Federico Andrés Machado pleaded guilty in the United States to conspiracy to commit money laundering and conspiracy to commit wire fraud, according to court documents filed in the Eastern District Court of Texas.
Machado was in Guatemala between 2016 and 2020, a period during which held meetings with then-president Jimmy Morales, government officials, mayors and investors to promote mining, railway, port and real estate projects in the country.
The guilty plea was announced on May 18. According to the indictment presented by the US Attorney’s Office, Machado conspired with other people to carry out financial transactions linked to money from electronic fraud between 2010 and May 5, 2021.
The file indicates that the operations sought to “hide and disguise the nature, location, origin, ownership and control of income” derived from illicit activities.
Court documents identify South Aviation and Pampa Aircraft Financing as companies owned by Machado. The indictment also mentions Wright Brothers Aircraft Title, a company that acted as a trust entity in the investigated operations.
It adds that Machado and others involved agreed to transmit information and move money through financial operations related to an alleged Ponzi scheme, a type of fraud in which the money of new investors is used to pay previous clients, creating the appearance that the business generates real profits.
According to court documents, the scheme operated through negotiations involving aircraft that could not be sold.
One event occurred on February 28, 2019, when South Aviation and Wright Brothers Aircraft Title signed agreements for the alleged sale of an aircraft registered in Japan and belonging to All Nippon Airways since 2010. The file indicates that the aircraft “was unsaleable” because it belonged to that airline company.
Machado signed documents related to refundable deposits and security agreements linked to that transaction.
You could also read: Alleged drug trafficker Federico Machado, who promoted business in Guatemala, will be extradited to the US.
Another event indicated by the Prosecutor’s Office occurred on September 27, 2019. According to the file, South Aviation participated in agreements related to an aircraft located in China and belonging to a private airline. The prosecution maintains that the plane “was unsaleable because it belonged to a private airline and was located in China.”
Subsequently, in December 2019 and January 2020, a company identified as “UC1” managed a loan with a bank identified as “LB1” to sustain the operation. Machado spoke by phone with the bank’s executive director and the registration numbers of aircraft that did not match valid registrations or corresponded to decommissioned aircraft were provided.
On November 12, 2020, Pampa Aircraft Financing and Rusty 115 Corp signed an agreement for the sale of another aircraft that, according to the indictment, could not be sold because it belonged to Air India and “was not for sale.”
The file indicates that the agreement included a refundable deposit of US$5 million and that Machado signed the document on behalf of Pampa Aircraft Financing. Subsequently, according to the indictment, Wright Brothers Aircraft Title transferred US$550,000 to Machado “for use other than the purchase of the aircraft.”
The investigation also indicates that the companies involved used escrow accounts and international transfers to mobilize funds related to illegal operations.
Machado’s relationship with Guatemala
During his stay in Guatemala, Machado assured Prensa Libre that he arrived in the country at the invitation of Guatemalan officials and that he participated as an intermediary between foreign investors and local authorities. According to his version, he held meetings with Jimmy Morales and the then commissioner for foreign investment, Eddy López.
Among the projects he promoted were an interoceanic oil pipeline between Izabal and Santa Rosa, a railway proposal to connect the Atlantic and Pacific oceans, a port project in Puerto Barrios and the construction of the Manatí Tower, a 37-story building that would be built in Santo Tomás de Castilla, Puerto Barrios.
None of these works received financing or were carried out. Only the Torre Manatí project advanced in the license management phase to begin construction.
Machado also stated that he operated the Minas del Pueblo mining project, in Alta Verapaz, after managing agreements related to the Finca Argentina, linked to the National Mortgage Credit of Guatemala. However, the former president of that entity, Luis Velásquez, assured that during his administration no negotiation of the sale or lease of the property was completed.
The first accusations against Machado
U.S. authorities initially implicated Machado in an investigation related to an alleged conspiracy to traffic cocaine.
Argentine deputy Rodolfo Tailhade stated during a plenary session held on February 12, 2025 that aircraft linked to Machado were used to transport cocaine from South America to the north of the continent and that part of the laundered money would have been used to finance political campaigns of Jimmy Morales and Alejandro Giammattei in Guatemala.
The Court of the Eastern District of Texas indicated that Machado illegally registered hundreds of aircraft that were later used by drug traffickers to transport illicit drugs. The accusation adds that at least five aircraft linked to Machado landed in Guatemala between 2019 and 2020.
In October 2025, Argentine deputy José Luis Espert, who was a candidate for President Javier Milei’s party for Argentina’s legislative elections, was also linked to Machado. According to Argentine media, Espert acknowledged that he met Machado in 2019, when he offered him logistical support and a plane during his political campaign.
Espert also admitted that a company linked to Machado, Minas del Pueblo, paid him US$200,000 in February 2020 for advisory services. The economist assured that the payment was legal and related to private activities.
A week after Espert’s statements, Machado was extradited to the United States where he decided to collaborate with the American authorities and pleaded guilty. He is now accused of the crimes of conspiracy to commit money laundering and conspiracy to commit electronic fraud.