Jorge Oscar Chueco, the lawyer with close ties to businessman Lázaro Báez who was arrested in Paraguay on Monday, is set to testify today before Federal Judge Sebastián Casanello regarding the money laundering scheme also known as the “K Money Trail,” which several high-profile Kirchnerite politicians such as former Presidents Néstor and Cristina Kirchner are accused of having orchestrated.
Why is Chueco so important? Chueco is accused of having been instrumental to the massive money laundering scheme allegedly led by Báez. Chueco was allegedly the “legal brains”: he is the official owner and legal representative of SGI, known as “La Rosadita,” a financial company through which Báez allegedly laundered money in and out of Argentina before transferring the shares to a Swiss company.
Chueco went missing on April 14th and Casanello issued a national and international warrant for his arrest. He was found in Encarnación, Paraguay, on Monday and arrested for not carrying any form of identification on his person. At the time of Chueco’s arrest — and upon an inspection of his hotel room — police found an empty bottle of wine and a plastic pill wrapper for clonazepam, which was also empty. In addition, he was “very dizzy” and had been seen trying to jump off a balcony. Casanello ordered a medical check up in order to determine whether or not Chueco was able to testify.
It is expected that he will present a written statement and not answer any questions. On the other hand, there is the possibility that Chueco could invoke the Repentance Law, which is essentially a plea bargaining, and seek to reduce his sentence by naming more important players in the scheme.
Furthermore, it is likely that he will remain in jail as a preventive measure, as his escape to Paraguay and apparent attempted suicide is a clear precedent for considering him a flight risk.