Horacio Cartes
Horacio Manuel Cartes Jara (born July 5, 1956) is a Paraguayan businessman and politician who served as President of Paraguay from 2013 to 2018 and currently serves as president of the Colorado Party. Before entering politics, he built one of the largest business conglomerates in Paraguay, with interests spanning tobacco manufacturing, banking, agriculture, and real estate.
Cartes is one of Paraguay's wealthiest individuals, with an estimated net worth of approximately US$500 million. His tobacco company, Tabesa, became one of the largest cigarette manufacturers in Paraguay and South America, though it has been the subject of numerous smuggling allegations involving major criminal organizations.
In January 2023, the U.S. Department of the Treasury sanctioned Cartes for his alleged involvement in "rampant corruption," accusing him of obstructing international criminal investigations and bribing legislators. The United States also accused him of connections to Hezbollah. In October 2025, these sanctions were lifted by the Trump administration, which stated they were "no longer in the interests of the United States."
Early life
Horacio Manuel Cartes Jara was born on July 5, 1956, in Asunción, Paraguay, to Ramón Telmo Cartes Lind and Elva Jara Lafuente. He has three siblings: Jorge, Sarah, and Mercedes.
His father was the representative of the Cessna Aircraft Company in Paraguay, having obtained the franchise in 1958. This exposed young Horacio to aviation and business from an early age and influenced his educational path.
Cartes attended prestigious private schools in Asunción before pursuing further education abroad.
Education
Following his father's encouragement to pursue a career in the aeronautics industry, Cartes traveled to the United States to study at the Spartan School of Aeronautics (now Spartan College of Aeronautics and Technology) in Tulsa, Oklahoma. There he trained in aviation mechanics.
He returned to Paraguay at age 19 to begin his entrepreneurial career.
Business career
Tobacco industry
Cartes's business empire was built on tobacco manufacturing. In 1979, at age 23, he began working in his father's cigarette company, Tabacalera del Este.
In 1991, he founded his own cigarette company, Tabesa (Tabacalera del Este S.A.), which grew to become one of the largest cigarette manufacturers in Paraguay and a significant player in the South American tobacco industry.
Tabesa's operations have been controversial. Cigarettes traced back to the company have allegedly been found being moved and sold by Latin America's major criminal organizations, including:
- Colombia's FARC guerrillas
- Brazil's First Capital Command (PCC)
- Mexico's Zetas Cartel
- Mexico's Sinaloa Cartel
Cartes has denied involvement in smuggling operations.
Banking
Cartes founded Amambay Banco, which became one of Paraguay's largest private banks. The bank later became the subject of money laundering allegations, with U.S. officials claiming in the late 2000s that the bank was responsible for up to 80 percent of money laundering in Paraguay.
Grupo Cartes
Through his conglomerate, Grupo Cartes, he built a diversified business empire spanning approximately 25 companies, including interests in:
- Tobacco manufacturing (Tabesa)
- Banking (Banco Amambay)
- Soft drink production
- Meat production
- Real estate
- Agriculture and livestock
He left the conglomerate in 2023 amid increasing legal scrutiny.
Football
Cartes was president of Club Libertad, one of Paraguay's most successful football clubs, from 2001 until 2012. He also served as president of the national team within the Paraguayan Football Association during the 2010 FIFA World Cup qualification campaign.
Political career
Entry into politics
Until 2008, Cartes was entirely uninvolved in politics and was not even registered as a voter. He joined the conservative Colorado Party in 2009, stating he wanted to counter the swing to the left in Latin American politics.
According to U.S. Treasury officials, Cartes provided financial investments and incentives to induce the party to eliminate its 10-year length-of-affiliation requirement, which would otherwise have barred his candidacy.
Presidential campaign (2013)
Cartes won the Colorado Party's internal primary and then the general election on April 21, 2013, receiving 45.80% of the vote.
U.S. officials later alleged that he paid party members up to $10,000 each to support his candidacy ahead of the 2013 elections.
Presidency (2013–2018)
Cartes was sworn in as President of Paraguay on August 15, 2013. In his inaugural address, he declared a war on poverty in Paraguay.
According to U.S. Treasury allegations, during his presidency Cartes maintained his grip on policymaking through monthly cash bribes to loyal legislators, with payments ranging from $5,000 to $50,000 per member. He allegedly terminated payments to legislators who failed to carry out his orders.
In 2017, Cartes allegedly pledged $1 million of his own wealth to buy legislators' votes to support an unsuccessful push for constitutional reform that would have allowed him to seek re-election.
President of the Colorado Party (2023–present)
Cartes was elected president of the Colorado Party in 2023, maintaining his political influence despite the U.S. sanctions then in effect against him.
