He announced his split from the PLC in protest of the control of the party by former President Alemán, who was imprisoned for misappropriation of funds.

[3] Because of Montealegre's stand against corruption of Arnoldo Alemán's PLC, and Daniel Ortega's Sandinista National Liberation Front, the U.S. ambassador in Managua openly endorsed his candidacy.

Montealegre dismisses the charges, stating that he was no longer employed by the government when the bonds were emitted.

In 2008, one of the members of the commission said the conclusions had been politically motivated and some of the facts invented under instructions from former President Arnoldo Alemán (1997–2002).

After losing control of the leadership of the ALN, Montealegre agreed to run for mayor of Managua in the November 2008 municipal elections as candidate of the alliance led by his former party, the PLC still ruled by Arnoldo Aleman.