Financial Crime World

Title: Federal Court of Appeals Reverses Dismissal of Money-Laundering Charges Against Vice-President Fernández de Kirchner in Argentina

Background

  • The Federal Court of Appeals in Argentina has overturned a ruling dismissing money-laundering charges against Vice-President Cristina Fernández de Kirchner in the high-profile case known as ‘Ruta del dinero K’ or the ‘K money trial case’.

The Decision

  1. The appeal was filed by Bases Republicanas Civil Association, an NGO.
  2. Judges Mariano Llorens and Pablo Bertuzzi ordered a re-opening of the probe by Federal Judge Sebastián Casanello.

Dissenting Opinion

  • Judge Eduardo Farah dissented against the majority, sustaining the original dismissal.
  • His opinion was ultimately outvoted.

The Investigation

  1. The investigation centers around corruption and money-laundering offenses allegedly committed between 2003 and 2015.
  2. Lázaro Báez, a former bank cashier and Kirchnerite ally, is reported to have created a major business empire in Santa Cruz Province during the Kirchner administrations through his Austral Construcciones firm.
  3. The investigation has already resulted in the conviction of 17 individuals, including Báez, his son, and a whistleblower.

Court Ruling and Concerns Raised

  1. The Federal Court of Appeals’ ruling casts doubt upon Judge Casanello’s conclusion that there was insufficient evidence to indict Fernández de Kirchner.
  2. The magistrates criticized the assessment of evidence in the previous consent to the case’s dismissal by prosecutor Guillermo Marijuan.
  3. They highlighted the following concerns:
    • Marijuan did not take into account evidence from counterpart Diego Luciani in another public works fraud investigation.
    • The admissibility of witness statements from former Kirchnerite government officials turned whistleblowers in other corruption cases was questioned.

Fernández de Kirchner’s Response

  • Fernández de Kirchner, who has consistently denied the allegations and maintains her innocence, expressed deep concern over the independence of the Judiciary in a fiery statement.
  • She claimed that the court was succumbing to political pressure as former president Mauricio Macri, her political adversary, was cleared in an espionage trial on the very same day as her setback.

Case Developments

  • The re-opening of the investigation into the controversial case is being ordered.
  • Allegations regarding public works graft and tenders given by Fernández de Kirchner’s government to firms owned by Báez are also being investigated.
  • Despite Casanello’s earlier ruling stating a lack of merit, the new development casts doubt upon the outcome of the investigation.