NOGALES, Arizona - September 28, 2010 - The mayor of Nogales was arrested Tuesday on multiple charges including bribery, theft, fraud and money laundering, Arizona's attorney general said.

Mayor Octavio Garcia Von Borstel, 29, was taken into custody at his office at Nogales City Hall. Search warrants were executed at the mayor's home, business and office.

The mayor's father, Octavio Suarez Garcia, 59, of Nogales, was also indicted and arrested Tuesday. He faces several charges that include fraud, theft and money laundering.

Atttorney General Terry Goddard called the charges serious.

"Because some charges involve the official actions of an elected official, they violate the public trust," Goddard said. "Both the mayor and his father will be held accountable and prosecuted to the full extent of the law."

Goddard's office said FBI agents began investigating Garcia Von Borstel five months ago and determined he was soliciting Nogales businesses as early as February 2009 to hire him as a business consultant.

At least one business admitted to the FBI that it was paying the mayor to use his official position to obtain business contracts and, specifically, to obtain new City of Nogales contracts, circumventing either open bidding or proper application processes.

A news release said further investigation determined the mayor also received money from at least one business in exchange for using his official position to protect a contract the business owner had with the city and to assist the owner in obtaining an additional city contract.

Goddard alleges the mayor's father, Garcia Suarez, was authorized to sell Western Union money orders from his money transmitter business, ACE Cash Express, in Nogales. The state says Garcia Suarez fraudulently reported that Western Union money orders worth $3.2 million were sold though there were no cash deposits to back them up.

The money orders were then cashed by Garcia Von Borstel and deposited into a bank account he controlled.

Of the $3.2 million, the father and son withdrew $565,000 for their personal use before the account was frozen, prosecutors said.

Garcia Von Borstel has been mayor of the southern Arizona city since April 2008.