Ex-Gov Eugenio Hernandez Flores was detained in the state capital of Victoria, said Javier Castro Ormaechea, Tamaulipas' anti-corruption prosecutor. Hernandez faces charges for misuse of public funds and use of illicit funds related to the acquisition of about 4,000 acres (1,600 hectares) in the port city of Altamira. Hernandez served as governor until 2010.
Jorge Olvera Reyes, lawyer for Hernandez, said his client denies the allegations and would fight them in court.
As early as January 2012, Mexican prosecutors said they were investigating public officials in Tamaulipas. Hernandez and two other ex-governors from the same party acknowledged then they were subjects of the probe, but denied wrongdoing.
Hernandez's predecessor Tomas Yarrington was arrested in Italy this year and is awaiting extradition.
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