Milei ally José Luis Espert indicted on money laundering charges

A federal judge in San Isidro indicted former La Libertad Avanza (LLA) lawmaker José Luis Espert on money laundering charges as part of an investigation into a transfer linked to a company associated with Federico “Fred” Machado, who was indicted in the United States in 2021 on fraud and money laundering charges.

The ruling also ordered a freeze on the libertarian economist’s assets worth 1 billion pesos (US$650,000 at the official exchange rate) and barred him from leaving the country.

The case seeks to determine the origin and destination of the transferred funds and establish whether Espert participated in transactions intended to introduce money from illicit sources into the legitimate financial system. 

The investigation focuses on financial transactions linked to Machado, who is also under investigation in the U.S. over his alleged ties to criminal activities.

Espert ran for president in 2019 and was elected to the Lower House of Congress in 2021, representing Buenos Aires province.

In 2025, amid mounting political pressure and intense media scrutiny, he withdrew his candidacy as LLA’s lead candidate for the Buenos Aires provincial delegation to the Chamber of Deputies ahead of the October midterm elections. 

President Javier Milei publicly defended the fellow libertarian, claiming he was the target of a political operation. Espert later requested a leave of absence from his congressional seat.

The investigation The indictment comes after the Federal Court of Appeals in San Martín rejected motions to dismiss the case filed by Espert’s defense team, allowing the money laundering investigation to proceed. 

The court found no evidence of irregularities that would justify invalidating the investigative measures or of specific violations of the former lawmaker’s constitutional rights.

The investigation aims to establish the origin and destination of the US$200,000 that Espert allegedly received from a Guatemalan company linked to Machado, who is under investigation in the U.S. for alleged offenses related to drug trafficking and money laundering.

The defense had challenged several aspects of the investigation, including witness testimony obtained without prior notice to Espert’s lawyers, requests for financial and asset information, and the use of intelligence reports and electronic device analyses. 

Appeals Court judges Néstor Pablo Barral and Alberto Agustín Lugones concluded that the defendant had failed to demonstrate specific harm warranting the annulment of the proceedings.

With information from Ámbito