The administration of Argentina’s President Javier Milei announced on Tuesday its decision to extradite Argentine businessman Fred Machado to the United States, where he faces charges of drug trafficking, money laundering, and wire fraud. This development marks a significant moment in a politically charged case that has implicated a key ally of the libertarian president. Machado, who was apprehended in Argentina in 2021 after fleeing charges in Texas, is accused of orchestrating a conspiracy to traffic narcotics by allegedly using shell companies to register planes, exporting them to criminal organizations in Latin America, and facilitating multi-ton cocaine shipments into the U.S. Machado has denied all allegations. The case gained national attention last week when documents revealed that José Luis Espert, a prominent member of Milei’s Libertad Avanza party, received a $200,000 payment from Machado in 2020. Espert admitted to accepting the funds, claiming it was for consulting work, but withdrew his candidacy for the upcoming midterm elections, asserting his innocence. The scandal has intensified political pressure on Milei, who has faced recent setbacks, including a significant loss in a provincial election, a bribery scandal involving his sister, and congressional votes that overturned his vetoes and increased social spending. Since assuming office in late 2023, Milei has implemented stringent austerity measures, successfully eliminating Argentina’s fiscal deficit but failing to deliver the promised economic recovery. With midterm elections approaching, Milei aims to expand his congressional minority to advance his economic reforms and stabilize investor confidence, which was shaken by his party’s defeat in the Buenos Aires provincial election, leading to a peso sell-off and bond market volatility. Milei’s government is seeking support from U.S. President Donald Trump, with Treasury Secretary Scott Bessent pledging financial assistance, though details remain unclear. Milei is scheduled to meet Trump at the White House on October 14 to discuss further collaboration.
Argentina to extradite to US a suspected drug trafficker with ties to President Milei’s ally
