Federico Machado Found Guilty of Money Laundering and Electronic Fraud

Federico "Fred" Machado was found guilty by a federal court in the United States for conspiracy to commit money laundering and electronic fraud. The sentencing will be determined by the court. Federal Judge Amos L. Mazzant III approved the recommendation of Magistrate Don Bush, following Machado's admission of responsibility in a plea agreement with the prosecution. Initially, he had pleaded not guilty but later changed his strategy and accepted the charges, acknowledging that he had raised millions of dollars from investors through the alleged sale of non-existent aircraft. The schemes were carried out from Florida through South Aviation Inc. and Pampa Aircraft Financing, supported by a company in Oklahoma City. Investigators claim that Machado obtained millions through transactions that never materialized, as the offered planes were never delivered. As part of the agreement, the prosecution dropped the charge of international drug trafficking, leaving Machado convicted only of electronic fraud and conspiracy to commit money laundering, with maximum penalties of up to 20 years in prison. The investigation also includes a transfer of $200,000 to José Luis Espert, linked to a plane used by Machado. The defense seeks to have the time Machado spent in a private jail and under house arrest counted toward his sentence.

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