News / World

Chile launches probe of Bachelet's daughter-in-law for fraud

SANTIAGO, Chile — Chilean prosecutors have launched a new formal criminal investigation targeting President Michelle Bachelet's daughter-in-law.

Natalia Compagnon, the wife of Bachelet's oldest son, and her business partner Mauricio Caval attended a court hearing Friday. They're suspected of participating in illegal dealings through Caval, a company that provided real estate and consulting services for mining companies.

Prosecutor Emiliano Arias says they are suspected of fraud during 2012-2013 in dealings with a businessman, selling him eight reports for $1.7 million with information lifted online from a copper company. They could face up to five years in prison.

Compagnon and Caval face another criminal probe following allegations of tax evasion in a real estate venture. They have been banned from leaving Chile during the case.

The unfolding scandal has hurt Bachelet's popularity.

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