US court files show Espert received US$200,000 from alleged narco-trafficker

Information obtained from a United States court is turning into a new headache for national deputy José Luis Espert, La Libertad Avanza’s top candidate for the upcoming midterm elections.

On February 1, 2020 he received a money order for US$200,000. It came from an acquaintance who today is under arrest in Argentina, awaiting extradition to the United States [Editor's note: the extradition request was suspended this week after four years of court delays]. 

The information emerges from criminal charges filed with the US courts to which Perfil had access. It has been presented by social activist and lawyer Juan Grabois to demonstrate the alleged economic links between Espert, the current Lower House Budget Committee chairman and Federico Andrés “Fred” Machado, an Argentine businessman suspected of involvement in drug-trafficking.

Machado has been under arrest since April 16, 2021, accused of being part of “a conspiracy to produce and distribute cocaine.” He also faces charges of fraud and money-laundering which have already resulted in a prison sentence 16 years for Deborah Lynn Mercer-Erwin, his former partner within the international criminal structure which has Machado detained, awaiting the Supreme Court response to a request for him to be extradited in the same case.

The US court documents show that the US$200,000 payment was made to Espert by a trust named Aircraft Guarantee Corp., which was managed by Machado and Mercer-Erwin.

Relationship

The relationship between Machado and Espert began in 2019 when the then-presidential candidate thanked “Fred” for his support at a book presentation in in Viedma, Rio Negro, Fred’s native province, the one he left early this century to pursue a business career in the United States. 

Since that date – the launch of Espert’s book La Sociedad Cómplice (“Society as an accomplice”) – questions have arisen as to the nature of the link between Espert and Machado. In recent years, the questions have been answered in part by various investigative reporters who have demonstrated the existence of a political and economic agreement with mafia contacts. 

Nevertheless, clues were still missing as to the money route for confirming the main reason for suspecting that Machado had decided to back Espert’s presidential candidacy in exchange for a scheme he had already deployed in Central America – i.e. support with money and transfers in a private aircraft and a Grand Cherokee van.

“From documentation presented as credible and direct proof by the prosecutor’s office for the Eastern District of Texas, during the trial of the drug-trafficking organisation formed by Mercer-Erwin and Machado, at least one payment made by these dangerous criminals to Espert is made known,” maintains Grabois’ denunciation, to which Perfil had access. 

“According to the secret accountancy of the organisation found by the investigators, the deputy appears as an accomplice by virtue of a payment made on February 1, 2020 via a money order of US$200,000,” it continues.

This figure emerges from registered reserve accounts obtained by the prosecutor's office. In the accusation, it is detailed that Mercer-Erwin and Machado “noted the name of the person depositing the funds into what were supposed to be guarantee accounts, but in reality were transferred to companies controlled by Machado and his ‘accomplices.’” 

The denomination is not gratuitous, forming part of the terminology of the Internal Revenue Service (IRS) of the United States in the official document notifying the arrest of Machado’s partner. Such financing, according to the denunciation, is based on “criminal actions across borders by drug-traffickers laundering money via the acquisition of aircraft” through a pyramid system for “laundering the money of companies linked to narcos and in parallel defrauding legitimate firms.” 

When that scheme came under the scrutiny of US courts, Machado moved to Argentina and began to weave links with Espert, which became formalised in 2019.

Following an extensive investigation published by the portal ElDiarioAR, journalist Sebastián Lacunza has alleged the pact with Machado included a request by Espert for some US$5 million following a meeting in March, 2019 in San Fernando airport. 

Two years later, in May, 2021, journalist Rodis Recalt demonstrated in Noticias magazine that their connection included use of a private King Air jet registered as “N28M” belonging to Machado, and the use of a Cherokee jeep.

Assets

Using Espert’s judicial filings, Lacunza reports that the lawmaker's assets have grown since meeting Machado. 

“The evolution of Espert’s assets as reported to the Anti-Corruption Office between the years 2021 and 2024 reinforces that assumption” because “according to his sworn statements, Espert increased his assets by over 230 million pesos in only two fiscal years, passing from 29,489,019 pesos in 2022 to 261,965,406 in 2024.” 

The increase represents 789 percent and “is absolutely out of all proportion to his incomes from work and his declared earnings, even when contemplating the generous sums reported,” noted the journalist. 

In order to demonstrate that the payment of US$200,000 in February, 2020 was the start of the relationship, focus is placed on another detail: “In the financial year 2023 he declared incomes of 54 million pesos, but his assets grew by over 92 million in that same period.”

The data provided in this denunciation permit us to understand an experiment beginning in Central America and then seeking replication in Argentina. The writ reconstructs the flights by Machado’s aeroplanes between the United States and Argentina, with a series of connections in terms of time, which again lead to Espert.

Since being apprehended, Machado has been detained under house arrest in Río Negro. 

His lawyer is Francisco Oneto, who also represents President Javier Milei in the ‘$LIBRA’ cryptocurrency case. Two years ago he ran for Buenos Aires Province lieutenant-governor with the backing of Espert.