MercoPress. South Atlantic News Agency

Hedge funds target laundered funds in Nevada by close associate of the Kirchner family

A smiling Baez with members of the Kirchner family in Santa Cruz. Cristina Fernandez with dark glasses

The American Task Force Argentina (ATFA), an organization which unites several bond holders from the Argentine default of 2001, questioned on Thursday the “lack of transparency” within President Cristina Fernández administration, during a video conference with reporters.

 The ATFA includes within its members NML Capital and Elliott Management, part of the so-called 'vulture funds'. These hold-out investors demand full payment on Argentine titles through the US court system, a move strongly resisted by the Argentine government, that restructured the vast majority of the nation's external debt through bond swaps held in 2005 and 2010.

The organization drew attention to alleged “recent news regarding Lazaro Báez, a close member and person of trust of Cristina Fernández, who is using the State of Nevada to launder stolen Argentine funds.”

One of its members explained the group seeks a court order “to demand from 123 companies affiliated with Báez, the production of documents that could help with the localization of stolen state assets, which belong to Argentina.”

“The connection between Báez and the Argentine President are well known”, the ATFA remarked, while recalling that the suspect is under investigation for the “misusing of 65 million dollars from public funds, and its consequent transaction abroad, trough companies in Nevada and other places.”

“If Báez is condemned, any stolen fund would be under Argentina’s domain, and therefore, it could be used to fulfill judicial rulings within the United States, in favor of NML,” the hedge fund led by Paul Singer indicated.

Lazaro Baez in just a few years in coincidence with the Kirchner couple political clout as governor and presidents turned from bank teller to the main public works contractor in the Santa Cruz province, money exchange dealer with accounts in Switzerland, dealings in Belize, Seychelles and other renowned tax havens.

He was also considered the front man for Nestor Kirchner dealings and his companies have several-years room contracts in the Kirchner family hotels in Santa Cruz.

After exposure in the Buenos Aires media, Baez is being investigated in Argentina (at a crawling pace by handpicked prosecutors and judged); in Uruguay for alleged money laundering through the purchase of real estate and in Europe. Now apparently and according to NML hedge funds he has been laundering money in Nevada, US.