José Luis Espert, the economist who became famous with the slogan “jail or bullet,” now faces a plot that leaves him in contradiction with his own speech. Court documents link him to Federico “Fred” Machado, an Argentine businessman based in Florida, today accused in the United States of drug trafficking and fraud.
In the accounting seized by Texas prosecutors, an entry from February 1, 2020 appears: a transfer of $200,000 in the name of Espert, from Aircraft Guarantee Corp, the firm of Debra Lynn Mercer-Erwin, sentenced in 2024 to 16 years in prison. The money, according to the indictment, was part of a Ponzi scheme that used trusts to search airplanes and cover up cocaine smuggling schemes.
The problem is that Espert never declared that contribution. The investigation of his 2019 presidential campaign shows that Machado not only put money but also logistics: a private jet and an armored Jeep Grand Cherokee, in the name of his cousin Claudio Cicarelli. There is even a video of the candidate thanking him for “the excellent flight” after landing in Viedma.
The truck became an uncomfortable test: in August 2019 it was hit by two stones in the heart of downtown Buenos Aires. The case confirmed that it was registered in the businessman’s environment. It was then that this magazine revealed that Machado was the man behind the financing. Witnesses claim that the total contributions could have risen to 700 thousand dollars. That same year, Espert acquired a house in San Isidro, a BMW 0 km and, together with his wife, established the company Varianza SA, with inconsistencies in the declared dates.
Machado, for his part, built his fortune in Miami with the South Aviation firm. For the United States Justice Department, it was all a facade: of the 190 operations detected, only ten were legitimate. The rest, fraudulent maneuvers. Many of those planes ended up crashing or being seized with drugs in Central and South America. In 2021, required by the Texas Justice Department, he fled and ended up detained in Neuquén. Since then he has been under house arrest in his mother’s house in Viedma, while his lawyer Francisco Oneto – also defender of Milei and Espert – seeks to stop the extradition.
In interviews, Machado denies links to drug trafficking, although he admits financial fraud: “The clients thought they were investing in airplanes, but it was in a mine in Guatemala.” His speech does not clarify the hard fact: several of those planes were loaded with cocaine.
When he was arrested, the relationship with Espert became public. The economist relativized it as a “political operation.” The tension coincided with his breakup with Javier Milei: they went from allies to enemies. Milei even said that in 2021 he was offered $300,000 to get out of a candidacy. With the presidential victory of 2023, the reunion was inevitable: Espert returned to the libertarian front, but the pending accounts remained open.
Today, in the midst of the 2025 legislative campaign, Espert appears as the central candidate of La Libertad Avanza in the province of Buenos Aires. Faced with the revelations, he had to speak: he acknowledged that he met Machado in 2018 and that he flew on his plane, but he defended himself with the idea that he was “naive.” Regarding the million-dollar transfer, he dismissed it as “a piece of paper” and accused Juan Grabois of dirtying it. “I’m not going to resign. I’m stronger than ever. The President supports me,” he said.
Milei effectively supported it, although there was discomfort in the ruling party. Patricia Bullrich was clear: “Links to drug trafficking cannot be tolerated.” The contrast is evident: a party that made the fight against corruption and drug trafficking its banner, today protects a leader under suspicion.
The old accusations come back like a boomerang: Lilia Lemoine had pointed out in 2019 that it was financed by a drug trafficker; Agustín Romo called him a “valijero”; Milei himself had doubted his funds. All that was put on hold after the presidential victory.
The result is a disturbing picture. The leader who promised “jail or bullet” for corrupt people and drug traffickers appears involved in a scandal of illegal financing and crossed favors. Although today he denies and claims to be a victim of operations, the shadow of “Fred” Machado haunts him. And, win or lose in court, Espert’s credibility has already been called into question.
