Democratic leaders question Hovde's ties to Mexican bank

EAU CLAIRE — Democrats in Wisconsin are criticizing Republican Senate candidate Eric Hovde after a news report last week that shows the bank he manages has accepted $26.2 million in cash from a Mexican bank that may have ties to drug cartels.

Ben Wikler, chairman of the Democratic Party of Wisconsin, held a conference call Monday morning to discuss a Milwaukee Journal-Sentinel report last week, which showed Banco Azteca flew $26.2 million in cash to Hovde’s Sunwest Bank in Irvine, Calif. The article shows that many other U.S. banks have declined to work with Banco Azteca because of its reported ties to Mexican drug cartels.

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

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

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

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

Wikler said he has always had concerns about Hovde operating the bank without divulging its clientele. Wikler questions what sort of influence they could have if Hovde were elected.

“It’s part of what makes him so extraordinarily wealthy, and makes him so out of touch with Wisconsin residents,” Wikler said during the conference call.

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

“Other American banks have stopped doing work with Banco Azteca out of fear of working with the cartels,” Wikler said.

In Dec. 2023, right before Hovde joined the U.S. Senate race, the cash was flown to California on four separate planes, the news article indicates.

“This is a very concerning 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 has to come clean on what other banks he is working with.”

Arik Wolk, spokesman of the state Democratic Party, said they are not suggesting Hovde or Sunwest Bank have done anything illegal.

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

Another recent news story showed many U.S. banks have declined to work with Banco Azteca because of “risk and compliance concerns,” leaving Banco Azteca holding large sums of U.S. currency with no place to offload 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 on the bus tour. Wikler said he wasn’t surprised that the bus tour was happening because everyone knows that the final result in Wisconsin will be close.

“This is a very narrow margin of victory state, and the GOP is scrambling to catch up,” Wikler said.