Timing

With the LyFC takeover, now's not a great time for a scandal involving the CFE, but one can't quite plan these things:

John Joseph O'Shea, 57, of Pleasanton, Calif., was charged in an 18-count indictment returned by a federal grand jury in Houston last week. He faces charges including conspiracy, violating the Foreign Corrupt Practices Act, money laundering and falsifying records.

According to the indictment, O'Shea and a Mexico City businessman, Fernando Maya Basurto, 47, conspired to funnel up to $900,000 in 2004 to four top officials with the Comisión Federal de Electridad, Mexico's grid operator.

The men coordinated payments to shell companies in Mexico and a bank account in Germany, which were then passed on to the Mexican officials, the indictment alleges. In one case a payment was made directly to a U.S. military school to pay the tuition for the son of one official.

The Houston Chronicle's business blog wonders why there hasn't been any action on the Mexican side of the case.

Update: The PGR has initiated an investigation into the matter.