Controversies
U.S. sanctions (2022–2025)
On July 22, 2022, the U.S. Department of State designated Cartes for involvement in "significant corruption." The designation triggered a U.S. visa ban against Cartes and his three adult children.
In January 2023, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) imposed further sanctions, accusing Cartes and Vice President Hugo Velázquez of involvement in "rampant corruption that undermines democratic institutions in Paraguay."
According to Treasury officials, Cartes "engaged in corruption before, during, and after his term as President of Paraguay. His political career was founded on and continues to rely on corrupt means for success."
The Treasury alleged that after leaving office, Cartes continued bribing legislators to direct votes in his interest, with top supporters receiving as much as $50,000 monthly.
On October 6, 2025, the Trump administration lifted the OFAC sanctions on Cartes, stating they were "no longer in the interests of the United States." Cartes publicly thanked President Trump for the decision.
Hezbollah connections
The U.S. government accused Cartes of connections to Hezbollah, the Lebanese militant group designated by the United States as a terrorist organization.
According to U.S. officials, "Hezbollah has regularly held private events in Paraguay where politicians make agreements for favors, sell state contracts, and discuss law enforcement efforts in exchange for bribes. Representatives of both Cartes and [Vice President] Velázquez have collected bribes at these meetings."
Cartes has denied any connection to Hezbollah.
Money laundering allegations
Multiple investigations have targeted Cartes for alleged money laundering:
DEA investigation (2010): A classified memo from the U.S. Drug Enforcement Administration described a joint investigation examining an alleged "Cartes money laundering enterprise, an organization believed to launder large quantities of United States currency generated through illegal means."
Banco Amambay: U.S. embassy officials singled out Cartes's bank as a money-laundering center, with one staffer claiming the bank was responsible for up to 80 percent of money laundering in Paraguay.
Dario Messer connection: Cartes allegedly provided shelter to Dario Messer, described as one of the region's largest-ever money launderers. In 2019, Brazil's Attorney-General's Office sent Paraguay an extradition request for Cartes in connection with the Messer case, though it was later dropped.
Brazil arrest warrant (2019): Brazil issued an arrest warrant against Cartes over money laundering accusations. Cartes denied the charges and said he would make himself available for investigation in Paraguay.
Pandora Papers
The Pandora Papers investigation revealed that Cartes controlled an offshore company, Dominicana Acquisition SA, created in Panama in 2011. The company, owned by Cartes and his three children, held an apartment in Miami and a Paraguayan bank account.
Investigative journalists discovered that Cartes never included Dominicana Acquisition in his sworn statement of assets during his years as president. He quietly amended his declarations in 2021 after journalists asked about the offshore entity.
Earlier controversies
Currency fraud (1986): Cartes spent 60 days in jail during a currency fraud investigation. He was accused of making millions of dollars by obtaining a central bank loan at a preferential exchange rate and then moving it through his money exchange business before purchasing farm equipment in the United States.
Drug plane incident (2000): A plane carrying illegal drugs landed at one of Cartes's ranches. He denied any involvement.
Cigarette smuggling accusations (2004): The Brazilian Congress accused him of smuggling cigarettes into Brazil.
Obstruction of justice allegations
The U.S. State Department specifically accused Cartes of obstructing a major international investigation into transnational crime in order to protect himself and his criminal associates from potential prosecution and political damage.
Personal life
Marriage and family
Horacio Cartes was married to María Montaña, with whom he has three children:
- Juan Pablo Cartes Montaña
- Sofía Cartes Montaña
- María Sol Cartes Montaña
The couple eventually divorced. Cartes maintains a relatively private personal life.
All three adult children were designated by the U.S. Department of State for corruption-related sanctions in 2022.
Religious affiliation
Cartes is Catholic.
Net worth
Estimates of Horacio Cartes's net worth vary:
- A 2021 affidavit by Cartes declared his net worth at $490 million (₲3.6 trillion)
- Other estimates place his wealth at approximately $500–700 million as of 2024
His fortune derives primarily from his tobacco manufacturing, banking, agricultural, and real estate interests.
Legacy
Horacio Cartes's legacy is deeply controversial:
Business accomplishments: He built one of Paraguay's largest business empires, demonstrating significant entrepreneurial ability across multiple industries.
Political influence: He rose from political outsider to president in just four years, and continues to wield significant influence as Colorado Party president.
Corruption allegations: The detailed U.S. government allegations of systematic bribery, money laundering, and obstruction of justice have severely damaged his international reputation.
Tobacco controversy: The alleged connections between his tobacco company and major criminal organizations raise serious questions about the origins and practices of his business empire.
Sanctions reversal: The lifting of U.S. sanctions in 2025 under the Trump administration, without public explanation of changed circumstances, has generated its own controversy about political motivations.