Prosecutor: Espert's contract for $200,000 from convicted criminal is false

An Argentine prosecutor is seeking to indict former congressman José Luis Espert on charges of money laundering. Federal prosecutor Fernando Domínguez alleges that Espert laundered $200,000 received from a transnational criminal organization. The funds were allegedly laundered through the purchase of a BMW and a Lexus worth $130,000, as well as an investment in a trust in Costa Esmeralda.

According to the prosecution, a contract with a Guatemalan mining company, which Espert used to justify the $200,000 payment from Federico “Fred” Machado, is a simulation. Prosecutor Domínguez has also requested that Judge Lino Mirabelli investigate Espert's accountant, Mariano Alejandro Cosentino, and his company Varianza SA, which was established with Espert's wife.

The accusation details how $200,000, originating from a company linked to drug trafficking, was integrated into the formal economy. This was allegedly achieved through the purchase of high-end vehicles and the investment in a trust, with Fred Machado, an acquaintance of Espert, identified as a key figure. Machado was convicted in the United States for his involvement in a criminal organization that engaged in drug smuggling, money laundering, and fraud schemes involving non-existent aircraft.

Espert reportedly received the $200,000 transfer in a U.S.-based Morgan Stanley account in January 2020. The funds came from Wright Brothers Aircraft Title Inc., a company linked to Machado. The prosecution claims this account and the transfer were never declared by Espert to Argentine tax authorities.