American businessman detained in Myanmar charged with breach of trust

An American businessman who was arrested in Yangon last week has been charged with breach of trust, a criminal offence that carries a penalty of up to life imprisonment, according to official sources familiar with the case. Adam Castillo, the former chair of the American Chamber of Commerce in Myanmar (AMCHAM Myanmar), was detained at Yangon International Airport on June 11 upon his return from Malaysia, where he had been promoting a recently published memoir. Sources said he is being investigated under Section 409 of Myanmar’s Penal Code, which deals with “criminal breach of trust by a public servant, or by a banker, merchant, or agent,” in connection with a controversial Washington lobbying initiative established during Castillo’s tenure as head of AMCHAM Myanmar. At the heart of the case is a US$300,000 contract signed with lobbying firm Mercury Public Affairs as part of the initiative. Myanmar police sources told Myanmar Now that the case was opened at Pabedan Township Police Station and is being handled by the Criminal Investigation Department. Authorities have not publicly disclosed details of the allegations. An email circulated among AMCHAM Myanmar members and reviewed by Myanmar Now alleges that the criminal complaint against Castillo was filed on June 8 by the chamber’s newly appointed executive director, Myat Phu The, acting on behalf of the organisation. The email further claims that former AMCHAM Myanmar executive director Danny Kyaw, who was removed from his position last year amid a governance dispute, was arrested on June 13, two days after Castillo. It was unclear whether he faces the same charge as Castillo. Brigadier-General Soe Lin Aung, spokesperson for the military-controlled Ministry of Home Affairs, confirmed that Castillo had been charged in connection with a criminal case but declined to provide further details, saying the matter remains under investigation. The arrest follows a bitter dispute that has divided Myanmar’s American business community over a lobbying effort launched in late 2024. According to multiple sources familiar with the matter, Castillo approached several Myanmar banking executives following Donald Trump’s election victory in the United States, arguing that Myanmar businesses needed stronger representation in Washington amid growing concerns over sanctions and relations with the incoming administration. Sources said funds were subsequently raised to support lobbying efforts in Washington. In November 2024, a contract worth nearly $300,000 was signed with Mercury Public Affairs, a prominent Washington lobbying firm. According to documents and sources familiar with the arrangement, the agreement involved an initial payment of US$200,000 and monthly payments of US$33,333. The arrangement later became the focus of an internal governance dispute after Khin Maung Win, Myanmar representative of American construction equipment manufacturer Caterpillar, succeeded Castillo as president of AMCHAM Myanmar. Following the leadership transition, the chamber launched a review of the US-Burma Economic Forum, a Washington-based advocacy platform established during Castillo’s tenure, and examined the circumstances surrounding the Mercury contract. AMCHAM Myanmar’s 2025-26 annual board report states that concerns emerged regarding the forum’s fundraising, governance arrangements, and external engagements. In response, the board established a governance review committee in June 2025. The report states that board members were unable to obtain complete information regarding the forum’s operations and oversight structures. Castillo subsequently resigned as chair of the forum in July 2025. AMCHAM Myanmar later retained international law firm Luther to conduct an investigation. According to a summary of Luther’s findings included in the annual report, the Mercury contract had not been formally approved by either the previous or current board of directors. The report further stated that payments associated with the agreement appeared to have been made outside the chamber’s official accounts. The annual report says investigators found no evidence that authority had been granted for the contract to be signed on behalf of AMCHAM Myanmar and that related financial transactions did not appear in the organisation’s accounting records. The report also warned that recognition of the contract could expose the organisation to potential liabilities under company, tax, foreign exchange and anti-money laundering laws. While the annual report itself does not accuse Castillo of criminal wrongdoing, sources familiar with the matter said AMCHAM Myanmar subsequently sought legal action over the disputed arrangement. However, the email circulated among chamber members presents a sharply different account of events. The authors claim that the lobbying initiative was approved by AMCHAM Myanmar's board during a meeting on October 25, 2024, attended by board members and legal advisers from Rajah & Tann. They further allege that board members approved lobbying activities involving Mercury Public Affairs and agreed that the costs would be funded by Misfit Technologies, a company associated with Castillo. The email disputes allegations that chamber funds were improperly used, claiming that all payments to Mercury were made directly by Misfit Technologies in the United States rather than through AMCHAM Myanmar accounts. In addition, the email alleges that Castillo was offered an opportunity to have the case withdrawn if he accepted responsibility, abandoned legal action against current AMCHAM leaders, and agreed to leave Myanmar. Myanmar Now has been unable to independently verify the claim. The governance dispute triggered wider tensions within AMCHAM Myanmar. Danny Kyaw was removed as executive director, while a security reporting service operated by Castillo was discontinued. In March this year, AMCHAM Myanmar declined to renew the memberships of Castillo and his Yangon-based security service company AGS Myanmar, as well as that of Misfit Technologies for its alleged involvement in the lobbying initiative. People familiar with the dispute said Castillo later filed defamation proceedings against several current members of the chamber’s leadership. Khin Maung Win, the current chair of AMCHAM Myanmar, did not respond to requests for comment. A former US Marine, Castillo moved to Myanmar in 2013 and established businesses providing security, risk management, and advisory services to foreign companies operating in the country. Over the following decade, he became one of the most prominent figures in Myanmar’s foreign business community and rose to lead AMCHAM Myanmar. Just days before his arrest, Castillo was in Malaysia promoting his memoir, Finding Our Voice, which recounts his experiences building businesses in Myanmar and navigating the country's political and economic turmoil, including the aftermath of the 2021 military coup.

American businessman detained in Myanmar charged with breach of trust

The charge, which carries a penalty of up to life imprisonment, is related to a controversial Washington lobbying initiative

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