to Hernandez, in which he allegedly said he would “shove the drugs right up the noses of the gringos.”

In April 2022, shortly after his presidency ended, Honduran officials extradited Hernandez to the U.S. He was convicted in March 2024 and sentenced to 45 years in prison. His conviction was celebrated by many Hondurans, with demonstrations held outside the New York City court during his sentencing, where protesters waved Honduran flags.

In a separate development, former U.S. Rep. George Santos was permanently banned from the betting platform Kalshi for insider trading. An investigation found Santos used nonpublic information to profit nearly $18,000 ahead of the State of the Union address in February. He was also fined $71,356. Santos had publicly suggested he would attend the event, influencing betting odds, before ultimately not appearing. Kalshi’s compliance department confirmed the ban, marking the first permanent expulsion from the platform. Four others involved in similar cases received temporary suspensions, including Republican congressional candidate Laurie Buckhout, who admitted to making a “stupid mistake” and was suspended for three years.