Democratic leaders question Hovde’s ties to Mexican bank

EAU CLAIRE — Wisconsin Democrats are criticizing Republican Senate candidate Eric Hovde after a news report last week revealed that the bank he controls accepted $26.2 million in cash from a Mexican bank with possible ties to drug cartels.

Wisconsin Democratic Party Chairman Ben Wikler held a conference call Monday morning to discuss a Milwaukee Journal-Sentinel report from last week that revealed Banco Azteca flew $26.2 million in cash to Hovde’s Sunwest Bank in Irvine, California. The article notes that many other U.S. banks have refused to work with Banco Azteca because of its alleged ties to Mexican drug cartels.

Hovde is running against incumbent Democratic Sen. Tammy Baldwin. Two polls released last Thursday — The Hill/Emerson and Marist — show Baldwin with a three-point lead in the state, both within the margin of error. A Quinnipiac poll from last week showed Baldwin ahead by four points.

The Wisconsin Republican Party did not immediately respond to requests for comment.

Hovde is chairman and CEO of Sunwest Bank. Hovde told the Journal-Sentinel that the money came from tourism activities.

“Sunwest has an incredibly strong compliance and anti-money laundering program that is monitored and takes this area very seriously,” Hovde told the Journal-Sentinel for their article.

Wikler said he was always concerned about Hovde running the bank without disclosing his clientele. Wikler wonders what kind of influence they could have if Hovde were elected.

“It’s one of the reasons why he’s so extraordinarily wealthy, and why he’s so out of touch with the people of Wisconsin,” Wikler said on the conference call.

In recent years, Banco Azteca has also been accused of bribery in Texas.

“Other U.S. banks have stopped working with Banco Azteca for fear of collaborating with the cartels,” Wikler said.

In December 2023, just before Hovde entered the U.S. Senate race, the money was flown to California on four separate planes, the news article alleges.

“This is a very disturbing revelation about Eric Hovde’s judgment and why he is doing this when other banks have refused to do so,” Wikler said. “What other foreign banks would have influence over him? Eric Hovde needs to be honest about which other banks he is working with.”

Arik Wolk, spokesman for the state Democratic Party, said there is no suggestion that Hovde or Sunwest Bank did anything illegal.

“Hovde is willing to do anything to enrich himself, even smuggling cash across the border for a bank suspected of working with criminal groups that smuggle deadly fentanyl into our state,” Wolk said.

Another recent news report revealed that many US banks have refused to work with Banco Azteca due to “risk and compliance concerns,” leaving Banco Azteca holding large sums of US currency with no place to put it.

Wikler also addressed a Republican bus tour that was traveling through Wisconsin to promote former President Donald Trump’s campaign. Trump is not participating in the bus tour. Wikler said he was not surprised the bus tour went ahead because everyone knows the final outcome in Wisconsin will be close.

“This is a state with a very small margin of victory, and the GOP is doing everything they can to catch up,” Wikler said.