Prosecutors find hidden vault at mansion of ousted Trump ally Santiago Peña

Paraguayan prosecutors searching the lakeside mansion of ousted President Santiago Peña, one of the Trump administration's closest partners in South America, found a vault hidden behind a false wall. Its Israeli-made security system kept investigators out, and prosecutors plan to return Monday.

Prosecutors and police raided the summer mansion of former Paraguayan President Santiago Peña on Sunday evening and found a vault hidden behind a false wall, Paraguay's ABC Color newspaper reported. The search of the property in Ciervo Cuá, in the lakeside town of San Bernardino about 30 miles from Asunción, began shortly before 7 p.m. and was led by prosecutors Cristian Benítez, Elena Fiore and Silvia González.

Investigators came upon a hidden door in one of the rooms, reached through a corridor, ABC reported. Behind it was an armored door fitted with what ABC described as a sophisticated Israeli-made security system that requires at least four keys to open: facial or iris recognition, a fingerprint, a PIN code and multilock keys. The team left without opening it, and prosecutors made no statement. ABC said they planned to return Monday.

The footage, broadcast live by Paraguayan channel NPY, shows prosecutors and police officers moving through the grounds and the house during the search as the sun sets over Lake Ypacaraí. The on-screen banner reads "a vault was found in Santiago Peña's mansion in San Bernardino."

From president to detainee

Peña, 47, announced his resignation last Thursday, and Congress removed him in a fast-track impeachment trial on Friday after mass protests, AFP reported. Vice President Pedro Alliana took over. A judge ordered Peña held in pretrial detention on Saturday, and he is being held at the Presidential Escort Regiment in Asunción. In a statement, the Public Ministry said the raid concerned alleged breach of trust, as an instigator, and self-serving administration, as a perpetrator.

Former President Santiago Peña arrives at Paraguay's Attorney General's Office on Nov. 7

The case stems from the collapse of Ueno Bank, which the Central Bank of Paraguay shut down on Tuesday for insolvency, cutting nearly 3 million customers off from their deposits. Prosecutors say the digital bank took in money from public and pension entities while making irregular loans to companies tied to its owners. Peña was a shareholder in the group until 2025. According to the charging document, Ueno lent him about $500,000 in May 2024 to build the mansion, with monthly payments almost six times his presidential salary.

Peña's lawyer told reporters his client declares himself innocent and "could not have directly ordered" any funds to be placed in the bank. Alliana, who thanked the U.S. Embassy for its support during the crisis, said deposits had already been returned to nearly 1.2 million savers.

Cover and photo: Paraguay Public Ministry. Video: NPY

Prosecutors find hidden vault at mansion of ousted Trump ally Santiago Peña