A former top Guatemalan government aide has dropped his fight against US sanctions, leaving a federal judge’s ruling in place. Luis Miguel “Miguel” Martínez Morales once ran the Centro de Gobierno, a government coordination office under former president Alejandro Giammattei, and a US appeals court accepted the withdrawal of his appeal on 20 October 2026.
The US Treasury Department listed him in December 2023 over alleged corruption, and Guatemalan prosecutors have since raided properties linked to his family and associates. The case concerns the reach of US sanctions into Guatemalan politics, and which US banks and companies must keep away from him.
- Ruling A US judge upheld the sanctions on 24 July 2026, and his appeal ended on 20 October.
- Listing He remains on the US Treasury sanctions list over alleged corruption, not a conviction.
- Reason His one-page filing gave no reason for withdrawing the appeal.
- At home Prosecutors carried out 13 raids on properties linked to his family and associates on 23 September.
- Charges We found no report of criminal charges against him in Guatemala.
What Happened in Court
Martínez filed a one-page notice asking the US Court of Appeals for the D.C. Circuit to let him withdraw his appeal.
On 20 October 2026 the court, a federal appeals court based in Washington, granted his request. It then issued its mandate, a formal order that sends the case back to the lower court.
The earlier ruling by Judge Beryl A. Howell of the US District Court for the District of Columbia therefore stands. Howell had ruled on 24 July 2026 that the Office of Foreign Assets Control, known as OFAC, kept the sanctions in place.
OFAC is the Treasury Department office that enforces US sanctions, and she found it did not act arbitrarily. She also accepted OFAC’s use of classified material in the case.
Martínez had sued the Treasury Department to get off the sanctions list. Martínez appealed to the D.C.
Circuit on 10 August 2026. His final filing said he no longer wishes to continue with the appeal and gave no reasons.
Why He Was Sanctioned
OFAC added Martínez to its Specially Designated Nationals list, known as the SDN list, on 1 December 2023. It acted under Executive Order 13818, a US order that targets corruption and serious human rights abuse.
The Treasury Department alleges that Martínez solicited bribes tied to the purchase of Russia’s Sputnik V Covid vaccine. It also alleges he steered public contracts, but these are allegations and a sanction is not a criminal conviction.
The listing blocks his property in the US and bars US persons and companies from dealing with him. That includes providing or receiving funds, goods or services.
Martínez asked OFAC to reconsider the listing, and he sued in federal court in September 2024. OFAC rejected his request in February 2025.
He later asked for summary judgment, a ruling without a full trial. Howell decided that request on 24 July 2026.
What Is Happening in Guatemala
Martínez headed the Centro de Gobierno under Giammattei, and the office no longer exists. It coordinated government work, and Giammattei is now a former president.
On Wednesday 23 September 2026, prosecutors from the organized crime unit of the Public Ministry carried out 13 raids on properties linked to Martínez’s family and associates. The Public Ministry is Guatemala’s prosecution service, and the raids included his parents’ home in Jocotenango, a town in Sacatepéquez department.
Officers seized phones, USB drives and government documents during the operation. Prosecutors have said further steps are being prepared under secrecy.
On 25 September, Attorney General Gabriel Estuardo García Luna said there were “countless complaints” about Martínez. He said most concerned money laundering and some concerned organized crime, and that all were being investigated, including relatives and associates.
Earlier complaints against Martínez were dismissed under former attorney general Consuelo Porras. We found no report of criminal charges against him.
What Is Not Known
Martínez gave no reason for ending his appeal. It is not known whether he will seek other relief, such as a new request to OFAC.
It is also unclear whether Guatemalan prosecutors will bring charges. The amounts involved in the alleged bribes are not known.
For now, the US sanctions and the Guatemalan investigation run on separate tracks. Neither amounts to a criminal conviction.
What It Means for You
For US readers, a federal judge upheld the Treasury sanction here, even though part of the evidence is classified. The listing did not depend on a Guatemalan conviction.
US banks and businesses remain barred from dealing with Martínez. Companies with Guatemalan partners can check names against the public SDN list.
The case also sits alongside US and Guatemalan anti-crime cooperation, which we have covered before. More background is in our Guatemala coverage, and for now the sanctions stay while the investigation continues.
Frequently Asked Questions
Why did Miguel Martínez drop his appeal?
His one-page filing gave no reason. It said only that he no longer wishes to continue with the appeal.
Is he still under US sanctions?
Yes, he remains on the OFAC sanctions list. Judge Howell’s ruling of 24 July 2026 stands after the appeal ended.
Has he been convicted of a crime?
No. Sanctions are not a criminal conviction, and we found no report of criminal charges against him in Guatemala.
What do the sanctions mean for US companies?
US persons and companies cannot deal with him, and his property in the US is blocked. That includes providing or receiving funds, goods or services.
Sources: US Treasury Office of Foreign Assets Control, SDN listing of 1 December 2023 (ofac.treasury.gov); US District Court for the District of Columbia, ruling of 24 July 2026; US Court of Appeals for the D.C. Circuit, order of 20 October 2026; Guatemala’s Public Ministry, statements of 23 and 25 September 2026.
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