Updated on May 19 at 10:00 a.m. to reflect that the judge accepted Machado’s plea bargain
President Javier Milei defended former La Libertad Avanza (LLA) lawmaker José Luis Espert, who withdrew from the legislative race in 2025 after being accused of receiving money from an alleged drug trafficker, after United States prosecutors dropped charges against the man.
Argentine businessman Federico “Fred” Machado was facing charges of drug trafficking, money laundering and tax fraud in the U.S. when the scandal broke out, leading to Espert dropping out from the congressional race after U.S. investigators revealed that the libertarian politician had received US$200,000 from a trust owned in part by Machado in 2020.
On Sunday, La Nación newspaper reported that Machado reached an agreement with prosecutors to drop the drug trafficking charges in exchange for pleading guilty to money laundering and tax fraud, a deal that was later accepted by the court.
The arrangement means that Machado avoids facing a jury trial for drug trafficking.
