An explosive video of Federico “Fred” Machado, an Argentine businessman accused of drug trafficking and money laundering, shook the political scene weeks before the legislative elections. In a recent interview with journalist Tanya Eiserer, from the Texas channel WFAA, Machado defended himself from his house arrest in Viedma, Río Negro, where he has been detained since 2021 due to an extradition request from the United States. In the video, he vehemently declares: “They portray me as if they were talking to El Chapo,” and adds: “I’m not a saint. I made mistakes, but I’m not a drug trafficker.” His words, intended to detach himself from the accusations, intensify the scandal that had already caused the resignation of José Luis Espert from his candidacy for La Libertad Avanza (LLA).
Machado is under house arrest in his mother’s house, in Viedma, while he faces a judicial process that began in 2021, when he was arrested in Neuquén. His arrest responds to charges from the Eastern District of Texas prosecutor’s office, which accuses him of participating in a million-dollar Ponzi scheme along with Debra Lynn Mercer-Erwin, sentenced to 16 years in prison in 2023.
According to US Justice, Machado received more than $75 million through an aircraft registration business for foreigners that covered up diversions of funds and shipments of cocaine on seized planes. He maintains that he was a victim of his partner and denies any link to drug trafficking, ensuring that he was just a client caught in the scheme.
This Tuesday, October 7, the Supreme Court of Justice of the Nation took a decisive step by approving the extradition of Machado to the United States, where he will be tried for charges 1, 2, 3, 4 and 7 of the Fifth Replacement Indictment, issued on May 5, 2021. Judges Horacio Rosatti, Carlos Rosenkrantz and Ricardo Lorenzetti supported the ruling of the acting attorney general. Eduardo Casal, declaring the transfer “appropriate”.
Now, the Executive Branch, headed by Javier Milei, has ten business days to decide whether to grant the extradition or block it for “reasons of national sovereignty” or “essential interests.” The Foreign Ministry will be in charge of reviewing the file before the final resolution.
