Four people convicted as accomplices in Ecuador's high-profile Triple A fuel smuggling case will face a virtual sentence suspension hearing on September 14.
The hearing was called for 5:00 p.m. local time on Monday, September 14, 2026, by Judge Jorge Sánchez Pico of the Specialized Criminal Guarantees Tribunal for the Trial of Crimes Related to Corruption and Organised Crime. The judge ruled that the proceeding will be conducted virtually.
The four individuals requesting conditional suspension of their prison sentences are Carolina del Rocío Troya, Lady Juliana Cedeño, Jessenia Vélez Orellana, and José Ricardo Cevallos Avellán. Each received a sentence of two years and eight months in prison after being found guilty as accomplices in the illegal storage, transport, packaging, marketing, and distribution of hydrocarbons.
Judge Sánchez Pico ordered all key parties to attend the online session. Those required to appear include representatives from the State Attorney General's Office, the four convicts along with their legal defense teams, and the private prosecuting entities, which comprise state oil company Petroecuador and the Hydrocarbons Regulation and Control Agency (ARCH).
Sentences and fuel diversion scheme
The upcoming hearing follows a first-instance ruling handed down by the tribunal on August 29. In that verdict, the court sentenced Guayaquil Mayor Aquiles Alvarez and four other individuals to six years and eight months in prison as principal perpetrators of the illegal fuel trade scheme.
According to the prosecution led by the State Attorney General's Office, the corruption network illegally diverted 22.7 million gallons of diesel and gasoline between 2020 and 2024. Investigators found that the illicit mechanism involved purchasing fuel intended for the automotive sector at government-subsidised rates and reselling it to the industrial and international maritime sectors at unapproved, higher market prices.
Prosecutors stated that the systematic diversion caused an estimated economic loss of $61.5 million to the national treasury over the four-year period. In Ecuador, state subsidies significantly reduce fuel costs for domestic road transport, creating price differentials that criminal networks exploit by redirecting fuel to commercial shipping and industrial operations.
Corporate shutdowns and financial penalties
Alongside the prison terms, the tribunal ordered the six convicted individuals to pay $61.5 million in comprehensive financial reparations split between Petroecuador and ARCH. The court also imposed fines equivalent to 12 basic salaries on the natural persons convicted in the case.
The judicial tribunal further targeted commercial entities linked to Mayor Alvarez and his family. The court decreed the permanent closure and corporate dissolution of six companies: Copedesa S.A., Corpalubri S.A., Ternape Petroleum S.A., Fuelcorp S.A., Indudiésel S.A., and Harsajudi S.A. Each of the corporate entities declared guilty was assessed a fine of 1,000 basic salaries.
Background and pending appeals
Aquiles Alvarez is a prominent Ecuadorian businessman and political figure who took office as Mayor of Guayaquil, Ecuador's largest coastal city and primary commercial port. Petroecuador operates as the state-owned oil enterprise managing national hydrocarbon production and refining, while ARCH serves as the public regulatory body overseeing fuel distribution compliance.
The tribunal acquitted six other defendants during the trial, ruling that prosecutors had not proven their direct involvement in the smuggling network. However, the State Attorney General's Office has filed a formal appeal against all six acquittals, seeking to overturn the non-guilty verdicts in higher court proceedings.
